Like the pair who eliminated $13,000 while bringing in a combined $28,000 a year.
Or the duo that cleared $50,000 in liabilities and now lives aboard a sailboat.
Or the team who paid off $35,000 and then RETIRED IN THEIR 30s!
It can feel unattainable when it’s your own situation, but speaking from experience, it’s completely achievable. My partner and I erased $78,000 of debt in two years, and the Starve and Stack approach played a major role in helping us reach those financial milestones.
Starve and Stack: What It Is
No, you won’t actually go hungry.
The phrase “Starve and Stack” was introduced by Nick Vail of Remove the Guesswork in a guest essay on the well-known personal finance site Budgets are Sexy.
The core concept is that couples — particularly those newly married — pool their money and cover living costs entirely using one partner’s income for 18 to 24 months.
During that period, the other partner’s earnings can either be used to aggressively eliminate debt or to build a sizable emergency fund or investment principal that benefits from compound returns.
Vail doesn’t suggest this strategy specifically for saving a house down payment, which may or may not be the smartest choice for young buyers at the moment. Rather, it’s a chance to begin investing early and let compound interest multiply your resources.
The sooner you start investing, the less principal you’ll ultimately need to contribute to reach long-term goals.
The median household income before taxes is roughly $59,000 annually. So imagine a couple’s net pay after taxes is about $52,000. If they live on roughly half of that (or a bit more frugally), it’s realistic to save $50,000 in two years.
If you tuck $50,000 into an index fund earning an average of 6%, in 30 years that amount would grow to more than $287,000 without any further contributions. And if you add $25,000 each year afterwards, you’d reach millionaire status in about 19 years.
On the flip side, if you applied $50,000 to a 6% student loan and paid it off in two years instead of a decade, you might avoid paying over $10,000 in interest.
So How Do You Actually Starve and Stack?
The big question is: how do I cut my living costs low enough to pull this off?
You’ll need to resist lifestyle inflation that often accompanies higher earnings. Moving in together doesn’t automatically justify a nicer car or a premium apartment. We chose a modest one-bedroom after scouting neighborhoods carefully.
We also hunted for free or inexpensive activities and trimmed recurring costs wherever possible. Calling our insurance and mobile providers annually led to significant savings on monthly charges.
And if your expenses are already pared to the bone, consider picking up a side gig to bridge the gap. There are plenty of flexible ways to earn extra income from home during your downtime.
