Lauren and Steven Keys built a million dollar portfolio from scratch, which prepared them to quit their full-time jobs in their 20s and pursue various side projects and creative work.
Steven, a former high school physics teacher, told Business Insider: “That’s what drove us to be financially independent. That’s what allowed us to save so much money. “
This Florida couple says that, ten years ago, their annual expenses did not exceed $26,000. That allowed them to save most of their money, even at the beginning of their careers, when their salaries were $40,000 each.
That’s far less than what the average American family spends — $72,967 annually, according to the 2022 Consumer Expenditure Survey by the Bureau of Labor Statistics — but the couple never they feel shut out.
“Honestly, we made some sacrifices on our trip,” Steven said, noting that they never budgeted or tracked their spending. Nor did they begin their journey to financial independence by asking, “How much should I save?” Instead, “the whole philosophy we’ve taken from the beginning is: How do we build a happy life with a low income?”
The plan worked for the Keys, who describe themselves as frugal by nature.
“We found that we were very happy making about $18,000 to $26,000 a year combined,” he said, noting that their attitudes didn’t change as their incomes increased downward. and age: “We thought, there’s no reason to spend more money if we do that. than if we’re already happy.
How to spend small and live large
The goal of their savings plan is to keep the three main expenses – housing, transportation and food – as low as possible. That gives them room to spend more on other areas that are important to them, including travel.
The couple, who met in high school, have lived together and benefited from sharing expenses since college. They split the rent on the one-bedroom apartment before they bought their first home with cash, which reduced their housing costs (not eliminating them completely, as they still owed mortgages of condos and maintenance and upkeep costs). They also share a used car and cook 90% of their meals.
The Keys have visited every National Park in the United States. Courtesy of Lauren and Steven Keys
As for recreation, “You can choose your leisure activities,” Steven said. “If your hobby is drinking eight beers at a bar every weekend, it’s going to be harder to save money than if your hobby is cycling.”
That said, Lauren added that there are ways to socialize on a budget: “Instead of going out, you can have friends at your house. There are ways to make that let your works be cheap.”
The couple saved the expenses of their hobbies and sometimes even found ways to make money from them. For example, their enjoyment of nature photography turned into a low side hustle that went beyond covering the cost of goods.
“We found that doing this is a fun thing that we already love to do and search doing it can also make us money. “In fact, it has made us a lot more money than it originally cost us,” said Steven. Yes. Can you do the exact same thing and get on with it? Again, yes. So why don’t you choose it?”
One of their hobbies, a card game called “Magic: The Gathering,” is not known for being cheap, Steven said: “They’re expensive cards. and if you’re good at the game and can win tournaments, it won’t cost anything to Play Magic: The convention, in general, throughout my life, has made me money, not paid me anymore.
Regardless of your financial goals or where you are on your journey to financial freedom, think about how you feel about saving money. Although the word “save” may have a negative connotation,
As Steven says, “Saving money gives you more choices and options in life.”
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