Welcome to Money Talks! New approaches to money have exploded. Yet, money remains taboo. Less than half of you share personal finance information with your friends and family.
But that’s all changing. Now more and more of you are talking about money because it leads to better outcomes.
In an effort to provide personal finance insights through transparency (and have a bit of fun), I’ve created a series titled Money Talks that showcases how real people in Charlotte approach money.
It’s an anonymous way for you to share your money experiences and insights with our city. Answers are lightly edited for clarity and privacy (ex, exact age). Want to participate? Take the Money Talks survey.
Here’s a look at the personal finances of a 58 year old father of 3.
Living situation:
We recently downsized from a large home with a sub 3% mortgage to a smaller mortgage on a townhouse. We used some proceeds from the sale to purchase additional rental properties.
Salary:
I’m a telecommunications marketing executive. Salary is $210k + 30% bonus and annual restricted stock awards.
My first job out of college (a million years ago, haha) paid in the high teens. By the time I was 30, I was making around $45K and by 50 I was well into six figures. For me at least, salary increases were always about saying ‘yes’ to whatever reasonable opportunity to advance my career was presented to me — then working my ass off to demonstrate I could do whatever might be next.
Other income:
Rental income, dividends, and interest. We’ve owned rental properties since 2010. We buy and sell them as it makes sense, but these properties have provided a nice steady passive income (about 20% of total gross annual). I’ve also done some consulting here and there for spending cash.
Work/life balance:
When I was young, I absorbed myself in work. I was so married to work that I didn’t get married until my late 30’s.
For a while my work/life balance was totally out of balance — to the point of near divorce. Not proud of that but it helped me reconsider what was important. For the past 10-15 years I’ve been focused on balance, family, meditation and being a recovering workaholic.
Debt:
We like to pay things off quickly, unless the interest rate paid is significantly below the interest earned for cash. Other than mortgage payments on rental properties (3-6%) and a 0% rate on a car for one of our 3 kids, we have no debt.
Net worth:
About $2.5M. I always contributed to 401k and looked for ways to save money everyday like bringing lunch to work. I started with nothing but student and credit card debt.
It’s the great fortune of a great career and a solid partner to grow our finances together. We bought/sold real estate which accounts for about 1/3 of net worth. We’ve invested in the stock market (funds and individual stocks, including accumulating Nvidia from 2015 through today) which accounts for the balance.
My advice? Save your money and be prepared to invest that cash when opportunity strikes (real estate downturns, stock market corrections). Be patient.
Credit card:
Chase Freedom cash back card.
Budgeting:
Cash flow has been really solid over the past decade, so we’ve eased back a bit on budgeting and tracking costs. We’re still living well within means.
We used to budget when money was tight with raising three little ones. My wife and I are co-CEO’s of our family. She’s the CFO and I’m COO for our specific division of labor. She would run monthly numbers in Excel and at the end of every year we’d see where we landed, craft a new budget for the next calendar year, forecast EVERYTHING, and create a “shit happens” reserve.
Best recurring expense:
Our AT&T fiber internet service, hands down. It’s $80/mo for a symmetrical Gig and it includes MAX. Plus discount on one of the kids’ cell phones.
Splurge:
Going out and having a good time. My dad always said, “don’t spend your money on crap — put something in your belly.” He was right. So we are regulars at our local breweries, diners, bars and restaurants. Sure, we spend way too much at these local spots, but it’s NEVER crap.
Charlotte money hack:
Shop Food Lion for groceries. I save $100 per week doing this versus going to Harris Teeter or Publix.
Charlotte restaurant:
Customshop. I’ve never ordered anything that I didn’t like there. The duck breast is extraordinary.
Investment breakdown:
We’ve been DIY investors pretty much always. We max out 401k at work (love company match!), reinvest most dividends on equities, and generally like to roll the dice on ‘no brainer’ investments like purchasing undervalued properties and buying oversold stocks with solid fundamentals in our IRA.
We’re in our 50’s now and probably should have a more conservative investment strategy, but we like the action.
Savings goal:
We’re always saving for the next good investment. Sounds boring, but those investments give us the means to buy what we want when we want to.
Retirement:
I suspect at some point I’ll want to retire, but I like working. Always something new to learn. We’d like to double our net worth and then spend it all traveling together until one of us dies.
How much money would you need to feel complete financial freedom?
That’s a tough one. For me, not much. There’s a man living in a tent in the lot down the street from where we live now. When I chat with him, he could care less about money. I’d hope to feel financially free myself in the same situation. I guess my answer would be enough to pay the bills, have a place to live, and have something in my belly.
What do you consider “rich” in Charlotte?
A few million or so.
Best and worst money decisions?
Best was buying a N.C. oceanfront investment property in 2011. We brought less to the closing table than the investors who had failed to flip it. We sold it in 2019 for 2x the original purchase, but also generated close to $1M in rental revenue over the years.
Worst decision has been buying speculative momentum stocks and not jumping out early enough.
Win some, lose some.
Financial goals:
We’ve already achieved our goals. Now we’re just refining our strategy to maximize wealth for another decade or so, God willing.
Where did you learn about money?
My parents were very tight with money. Learned frugality there. My wife was naturally frugal. We both like to save money, her a bit more than me. I’d say we learned together how to manage our money. That’s key in a marriage IMO, we’re a team and we work together in the best interest of our team. Money is one of the biggies and I’m glad we have the same approach to it.
On your mind:
Cash flow. I’m getting older and I could be unemployed. We have a lot going out the door for college education, living expenses, etc. We are healthy and have a nice nest egg. I sleep well at night and try not to get stressed out. We’re very, very fortunate and blessed.
Want to participate? Take the Money Talks survey. Got feedback? Email ted(at)tinymoney and I’ll include it in our newsletter Mailbag section. New to Tiny Money? Join 4,698 Charlotte execs and subscribe to my 1x/wk newsletter. Job hunting? View job board.
