Learn how to save billions extremely quickly from the couple below

In just over 3 years, an American couple saved a million USD (22 billion VND) by cutting expenses and increasing income.

Photo: Mr. and Mrs. 1,500

In 2013, Carl and Mindy decided to get serious about their savings goals. Carl, a 39-year-old computer programmer, found work stressful. While he enjoyed the pressure of work at a young age, he didn’t want to stay that way until he was in his 60s, the age when most people typically retire.

With the idea of ​​retiring early, this couple with two children set a goal of having $1 million and no debt by February 2017, so they could retire at age 43. They reached their $1 million goal in April this year, 10 months ahead of schedule, and are aiming for $1.12 million by February next year, when they officially retire.

To make their dream of early retirement a reality, the couple first figured out exactly how much money they needed to retire comfortably. They began by analyzing their spending habits and figured they spent about $24,000 a year. To be safe, they added another $6,000, bringing their annual need to $30,000. With that spending, they needed $800,000 to retire comfortably with no debt. However, because they wanted to support their children’s college education, Carl estimated they needed $1 million.

In 2013, they had $570,000, so Carl and Mindy committed to investing a minimum of $2,000 a month for their retirement. Here are their tips:

Track expenses and cut spending

In order to be able to spend at least $2,000 each month, the couple realized they needed to cut back on spending, and this was something they needed to do immediately.

They record every expense, down to the pennies spent, so they realize how much money they are spending and how much they have left to save.

“We started taking notes and were like, ‘Wow, we spent this much on food?’… Then we looked at each category and found ways to cut back,” Carl shares.

Live simply

After deciding to retire early, they sold their 5,000-square-foot house in Wisconsin and bought a 1,500-square-foot condo in Colorado. "We realized that losing 3,500 square feet didn't have much of an impact on our happiness."

In addition, living in Colorado also helps them save more because the costs here are relatively low.

Focus on increasing income

In addition to his main job that brings him a high income, Carl also writes smartphone applications, repairs homepages... Mindy, who used to stay at home to take care of the children, now writes articles about real estate. They plan to continue doing these side jobs after they retire.

They also made other smart investments, for example, the apartment they bought was only $176,000 but now it is worth more than $400,000. They invested in the stock market. They did not choose individual stocks but invested in a fund and successfully bought 2,000 Facebook shares. When they bought, Facebook shares were only $30, now they are $120.

“Most of us don't work more than 40 hours a week, so you can take up driving for Uber or renting out a room in your house for short periods to supplement your income,” Carl suggests.

Change the way you think about money

They understand that they don't need that much money. Their quality of life hasn't changed since cutting back. They cut out cable TV, they don't need expensive landline phones... Since cutting out those things, they haven't missed them because they really don't mean much to them.

According to VNE