# A Conversation with a Millionaire: Lessons on Wealth Building, Career Growth, and Financial Independence
In this exclusive interview, we delve into the financial journey of a self-made millionaire living on the West Coast with a net worth of $5 million. This couple, now in their late 40s, have mastered many aspects of personal finance, from earning a high salary to budgeting, saving, and investing. What follows is a comprehensive exploration of how they achieved financial independence and what they’ve learned along the way.
Let’s get started…
## **Overview**
**Q: How old are you (and spouse if applicable, plus how long you’ve been married)?**
We are in our late 40s. We’ve been married for over 20 years.
**Q: Do you have kids/family (if so, how old are they)?**
Yes, we have two teenagers.
**Q: What area of the country do you live in (and urban or rural)?**
We live in the suburbs on the West Coast, which is an expensive but enjoyable area. Despite considering relocating for lower costs multiple times, we haven’t found another place we love as much.
**Q: What is your current net worth?**
$5 million.
**Q: What are the main assets that make up your net worth?**
Here’s how our net worth is distributed:
– **Real Estate** (Primary home, rental properties & syndications) – 50%
– **Retirement Accounts** (401K, Roth IRA) – 24%
– **Taxable Stock Market Accounts** – 19%
– **Cash** (Checking, Saving, Money Market) – 4%
– **College Fund** – 2%
– **Personal Assets** (Car, Jewelry, etc) – 1%
## **Earn**
**Q: What is your job?**
I’m a software engineer. My wife recently started freelancing after being a homemaker for years.
**Q: What is your annual income?**
Approximately $317,000, including a bonus and equity-based compensation (RSUs).
### **Earning Over Time:** A Gradual Climb
**Q: Tell us about your income performance over time—starting salary, career changes, etc.**
– **Early Jobs:** My first job was working for my uncle delivering goods to businesses for $160/week—a decent sum at the time. Then, I worked as a teaching assistant in college for about $2,000/semester.
– **Post-Graduation:** After graduating, the job market wasn’t in favor of my original major, so I began working as an HVAC engineer, earning $40K with long hours and tough working conditions. Less than a year later, I opted for another degree in computer science, and this marked a turning point in my career.
– **Tech Career:** Upon completing my second degree, I landed a software engineering job at $60K with much better benefits. Over time, I grew into senior roles, eventually earning over $300K. I even tried management for a stint but found that I enjoyed individual contributions more.
### **Career Tips for Success**
**Q: What advice would you give to others looking to increase their income?**
1. **Don’t Fear Change:** If you feel stuck in your career, making a switch could propel you forward. “Nothing changes unless you change,” as Jim Rohn said.
2. **Front-Load Effort:** When you’re young, push your career as much as you can. When family life starts, your bandwidth for major career moves shrinks.
3. **Go Beyond the Minimum:** Contribute more than expected at your job. Find out what your company values most and focus on adding that value.
4. **Negotiate** Effectively: Learn the art of salary negotiation. While employers treated me fairly, there were times I felt I wasn’t compensated adequately, so I negotiated for more.
### **Work-life Balance and Income Diversification**
**Q: What does your work-life balance look like?**
It’s great! I work about 40 hours a week and have flexibility, working remotely around 30% of the time. Sometimes I work 60-hour weeks when I’m on call, but I can offset those busy periods with vacation time.
**Q: Do you have income sources outside your primary career?**
Yes:
– **Rental Income & Syndications:** $38,000/year
– **Dividends:** $20,000/year
– **Interest:** $4,800/year
## **Save**
**Q: What is your annual spending?**
About $140,000 per year. This amount has gradually increased as our children have grown and due to inflation.
### **Spending Breakdown:**
Our spending breaks down as:
– **Home-related (mortgage, property taxes