No matter what your age right now, the spending decisions you make today can affect how much money you'll have available to live on after you retire. Every dollar you spend today is a dollar you're not saving and investing for retirement. By taking a good look at your current spending, you might find ways to free up cash that you can use to build your nest egg.

Get to know not only how you spend your money, but how much value you get for the money you spend. Your goal should be to not only spend less, but also to spend better — by redirecting your money toward things that fulfill you the most today and will help you enjoy financial security and peace of mind tomorrow, after you retire.

The small stuff adds up

Here are a few examples of how small reductions in spending can lead to big advantages in the long run.

• If you normally eat lunch out on workdays, brown bagging once a week can save you around $12 weekly. That adds up to $576 a year if you work 48 weeks a year.
• If you eliminate a $1 can of soda or candy bar each day, you'll cut spending by $365 per year.
• By switching to a cable or satellite TV package with fewer channels, you could save around $20 a month, or $240 a year. You might be able to save more by cutting out cable or satellite entirely in favor of free, antenna-based TV or one or two of your favorite streaming services.

Let's say you manage to reduce your spending by $200 a month. If you invest that amount and earn six percent annually on your investment, after 20 years, you'll have a pot of money worth more than $91,000.

Spend mindfully

Whenever you feel the urge to buy something, especially if it's a large, discretionary purchase, ask yourself:

• Do I really need it?
• Do I have to have it now?
• What will happen if I don't buy it now?
• Why have I gotten along without it up to now?
• If I use a credit card to make this purchase, how much will it really cost by the time I pay it off?
• Are purchases like this more important than my financial security and satisfaction throughout retirement?

Want more tips and guidance on reducing your spending? Call an Ernst & Young LLP (EY) financial planner.

This material is provided solely for educational purposes; it does not take into account any specific individual facts and circumstances. It is not intended, and should not be relied upon, as tax, accounting, or legal advice.