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The young millionaire interviews continue! I've had a lot of interest in this series and look forward to bringing you more in the weeks to come.
Most of the time, our interviews will be anonymous. This will allow our guests to be open and transparent with us. Given that they are sharing incredibly personal (and helpful) information, it makes a lot of sense.
Today's 30-something millionaire interview features BAMF Money.
The Details
How old are you? If you have a family, tell us about them and their ages.
I'm a 38-year-old bachelor, but dating. Never been married yet and no kids.
What part of the country do you live in? Do you own your home or rent?
Currently living in the Southwest. Moved out of Dallas a couple of years ago. Own my home. Have only ever rented very short-term when transitioning in between home sales.
What is your current net worth?
As of August 2018, I'm currently sitting at $1,118,000 with about 99% sitting in about 55 individual stocks and 1 ETF. I don't include house, cars, or material possessions in that figure.
The Process
What are your current sources of income?
I'm currently working but that may change again within the year, so I have W-2 income from full-time work, about $25k in dividends coming in, pulling in about $11,000 from 72(t)/SEPP distributions from a Traditional IRA that I started in 2016. I generate some income from my website.
Lastly, I started working a couple of nights a week for the city softball league as a side income. It's the job I've had the most fun doing.
What has been the single best thing you’ve done to increase your income up until this point?
Putting away as much money as possible and starting as early as possible. Also investing aggressively and letting the stock market work to my advantage. My investments can now easily generate more for me than my day job. This is basically the time value of money formula you learn in business finance courses but applied to your personal finances.
Related Article: How Automation Made Me a Millionaire in my 30's
What ways do you invest your money?
I only keep about $3,000 in a checking account for paying bills. Everything else is invested in the stock market, with the majority of my holdings in dividend growth stocks and 1 ETF.
Did you receive an inheritance or windfall of some kind during your life so far?
No. I hustled at an early age, lived below my means, and started investing early on. I also avoided being tempted by lifestyle inflation.
What debts do you have?
No debts at all. I charge everything on my credit card but pay them off before the billing cycle even closes each month. I haven't had to borrow money for anything in a long time, and don't plan to ever finance anything ever again. It's a nice feeling not owing money to anyone.
How do you track your net worth?
I've been tracking it on an excel spreadsheet since 1999. I originally used post-it notes and would have it stuck on my fridge. Back in the day, you could literally come over, grab a beer out of the fridge and see it stuck on my fridge door.
Do you budget your money monthly?
I've never really had a budget, but I do track what I am spending at a very basic level using an excel spreadsheet. My basic living expenses are super low for things like housing, food, and car-related expenses. My biggest expenditures are kind of discretionary in that I spend more money on things like dating and going out, by even then, my annual expenditures are still very low.
Andy's Note: If you're a spreadsheeter like BAMF Money, check out Tiller. It automatically imports your banking information and still gives you the control you want from a spreadsheet. It's a great net worth tracker too. (Andy out)
Related Article: How to Increase Your Net Worth by $700,000 in 7 Years
What is your favorite fintech tool that helps you grow your wealth?
I don't use any. I just build my own spreadsheets to use and understood how powerful compounded growth can be at an early age.
Young Millionaire
What does “millionaire status” mean to you?
I became a millionaire on October 4th, 2017, the day before my 38th birthday. It was pretty cool to hit that milestone, but I didn't really do anything special. I remember just going out like normal with my girlfriend at the time for our regular date night.
To me, being a millionaire isn't about buying fancy crap or showing off. I drive a 15-year-old car, wear jeans and boots most days, and would be the person least likely to get picked out of a lineup as being a millionaire. I can afford a new car and fancy things, but they don't really bring any lasting happiness to your life.
Being a millionaire to me is more about earning your freedom back. I can afford to stop working any day I want. If I don't enjoy being at work, I can just leave and not have the pressure of having to find another job. I'm more able to focus on what I enjoy in life and brings me happiness.
What is one financial mistake you’ve made along your young millionaire journey?
At an early age, I traded stocks way too much.
I bought AMZN for $10 back in 2001 and sold out a few months later at $16. I also used to trade in and out of NVDA back in the graphics card battle heyday with ATI Technologies (now AMD). Had I just bought and held onto these companies, I'd be even closer to $2,000,000 right now. I have since been a buy and hold investor and it has paid off.
What book has been most influential to you?
I'm actually not a big reader at all. Most stuff I learned about finance was from majoring in Finance in college. I took the basic principles in college finance and turned around and applied it to my personal finances after leaving school.
Are you looking to build wealth and protect your young family?
Check out the Marriage, Kids and Money Podcast.https://t.co/BOUKji92su
— Andy Hill (@AndyHillMKM) August 16, 2018
Like listening instead of reading? Check out my net worth boosting podcast!
What is one financial hack that has helped you that you think most people don’t know about?
I don't think people really understand the power of compound interest and the time value of money. We hear about putting time on our side when it comes to investing, but until you put a pencil to paper and see how it works, it's just words that someone is saying. This has gotten me to the point where I can easily make more in one month from my investments than working at a job for a whole month. Basically, because of compounding and time value of money, I don't need to work.
Where do you find the most joy in your life?
I love outdoor activities. Camping, hiking, running, biking. Just being outside versus staying in a cubicle. In a few more months, I'm leaving work to get back to that stuff again. I did a short stint with early retirement back in 2016, and plan on giving it a second round in 2019.
Work will always be there if I need to go back, but I'm not getting any younger and want to be able to get back to doing the things I like. I've started working on my bucket list items including doing stand up comedy, competing in a full triathlon, and hope to ride a real bull one day and road trip across the country visiting the national parks.
Where are you in your net worth journey?
Please let me know in the comments below!
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