Money-Saving Tips from America's Cheapest Family

When a couple says their family of 7 lived well on less than $35,000 a year, it gets your attention.

It's also what earned Steve and Annette Economides (yes, it's their real name) the title of "America's Cheapest Family."

The Scottsdale, Arizona couple first crossed our radar screen when Good Morning America interviewed them in 2004. Personnel from the television show gave the clan the name "America's Cheapest Family."

In addition to telling their story in a handful of publications over the last few years, the family earned a featured spot at the end of the 20/20 segment that aired on August 31. They're too busy to let it go to their heads, however.

The couple married in 1982 and had baby number one by their first anniversary. At the time, Steve earned just $7.00 an hour as a graphic designer. His wife remained a homemaker, in the process learning how to stretch their limited number of bucks until they screamed.

Three years later, Steve and Annette, pregnant with their second child, bought their first home, a fixer-upper. With an average annual income of less than $35,000, they put 15 percent down and paid off their mortgage in 9 years.

By 1995, the family of 7 had outgrown their original 1,450-square-foot home and purchased what they refer to as their dream home. It's a five-bedroom structure with acreage and a citrus orchard. Using the budget-slashing techniques they had accumulated during their 13-year marriage, they've managed to nearly pay off the property. Oh, and by the way, they've also build an emergency fund and bought several cars.

The spirit of being frugal or even a tightwad isn't new. Hundreds of thousands of Americans came to admire Amy Daczczyn, also known as the Frugal Zealot, who published a homespun monthly newsletter called The Tightwad Gazette for several years. In 1996, she and her husband retired in their 40s and went on to compile several successive volumes of tidbits from the newsletter, all of which are today considered handbooks for those practicing the techniques of simple living.