Imagine starting with more than $180,000 in debt. Now, picture turning that into a million-dollar net worth—all before your mid-thirties.
That’s exactly what a Canadian couple, known online as FrugalTrader and his wife, did. Their journey from financial struggle to financial independence offers simple, actionable steps that anyone can follow.
The Debt They Faced
The couple had $184,000 in total debt. This included:
- A mortgage
- Student loans
- Credit card debt
It felt overwhelming, but they took it step by step.
How They Paid Off Debt and Built Wealth
Starting Investments Early
He began investing as a teenager. He’d put away small amounts, like $25 or $50 at a time.
He focused on dividend-paying stocks and index funds. These investments offered long-term growth without high fees.
Living Simply
They lived on less than they earned.
- They saved 20% of their income.
- Any extra money, like bonuses, went straight to debt or savings.
- They cut unnecessary expenses, like eating out or buying coffee daily.
Earning Extra Money
The couple didn’t rely only on their salaries, which totaled around $110,000 per year. They found ways to earn more:
- Working overtime
- Taking on side gigs like consulting
Setting Specific Goals
They decided to pay off all their debt and reach a net worth of $1 million by 35. That clear target kept them motivated.
Tracking Every Dollar
They kept close tabs on their spending and progress. Knowing where every dollar went helped them make smarter choices.
Financial Freedom Achieved
By sticking to these habits, they:
- Paid off all $184,000 in debt
- Built a net worth of over $1 million
- Reached financial independence by age 34
Lessons You Can Use
Their journey shows you don’t need to be wealthy to achieve financial freedom. Here are the biggest takeaways:
- Invest Early: Even small amounts can grow over time.
- Spend Less Than You Earn: Avoid lifestyle inflation, even if your income increases.
- Earn More: Look for ways to boost your income through overtime, freelancing, or side hustles.
- Set Clear Goals: Know exactly what you want to achieve and create a plan to get there.
- Track Your Progress: Use budgeting tools or apps to stay on course.
How You Can Start
You can take similar steps today:
- Invest in Low-Cost Funds: Look for index funds with low fees.
- Cut Unnecessary Expenses: Cancel unused subscriptions or start meal prepping.
- Boost Your Income: Find a side gig that aligns with your skills.
- Set Financial Goals: Write down what you want to achieve and create a timeline.
- Use Financial Tools: Apps like Mint or YNAB can simplify tracking your budget.
Achieving financial freedom may seem overwhelming, but it’s possible if you take it one step at a time. Start small, stay consistent, and remember—every dollar you save or invest is a step closer to your goals.
