After Liz Thames graduated from college, she couldn’t find a job.
“Nowhere would hire me,” Thames says. “I had what I thought was this nice resume, and I sent out over 50 applications. Nowhere called me back.”
She took a temporary job at a document-scanning agency, then joined Americorps to serve as a full-time volunteer in a low-income neighborhood in Brooklyn. She lived on a stipend of $10,000 annually, plus food stamps and a transit pass.
She saved $2,000 from her $10,000 stipend, while paying rent in New York.
To say that Thames is a natural saver is an understatement.
Her frugality stayed intact throughout her twenties. She got married, earned a free masters degree and advanced into higher-paying roles. But she and her husband, who was equally frugal, continued saving as much as possible — at times pushing their savings rate to as high as 70 percent of their income.
When they were 30, they decided to shoot for financial independence. They shared a dream of moving to a rural farm, where they could raise children and spend everyday outdoors.
By age 32, they achieved financial independence. Their investment portfolio is robust enough that they could draw down, in perpetuity, for the rest of their lives.
They rented out their home in Cambridge, quit their office jobs, and moved to a 66-acre farm in Vermont. These days, they live on a combination of their rental income and ‘side hustle’ income from their blog, Frugalwoods. They have two children.
Today, Liz joins me on the Afford Anything podcast to share the story of how she and her husband achieved financial independence by age 32.
Resources Mentioned:
- Meet the Frugalwoods, by Liz Thames
- Frugalwoods.com


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Jules Anders
They seem like nice people but this sounds like a massive con job. First of all, they are not retired. Her husband, according to internet sources, makes well over $200,000 per year and she works as a writer. They are certainly not retired. It looks like they merely moved to Vermont where they both work out of their home. They are NOT retired, as their headlines claim. I think they should address this on their blog and elsewhere to correct this false narrative. Otherwise they are guilty of perpetuating a fraud. Please ask them to reply and prove me wrong…
Lori Roll
Hi Paula, I love your blog and podcasts and am a loyal fan. I bought my first passive income condo last year and am considering buying another one in the same unit. But….what happened to your Real Estate Investment Course? Did I miss it? Is it forthcoming? Have you told us everything we need to know? Help! Thanks Paula, Lori
Erin @ Team Afford Anything
Hi Lori – thanks for being a reader and listener! You haven’t missed anything. The course is still under development. =)
Beatrice
I enjoyed this interview! I heard Liz’s interview on OnPoint, and I soooo wish the listners had heard THIS story because resonates more. Thank you for sharing your journey to financial independence!
oogida boogita
My god, if I earned $150,000 a year I could reach FI in no time.
Luz
What a great episode! I really related to the fact that both of you lived in low-income neighborhoods and how this affected your perspective. I began my twenties being pretty frugal since I wanted to avoid the stress I saw my parents dealing with related to debt. It wasn’t until I lived in the “rough” part of town during undergrad and then spent 1.5 years in a developing country, however that I began to develop a new mindset towards money and resources. Having clean air to breathe, clean water to drink, a fridge full of food, gas in the car, a roof over one’s head, etc (not to mention access to health care and education) truly is a luxury. And living simply (but not cheaply) while appreciating that fact sure has given me a lot of freedom to live life on my terms.
It was also interesting to hear more about the demographics of your listeners. My husband and I live off his income, which is just over 30,000 gross. I am finishing a degree and we are expecting a baby in a few months and I’m thrilled to have the freedom to not work during the preschool years and have the time to pursue things I’m interested in. While we are in a different position than listeners whose income is well above ours, I feel like the principles are the same in how to align our money and time with what we value. I firmly believe that financial freedom can be had at a variety of incomes and is not just for those who make over a certain amount. We may not be financially independent until the traditional retirement age, but I’ve already learned a ton from your podcast that has made a real difference for us.
Thanks for all your great work!
Emily
I love this interview. Thank you so much ladies. I am a single mom working and going to school. I have managed to stay out of debt thus far by doing many of the things you have mentioned. It’s not easy, I really look forward to the day that I have my own washer and dryer! Thank you for sharing your journey it motivates me to continue this lifestyle as I work towards my end goal.