Even though they say the best things in life are free, some of the most basic ones definitely can add up. One couple decided to pare down their financial footprint in a big way, reducing their cost of living down to a mere $1,000 per month. Learn what they did — and see if you and your family could do it too.
Click to follow in the Lumbys’ steps and learn how to go from millennial to millionaire.
Vanessa and Jacob Lumby — known as the Cash Cow Couple — were 20-somethings living in West Texas when they first became newlyweds. Like many others their age, they were faced with some serious student debt — and their combined annual income was under $50,000.
“In our first year of marriage, we decided to give ourselves a huge financial challenge,” Jacob said. “I thought we could try to live on about $1,000 a month, and it turns out we lived on less than that.”
The couple had to get creative in order to maximize their savings potential: They purchased a mobile home with cash “for $11,000 and change,” according to Jacob, so their only housing expense was a few hundred dollars a month for a land lease. They also decided to cut down transportation costs and became a one-car household, opting to share their older model Saturn to help keep costs low.
Their stringent attitude even applied to their cuisine.
“We were able to keep our grocery costs pretty low by sticking to what’s on sale,” said Vanessa, “and meal planning after you have already bought your groceries, so you’re not tempted to buy things that you don’t need.”
The Lumbys’ ambitious goal definitely paid off: Within five years of being married, the couple amassed a net worth of over $1 million.
“The point of us living on $1,000 per month, it’s all done within the context of a greater goal,” Jacob said. “And that goal is lifestyle freedom.”
Click through to read about other self-made millionaires.