Do you ever hear about couples who pay off their debt fast?
Like this couple who saved $100K per year, retired by 30, and now travels the world.
Or this couple who paid off $85K in debt living in a pricey city.
Or this couple who paid off $72K in less than 2 years.
There are few things more frustrating than working hard, sticking to your budget, saving properly, and STILL being stuck in debt. Many couples who feel this way have adopted the, “Starve & Stack” method of budgeting. And, don’t worry, it doesn’t involve going on a juice cleanse.
- Combine finances and create a joint bank account
- Only live on one income while putting 100% of the other income in savings
- Do this for 18 to 24 months
The idea behind this is that you will be able to efficiently save enough money to pay off debt as a team. By living off of only one income, you will be able to save a lot of money, fast. You will have to live a fairly frugal life, but the payoff will be worth it.
Of course, this method isn’t for every couple. For some people, this may not even be financially possible. If you’re going to be putting yourself in a bind and be unable to pay necessary bills, try putting away 50-60 percent of one persons income away if you can. Find a percentage that works for you and your lifestyle. Remember, this will only be for 18-24 months and will allow you to reach your goals fast and efficiently.
Jen Smith, of The Penny Hoarder, is living proof that this method works. “My husband and I paid off $78,000 of debt in two years, and the Starve and Stack method is one reason we were able to hit our big money goals,” she explained.
How to stick to it:
- Many opt for moving to a small, one-bedroom apartment to save on rent
- Learn to say no to unnecessary purchases
- Plan free date nights and inexpensive activities
- Make extra money working a side-hustle from home
The “Starve & Stack” method may just be what gets you and your partner out of a financial rut. Think of it as a fun challenge to live as minimally as you can for a short period of time. It will be tough, but the payoff will be so worth it!
Would you consider living on 1 income for 2 years? Let us know in the comments!