She Strengthens

Navigating Life’s Milestones without Derailing Your Finances

The Year of Transformation

2017 was a whirlwind of change for me and my wife. We checked off nearly every major life event on the tax software questionnaire: new home, sold home, refinanced home, got married, changed jobs, and started a business. It was a year of overwhelming excitement and anxiety, but with hindsight, I’m proud of how we navigated these significant milestones while keeping our savings rate intact.

The Power of Partnership

My wife played a crucial role in our financial success. She’s not only my partner in life but also in our journey to financial independence. Her frugal nature and ability to find great deals on high-quality items have been instrumental in keeping our expenses in check. Moreover, her faith in our abilities and the future has given me the confidence to take calculated risks and pursue our goals with determination.

One House, One Spouse: A Wealth-Building Mantra

I subscribe to the principle of “one house, one spouse.” While it may not be taken literally, the idea is to minimize the financial burdens associated with frequent moves and divorce. Staying in one house can help you build wealth, avoid unnecessary expenses, and focus on your long-term goals.

Selling Smart

When I sold my condo, I did it myself, saving us a significant amount of money in commission fees. The proceeds went towards paying off my student loans, car loan, and investing in our new home. The takeaway? Learn to negotiate or sell yourself to avoid unnecessary expenses.

Buying Wisely

We bought our new home during the winter season, which allowed us to negotiate a better price. We also strategized our offer, communicated our limits to our agent, and had our closing costs covered. Patience and smart negotiation can go a long way in saving you money.

Refinancing with a Purpose

Our second trust on our home had a variable interest rate loan at 5.00%. We attacked this debt aggressively, paying it off quickly and refinancing into a 3.97% fixed-rate loan. The lesson? Focus on paying off problematic debt with laser-like intensity, and take advantage of favorable interest rates while they last.

The Importance of Alignment

My wife and I share similar values when it comes to money, which has been crucial in our journey to financial independence. We support each other’s goals, reject peer pressure, and believe in our ability to earn more and live below our means. An abundance mindset is essential for achieving financial freedom.

A Wedding to Remember

Our wedding was a beautiful celebration of our love, but it wasn’t without its financial anxieties. However, we prioritized what mattered most – creating memories with our friends and family – and cut back on unnecessary expenses. The takeaway? Spend on what you value, be creative, and remember that the wedding is for your loved ones, not just the two of you.

Travel Hacking 101

We didn’t splurge on a lavish honeymoon immediately after the wedding. Instead, we recovered at home and planned a budget-friendly trip to northern California using our travel rewards points. The lesson? Learn to travel hack, pay off your debt, and enjoy your vacations without breaking the bank.

Career Advancements and Side Hustles

I took on a second job in a niche industry, which brought in higher income and allowed me to max out my Solo 401(k) contributions. We also started an emergency fund and invested in a moderate allocation of bonds and stocks. The key takeaway? Relationships, knowledge, and execution are what people pay for, so focus on building deep connections and developing valuable skills.

Our Savings Rate

After all our efforts, our savings rate for 2017 was an impressive 52%! We achieved this by maximizing our 401(k) contributions, paying off debt principal, and investing in our future.

Gratitude and Perspective

Reaching a 52% savings rate may seem impossible right now, but it’s essential to remember that everyone starts somewhere. Be grateful for the struggle, the work, and the discipline required to get out of debt and build wealth. If you’re reading this, you’re taking the first step towards financial independence.