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:
Own. Purchased in 2016. 30-year mortgage at 4.25%. We put more than 20% down to negate PMI. It was a FSBO property. They paid our agent’s commission.
One child. Daycare costs were stressful, but now it’s the stress of the summer camp hunger games!
Job and salary:
I work at a nonprofit. $65K nonprofit salary. I also have a few side hustles.
Salary journey:
When I graduated college I made $5.15 an hour working at the front desk of the YMCA and $6.50 working at a smoothie bar. I was so broke, but I learned if I could live off that, I could do anything!
I’ve worked at this same nonprofit for 20 years. Started at $32K. I know I’ll never break 6-figures, but the culture and flexibility are priceless to me.
Side hustles:
$40K in short-term rental (STR) income and $20K in photography income.
Instead of moving to bigger/better for our primary residence, we’ve built and purchased rental properties. In 2010 we built a beach house on a lot we had purchased a few years prior (got a steal in the recession). Recently purchased another positive cash flow STR which we will midterm/long term rent in the off season.
Work-life balance:
Pretty solid, except during rental high season. I’m glued to my phone managing requests, repairs, access codes, cleaning folks, etc.
I travel a lot with my nonprofit job. I try to stay loyal to one hotel chain so that I gain status and points with them. I roll those points into free hotels for my own family vacations. We recently drove cross country on spring break for nearly free!
Debt:
Yes, we have credit card debt that we are actively paying down.
I’ve gone through spells of paying them off, and inevitably something happens that forces their use. I am working on a savings system that should help eliminate these issues going forward.
Best money decision:
I was very fortunate to inherit some money 20 years ago. During the 2008-2010 recession, we used this money to buy a beach lot for $42K. We continued to save for 2 more years, then built a house on the lot for $285K. It’s now worth about $850K.
More recently, we sold some land and flipped it in a 1031 exchange for an additional beach property that already had rental bookings in place. Instant cash flow! I’ve also learned that mid/long term rentals at the coast are hard to come by, so we’ve used this to differentiate the property.
STR management:
We utilize Vrbo, Airbnb, and our own website to maintain bookings.
When folks book directly with us, we invoice through Square. We then have an automation set up where 28% of that revenue goes directly into a high-yield savings account. This way it never enters our regular checking account, and we can’t see it or spend it easily. This is to cover expenses associated with those properties.
Choosing to manage our rental properties myself yields 20-30% more income, but I do deal with 2am HVAC calls, broken refrigerators, etc.
Credit card:
I have 4, but I really just stick to my American Airlines card for the miles.
Budgeting:
Just the rental properties. We track those closely. On the personal stuff though, nope, we don’t budget.
Best expense:
Gym. I have religiously gone to the gym every week for 3.5 years now. It keeps me sane and healthy!
Splurge:
2nd hand stuff. I love to scour Goodwill, Habitat, and Facebook Marketplace.
Money hack:
I drink a lot of water, but I LOVE tea. I joined Panera’s Unlimited Sip Club at $3 per month for unlimited drinks. I go each morning and get a large tea to last me most of the day. It’s silly and small, but I probably save $40 per month.
Restaurant pick:
Beef ‘N Bottle. Steaks are great, but I always enjoy their shrimp cocktail and a glass of wine!
Net worth:
Roughly $2.5M.
Retirement:
I firmly believe that I will never 100% retire. I enjoy working, helping people, and staying busy. Becoming a nomad traveler or a couch potato has zero appeal to me.
I plan to continue managing rental properties in retirement, sitting on the beach, and doing lots of gardening.
Financial freedom:
I’d probably need $7M to feel like I didn’t need to work. Owning multiple properties has taught me that something always needs fixing, so you always need money.
Rich in Charlotte:
I used to think it was your zip code, but now I believe if you’re able to own a home, you’re rich. I cannot imagine trying to buy a starter home now.
Anyone with great landscaping should feel rich, plants are expensive!
Financial goals:
- Pay off our home in the Charlotte suburbs (snowball the following 2 payments into our mortgage after they are paid off)
- Pay off my husband’s car (using rental income)
- Pay off credit cards (using rental income)
On your mind:
Keeping the rental bookings coming!!!
When you are new to a platform (e.g., Airbnb), having zero rental reviews is hard to overcome. I was really thankful to get bookings in place from previous owners, but waiting on those rentals to transpire and those reviews to populate is gut-wrenching.
Money Talks is a weekly series showcasing how real people in Charlotte approach money. Participate
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