This is how much the couple, who are currently both 30 and have no children, value financial independence.
For her, that means “being able to make changes in our lives, whether it be through a six-month sabbatical or another career change, just because we can. That's what we're interested in, and we don't have to worry about where that happens. “Money comes from,” Bhaloo tells CNBC Make It.
Currently at around $885,500, they are well on their way.
Bhaloo and Desai both came into the relationship with healthy financial habits. But as they grew together and married, they focused on setting and pursuing financial goals as a team.
Bhaloo and Desai had been together for 10 years when they tied the knot in 2023.
Yijun Pan | CNBC Do it
Together they earned $227,071 in 2023. Bhaloo earned $69,314 by working part-time at the beginning of the year while completing her master's degree in business administration and working full-time in July. Her annual salary is $125,000. Desai earned around $158,000 in the technical field.
And while they're working hard to achieve financial independence, they're not overly restricting their lifestyle to get there now.
“You should be able to enjoy your life and experience all the things you want to experience,” says Bhaloo. “You can have [your] Investing works for you while you have fun [life] and spend on the things you love.
Bhaloo has two master's degrees and a bachelor's degree and is fortunate to have no debt from her academic career. A full scholarship funded her undergraduate studies and part of her master's degree in public health at Boston University, where she graduated in 2016. Her parents helped cover the remainder of the cost of her graduate studies at BU.
To earn her MBA from Duke University's Fuqua School of Business in 2023 without taking on debt, Bhaloo relied on a combination of scholarships, savings, part-time jobs and help from her parents. She earned $80,000 a year before starting business school.
Bhaloo worked in public health for five years before attending business school and shifting her career to renewable energy.
Yijun Pan | CNBC Do it
By working part-time while in school, she not only earned money – about $30,000 in her first year – but also gained valuable contacts. The internship she completed in her second year turned into a full-time position with the same company where she works now.
“My parents always prioritized education over everything else,” says Bhaloo. “They were very willing and happy to help pay my tuition and living expenses.”
Bhaloo and Desai got married when she completed her MBA in 2023. Soon after, Desai decided to attend business school himself.
Although the couple's finances were separate and Desai did not support Bhaloo financially during her schooling as they were not yet married, he provided much-needed encouragement and care.
“Neil was super supportive and made sure I had everything I needed at home so I could focus on school and the big life change,” says Bhaloo.
Things are different now that the couple is married while Desai is in business school. Desai and his parents pay his tuition fees, so these are included in the couple's joint budget. That's fine with Bhaloo – she says this move for Desai helped them shape their future plans.
“Now that I’m done with school and Neil is at school, we’ve been able to plan [for the future] a little bit more and think, 'We're married now, what are our goals as a couple?'” she says.
As they identified their goals, the couple placed great emphasis on living below their means. For example, they could afford to rent a larger apartment but choose to stay where they are, Bhaloo says. The couple is “constantly evaluating” how much they want to spend on rent or a future mortgage.
When Bhaloo and Desai were looking for an apartment, a functional kitchen was non-negotiable.
Yijun Pan | CNBC Do it
According to Zumper, the monthly rent of $3,300 for her one-bedroom apartment is slightly higher than the Chicago average of $2,744 for two-bedroom apartments. But it's still just 17% of Bhaloo and Desai's combined annual income – well below the expert recommendation of keeping your rent at or below 30% of your income.
“[Rent] is such a big part of your spending that if you can control that number, you can use the rest of your year to do other things you enjoy,” says Bhaloo.
Here's how Bhaloo and Desai spent their money in September 2023:
Elham Ataeiazar | CNBC Do it
- Saving and investing: $7,256 in combined 401(k) contributions
- Housing and supplies: $3,546 for rent, gas, electricity, water and internet
- Discretion: $3,107 for pet care, clothing, personal care, books, health care, gifts for friends and wedding thank you notes
- Travel: $1,825 during a trip to Vancouver and flights for upcoming trips
- Eat: $1,446 for groceries and dining out
- Phone: $1,301 includes the purchase of a new phone and Bhaloo's monthly plan
- Insurance: $156 for health care through Desai's employer
- Gym memberships: $82
- Transport: $80 for public transportation and ridesharing
Bhaloo received three paychecks in September, making her monthly 401(k) contribution higher than normal.
The couple says using the budgeting app Tiller, which allows them to track their spending and have a central place to see their full financial picture, has helped them bring together their shared expenses.
“Immediately, we could see together what our net worth was, what our transactions were, how much Neil was charging on his credit card, and how much I was charging on my credit card,” says Bhaloo. “Using a system that allowed us to combine our accounts and really see them together was extremely helpful.”
The couple puts much of their spending on credit cards to earn rewards, but pays them off each month and continues to live debt-free.
Learning how Desai spends his money also helped Bhaloo focus on the things that matter most to them as a couple, she says.
“One of the things that really surprised me about Neil's spending habits was that he really only spent on the things he really loved and invested in those things,” she says.
For example, Desai bought a piano in 2020. Bhaloo says his willingness to invest in a “well-made, high-quality” helped her understand “how important it is to really spend on the things you love and not spend money on the things you love.” do not bring joy.” Happiness.”
Bhaloo and Desai love trying new restaurants and exploring different cuisines. “We’re big foodies,” she says.
Yijun Pan | CNBC Do it
Food and travel are two of the spending areas that are a priority for Bhaloo and Desai and they are not afraid to splurge a little here and there.
“One of the things that's really important to us is making sure we enjoy our lives today and don't wait until we're 60,” says Bhaloo. “For us that means traveling. That means cooking really wonderful food and eating out.”
As telecommuters, they enjoy the opportunity to work from anywhere and hope to continue exploring different cities. They may even move abroad for a period of time.
While both Bhaloo and Desai had a pretty solid financial foundation from their families, they continue to improve their financial knowledge by reading books and watching YouTube channels of their favorite financial educators.
Bhaloo and Desai love taking their dog Rumi to the park.
Yijun Pan | CNBC Do it
“Financial health is an ongoing process,” says Bhaloo. “It will never be perfect, but you can always do it.” [be] Strive for better and make adjustments along the way as your life changes.
They are fans of Ramit Sethi's book and Netflix show, which inspired them to think about what their “rich life” looks like. Continuing to pursue their love of travel is definitely on the agenda, and Bhaloo says hiring a personal chef is a luxury they would like to try out.
Their next steps aren't fully planned yet, but they say that's part of the fun. Once Desai has completed his MBA, the couple “definitely” wants to move abroad for some time, but where exactly is still unclear.
“From then on we’ll see where life takes us,” she says. “We could go back to Chicago, we could move somewhere else. There is so much excitement in this unknown.”
What is your budget? Share your story with us for a chance to be featured in a future episode.
Do you want to get your dream job in 2024? Take CNBC's new online course “How to Ace Your Job Interview” to learn what hiring managers are really looking for, body language techniques, what to say and what not to say, and how to best talk about pay speaks. Get started today and save 50% with discount code EARLYBIRD.