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Ali and Josh Lupo took a serious look at their financial situation in 2017, the year before they got married, and found themselves owing over $100,000 in student loans.
Courtesy of FI Couple
Despite a long and hard time in human services, the couple were still living paycheck to paycheck and didn’t know how to pay off their wedding expenses and huge debts.
“So we started having conversations like, ‘Is this what you want to do for the next 30 or 40 years, or do you want to start learning to live differently?’ This is where the idea of the entrepreneur.
The Lupos started tracking their expenses and found that they spent most of their income on rent and car payments, followed by food and dining out. What is their first attack plan? Tight Budget Implementation: No date nights, no Netflix subscriptions, etc.
But the extreme approach quickly burned the couple up, so they went back to the drawing board.
Self-taught to the solution (Ari highlights how many online resources, podcasts, and books about financial freedom exist). If the Luposs purchased a multi-family home with a low down payment, renting out another room could significantly reduce their monthly payments.
That’s exactly what they did.
Since then, the Lupo family has continued its journey to financial independence. They manage numerous streams of active and passive income, including their work as personal finance content creators running the educational platform ‘The FI Couple’.
If you’re ready to get your finances on track in 2023, read Lupos’ step-by-step strategy.
define what success means to you
The first step is the foundation for all the rest. Figure out your own definition of success.
Couples suggest considering what your ideal day and life might look like. please.
“Our life was ‘easier’ when our heads were in the sand and we ignored all things financial,” says Ali. “Our lives are now more complex and difficult because they are more in tune with all the responsibilities that come with this. But having power and autonomy over our time is worth it. because it is worth [you have to be] Please clarify why. ”
Related: How to train your brain to reach the highest levels of success
Build a community to help maintain your course
The road to financial freedom can be arduous, but it’s even harder for those who go it alone.
According to Lupos, finding a community dedicated to financial wellness can make a big difference.
“Unfortunately, being financially savvy is not common,” says Josh. A person with a heart is really inspiring. ”
Related: Key Benefits of Building an Online Community
Know Your Numbers: Income, Expenses, Assets, Liabilities
Do you have another important move? Make sure you fully understand the reality of your financial situation.
As of September 2022, US consumer debt was $16.5 trillion, according to Bankrate. But many Americans don’t know how much they actually owe. According to her US News survey in 2019, 1 in 5 of her Americans don’t know if they have credit card debt.
Lupos emphasizes the value of familiarity. all of your numbers.
“It’s about literally outlining and understanding your income, expenses, assets, and liabilities,” Ali explains.
Related: 5 Strategies for Entrepreneurs to Avoid the Debt Trap
Think of ways to spend less and increase your income
Then think about how you can save and make more money — “Two big levers a person can pull,” says Josh.
The couple admit that significantly increasing their income may seem difficult at first, but the key is to get creative.
“We decided to focus on ways to significantly reduce spending and increase savings,” says Josh.
“If you can earn more and spend less, the difference will be even greater. How you manage that difference is the key to becoming financially independent.”
Never underestimate the earning potential either.
“Coming from a background in social work and welfare services, historically low-income opportunities, we have long identified ourselves as human beings. [whose] slightly lower value [thought] I simply didn’t think about making more money,” says Josh. [the key is] It’s about avoiding the right people and understanding different means of opportunity. ”
Related: 10 Ways to Make Money While You Sleep
Consider which strategy best fits your lifestyle
It’s not enough to just brainstorm a solution and go all out. Part of the trick is choosing an approach that aligns with your values and priorities.
Real estate investing has been the cornerstone of the Lupos family’s success, but they recognize that it’s not for everyone.
“The goal of financial independence is to have enough assets to cover your entire living expenses,” says Ali. “So you have to [ask], What strategy makes sense for me? Want to invest in stocks? Want to invest in real estate? Want to become a business owner?“
“We talk to people all the time,” she continues. “They say, ‘I want to buy real estate.’ But when I talk to them, I’m like, ‘It doesn’t sound like you want real estate. Because it’s a thing,” he said.You really need to think about which investment strategy makes sense [your] life. “
Real estate is not always “passive”
Again, neither are 40-50 hours a week at work
A “hard” week is still only 2-3 hours of work, at least for real estate
— Theficouple (@theficouple) December 11, 2022
But maybe the most important thing to remember? Don’t forget to enjoy your journey to financial freedom.
“When we first started, it felt like a chore,” Ali says. I have learned that it is really important to be sustainable in whatever you do and not sacrifice your quality of life to achieve it. [your] goal. ‘Cause once you reach your goal, what kind of life will you have? ”
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