A millennial couple increased their net worth from zero to $500,000 in 4 years by making 5 strategic money decisions

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• Doreen and Lawrence Delva-Gonzalez had a zero-dollar net worth in 2017. Now, it's $500,000.
• They started by changing their mindset about money, and using apps to track their cash flow.
• Then they invested as much as possible, bought a rental property, and increased their income.

Doreen and Lawrence Delva-Gonzalez are a millennial couple living in Upper Marlboro, Maryland. Doreen is an event planner, and Lawrence is a federal auditor.

In 2017, Doreen and Lawrence had a net worth of zero dollars. Four years later, the couple had built a net worth of around $500,000, according to records viewed by Insider. They've also designed a plan to reach millionaire status in the next three years.

Here's the strategy that helped them build wealth.

1. They used apps to assess their financial situation and track their expenses

After graduating college with a business degree, Lawrence was earning $23,000 a year before taxes. He enrolled in a graduate program, but dropped out after realizing he was $80,000 in debt. For the next few years, he decided to take his finances seriously by learning as much as possible to change his financial situation.

In 2016, he met his now-wife, Doreen. They merged their accounts and worked together to tackle their debt while building wealth.

The Delva-Gonzalezes took a close look at their finances using budgeting apps before creating a strategy that would work for them. "I think the first step is to use a tool like Personal Capital to pull up your net worth and acknowledge where you are," Lawrence said.

They also tracked their expenses using Mint to ensure they stayed within their budget. That practice helped them identify areas where they were overspending. "That checkpoint lets you know what you need to work on. You can then adjust your spending and be more conscious about how you spend your money," said Lawrence.

2. They changed their mindset and committed to building wealth

"Ten years ago, I had a lot of debt and felt like this crushing thing was on top of my neck. Several friends told me it would be impossible to build wealth," Lawrence said. But he believed it was possible.

Lawrence spent part of his childhood in Haiti, living with his grandmother and aunts. He witnessed the women who raised him work hard and have side hustles, but he also saw the stress that limited funds could cause. He decided he wanted to become wealthy to lead a more peaceful life. Lawrence saw becoming a millionaire as a way to increase his life options, and prove to other people that it's possible to become a millionaire even with a large amount of debt.

Setting that goal at the time was a crucial step in his wealth-building journey. "People neglect writing down goals, but when you do, your brain will work backward to figure out the pieces," said Lawrence.

As a couple, Doreen and Lawrence invested time in learning as much as possible about money and aggressively paying down debt, including credit cards and student loans.

3. They increased their income and lowered their expenses

When Lawrence graduated college, he was earning $23,000. He worked on improving his soft skills and his resume to earn more. "I understood what to say and how to reflect my experience on my resume better," he said. A year later, he had more than doubled his income. "People should work on their soft skills because that's going to position them to interview better, so they can make more money," Lawrence said.

Both Lawrence and Doreen have side hustles in addition to their full-time jobs: Doreen has a profitable side hustle as a community manager, and Lawrence is a financial coach (though that business is not profitable yet).

In addition to making more money, they reduced their expenses and aligned them with their interests. Together, they live on less than 50% of their income.

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4. They invested in the stock market

While Doreen and Lawrence still have debt, mostly student loans and mortgages, they decided to invest in the stock market simultaneously to avoid missing out on tax benefits and compound interest.

"I think some people's train of thought is that, if I don't have debt, I'll start building wealth faster. But we decided to focus on the tax-advantaged perspective, and put more money away in things like 401(k)s, Roth IRAs, and health savings accounts," Lawrence said. That allowed them to build wealth while paying down debt at the same time. They both max out their 401(k)s and get a 5.5% contribution match from their employers.

The couple also maxes out their HSAs and invests what's lef tover after medical expenses every year. They invest in a mix of index funds and individual stocks. In addition to retirement accounts, the couple has a brokerage account. "Sixty percent of that portfolio is in growth stocks, and 40% in dividend-paying stocks," said Lawrence.

5. They invested in real estate

Doreen and Lawrence own two properties, one in Marlboro, Maryland, where they live, and a rental property in Tallahassee, Florida. They purchased the two properties in the past five years, and both properties have significantly increased in value. The couple's equity on the rental property has more than doubled since 2017.

Doreen and Lawrence's goal is to become millionaires in the next three years by continuing to invest aggressively. "At the bare minimum, we contribute around $60,000 between our 401(k), IRA, and HSA accounts. We also invest in our taxable brokerage account," Lawrence siad. The couple invests about $85,000 a year, but their goal is to increase their investment to $100,000 next year. At an average 8% return and with their plans to continue to invest heavily over the next few years, they expect to have no trouble reaching their millionaire goal.

This article was originally published in July 2021.