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. Bought a modest 3 bedroom home near Dilworth in 2005 for $285K (current Zestimate is $850K). Owe about $160K. Refinanced a few years ago at 2.375%. Current monthly mortgage is $1,600.
We have 2 children. Always wondering whether we would have enough saved in their 529 accounts. Good news is that our daughter received a nice college scholarship. The roughly $100K in her 529 plan will cover nearly 100% college tuition and housing.
Job and salary:
I’m a lawyer and work in-house as general counsel for a technology company. $275K annual base salary with a 50% bonus based on company performance. Generous option package that should pay out nicely in the event of an acquisition or IPO.
Salary journey:
My first job out of law school 25 years ago, was as an associate attorney in a litigation boutique firm earning $43K per year. I remember getting an annual bonus of $5K that year and thinking that I had finally made it.
My salary increased incrementally in private practice for the next few years then plateaued when I transitioned to in-house counsel work in 2010. I cracked 6-figures in 2015 and have made significant jumps during the past 10 years. I’ve helped a few companies achieve successful exits, so there’s demand for a lawyer with this experience.
Future additional income:
Our goal is to buy a place in the mountains once the kids get through college and rent out our Charlotte home.
Work-life balance:
Perfect, honestly. Most days I take a 2-hour lunch break to workout. I’ve never missed either of my kids’ lacrosse games or school events.
Our office has a hybrid work schedule. I come and go as a please. I recognize the flexibility that I have so I’ll often be online late at night or on the weekends making sure I’m on top of everything. I try to make myself available to my teammates 24/7.
Debt:
Owe about $160,000 on our house. And $300,000 on a HELOC.
General approach to debt (and this is a terrible plan, I know) is that we put big purchases throughout the year (vacations, new Sleep Number mattress, which is sick, annual car and home insurance, new fridge) on low interest or zero interest credit cards and pay them all off in January when I receive my annual bonus.
Credit card:
Barclays Silver AAdvantage credit card.
I’ve racked up enough points through my purchases where I have executive platinum status. I get upgraded to first class on about 70% of my flights. I have enough miles where I get at least a half dozen free flights every year.
Budgeting:
We try to pinpoint exactly which expenses we know we will have each month—mortgage, utilities, subscriptions—and document these on a shared Google Sheet, noting the day of the month each expense is due. We also use this same document to identify annual subscription fees and expenses (ex, AAA membership and insurance).
The idea is that every month a certain amount is already allocated for these expenses, and the remainder should go to discretionary spending.
My Dad passed suddenly a few years ago and he basically had a blueprint of everything laid out for my mother in terms of bills, investment accounts, phone numbers and emails for our accountant, financial planner and estate attorney. He was one of the most organized people I know and it was still a ton of work getting everything transferred into my Mom’s name. I want to have that same level of organization and planning for my family.
Favorite expense:
Contrast therapy (sauna, cold plunge, red light therapy) at a local gym for $170 per month. I go almost every evening. I sleep a solid 8-9 hours every night. I’d put my WHOOP subscription a close second.
Splurge:
I’m a big live music fan. I’ll travel 3-4 times a year to see shows (I usually go by myself) and stay at a 4-star hotel.
Restaurant pick:
Osteria Luca. I try to behave when we go there. My go-to is the $29 roasted chicken, but everything on the menu is lights out.
Investment approach:
My wife and I have consistently maxed out our 401k contributions for a number of years. We have about $10K in savings and another $200K accessible on our HELOC if needed.
We’ve worked with a financial advisor for the past 10 years. While managing our portfolio has been great, he also connected us with an estate attorney to set up a trust for our kids and draft our will and supplemental term life insurance policies.
I’ve been fortunate to receive a couple of windfalls from acquired companies I’ve worked for. If things go well with my current company that will completely wipe out our current debt and put another $1M into our savings.
Current goal:
Get both of our kids through college and grad school debt-free.
I test drove a Bentley once and think about it every day when I get behind the wheel of my Acura.
Net worth:
About $3M.
Retirement:
57. Weird number, but it’s when my son will be out of college. I should be heading toward a full mid-life crisis. I think $5M in savings and investments plus passive income from renting our Charlotte home should be sufficient.
I want to spend half the year in the North Carolina mountains (Asheville, Boone) and the other half in New England.
I can see myself continuing to work in a fractional role to keep my mind sharp and keep some income coming in.
Rich in Charlotte:
It’s all relative. I feel “rich” because I have everything I need and my wife and kids are healthy. Yet if you looked at our 1,600 square foot home and the 2014 Honda my wife drives and the 2019 Acura that I drive, you wouldn’t think so.
But we have everything we need and aren’t looking to keep up with the Joneses. We haven’t had a car payment in 7 years.
We could certainly get a bigger home in Myers Park where the high rollers live, but so what? Having a ridiculous mortgage payment and pissing away money on a monthly car lease seems like such a waste. But, to each his own.
Best money decision:
Putting aside $500 per month into each of our kids’ 529 accounts as soon as they were born.
Even with help from both of our parents, we’re nowhere near having enough to fund the full sticker price of a more expensive private university, but are in good enough shape.
On your mind:
A large part of our previous and future financial success has depended on the successful exits of companies I have worked for.
I’ve learned how difficult it is to obtain venture capital funding and grow a business to the point of an acquisition. Hundreds of things must go right.
Whether I hit the $5M retirement goal I mentioned is largely due to luck — and that is a difficult realization.
Knowledge:
My Dad. “Pay yourself first” was something I remember him telling me as a young boy.
Money Talks is a weekly series showcasing how real people in Charlotte approach money. Participate
New to Tiny Money? Join 14,039 Charlotte money nerds and subscribe to the 1x/wk newsletter
