{"id":4387,"date":"2018-08-23T03:13:07","date_gmt":"2018-08-23T07:13:07","guid":{"rendered":"https:\/\/marriagekidsandmoney.com\/?p=4387"},"modified":"2022-08-16T17:33:02","modified_gmt":"2022-08-16T21:33:02","slug":"how-to-become-a-millionaire-in-your-30s-interview-3-career","status":"publish","type":"post","link":"https:\/\/marriagekidsandmoney.com\/how-to-become-a-millionaire-in-your-30s-interview-3-career\/","title":{"rendered":"How to Become a Millionaire in your 30’s – Interview 3 (Mr. Shirts)"},"content":{"rendered":"

Do you ever wonder how you can become a millionaire in your 30's?<\/p>\n

Well, I sure do!<\/p>\n

In my quest to solve this mystery, I'm completing one interview a week with a young millionaire and asking them how they reached 7-figure status before their 40th birthday.<\/p>\n

This week, we hear from Mr. Shirts from\u00a0Stop Ironing Shirts<\/a>\u00a0about how he's become a millionaire in his mid-30's. You can find him tweeting away\u00a0@Stironingshirts<\/a>\u00a0on Twitter.<\/p>\n

Here's this week's interview with Mr. Shirts!<\/p>\n

<\/p>\n

The Details<\/span><\/h2>\n

How old are you? If you have a family, tell us about them and their ages.<\/h3>\n

My wife and I are both 36 years old. We don\u2019t have any children (at least not yet).<\/p>\n

What part of the country do you live in? Do you own your home or rent?<\/h3>\n

We live in a big city in Texas and currently own our home.<\/p>\n

What is your current net worth? What is it composed of?<\/h3>\n

I stopped publicly disclosing our net worth number after we passed $1.6 million<\/strong>.<\/p>\n

Our net worth is almost entirely invested in equities and we\u2019ve been able to defer a tremendous amount into retirement with the help of company matching and the availability of a deferred compensation plan over the last couple of years.<\/p>\n

\"Man<\/p>\n

The Process<\/span><\/h2>\n

What are your current sources of income? Does your spouse have other income sources?<\/h3>\n

Almost all of our income is derived from my job in commercial banking. The income consists of salary, bonuses, and restricted stock grants. We also are seeing $10,000 – $15,000\/year in dividends\/capital gains from our taxable investment portfolio.<\/p>\n

My spouse worked as a veterinarian for seven years but took some time off from practicing when we moved for my job and she hasn\u2019t looked back.<\/p>\n

What has been the single best thing you\u2019ve done to increase your income up until this point?<\/h3>\n

It's not necessarily a \u201csingle\u201d thing, but its been focusing on my career and skill set. I\u2019m in commercial banking, but it's really technical sales. We issue loans to privately\/entrepreneur-owned companies and it's a business that\u2019s learned through experience. You have to find potential customers, but then you have to negotiate an acceptable deal between the employer and the customer.<\/p>\n

There\u2019s a lot of competition for people and the loans can get large in size (think $5,000,000), so the people who can go out and produce good loans for their institution are rewarded well.<\/p>\n

This job took a good five years before I was pretty good at it. Then ten years in I was given an opportunity to lead a team. This ended up giving us the lesson of how to save a lot of money when our salaries are low because ten years ago new producers in this line of business didn\u2019t make a lot of money.<\/p>\n

What ways do you invest your money?<\/h3>\n

I graduated college with a finance degree and pretty quickly started studying for the Chartered Financial Analyst designation. I think that jaded me early on to believe the right way to invest was to pick individual companies and find the best fund managers out there. This belief slowly changed and I\u2019m more in the camp of buying index funds<\/a> and driving the expense ratio as low as possible.<\/p>\n

The current allocation sits around:<\/strong><\/p>\n

    \n
  • 16% Individual Stocks<\/li>\n
  • 10% REITs<\/li>\n
  • 64% Passive Index Funds<\/li>\n
  • 10% Active Mutual Funds<\/li>\n<\/ul>\n

    I do believe that over a long period of time, mid-cap and small-cap indexes will outperform the S&P 500, so I supplement the Total Stock Market Index Fund with Small and Mid Cap Index Funds. Over time this should provide a slightly higher return than just owning a Total Stock Market Fund alone. Ishares and Vanguard both offer low-cost ETFs.<\/p>\n

    I provide some detailed asset allocation information and account breakdowns here<\/a>.<\/p>\n