Todd Baldwin and his wife are intentional about their finances, and have done incredibly well for themselves. When I read this article about this young millennial millionaire couple’s budget and cashflow, I was inspired to share it. Not because others need to do exactly what they're doing, but because it demonstrates what is possible when you have a strong WHY, have no consumer debt, have an emergency fund, and have some solid financial knowledge to work from. Being frugal and not being flashy also played a large role in their success.
I've highlighted the key points from this article below and also make some recommendations on a few things that they might consider.
Todd Baldwin has always wanted to make a lot of money...
WHY: He was raised by single mom who struggled working 4 jobs to feed 3 kids. She was worried all the time about money, and he saw it and felt it. He didn’t want to feel that financial stress when he grew up.
WORK YOUNG: He started working at age 12, shoveling manure for $3 an hour, and when he looked at his $6 in quarters earned, it was more money than he’d ever seen. He was excited by the thought of making millions!
REAL ESTATE INVESTING: He started investing in real estate at age 23. By age 25 his net worth exceeded $1 million, thanks to savvy real estate investing with his wife. Their $4.4 million in real estate is supported by $3.1 million loans, which means they have roughly 30% equity. Their loan payments are currently covered in full by tenant rent, so as long as there are tenants and their lenders don’t call their notes, they’re in great shape.
FRUGALITY RULES: This couple lives well below their means, and are able to bank the wife’s annual 6-figure paycheck from her 9-5 job. They are not showy: he actually wears a $12 rubber wedding ring, and they only own 1 car, a 2009 Ford Focus. The also make sacrifices to get ahead: they have roommates and don't take vacations or have luxuries. They even have a side-hustle as "secret shoppers", which allows them to get free meals, groceries, entertainment, car maintenance, and sometimes gas!
And here's how he and his wife have done it...
INCOME: $615k gross/yr --> $305k net/yr ** 80% is reinvested into more real estate
Really, this couple is doing an incredible job of living life frugally and intentionally in order to invest and create a rich financial future. They’ve sacrificed a lot of fun that others their age have taken advantage of, but the article mentions that they plan to rectify that at some point. The article doesn't share, however, if and how they are using some of the resources that God has blessed them with to bless others. (Matt 6:19-21) They seem like a couple that would do that. :)
A few recommendations for them to consider...
MY FINANCIAL RECOMMENDATIONS:
As a certified Personal Finance coach (and homeschooler of 15 years), Kathleen has worked with people of all ages, but her passion is to help kids/teens/young adults take control of their finances early, learn entrepreneurial skills, generate multiple income streams, and get on a path to Financial Hope & Freedom so they can live into their passions and purpose. (Free Webinar on how to Empower Money Smart Kids with Financial Literacy & Entrepreneurial Skills)