How Extreme Savers Can Retire By 40

NEW YORK (MainStreet) —Financial advisers have long recommended saving between 10 and 15% of your income for retirement. For a growing number of people around the world, that just isn't enough.

Instead, these extreme savers have decided to save half or more of their income to get on the fast track to financial independence. While the average American family has a savings account of just $3,800 and a quarter of American families have no savings at all, these men and women have found some key habits to avoid the trap of living paycheck to paycheck and struggling with high credit card debt.

Housing, Transportation Choices Key

While a lot of personal finance gurus focus on things like the "latte factor," extreme savers focus on the big things like housing and transport, says Olivia Campbell, who saves around 75% of her $90,000 salary. "I don't have much interest in cutting down on little expenditures," Campbell says. "They really don't add up that much, and its often little things like the coffee with a friend that add a lot to your happiness." Instead, Campbell keeps housing and transport costs low.

Also see: Top 5 Food Trends for Spring 2013

So does U.K.-based Chenda Forrest, who credits her housing situation for her 50% savings rate. "I live in a small shared flat close to local amenities, which means I can live without a car," she says. "It seemed such a waste of my working hours to have nothing to show for it. A 50% saving rate always seemed a simple goal to have; whatever I spent I banked."

Even in unwalkable neighborhoods, extreme savers find a way. Suburbanite Stephanie Williams saves about 65% of her $34,000 yearly salary, crediting her lack of a car and shopping ingenuity to her success. "I found a used dog stroller on Craigslist that I use to cart home 20 pound bags of rice and flour from Costco rather than take a cab or buy smaller bags at a higher price," she says. While that may sound extreme to some, Williams says she doesn't care, because she's on track to retire before 40. "Work is overrated. I would rather spend my life traveling and pursuing my hobbies than chained to a desk," she says.