As with all true masters, the Cash Cow Couple has taken an aspect of life and thoroughly investigated, practiced and overcome its challenges. Because money is such a broad subject, each of the Money Masters that the Debt Free Guys™ have chosen to highlight has a unique perspective or area of specialization.
This week we introduce you to the Cash Cow Couple. They have taken the American Dream and turned it on its head. Their choices in life have made them debt free, stress free and on the road to wealth and prosperity.
1. What’s your story?
We decided that we didn’t want to live the typical American dream. We refused to be swimming in debt or motivated by greed. So, we did our research and decided that we would live a simple life that provided more freedom and less worry. We then paid off $20,000 in student loans in just 7 months through hard work and an extraordinarily high savings rate. We are now actively saving and investing our way to financial freedom.
2. What’s your point of view, as a personal finance blogger?
We believe that you don’t need to be a slave to the corporate grind, working 50 hours per week for the big house, new cars, new clothes, and fancy trinkets, while hopefully saving enough of the remaining income to retire at 65, ready to vacation and enjoy life.
That’s mostly nonsense. It’s possible to live an extremely prosperous life on very little money in America. Most people could easily cut their expenses in half by consciously evaluating spending habits and lifestyle choices.
The most sure path to financial freedom involves cutting expenses, not increasing income. In fact, it’s the only path. It doesn’t matter if you make $300K per year when you spend it all. On the other hand, when you are saving more than 75% of your income, as we do, you start to realize how quickly you can achieve financial freedom.
In order to achieve that astounding savings rate, you have to first leave behind your overwhelming desire to impress others, which has been drilled into your head by the talking pundits on TV. Stop worrying about the doom and gloom “middle class” nonsense that the media loves to talk about. Stop caring about what your rich neighbor thinks about you. Stop buying a bunch of material junk that won’t make you happy. Begin to realize that frugality is where it’s at. It’s hip, trendy, and intelligent.
3. In one sentence, what’s one piece of sage advice from your personal finance background that you’d like to share with our readers?
Leverage frugality to get out of debt and stay out of debt, then begin investing. There is much freedom that accompanies a high savings rate. If you want to find a different job, you can. If you want to take a year off, you can. Frugality will allow you to live a stress free and fulfilling life.
As you can see, the Cash Cow Couple has taken what many Americans complicate and made it simple again. Making savings their #1 goal rather than a big house, fancy cars or an impressive lifestyle, allows them to put 75% of their income towards their future. This is one couple that we will stay connected with. We want to see what their life looks like in 20 years. With a savings rate of 75%, we just might see them on a Forbes list some day.