You don’t have to stay where you are for the rest of your life, and a couple that went from living in their car to a $1 million net worth embodies this idea. The couple got into a bad financial situation when they were both laid off a few weeks apart in 2008. Then, with no salaries and student loan payments to make, they had to live in a car.
The situation looked grim, but the couple recovered and put themselves in a good financial position. They recently shared how they did it in the Dave Ramsey subreddit.
“I managed to find a low-paying but stable job,” the husband explained.
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Here’s how you can apply the couple’s lessons to your financial situation so you can achieve long-term goals.
You Have To Start Somewhere
The husband doesn’t work at the same job he took during the Great Recession, but it gave the couple a start. That job allowed them to rent out a garage and get back on their feet little by little.
There wasn’t a quick and dramatic rise to the top. The couple learned about Ramsey’s baby steps financial formula for getting out of debt and building wealth during this time. They took advantage of coupons and discounts wherever they could find them while living “insanely frugal.”
The first job you get probably won’t be your dream job. It may take a few years before you earn a six-figure salary, and even that’s not guaranteed. Taking a low-paying job lets you get your foot in the door. You might be chosen for internal promotions if you overachieve at your company, but job hopping is another alternative that can introduce you to a higher salary after you’ve built some work experience.
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Climb The Corporate Ladder
The Redditor mentions that he climbed the corporate ladder for more than a decade to boost his salary. Growing your salary makes it easier to cover various costs, like student loans, mortgage payments, cars, and credit card debt. The couple is debt-free because of their commitment to climbing the corporate ladder.
It’s easier to play it safe and stay at a stable job, but this mentality can significantly limit your earnings. You may find better opportunities at another company, but before you consider that route, it’s worth asking for a raise and seeing if you can get promoted within the company.
You will have to build your network, regularly apply for new jobs, and get good at negotiating to ascend the corporate ladder over time. This couple stayed the course for more than a decade to reach their current level.
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Live A Frugal Lifestyle
Staying below your means requires making some sacrifices. You may not be able to go on luxurious vacations, and buying used cars may be the norm. However, it was a key component for the couple’s long-term success and happiness.
Being frugal can also reduce your financial stress since you are letting fewer expenses into your life. The husband summed up the long-term benefits of his frugal lifestyle in one of the comments.
“Being frugal paved the way to an amazing life with an amazing wife and two great kiddos. We spent on what we considered value add for our future and our lifestyle, and really have enjoyed life to its fullest and intend to do so. We are a family who loves to travel, be on the road, and explore new things. We are constantly on the road, doing what we love. I was able to afford this lifestyle because we are frugal and smart with money.”
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