Don’t want to read? No problem! You can listen to me reading the article to you by clicking the play button above.
Welcome to the 7th edition ofThe Wealth Letters, a collection of insights from all walks of life on the pursuit of wealth, wisdom, and meaning.
If you haven’t done so, please read or listen to the manifesto before diving in to the collection, as it will give a clear vision of the project; the Who, What, and Why.
Thanks for reading The Wealth Letters! Get new editions direct to your inbox:
The following letter was written by Chad, specially for The Wealth Letters. He has been kind enough to take the time to write his personal insights on what he has found to be true wealth, for readers of The Wealth Letters.
Chad is attempting to build a $1M net worth on a $50,000 salary, and has a true passion for sharing his journey and helping others like him achieve the same @Chadmoneymatter on Twitter. Chad is a father and husband, who shares his journey 7-year journey of “failing my family to leading it.”
Chad went from $0 in net worth, pushing 300 pounds, and being a “poor husband and worse father” at age 30, to a net worth over $115,000, down 70 pounds, and being a “strong father and great husband” at age 37.
I challenge you to read or listen to this insight as if it is being written to you personally.
Be willing to be vulnerable and open your mind to ideas and suggestions that have proven worthwhile in another’s journey. Do not blindly accept any and all advice given, but rather take in the information and distill it down to if & how it can be applied to YOU and your unique self.
Michael Jordan said that he imitated Dr. J.
Kobe Bryant said he studied and imitated Jordan.
But, they mixed in their own uniqueness.
While not everything will relate directly to one’s current situation at the exact moment, there may be some gems that will be worthwhile in time.
Objectives / Overview:
Is my wife happy with our lives? Am I happy with our lives?
The conversation that shifted Chad’s financial situation.
What needed to change to go from surviving to thriving.
“I was sitting on the couch one day chatting with my wife. I asked her what she thought about our current life. Was she happy? Was I happy? We were both content. We had a child (now 2). We had a home, albeit small. And a car, albeit aging.
But I asked her, “Is this the life you envisioned?” I work all day. She stays with the kids and makes pinatas for some side money. Felt more like survival than thriving. That conversation led to the pivot that shaped our current financial situation. We had always been frugal mainly due to lack of income. We had been surviving on a single salary of around $40,000 annually at the time.
We had always been savers and had a decent amount of money saved in the bank. But, it wasn't working for us. Meaning, if we didn't put our money to work, I was going to have to work well into retirement just to continue to survive. We agreed that wasn't a good plan. We wanted to do more than survive.
So we got intentional with our money. We opened a Roth IRA account. And we max that annually. We opened a 529 and add to that every month. We add to our brokerage and soon our first 401k. I'm so glad we decided to talk about that topic that day.
Completely changed the trajectory of my family and our goals. My current passion is helping folks that were in a similar situation; not making a ton of money, but able to make the most out of it.”
The TLDR/L (Too long, didn’t read / listen):
Chad reveals that a rich life can be lived on an average salary if one’s lifestyle aligns with that salary (if you look at Chad’s picture at the top, it is evident what he values).
He always has been, and continues to be, frugal mainly because of lack of income. The frugality, especially on the largest three expenses most of us have (housing, transportation, food), has allowed Chad’s household to increase its net worth (Example: paid off mobile home, paid off car, and average under $500/month in food).
Chad and his wife realized that putting one’s money to work (investing) would be the driver in being able to do more than just “survive.” The conversation he had with his wife “completely changed the trajectory of my family and our goals.” He is a first-hand example of a household that doesn’t “make a ton of money, but able to make the most out of it.”
My Takeaways from Chad:
A rich life is unique to each individual. Some would look at Chad’s lifestyle and think this is no way to live. Chad admits that there are times when they feel like they are just surviving. However, his wife, children, and passion to help others in a similar situation is the crux of what provides the richness in his life.
Chad’s story reminds me of JL Collins’ formula for building wealth (a refresher can be read in The Wealthy Window Washer letter), which is to spend less than you earn and invest the difference. Chad’s family is putting this into action with a modest income, and focusing on optimizing their biggest expenses that will have the most impact on their savings (housing, car, food).
Chad shows that while money is absolutely an important tool for living a rich life, it is only one component. His wife, kids, and the passion for helping others in a similar situation as his, is vital for HIS rich life.
What are your takeaways? Feel free to comment below, or reply to this email. I would love to hear your thoughts!
Thank You for Your Support
Would you consider sharing The Wealth Letters with a friend? That would be so much appreciated:
This is a very well-written article. Very commendable of Chad and his wife to have an open dialogue about their life together - and identifying their financial goals. But at the same time, Chad recognizes just how rich he is.
Also, the part that reads “So we got intentional with our money.” is such an important takeaway and makes us happy that we “set it and forget it”.
Chad/Jordan - thank you for sharing! Look forward to following Chad’s story.
Chad,
Thank you for being vulnerable and sharing your PERSONAL story! I know that your story will provide value to others for the taking!
This is a very well-written article. Very commendable of Chad and his wife to have an open dialogue about their life together - and identifying their financial goals. But at the same time, Chad recognizes just how rich he is.
Also, the part that reads “So we got intentional with our money.” is such an important takeaway and makes us happy that we “set it and forget it”.
Chad/Jordan - thank you for sharing! Look forward to following Chad’s story.