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 into the personal finances of a 45 year old taking the jump into entrepreneurship.
Living situation:
My wife and I (no kids) purchased our home in southeast Charlotte two years ago. We paid for points upfront to lower the interest rate on our 15 year mortgage.
Job:
After 25 years in financial services, I left corporate life this past spring to bring a premier franchise to the Charlotte market. It’s a “dirty business,” in high demand, and incredibly fulfilling.
This has been a reset for me. I’ve never worked harder, but I’ve also never been more satisfied. Transitioning from resume values to eulogy values has brought real meaning to my work.
Get busy living or get busy dying.
Salary:
My wife and I are currently living off savings until our dirty business turns profitable. I saved 10 years’ worth of annual bonuses to make this transition possible. We are on track to realize profitability in late 2025.
Salary journey:
It’s crazy just how long it took to 10x my total compensation in Corporate America.
I began my career making $25,000 per year.
In my last three years in financial services, I earned an average of $225,000 annually, with 25% of my income coming from bonuses.
Other income:
Over the past 15 years, we’ve built a portfolio of four rental properties spanning two states. We approach real estate as a long-term rental strategy.
Our four rental properties are self-sufficient. We lucked out with great property managers and tenants, helping us build a nearly $1.5M rental portfolio.
The trick is to find homes that work as both primary residences and future rentals—close to good schools, within a reasonable commute, and with at least three bedrooms and two baths. A good property manager is worth their weight in gold.
Tip: Look for rental properties with a cap rate of 8% or higher (annual rental revenue ÷ purchase price). Anything lower likely won’t cover mortgage, taxes, operating expenses, and property management fees.
Debt:
We owe less than $750,000 on our rental properties, most with 15 years remaining at sub 3% interest rates. Our primary residence has a 15 year mortgage with a rate just below 5%.
Four years ago, I refinanced my graduate school loans to around 3% on a 10 year note. I currently owe less than $50,000.
My wife and I haven’t had a car payment in over 10 years. We both drive “vintage” Hondas. Maintenance on our 2006 and 2008 Hondas is still far cheaper than buying a new car.
Credit cards:
I’m a big fan of cash back credit cards.
The Costco Citibank Visa gets us 4% back on gas and 3% on dining and travel, while the Amex Blue Cash Preferred gets us 6% back on groceries.
Even with the cost of our Costco membership and American Express’ annual fee, the return is well worth it. Last year, we received over $2,000 in net cash back from all our cards. The key? Never carry a balance!
Best financial advice:
The best advice I received was from a CPA I interned for in college. He told me, “The earlier you begin saving at least 20% of your income in retirement accounts, the sooner you will witness a force greater than an atomic bomb.”
That got my attention. What 22 year old doesn’t want to see their savings explode by compounding in a tax-free environment?
After 25 years of maxing out 401(k)s and Roth IRAs, that CPA was right. My wife and I now have over $2M in our retirement accounts.
Best recurring expense?:
Back in October I snagged a pre-sale membership to The Health Club in Oakhurst for $199/month.
Splurge:
My $129/mo Charlotte Yoga membership brings me joy. Suzanne Bergen’s Slow Flow class on Saturday mornings has become my weekly moment of tranquility.
I plan to continue with Charlotte Yoga even after the Health Club opens. Hot yoga then a Saturday afternoon cold plunge perhaps?
Charlotte restaurant pick:
The Teal Turnip in Oakhurst is a culinary delight with small plate offerings that deliver every time. The Truffle Fries, Scallops, and Whiskey & Coke Chicken are to die for!
Fine dining in a t-shirt? Count me in.
What do you consider “rich” in Charlotte?:
Owning both a beach house in the Outer Banks and a mountain home near the Highlands.
Financial freedom:
Financial freedom is a mindset.
Owning a thriving business and saving over $5M certainly helps, but in my opinion, shifting from an ‘ego-driven’ to a ‘soul-driven’ operating model—focused on giving back to the community—is what truly completes the sense of financial freedom.
On your mind:
While excitement starts something like a new business, execution completes it.
We don’t believe in having a plan B. Our new dirty business will be successful if we consistently show up every day for our employees and customers.
Where did you learn how to manage your money?:
I was lucky to have very frugal grandparents, having lived through the Great Depression.
They passed on their values to their children and grandchildren who all developed strong work ethics at an early age. We learned how to save our money and saw the value of being optimistic and lifelong learners.
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