Yahoo Finance I’m a Self-Made Millionaire: Here’s What I Spend Each Month
Steven and Lauren Keys of Trip Of A Lifestyle aren’t your typical millionaires. This young couple, who run the online tutoring platform CramBetter, hit seven figures before 35 — and they did it by pinching pennies, not raking in huge salaries. Now, they’re pulling back the curtain on their monthly expenses, both before and after early retirement.
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“For us, the key to saving over a million dollars was frugality,” Lauren told GOBankingRates. “We didn’t have massive Silicon Valley salaries, so we just found ways to cut our costs along the way to financial independence.”
Here’s what these two self-made millionaires spend each month.
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Before Early Retirement: Living on a Shoestring
During their wealth-building years, the Keys kept their expenses remarkably low. Here’s what their monthly budget looked like:
Rent: $800
“We lived in a one-bedroom apartment in a suburb near Orlando, Florida,” Lauren explained.
Food: $400
“Thanks, Costco and Walmart!” Lauren shared. Bulk buying and budget stores were their go-to.
Utilities/Phones/Internet: $230
The couple got creative here. “We split a family phone plan with parents and got a sweet intro offer on internet service,” Lauren said.
Transportation: $180
This covered gas, bare-bones car insurance and DIY repairs. “YouTube and family helped a lot with maintenance,” Lauren shared.
Health Insurance: $0
They benefited from employer-provided coverage during this phase.
Other Expenses: $200
“We’re big fans of free outdoor entertainment,” Lauren said.
Total: $1,810 per month
“On the path to early retirement in our 20s, our total household expenses hovered between $18K — $26K per year, combined for two people,” Lauren said. That’s a jaw-dropping savings rate that propelled them to millionaire status.
Life After Early Retirement: Still Frugal, But More Flexible
You might think hitting the million-dollar mark would lead to looser purse strings. Not for the Keys. Here’s what they’re spending now:
“In more recent years, we’ve spent somewhere in the $30K-$40K per year range, combined, as our net worth has continued to grow past a million dollars,” Lauren said.
The couple admits they’re less strict about tracking every penny now. “We don’t track our spending closely, and even though frugality is less of a concern for us now, it’s also just second-nature for us at this point,” Lauren explained.
But don’t think they’re depriving themselves. “We feel like we live a very lavish lifestyle,” Lauren said. “In fact, we travel for several months at a time each year.”
Here’s a breakdown of their current monthly expenses:
Housing: $566
Even with their condo paid off, housing remains their biggest expense. About two-thirds of their housing costs are condo association dues. The rest goes to property taxes, homeowner’s insurance and home improvements.
Healthcare: $557
Most of this money goes to insurance premiums, with a small amount for out-of-pocket medical expenses.
Food: $456
The Keys split their food budget between groceries and eating out.
Utilities: $249
This covers electricity, cell phones and home internet.
Transportation: $214
The couple shares one car and loves road trips. This covers gas, insurance and maintenance.
Other: $307
This includes travel, entertainment and miscellaneous expenses. The couple are big fans of high-value, low-cost investments, like State and National Park passes.
Total: $2,349 per month
The Bottom Line
At the end of the day, this couple’s lifestyle is all about living frugally and accumulating experiences — not things.
“Now that we’re millionaires, we still live pretty frugally, because we learned that increased spending isn’t necessary for increased happiness,” Lauren said. “A combination of low expenses with high savings allowed us to quit our jobs and retire early.”
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This article originally appeared on GOBankingRates.com: I’m a Self-Made Millionaire: Here’s What I Spend Each Month
