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.
Living situation:
We purchased a home in 2016 for $325K and have since upgraded the entire house. Our current mortgage with escrow is less than $2K per month.
My wife wants to move into a bigger house, but I’m having a hard time justifying the increase in cost compared to the additional living space.
Do I really want to pay an extra $4-5K per month for an extra bedroom and a laundry room?
I don’t know how first-time home buyers can afford a house right now. Also, I can’t comprehend how many $1.5M houses there are for sale in Charlotte. What do people do to afford these homes?
Children:
I’ve got 2 kids in elementary school. I’m a saver and I feel like I’m spending a lot of money on my kids, but then I’ll meet another parent that blows my spending out of the water. Are their kids happier?
What’s the right amount of money to spend on kids without spoiling them? I wrestle with this.
Job:
I have a business strategy role. My base salary is $210K with an additional 40% annual bonus. So about $294K in total.
Salary journey:
20 years ago, I started out in manufacturing as an engineer making $55K out of college. I thought I was loaded. It was a wake up call when the new engineers came in the next year making more money than me. I switched engineering companies a couple times to make more money before realizing I wanted to change my career. I decided to get my MBA at night.
My MBA allowed me to switch careers into consulting and financial services. It took me 12 years to double my initial compensation and earn over $100K. My compensation in the last 8 years has tripled!
My biggest advice for people looking to make more money is to not be afraid to take risks. I took on a contract position that got my foot in the door in the finance industry. It was definitely scary taking a contract role with a newborn kid and another on the way, but it helped me break into the industry where I knew my skills would translate well and I could succeed. I’m still looking for opportunities to take risks and grow my income.
Side hustle:
I have a reselling business that earns $15K – $50K per year.
It was very profitable about 5 years ago, but has since declined. I was lucky to meet some people that got me into this side hustle and helped me navigate the business.
Work-life balance:
I work about 50 hours per week. I’d like to work less and play more golf, but this is the prime of my career, so I don’t want to give up any earning potential.
Debt:
I was originally scared of debt and tried to minimize my debt. As I’ve learned more about money and leverage, I’ve learned that debt can be good.
I have a $250K 30 year mortgage at 3%. I also have 1 year left on a car note at 2%.
Credit card:
I have 4 main credit cards. Amex Blue Cash for most everyday expenses, Costco Visa for Costco and dining out, AA Visa for travel, and a Citi Double Cash for my side hustle.
I choose these cards to maximize rewards. We buy everything on our credit cards and pay them off each month.
Budgeting:
I used to budget diligently every month when I was making less money. It led to a lot of stress in our marriage.
Fortunately, I now just make sure to max out my retirement and save an extra 20% on top of that out of my paycheck directly. As long as we don’t have to dip into savings for the credit card bill, I’m good.
Best recurring expense:
Maid service. $120 every other week to keep the house clean is well worth it.
Splurge:
Christmas. It’s the one time I buy things for my family and not question it. I use the credit card reward points/dollars to offset the extra cost.
If money were no object, I would join Carmel Country Club.
Charlotte money hack:
Buy a property in Raintree and they waive the $30K initiation fee.
Restaurant pick:
Prime Fish. I order their specials.
Net worth:
$2M. I currently have $200K in checking/savings, $250K in brokerage account, $1.0M in retirement accounts, $200K in 529/UTMA accounts and the rest is home equity.
I max out my 401k first. After that I put about 20% of my money into a high yield savings account. I normally would put anything over $50K directly into an index fund, but we are saving up for a new house. My goal would be to rent our current house, but the housing market is tough right now.
I don’t believe in financial advisors. They can help minimize taxes, but the fees they charge are prohibitive in my opinion. Most people would benefit from just investing in index funds. Individual investors can’t beat the market. Just put the money in and leave it there.
Knowledge:
My parents taught me to save at a very young age. My mother opened a Roth IRA for me when I got my first job when I was 16. They also set up a college fund and since I received scholarships, I had a nice nest egg coming out of school which set me up for success.
I’ve tried to live by the “pay yourself first mantra” and put money in savings first when budgeting. I don’t spend very lavishly. When I make big ticket purchases I want to make them last. Currently I’m driving a 2007 Lexus.
Retirement plans:
I want to retire in my 50s. Ideally I would like to start working less at 50 and then be fully retired by the time my kids are through college. I will be playing golf in retirement.
How much money to feel complete financial freedom?
Wow, that’s a loaded question. I think once I had $5M in investable assets I would feel free. I could stop working and live off a modest 4%.
What do you consider “rich” in Charlotte?
I consider myself rich. I think if you’re making over $200K and you own a home, you’re rich. I feel very fortunate. I’m definitely not the richest in my friend group, but I feel that I’m successful.
Best money decision:
Buying a lifetime membership at a country club. The upfront fee was substantial, but now I never have to pay dues again. The payoff was around 8-9 years when taking into account time value, and our family should get 25+ years use out of the membership.
Worst money decision:
Not buying a bigger house in 2020 or 2021. It would have been a stretch financially for the first couple years, but now it would have been easily affordable.
The houses we were looking at 3 years ago are now double the price and double the interest rate. Not a good combination.
I keep hearing about the real estate market slowing down, but Charlotte must be immune.
Financial goals:
- Set my kids up for success financially when they go out on their own. Whether that’s paying for college or providing a nest egg to get them started. I’ve been saving money monthly for them since they were born. Their grandparents also gifted them money when they were born that we have invested on their behalf.
- Retire in my 50s. I’ve been maxing out retirement savings, but now I need to save outside of retirement for the gap between working and taking out money in my retirement accounts.
- Buy a new house or vacation property. I want to get into real estate either renting out our current house or a vacation property. We are saving up for a down payment.
On your mind:
How do so many people in Charlotte afford $1.5M homes? From Lake Norman to SouthPark to Union County — there are so many million dollar homes in this area.
What does everyone do to afford a $10K+ mortgage payment per month? I struggle with this a lot.
Money Talks is a weekly series showcasing how real people in Charlotte approach money. Participate.
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