A Young Couple’s Plan: Save A Salary
20 July 2006I thought this was an interesting goal by a young couple whose plan is to be millionaires:
Paul, 25, and Audrey, 24, have already socked away more than $125,000. Audrey is an accountant, and Paul, who attended college on an Army scholarship, currently is serving as an Army officer.
At the rate they’re saving, the Yazbecks will be millionaires well before retirement. But they’re setting their sights beyond the millionaire mark.
The article continues:
The couple intends to have children down the road, and they’d like to have the option of having one parent stay at home in the future.
They saved $50,000, or about Paul’s entire paycheck, last year and are setting a similar target for 2006.
Besides shaving everyday costs by brewing coffee at home and bringing their lunch to work, they also act on every saving opportunity.
In essence, by cutting costs and having two people working, they’ve managed to have one person working to pay for their expenses and one person working to save money for retirement. The other upside is that by living within the means that a single spouse’s salary can provide, they’ll easily be able to meet their goal of having one parent stay at home when they have kids. It will cut down on their savings for at least a few years, but by then they’ll have several hundred thousand socked away, gaining the benefit of compound interest.
This strategy becomes less feasible as you get older, because of the increased expenses associated with having children - but if you can do it for four or five years when you’re young, you’ll have a nice nest egg that would easily grow to make you a millionaire before retirement.
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One Response to “A Young Couple’s Plan: Save A Salary”
July 28th, 2006 at 11:47 am
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