Last week, we had a little fun and created a post titled, ‘10 Signs You’ve Taken Frugality Too Far.’ But, since then, we’ve stuffed our bellies with Halloween treats and are back to looking more seriously at the incredible #FrugalSuccess stories around us.
Learn How One Couple Has Saved $175,000
This Monday, we came across a story worthy of applause. A young couple, Bryan and Katie Phelps, have saved a grand total of $175,000 after 5+ years and they continue to add about $2,600 to the pot every month. This may have taken longer than some of our other #FrugalSucess stories, but their consistency and dedication are simply outstanding.
Let’s take a closer look at their situation, how it evolved, and even where they “splurge” / reward themselves today:
- Bryan and Katie marry early – at age 21 – when Katie is just a senior in college and Bryan is working full time and taking night classes. They realize even at this early point that they need to start being smart money-wise and establish a budget and savings target.
- Katie gets her first job as a graphics designer for $35,000 / year. Smart move: Katie makes sure to max out her 401K contribution. Bryan is earning $25,000 at a data-entry position. Smart move: Since Bryan’s company does not offer a retirement account, he opens a Roth IRA and contributes the full amount.
- Bryan moves to another career and ends up with a higher salary, at $80,000 / year. Smart move: Both Bryan and Katie track their expenses using Mint.com and plan ahead knowing they wanted to live off of one person’s salary.
- Katie gives birth to their first sons and quits her job, as discussed and planned. Bryan additionally took on extra consulting work to being in extra money.
- They save a total of $100,000 after 5 years of marriage, which they say was the hardest milestone. Frugal, but they still splurge: Cars are Bryan’s major weakness, and the couple owns two cars – a 2012 Audi A6 and 2011 Ford Explorer. However, Bryan explains they paid cash for both vehicles which free them from making car payments. Smart move: The couple set up subaccounts in their online savings account in order to regularly direct money towards their passions (e.g., cars, home décor, crafting, etc..).
- Today, Bryan and Katie have about $127,000 in retirement accounts and $50,000 in liquid savings.
To read their full story, click here. Hopefully their #FrugalSuccess story has given you some ideas or inspiration.
How are you currently working towards your savings goals?