Cash Confessional: 31-year-old making $500,000 wants to give back to charity and be able to retire by 45

Our Cash Confessional series, in partnership with Bank of America, takes a personal and anonymous look into how people of all ages and incomes spend their money. Answers have been lightly edited for clarity. 

PARTICIPATE: Want to be featured? Go take this new 28 question, anonymous survey. We’ve recently redone the survey to give participants more freedom to showcase their financial decisions and personality — without having to track weekly expenses. To see the other installments of Cash Confessional, click here. 

Tell us about yourself.

I’m a married 31-year-old with a Master’s degree. We just bought a house and our mortgage is $2,100 per month.

Industry and income?

I work in mergers and acquisitions and make more than $500,000. This consists of a base, plus a percentage of the net profit of the business. My wife has a good job too, but we live off my income.

Fairly compensated?

I’m compensated very well, but it’s aligned with the success of the company I work for. There is a lot of upside potential. As the company continues to grow, income will grow.

Putting anything into savings?

Yes, but it varies a lot. Average monthly business and personal expenses are $12,000. I’m usually able to put $10,000 into savings and the rest into investments.

Saving for anything specific?

Building a financial cushion.

Do your parents support you?

Not now. They paid for college and grad school.

Most expensive night out this month?

We spent $25,000 on furniture for the new house. I always have at least one interesting and expensive charge per month.

Most stressful thing about your financial situation?

I cover all business expenses and write off them off against my taxes. I never know how much each month will cost because everything is last minute (flights, cars, hotels, dinners, conferences, etc.).

Top 3 financial goals?

1. Live below our means to have enough liquidity to take chances and capitalize on future opportunities.
2. Give back to charity as much and as often as possible.
3. Have the option to retire by 45, but enjoy what I do enough to keep working.

Budgeting strategy?

My income and expenses fluctuate a lot on a monthly basis. I have a CPA, an attorney, and a wealth advisor that work together to help me track and game plan my finances.

Investing strategy?

My wealth advisor manages a portfolio of various investments that I don’t touch.

Credit card strategy?

AmEx Platinum for everything except flying. I use AAdvantage Aviator Silver World Elite. I never touch my points.

One thing you’d like to purchase that you can’t currently afford?

A condo in Manhattan. My wife and I love going to the city.

Best purchase you made this month?

Our new house at $415,000. This was well below the budget we created and it checks all the boxes for what we need.

Best and worst financial decisions?

Best: Taking a risk by leaving a good job and getting in on the ground floor of a new company.

Worst: Interest-free loans for unneeded material things.

Where did you learn to manage your money?

Trial and error. Learning from mistakes.

What do you consider “rich” in Charlotte?

It doesn’t matter how much you make. Anyone that lives comfortably below their means can be considered rich.

Motivated by money?

Money can be a factor, but I’m primarily motivated by creating results.

Ideal retirement age?

I doubt I will ever want to fully retire, but my goal is to have the ability to live on interest and passive income by 45.

No. 1 piece of financial advice?

Focus on your passion and the quality of what you do and the money will come.

Build your financial know-how with free tools and information to help you make more confident decisions. Visit the Bank of America Better Money Habits site today.

Need 1:1 guidance on getting your finances in order? Schedule an appointment with a Bank of America specialist today or stop in your local financial center.

PARTICIPATE: Want to be featured? Go take this new 28-question, anonymous survey. We’ve recently redone the survey to give participants more freedom to showcase their financial decisions and personality — without having to track weekly expenses. To see the other installments of Cash Confessional, click here.