Is a $100 dinner expensive or not? Some might see a menu that reads “$100 for two people” and think it’s not too bad. But one American couple has a different way of calculating the cost – rather than just looking at the $100 price tag, they consider how many hours they need to work to afford that meal. Suddenly, that plate of food doesn’t just sit on the table, it weighs on their wallets.
Kelan Kline and Brittany Kline have known each other since high school. In 2016, shortly after getting married, Kelan worked as a Jail Deputy while Brittany was a elementary school teacher. Their schedules often didn’t align, leaving them with limited time together, all while carrying about $40,000 in student loan debt.
One evening, while sitting down for dinner, they realized that things couldn’t continue like this. They pondered over their financial situation and their desired lifestyle. And from that moment on, they began to reassess their lives.
By the end of 2019, they had paid off their student loans. By 2020, they claimed their net worth had surpassed $1 million. In about four years, they went from carrying a hefty student loan debt to crossing the million-dollar net worth threshold.
Looking back at their journey, the Klines don’t credit any magical formula for their success. They often mention three money principles that have guided their decisions over the years.
One of these principles is a habit they developed – when making purchases, they calculate the price in terms of their own working hours. A $50,000 truck may seem like a large sum at first, but when converted into working hours, it may represent several months of work. Similarly, splurging on a $100 dinner may translate to several hours of work. Kelan mentioned that this calculation prompts them to question whether the item is truly worth the time spent to acquire it.
This mindset isn’t about completely avoiding indulgences like coffee or dining out; instead, it makes the prices more tangible. A pair of shoes may equal a few hours of work, a meal could be half a day, and a car… at that point, some people may stop calculating.
The second principle they emphasize is the distinction between being frugal and buying cheap goods. For instance, opting for the cheapest vacuum cleaner may seem like a money-saving choice at first. However, if it breaks down quickly and needs replacement multiple times, the overall cost may surpass that of a slightly more expensive, durable option that can last for years.
As their income increased, they didn’t automatically upgrade their lifestyle. It’s easy for people to raise their standard of living as their income rises – a pay raise might lead to thoughts of replacing the car, expanding the house, or dining out more frequently. Before the money even settles in their accounts, a new lifestyle is already lined up.
But the Klines took a different approach. They lived in the same house for seven years, drove used cars, and rarely went out to eat. For about five years, they owned only one car.
However, they didn’t rely solely on cutting back. In 2016, they started a personal finance blog “The Savvy Couple,” which gradually grew into a six-figure online business. As their income increased, their expenses didn’t escalate in tandem. With more money left over, they used it to pay off debt and invest.
By 2020, their net worth exceeded $1 million. Screenshots of their Rocket Money account reviewed by Business Insider showed a seven-figure net worth, including business valuation, investments, and home value.
So, the transformation they achieved over these four years wasn’t just about cutting back on coffee consumption. They effectively managed both ends of their household finances – increasing income while not letting expenses grow proportionally.
When some people hear the word “budget,” they immediately worry about not being able to spend money that month. However, the Klines view budgeting differently. They still create a budget every month, deciding in advance where their money should go. Kelan believes that a budget isn’t solely about restricting spending; it’s about knowing where it’s okay to spend your money.
They even allocate a specific amount of “fun money” for themselves. If Brittany enjoys buying coffee, she does so without needing to justify every cup in the context of the family’s finances. In their earlier years, each of them had around $100 in discretionary spending per month; now, it’s been increased to about $200. Whether it’s coffee or anything else they enjoy, as long as it comes from that fund, they can spend it freely.
Save where necessary, but there’s no need to feel guilty about indulging in things that bring joy. Budgeting, for them, isn’t about removing happiness from their lives; it’s about preserving space for joy in advance.
Paying off a $40,000 student loan didn’t vanish overnight with the implementation of a budget. There were times when the Klines had to tighten their belts. They had to decline invitations from friends to dine out or grab a drink. At one point, they limited dining out to about once a month.
Reflecting on that time, Kelan admits they made sacrifices. But they knew it wasn’t a permanent lifestyle; they saw it as temporary discomfort to achieve their goals. By the end of 2019, with the student loans fully paid off, the money previously allocated for debt repayment could now be redirected towards investments or things they valued more.
So, the true measure of their story isn’t in saving a few dollars by drinking one less cup of coffee. It’s about how much money actually stayed with them once their income increased. The Klines didn’t let their expenses outpace their income growth, allowing the money they saved to gradually turn into assets.
And as for that cup of coffee, it doesn’t need to carry such a heavy burden. There’s a spot reserved in the budget for it – if you want it, go ahead and enjoy it.