How one family went from debt of $55,000 to saving more than $350,000 — ‘the fun money really allows us spend on junk’

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How one family went from debt of $55,000 to saving more than $350,000 — ‘the fun money really allows us spend on junk’
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At one point they had $55,000 in debt, but have found their way out of it by budgeting and re-evaluating what was worth their money. Not on the list: the latest phone or this year’s car.

More than 10 years ago Ryan and Courtney Luke were both working, but with nothing to show for it except big cars and big debts.

“Those goals to us are more important than things anymore. They keep us motivated,” said Ryan, who also has a personal-finance blog. They married in November 2007, and Courtney, handy with numbers and Microsoft MSFT, -2.91% Excel, did some digging on where their money went each month. These days, Ryan buys lunch once every two weeks or so. The family eats out once a month, if that. It felt like a splurge when Ryan recently spent $7 on a Chipotle CMG, -1.21% burrito while at work. “I felt awful doing it. … Just because I’m so trained.”

Looking ahead Since 2009, Ryan’s take-home pay has climbed to $72,000 through raises. All that added pay has gone straight to Ryan’s retirement savings. The couple has six savings accounts, including one for ‘fun money.’ Other surplus money goes to the couple’s savings accounts — all six of them. There’s an account for a car, an account for vacations, a short-term emergency fund and a larger rainy day fund.

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