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 quick look at the personal finances of a 38-year-old insurance professional.
Living situation:
We own. Mortgage is a 30-year fixed at 5.5%. We’ve got kids and our grocery budget eclipses the mortgage!
Job:
I’m an insurance professional. My base is $120,000 with an additional 15% annual bonus.
Salary journey:
I started in insurance claims making $36,000 after graduating with a BA in economics. I only switched companies once over a dozen years, but have had three different roles inside the same company. Salary steadily climbed to $107,000. Then I job-hopped around for the next two years, peaking at a $130,000 base.
Recently, I took a slight pay cut for quality of life purposes.
My only career tip is to budget/save/plan for inevitable burnout and for your priorities to shift massively when/if you get married and have kids.
Other income:
We own a rental property. Purchased as primary residence pre-COVID and refinanced when rates were at 2.5%. Mortgage is $1,200/mo and we rent at $2,200/mo.
Work-life balance:
It’s good. I’m 100% remote. 40 hrs/wk with seasonal spike to about 60 hrs/wk for 3 months.
Debt:
Two mortgages, totaling $600,000. Both on 30-year fixed terms. 2.5% and 5.5%. No consumer debt.
Credit Card:
BankAmericard. Opened an account with Bank of America 20 years ago. I just have one credit card. I like having all my finances in one spot. It also has a decent cash rewards program.
Budgeting:
Since eliminating consumer debt, we just have a rough budgeting spreadsheet of all our fixed and variable expenses. I have monthly bill amounts and due dates alongside our income and savings.
We make enough to save and pay our bills, so it’s a more passive budget these days.
Favorite expense:
Youth sports. Watching my kids excel in sports is one of my favorite things, period. We spend over $300/month.
My most annoying expense is a tie between auto insurance and property taxes. Both keep going up and I have no choice not to pay.
Splurge:
Indian food. Over $100 for rice and tomato sauce, but it’s so good.
Charlotte money hack:
Local YMCAs are everywhere and offer great facilities at reasonable prices (membership runs $69/mo).
Restaurant pick:
Blue Taj. Order the Masala Paneer Tikka ($18).
Investment strategy:
We try to save 25% of my salary and put it in Roth 401(k), Roth IRA, and high interest savings.
100% stock portfolio via Vanguard index funds (total market or S&P 500). No advisor yet.
Savings goal:
If I could, I would buy a European vacation.
Net worth:
$400,000. A combination of salary savings, increase in home values, and some large paid-off (though depreciating) assets.
My advice is to set up recurring savings deductions directly from your paycheck before it hits your bank account.
Retirement:
I want to hit Coast FIRE by age 50. I’ll keep a low stress job after that for as long as it makes sense. To fully retire, I’m aiming for $1.5-2M with a paid-off house.
[Coast FIRE is when you have enough in your retirement accounts that without any additional contributions, your net worth will grow to support retirement at a traditional retirement age — but you still need to make some income to support your current cost of living]
Financial freedom number:
$1M. At my age, this would grow well beyond what I need to retire within a few years. And would allow me to take any job that interests me in the interim.
What’s “rich” in Charlotte:
$150K income with a $2M net worth.
Worst money decision:
Taking out student loans for college.
Financial goals:
- Pay off the primary mortgage.
- Hit $1M net worth.
- Hit $2M net worth.
It’ll happen with consistency. Plan is simply to stay healthy and employed.
On your mind:
Should we sell our rental property? We’re considering it.
Knowledge:
Mr. Money Mustache blog. Dave Ramsey. The Money Guy podcast.
Money advice:
Stay fit and healthy! Find a serious hobby, cause, or passion project outside of salaried employment. It’ll make you more interesting, broaden your network, and help your mental health when shit inevitably hits the fan at work.
Money Talks is a weekly series showcasing how real people in Charlotte approach money. Participate.
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