Financial blogger Matt and his fiancee, who asked to withhold their last names, went from living paycheck-to-paycheck to banking more than $50,000 in 2016.
“Our choice of living has been, from a numbers perspective, the biggest factor when it comes to doubling our savings rate in 2016 and helping us build wealth rapidly,” Matt writes on his blog, “Distilled Dollar.”
“We live in a neighborhood where most of our neighbors are paying a higher percentage of their income towards rent,” he writes in a separate post. “Of course, we could pay the same percentage and upgrade to a nice two-bed/two-bath, but we’re more than happy with where we live today.”
They pay less than 15 percent of their income for their 700-square-foot condo in Chicago. They estimate that they save about $12,000 a year, “seeing as how we could easily afford paying an extra $1,000 a month,” says Matt.