NEW YORK (CNN/Money) – Richard and Bonnie Jacob know the meaning of the word "struggle."
Their focus on savings began before most of us give money much thought: financially, he was on his own at 17, and she at 18. They've stayed zealous about their bottom line ever since.
"We've yet to take our honeymoon," Rich said. The couple tied the knot last week in their backyard. "We're deciding whether to spend the money. Technically, a honeymoon is a depreciating asset, right?"
Rich began his career as a chemist, working full-time while he was in college at UWM, University of Wisconsin in Milwaukee. He patented a silicone polymer he invented, used for leather waterproofing.
In recognition for his hard work, Rich received a check for one dollar.
"The polymer was the company's intellectual property. And I realized I was in the wrong industry," he said.
Switching gears
In the early 1990s, he decided to try the tech industry instead. Rich liked working with computers so much that he decided to strike out on his own.
"I got the idea to become a computer consultant when my old lab called and offered to pay me to set up some equipment for them," Rich said. In 1997, he decided to open his own company, REJ Consulting, Inc.
While REJ Consulting was getting off the ground, Rich continued to work for other firms, including a company called Rockwell Automation. Good thing, too. He met Bonnie when she was hired as a subcontractor there in 1997. The rest is history.
Beyond sparks and romance, though, you could say their financial styles clicked as well. Both started working young, both had scholarships to college (his for physics, hers for track), and both owned their own homes by the time they met.
Rich bought his first home in Shorewood, Wis., for $119,000, in 1998, and Bonnie owned a duplex in Whitefish Bay, Wis., which she bought for $165,000. She lived in one side and rented the other. In 1999, they decided to live together, in Rich's house, and rent out both halves of Bonnie's property, currently worth $270,000.
"I just refinanced to a 15-year mortgage from a 30-year mortgage. It's breaking even now; before, I was making a profit. Still, it's paying for itself," Bonnie said.
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In 2000, he also hired Bonnie full-time at REJ Consulting, where she worked 3 months without a salary.
Now, Bonnie and Rich make a combined annual salary of $212,000 from REJ Consulting - $92,000 hers, $120,000 his. They have two other full-time employees, and 4 or 5 contractors. Rich is its sole shareholder – he's never taken any partners or financing for the company which is on track to generate income of $750,000 this year.
Their real estate investments have also paid handsomely.
In 2001, they sold Rich's house for $210,000, and bought a house on Lake Michigan for $700,000, in Mequon, Wisc., where they now live. The house, which now is worth $1.2 million, boasts contemporary architecture, in the style of Frank Lloyd Wright – lots of open spaces, several fireplaces and big windows facing Lake Michigan. The Jacobs also have 4 automobiles.
"We currently live in one of the premier properties in the area," Rich said. "The big thing for me was to get the million-dollar house while I was still in my thirties."
Their bottom line, of course, also includes 401(k) accounts. His is valued at about $15,000 and hers at $18,000. The Jacobs also have taxable investments worth $5,000, a savings account of $6,500 and their two checking accounts, which total $26,000.
"I started saving in my 401(k) in the early 1990s. I didn't put much in at first, but Rich hammered me into saving 12 percent of my pretax income," Bonnie said. "Right now, we're not contributing heavily to our taxable portfolios or 401(k)s. We're paying an additional $2,000 a month on our mortgage – it's safe there."
As for retirement, they say they already are doing what they love – and have no plans to stop, even if they can live off their assets alone. But they do hope to start a family soon.
"This is retirement, as far as I'm concerned," Rich said. "And Bonnie's about to get a promotion – to VP of raising my kids."
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