It was 2017, the year before they got married, when Ali and Josh Lupo took a serious look at their finances — and realized they owed more than $100,000 in student loans.

Despite long, grueling hours in human service, the couple still lived paycheck to paycheck, unsure how they would afford a wedding or pay off their staggering debt.

“So we started having that conversation of, ‘Is this what we want to do for the next 30 to 40 years, or do we want to learn how to live differently?’ And that’s where our mindset around money really started to evolve,” says Josh australiabusinessblog.com.

The Lupos started tracking their expenses and saw that they spent most of their income on rent and car payments, followed by eating out and eating out. Their first plan of attack? Implementing a strict budget: no date nights, no Netflix subscription, etc.

But the extreme approach quickly burned out the couple, so they went back to the drawing board. They had to find a creative way to reduce their biggest expense: housing.

Self-study led them to a solution (Ali points out how many online resources, podcasts, and books on financial freedom there are). If the Lupos bought a multi-family home with a low down payment, they could drastically reduce their monthly payments by renting out the other unit.

So that’s exactly what they did.

In the years since, the Lupos have continued their journey to financial independence. They manage numerous streams of active and passive income, including their work as personal finance content creators who run the educational platform”The FI couple.”

If you’re ready to get your finances on track in 2023, read on for Lupine’s step-by-step strategy.

Define what success looks like to you

The first step is the foundation for the rest: discover your unique definition of success.

The couple suggests thinking about what your ideal day and life looks like. In other words, be clear about how financial freedom will allow you to do more of the things that make you happy.

“Our lives were ‘easier’ when we buried our heads in the sand and ignored everything about our finances,” says Ali. “Our lives are more complicated and difficult now because we are more aware of all the responsibilities that come with it. But having the power and autonomy over our time is all worth it, so [you have to be] clear with your why.”

Related: How To Train Your Brain And Reach The Highest Level Of Success

Build a community that can help you stay on track

The road to financial freedom can be tough, but it’s even tougher for those who are on their own.

According to the Lupine, finding a community focused on financial well-being can make all the difference.

“Unfortunately, being financially savvy isn’t the norm,” says Josh, “and the pursuit of financial independence can get lonely because a lot of people don’t necessarily live the same lifestyles. So whether it’s in person or online, having that community of like-minded people can be very inspiring.”

Related: The top benefits of building an online community

Know your numbers: income, expenses, assets and debts

Another crucial move? Get to know the reality of your financial picture thoroughly.

As of September 2022, consumer debt in the US was $16.5 trillion Bank rate. But many Americans don’t know how much they actually owe: A 2019 questionnaire of US News found that one in five Americans don’t know if they have credit card debt.

The Lupos emphasize the value of becoming familiar with all of your numbers.

“So literally outline and understand your income, expenses, assets and debts,” Ali explains, “and have a crystal clear understanding of your financial situation.”

Related: 5 strategies for entrepreneurs to stay out of the debt trap

Find out how to reduce your expenses and increase your income

Next, consider how you can save and make more money — “the two biggest levers a person can pull,” notes Josh.

The couple acknowledges that it can seem challenging at first to significantly increase your income, but the key is to get creative.

“We decided to focus on how we could radically reduce our spending to save more,” says Josh, “and this helped us pay off all the debt and buy real estate.”

“If you are able to increase your income and decrease your expenses, you have a bigger gap in between,” adds Ali, “and what you do with that gap is key to becoming financially independent.”

Also, never underestimate your earning potential.

“Coming from backgrounds in social work and human services that are historically lower-income opportunities, for a long time we identified ourselves as people [whose] value was a bit lower and [thought] earning more was just not an option,’ says Josh. [the key is] bypassing the right people and understanding different possibilities.”

Related: 10 Ways to Make Money While You Sleep

Consider which strategy makes the most sense for your lifestyle

It’s not enough to brainstorm a solution and go all in — part of the secret is choosing an approach that aligns with your values ​​and priorities.

Fundamental as real estate investing has been to the Lupin’s success, the couple recognizes that it’s not for everyone.

“The goal of financial independence is to have enough assets to pay for your total living expenses,” says Ali. “So you must [ask], Which strategy is right for me? Do I want to invest in shares? Do I want to invest in real estate? Do I want to become an australiabusinessblog.com?“

“We talk to people all the time,” she continues. “They say, ‘I want to buy real estate.’ But then we talk to them, and I’m like, “It doesn’t really sound like you want real estate. Because real estate isn’t as passive — and it’s a little bit more practical.” You really have to think about what investment strategy makes sense [your] to live.”

Real estate is not always “passive”

On the other hand, 40-50 hour weeks are not on a job either

In any case, “hard” weeks with real estate are still only 2-3 hours of work

— HetFIcouple (@hetficouple) December 11, 2022

Perhaps the most important thing to keep in mind? Don’t forget to enjoy the journey to financial freedom.

“When we first started, it felt like a chore,” says Ali. “Through the process we have learned that the journey to financial independence is more important than the destination and that it is really important that everything you do to get there is sustainable and that you don’t sacrifice the quality of your life to get there. ” [your] target. Because once you get to the goal, what kind of life do you have?”