In 2017, Eman and Kristine Vergara embarked on a journey towards financial independence that transformed their lives. Despite earning substantial incomes, the couple found themselves engulfed in debt and spending almost all they earned. A pivotal change came when Eman discovered a book that prompted a radical shift in their lifestyle.
The Vergaras, both successful professionals, were making up to 400,000 Australian dollars annually but were struggling with financial mismanagement. Eman, an investment banker, and Kristine, an accountant, realized their spending habits needed a drastic overhaul. They embraced minimalism by reducing frivolous expenses and focused on saving up to 75% of their income. Their strategy involved downsizing from a costly Sydney apartment, selling their car, and making lifestyle changes such as opting for economic grocery options and limiting dining out.
By cutting costs, the couple eliminated AU$24,000 in credit card debt and approximately AU$26,000 in student loans. They initially saved 50-60% of their income and, after relocating to the lower-cost city of Toowoomba, increased their savings rate further. The Vergaras’ financial strategy included investing their savings, leading to a net worth of about AU$3 million, verified by independent sources. Their portfolio comprises properties valued at AU$1.5 million, AU$900,000 in stocks, and AU$500,000 in a superannuation account, with the remainder in cash.
With two young children, the Vergaras aim to maintain financial independence while raising their family. Their lifestyle focuses on living frugally and teaching their children the value of work and financial management. Eman plans to take a sabbatical and spend more time with family, using a ‘coast FIRE’ approach to maintain enough income to cover ongoing expenses. Their plans include extensive travel with their children, fostering a sense of global citizenship.
The couple intends to guide their children in understanding the importance of saving, investing, and avoiding debt. Kristine emphasizes the value of volunteering and acquiring trade skills. Eman highlights the benefits of Australia’s health system, which alleviates significant expenses associated with health insurance. Their commitment to financial education is evident in their approach to raising their children, ensuring they grasp the concepts of income-saving and compounding as essentials for financial stability.
Eman and Kristine Vergara have successfully navigated the challenges of achieving financial independence while starting a family. Their disciplined approach to saving and investing, combined with a minimalist lifestyle, has enabled them to plan for a future filled with freedom and opportunities. Their story serves as an enlightening example of how strategic financial planning can lead to early retirement, despite initial setbacks.
Source: Businessinsider
