Can You Live on 50% of Your Income to Get Out of Debt?

I should have titled this one to “get and stay” out of debt, however I was a little worried that would be too lengthy a title for it to be read by anyone What I’m talking about is a recommendation by financial experts that of course is not doable for everyone by a longshot, but can certainly be done if one puts their mind to it and makes sure they stick to a budget and also at the same time make sure they are disciplined in putting away an immediate percentage of 50% of their pay.

50% is a lot! I’ll admit that, but if you have a business, or you do make a lot more money than you need for the basics, and tend to waste a lot of money on things like eating out a lot and taking a lot of vacations, this option is definitely a possibility for you. Some experts say that most people don’t have the discipline, but if they did, they could potentially be out of debt in much less time than if they took traditional ways out like consolidation, plus they would also be guaranteeing themselves in effect that they would never go into debt again since they are not spending anything that they don’t have in cash.

If you could live on 50% of what you make, not only would you be debt free very soon, but you would also eventually have a lot of money to invest for your future retirement, which means you’d be putting a lot more money into yeilding investments, and have more time for that interest to compound which means you have higher chances of retiring as a millionaire like most people need to these days just to make it by.

I know someone like this. He and his wife both made very good money and were naturally frugal and wise when it came to spending decisions. They both put away a combined percentage of 50% of their income because he had always expressed that he wanted to enjoy an early retirement, especially since his job involved a lot of travelling. Now, they have their first child on the way, and I’m not sure if they are going to be realistically able to keep up with putting so much of their income away, but they can certainly shoot for it.