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. We re-financed during COVID and have a 2.5% mortgage with a standard 30-year term. $3,000 per month. Like many Charlotte homes it has appreciated by a large amount over the last 20 years and represents a significant portion of our net worth.
Family:
2 children. Oldest at UNC. Youngest dual-enrolled at CPCC while also attending high school. Amazing program. Free if you have a high schooler in CMS.
Job and salary:
I work in cybersecurity and my wife owns her own business. My total compensation is $250K and my wife generates $60K.
My compensation comprises of base, bonus, stock options, tuition reimbursement, and 401k matching. It’s important to lay out all of the income sources that come with employment as the matching and tuition reimbursement is real income if applied appropriately.
Salary journey:
I did not have a college degree when I entered the workforce. My first real job paid $32K. Salary has risen steadily over 25 years in the Charlotte workforce to its current levels.
Work-life balance:
Excellent. With my technology background in cybersecurity, cloud, and AI, I could likely earn more elsewhere, but my current employer is excellent. I’m okay leaving money on the table. Very fortunate.
Debt:
Just our mortgage at 2.5%. We could pay it off, but we use the captial to invest in S&P 500 growth funds like VOOG. This has paid off in spades over the years.
We would go into additional debt to buy more real estate investments in the future if the opportunity arose.
Credit card:
Citi AAdvantage Executive World Elite Mastercard. Primary usage is Admiral’s Club access and status on that airline.
Budgeting:
We have never budgeted. Our philosophy is to max out our 401k every year, put a couple hundred dollars in the market each month and spend the rest.
Our investments have grown briskly and steadily over many years and I have never felt like a budget was required.
We also filled up our kids 529’s and put small amounts in a Roth IRA and custody brokerage account for each of them steadily. If they listen to us and just leave that money where it is they will have a solid financial foundation for the future.
Splurge:
First class tickets and international travel.
We’ve also been moving up to luxury class vehicles over time. Once you buy a vehicle with chilled seats, you never go backwards.
Money hack:
Taking the Express bus line to Uptown saving on tolls and parking. I look forward to the transit systems coming to the suburbs and the future of self-driving cars (like Waymo) becoming commonplace to improve the commute.
Restaurant pick:
131 Main and Church & Union. The Charleston location of Church & Union is a must see!
Net worth:
$2.5M. The bulk of this worth came from 25 years of working and real estate appreciation.
My advice is to continue to put money in the S&P 500 and don’t look at the statements for 30 years. You will be happily surprised. (and Warren Buffet agrees).
Investment philosophy:
We max out the 401k first. Then we put a couple hundred dollars into the market once a month. Any extra cash from a flush month or a bonus goes into either a high-yield savings or the market.
I manage our own money. I do not believe that a financial advisor is required, particularly with all the free tools available including ChatGPT (use cautiously, but awesome for financial modeling).
This approach over many years has been highly profitable. Our investment are largely in the S&P 500 following Warren Buffet’s advice to just keep investing in good times and bad, then wait. I also having a technology background and will take moderate risks into tech stocks (see NVIDIA). That has also paid off very well.
Retirement:
We plan on semi-retiring at 55. I plan on teaching.
If I lost my job today I would create an AI consulting firm the next day.
Rich in Charlotte:
I have co-workers with country clubs, Porsches, and fine tailored clothes. No idea if that is mired in credit card debt or indicative of wealth. Candidly, I don’t care about others’ wealth and stick to my own knitting. Our family is happy and stable, I hope theirs are too.
Missed opportunity:
We received $10K in cash gifts at our wedding in 2004. My wife told said we should just use it to buy Google at its IPO. I thought that was too risky! This would now be $1.6M. Always listen to your wife 🙂
Worst money decision:
I bought a new vehicle with a loan in college. What a mistage. I should have gone out and bought a beater Toyota with cash. I missed payments and the vehicle was repossessed. I became carless. It took me years to dig out of the hole.
Financial goals:
Semi-retire at 55, cover higher education bills for my children, and provide them a nest egg for their first home.
A stretch goal is that we would like to create a multi-generational education trust (look up Ben Franklin’s). If there is any left over I am going to buy a small airplane!
On your mind:
We are fortunate enough to have very little financial stress. I believe in American industry and believe the market will continue to grow exponentially.
AI, Bio-tech, Robotics, and EV’s are going to be a massive growth sector in the economy and Americans will continue to be better off every generation than their forefathers.
Knowledge:
My parents and my in-laws were excellent with money. I ignored my parents advice for quite some time (foolishly) and did not truly start to see the big picture until my late 20’s. Thankfully time is kind and I was able to catch up.
Advice:
Embrace failure. Everyone makes terrible financial decisions in their youth. These experiences are essential. Save. Invest. Study personal finance.
Money Talks is a weekly series showcasing how real people in Charlotte approach money. Participate
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