{"id":186558,"date":"2026-01-20T11:57:03","date_gmt":"2026-01-20T18:57:03","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=186558"},"modified":"2026-01-20T11:57:06","modified_gmt":"2026-01-20T18:57:06","slug":"live-on-half-your-income-saving-strategies","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/live-on-half-your-income-saving-strategies","title":{"rendered":"Can You Live on Half Your Income? Here&#8217;s the Playbook to Ramping Up Your Investment Potential"},"content":{"rendered":"\n<p><span data-preserver-spaces=\"true\">For the last seven years, my wife and I went from basically <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/how-i-went-from-0-to-one-million-dollars-in-seven-years\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">no assets to a roughly $1 million net worth<\/span><\/a><span data-preserver-spaces=\"true\">. And we did it entirely through saving money and investing\u2014not selling a business or inheriting money.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">During that time, we\u2019ve saved 45%-70% of our relatively modest incomes. My wife was a school counselor earning a teacher\u2019s salary, and I\u2019m still growing my business and reinvesting most of the profits.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">How do we do it? And how do other people find their own ways of saving half their income? Here are some strategies.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Automate Your Savings as Your First \u201cExpense\u201d<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">After every paycheck, the first \u201cexpense\u201d to come out of it should be your savings.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Many payroll providers let you split your direct deposit into both your checking and savings accounts. Or you can just set up automated recurring transfers from checking to savings or your brokerage account.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Nowadays, robo-advisors can even pull money from your checking account on the cadence you set. I use Schwab\u2019s, and it pulls money every week and auto-invests it for me.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I also practice <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/dollar-cost-average-real-estate\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">dollar-cost averaging<\/span><\/a><span data-preserver-spaces=\"true\"> with my real estate investments, not just my stocks. Every month, my co-investing club meets to vet a new passive real estate investment. Each member can invest $5,000 or more if they like, and I invest every month from my savings.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Score Free Housing<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">There are many ways to score free housing. Yes, you can <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/newbie-house-hack-duplex\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">house hack with a multifamily<\/span><\/a><span data-preserver-spaces=\"true\">. But that\u2019s far from the only way to do it. Here are some other ways:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">My friend used to rent out her spare bedroom suite on Airbnb. She didn\u2019t even own\u2014she lived in a rented apartment. She found that if she rented it for two long weekends each month, it covered nearly all her monthly rent.\u00a0<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">My business partner used to host a foreign exchange student. The stipend covered most of her monthly mortgage payment.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">When I bought my first home, I rented out a bedroom. It covered three-quarters of my mortgage payment, and I made a lifelong friend.\u00a0<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">When my wife and I lived overseas, her job provided us with free furnished housing.\u00a0<\/span><\/li>\n<\/ul>\n\n\n\n<p><span data-preserver-spaces=\"true\">Get creative and research the many ways to score free housing beyond house hacking.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Ditch a Car<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">When my wife and I first moved abroad, we unthinkingly went to rent two cars. Then we asked a question that would change our lives: Do we <\/span><em><span data-preserver-spaces=\"true\">really <\/span><\/em><span data-preserver-spaces=\"true\">each need our own <\/span><span data-preserver-spaces=\"true\">car<\/span><span data-preserver-spaces=\"true\">?&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">We decided to <\/span><span data-preserver-spaces=\"true\">try sharing<\/span><span data-preserver-spaces=\"true\"> one car for a month as an experiment.<\/span><span data-preserver-spaces=\"true\"> Sure enough, it worked completely fine, especially with one of us working remotely.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">A few years later, we moved to South America, and the free housing was within walking distance of my wife\u2019s school. We asked ourselves a new question: Do we need a car at all?&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">It turns out that we didn\u2019t. For six years, we lived car-free, walking, biking, and scootering and occasionally Ubering.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">When we moved back to the States, we bought a used car, which we currently share. Given that it costs nearly <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/newsroom.aaa.com\/2025\/09\/aaa-new-vehicle-costs-drop-to-11577\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">$12,000 a year to own a car<\/span><\/a><span data-preserver-spaces=\"true\">, avoiding one creates huge savings.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">If you must buy a car, buy a boring, reliable used car that you can drive for decades. It\u2019s not a fashion statement\u2014it\u2019s your transportation expense. And the lower it is, the more you can save to build wealth fast.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Make Nearly All Your Own Food<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">DoorDash and Uber Eats have made it too convenient to order delivery. <\/span><span data-preserver-spaces=\"true\">If<\/span><span data-preserver-spaces=\"true\"> you want to both save money and eat healthier, learn how to cook. My wife and I make enough for dinner that we each have leftovers for lunch the next day.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Sure, we occasionally enjoy a dinner out, but we don\u2019t indulge our lazy instincts <\/span><span data-preserver-spaces=\"true\">to <\/span><span data-preserver-spaces=\"true\">just<\/span><span data-preserver-spaces=\"true\"> pay<\/span><span data-preserver-spaces=\"true\"> someone else to make our food for us.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Cultivate Free Hobbies<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Cooking is the ultimate practical hobby, saving you money even as you eat better. But it\u2019s far from the only one.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I love hiking. It\u2019s free, it\u2019s exercise, you get fresh air, and you can do it with friends and family.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I also love reading: also free due to this newfangled service called a library.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Even my business, the co-investing club, serves two roles in my life. <\/span><span data-preserver-spaces=\"true\">Yes, it generates income for me, but it also lets me invest small amounts in <\/span><span data-preserver-spaces=\"true\">the kinds of<\/span><span data-preserver-spaces=\"true\"> real estate investments that <\/span><span data-preserver-spaces=\"true\">normally<\/span><span data-preserver-spaces=\"true\"> require $50,000 to $100,000 <\/span><span data-preserver-spaces=\"true\">at a minimum<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> That\u2019s the whole reason I started it in the first place\u2014I wanted to spread my own personal money across more real estate investments.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">As a final example, it\u2019s been a lifelong dream to write novels. Last year, I finally got serious about it and am currently about halfway through my first one. As a hobby, it\u2019s not only free, but it also has the potential to generate income (assuming it doesn\u2019t suck).&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I know other people who do woodworking as a hobby <\/span><span data-preserver-spaces=\"true\">business<\/span><span data-preserver-spaces=\"true\">, <\/span><span data-preserver-spaces=\"true\">or<\/span><span data-preserver-spaces=\"true\"> plan travel for <\/span><span data-preserver-spaces=\"true\">other<\/span><span data-preserver-spaces=\"true\"> people<\/span><span data-preserver-spaces=\"true\">, or pet sit.<\/span><span data-preserver-spaces=\"true\"> Hobbies can make you money rather than costing you money, if you get intentional about them.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Avoid Consumer Debt<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">As I wrote recently, <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/how-saving-money-makes-it-easier-to-save-money\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">savings begets more savings<\/span><\/a><span data-preserver-spaces=\"true\">. <\/span><span data-preserver-spaces=\"true\">By spending less money, you avoid high-interest consumer debt <\/span><span data-preserver-spaces=\"true\">like<\/span><span data-preserver-spaces=\"true\"> credit card balances or buy now, pay later (BNPL).<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">And if you have some existing debt, a high savings rate helps you knock it out much faster, again saving you money on interest.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Travel Hack<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">My friend who used to rent out her apartment on Airbnb? She wasn\u2019t there half the time anyway\u2014because she was off traveling the world for free.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">She enjoys free <\/span><span data-preserver-spaces=\"true\">business class<\/span><span data-preserver-spaces=\"true\"> flights <\/span><span data-preserver-spaces=\"true\">all over<\/span><span data-preserver-spaces=\"true\"> the world, using points and miles.<\/span><span data-preserver-spaces=\"true\"> You can learn how to do it too.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">You can also save money by traveling with friends and sharing accommodations on VRBO or Airbnb. <\/span><span data-preserver-spaces=\"true\">If you both have kids, <\/span><span data-preserver-spaces=\"true\">that<\/span><span data-preserver-spaces=\"true\"> also makes it easier to take turns wrangling <\/span><span data-preserver-spaces=\"true\">the children<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Pool Resources<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Despite having a 5-year-old, my wife and I don\u2019t have a babysitter on speed dial. Family and friends watch our daughter for up to a week at a time, and we look out for them and their kids when possible as well.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">You can share pet care <\/span><span data-preserver-spaces=\"true\">as well<\/span><span data-preserver-spaces=\"true\">, <\/span><span data-preserver-spaces=\"true\">or<\/span><span data-preserver-spaces=\"true\"> carpool, or pass books around.<\/span><span data-preserver-spaces=\"true\"> Break out of the mindset of paying for everything yourself, and start building the kinds of deep relationships that let you share responsibilities.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">For that matter, this<\/span><span data-preserver-spaces=\"true\"> is <\/span><span data-preserver-spaces=\"true\">exactly<\/span><span data-preserver-spaces=\"true\"> what we do as an investment club each month.<\/span><span data-preserver-spaces=\"true\"> By combining our knowledge and money, we can invest both smarter and with smaller amounts.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Borrow Instead of Buy<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">When I want to read a book, the first place I go is the Libby app on my phone to check the local library. I borrow e-books for my Kindle and audiobooks to listen to while working out.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">There are also public tool libraries, where people can borrow tools. <\/span><span data-preserver-spaces=\"true\">Sometimes they <\/span><span data-preserver-spaces=\"true\">require<\/span><span data-preserver-spaces=\"true\"> a small membership fee, but that <\/span><span data-preserver-spaces=\"true\">costs a lot<\/span><span data-preserver-spaces=\"true\"> less than buying tools yourself.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">You can join a gym instead of buying all your own weights and equipment. Or better yet, take free workout classes on YouTube.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Borrow clothes or jewelry if you need something you don\u2019t own (and clearly don\u2019t need very often). And so it goes.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Move Overseas<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">When we lived overseas, we saved 60%-70% of our income. Since moving back to the States, it\u2019s closer to 45%-50%.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Overseas, the savings all stack on top of one another. We didn\u2019t need a car, living in a walkable city with cheap Ubers. High-end health insurance was affordable. <\/span><span data-preserver-spaces=\"true\">We didn\u2019t pay full U.S. income <\/span><span data-preserver-spaces=\"true\">taxes<\/span><span data-preserver-spaces=\"true\"> due to the <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.irs.gov\/individuals\/international-taxpayers\/foreign-earned-income-exclusion\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">foreign earned<\/span><span data-preserver-spaces=\"true\"> income exclusion<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> We got free housing from my wife\u2019s employer.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">And of course, the cost of living is much cheaper in regions like South America, Eastern and Central Europe, and most of Asia and Africa.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I also became a <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/how-living-overseas-made-me-a-better-investor\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">better real estate investor by living overseas<\/span><\/a><span data-preserver-spaces=\"true\">. Who\u2019d have thought?<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">At a 10% savings rate, yes, it will take you 40 years to reach <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/five-year-plan-for-earning-financial-freedom\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">financial independence<\/span><\/a><span data-preserver-spaces=\"true\">. At a 50%-70% savings rate, you can do it in under 10 years.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Go ahead and keep living paycheck to paycheck if you enjoy the stress of it\u2014or start supercharging your savings rate and wealth to escape the rat race fast.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>For the last seven years, my wife and I went from basically no assets to a roughly $1 million net worth. And we did it entirely through saving money and [&hellip;]<\/p>\n","protected":false},"author":158586,"featured_media":183950,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7397],"tags":[],"class_list":["post-186558","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-saving"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/186558","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/158586"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=186558"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/186558\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/183950"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=186558"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=186558"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=186558"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}