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 our home. Conventional mortgage at 3%. And we also own a mountain home with no mortgage.
We’ve got 1 child in high school. We wrestle with giving access to opportunities without making things too easy.
Job and salary:
Wealth management executive. Total household income is about $525K including salary, bonuses, revenue share, and 1099-contract work.
Salary journey:
I started my career making $26K.
Slowly added skills and experience and worked many long hours, eventually getting my investment licenses, then some management experience, then added supplemental income sources over time as opportunities came along.
Other income:
I have a rental property that grosses around $26K per year for a cash-on-cash return of 12%.
Work-life balance:
Better than in the past. I have staff and others available to help today that I probably waited too long to hire. And adding the ability to work remotely has made a positive difference.
Debt:
Mortgage at 3%. HELOC at 7.5% from some home improvement projects. Car note at like 5% with a $28K balance that I could pay off but just haven’t.
Our general approach is to use debt as a strategic tool to give ourselves flexibility and options. We’re also careful not to overextend ourselves.
Credit card:
I mostly use an Amex Platinum for the rewards and travel perks. I’m on the road a lot and it more than pays for itself. Plus it’s metal and looks cool!
Budgeting:
Not anymore. In the past, we’ve used everything from cash in envelopes to spreadsheets to apps like Mint.
These days everything’s pretty much on autopilot. We just spend on the things that bring us joy without being too strict.
Splurge:
Other people. I am generous to a fault sometimes. I remember what it felt like to be young and broke and have someone treat me to something luxurious so I try to do the same whenever possible. I always pay.
Charlotte money hack:
Don’t assume it’s cheaper to live far away where housing costs less if you lose hours per week commuting. Higher housing costs that give you back 25% of your time are worth the tradeoff.
Restaurant pick:
I’d have to say Calle Sol is pretty great. The Cuban fried rice is no joke.
If money were no object:
I’d love to own a 1970 Hemi ‘Cuda R/T convertible. Those are sweet!
Savings approach:
We’re able to save about $125K per year. This goes into retirement accounts, investment accounts, HSA, 529 plan, and some permanent life insurance.
Net worth:
$2.8M. Split between real estate equity and investment accounts.
We started at a negative net worth and just kept building. The best way to grow your net worth is just keep saving, even when it’s hard to do. It adds up over time.
Portfolio breakdown:
Probably 90% stock funds, with the remaining 10% in a safe Vanguard money market fund. We’re pretty simple overall.
Retirement:
We’d like to have the option of leaving the corporate world in about a decade with around $5M.
I’d like to be able to spend some of my time working on personal projects. I’d also like to be in the mountains, exercising, and probably just slowing down while we’re young enough to still want to do things.
Rich in Charlotte:
I’d have said $5M at one point, but these days it’s probably closer to $15M.
There’s a lot of money here, but it’s quiet money or family money. Lots of old money on the tree-lined streets in Myers Park, Eastover, and Cotswold.
Regret:
Not taking more risks early in my career to grow my income faster.
Financial goals:
- Send our son to a good college. We should have saved enough by then to cover his tuition.
- Give generously. We have a donor advised fund (DAF) and fund it with appreciated stock each year.
- Invest in our health and longevity. Stay active and exercise regularly, preferably outside.
On your mind:
Nutty money advice on social media. People can get hurt. Personal finance should be pretty boring if you’re doing it right. That doesn’t sell ads I guess.
Knowledge:
By doing it. You can read all you want but until you earn money and have to manage it, none of that matters. When your own future is on the line, things get real.
Money Talks is a weekly series showcasing how real people in Charlotte approach money. Participate
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