# Discussion with a Millionaire: Wealth Strategies from a 38-Year-Old CFO
Achieving substantial wealth is a goal for many, yet only a small number succeed. In our most recent *Discussion with a Millionaire* series, we present a detailed conversation with a thriving 38-year-old Chief Financial Officer (CFO) of a mid-sized financial firm.
Our millionaire reached the $1 million net worth threshold in July 2024. During this dialogue, he outlines his financial journey, investment strategy, career development, and valuable wealth-creation advice.
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## **Summary**
### **Profile and Family Dynamics**
– The interviewee and his spouse are both 38 years old and have celebrated 15 years of marriage.
– They reside in a suburban neighborhood of a midwestern U.S. capital with their 9-year-old son and 13-year-old miniature schnauzer.
### **Net Worth Breakdown**
As of August 2024, their net worth is **$1,022,815.33**, primarily consisting of:
– **Equities & Retirement Funds:** 46.86% ($479K)
– **Real Estate Holdings:** 46.12% ($472K)
– **Liquid Assets & Miscellaneous:** 7.01% ($72K, which includes two family cars)
– Their real estate portfolio features three properties: two fully paid rental properties and a primary home still under mortgage.
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## **Income**
### **Job Roles and Earnings Review**
– The interviewee is a **Certified Public Accountant (CPA)** and currently holds the CFO position, earning **$208K per year**, alongside **bonuses ranging from 15-20%** (~$31K-$42K).
– His wife works as a **teacher**, making **$56K annually**.
– Their combined annual income reaches **$264K** (potentially **$300K with bonuses**).
#### **Career Development Milestones**
– **2009:** Began his first accounting position with a **$33K salary**.
– **2011:** Moved back to his hometown, increasing his salary to **$55K**, while his wife earned **$40K**.
– **2013:** Transitioned to the oil and gas sector, raising his salary to **$70K**, while his wife took on a teaching role earning **$38K**.
– **2015:** An industry downturn resulted in his switch to finance with a **$70K salary**, which grew to **$100K** by 2021.
– **2021:** Advanced to his current CFO role, beginning with a salary of **$150K**, which has now reached **$208K** in 2024.
#### **Strategies for Career Advancement**
1. **Constantly enhance your skillset** – Don’t depend solely on employers for your professional growth.
2. **Seek out certifications** – Achieving a CPA credential greatly elevated his career prospects.
3. **Be open to taking risks** – Leaving a secure position can lead to significantly improved opportunities.
### **Supplemental Income Streams**
– **Rental Ventures:** Brings in **$2,575/month in rental income**, netting around **$2,000/month in profits** after expenses.
– **Previous Side Ventures:** Previously earned **~$2,500/month** through an eBay reselling business. His wife occasionally markets t-shirts and uses Merch by Amazon.
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## **Savings**
### **Yearly Expenditures & Financial Planning**
– Their annual household expenditure is **~$150K**.
– Key spending categories include: Mortgage, utilities, education, travel, entertainment, and a large **miscellaneous category**.
– Started with precise budgeting but now utilizes a **broad financial tracking approach** to manage monthly expenses.
### **Savings Rate & Approach**
– Saves **25% of gross income** (~$79K yearly), which includes:
– **401K/403B Contributions:** $46K
– **Contributions to Rental Property Fund:** $5K
– **Savings from Bonuses for Investments:** $25K-$30K
– Early in their marriage, their savings rate was **10-15%**, which increased with income growth.
### **Top Money-Saving Tips**
1. **Prioritize your savings** – Set up automated savings to achieve long-term financial objectives.
2. **Maintain a flexible spending tracking system** – Adjust as necessary instead of analyzing each category meticulously.
3. **Delay major purchases** – Prevent impulsive buying by taking time to consider big expenditures.
### **Preferred Indulgences**
– **Travel & Adventures** – Regular family vacations, including cruises and trips to national parks.
– **Entertainment** – Season tickets for college football and memberships for performing arts.
– **Gaming** – Invested in a **PS5** for enjoyable family gaming experiences.