Welcome to Kiplinger’s My First $1 Million series, in which we hear from people who have made $1 million.
They’re sharing how they did it and what they’re doing with it. This time, we hear from a 58-year-old married man who works as a freelance film/TV production accountant and lives in Wilton Manors, Florida, and hails from Asbury Park, New Jersey.
See our earlier profiles, including a writer in New England, a literacy interventionist in Colorado, a semiretired entrepreneur in Nashville and an events industry CEO in Northern New Jersey. (See all of the profiles here.)
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Each profile features one person or couple, who will always be completely anonymous to readers, answering questions to help our readers learn from their experience.
These features are intended to provide a window into how different people build their savings — they’re not intended to provide financial advice.
To hear more about My First $1 Million, you can check out this podcast with bestselling author and tax attorney Toby Mathis:
The Basics
How did you make your first $1 million?
I grew up in a rural town in the southern tier of New York state. Everyone was working poor, and most of the adults I knew worked on dairy farms or in factories.
There were very few opportunities for kids who grew up in a place like that, so I joined the Army after high school, thinking it would catapult me to something bigger.
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I was stationed in the Washington, D.C., area when I got out and quickly discovered that a college degree was the only thing an HR department valued. So I worked in a Pepsi factory in Maryland.
About a year later, I applied for a position as a shift leader of sanitation, which basically meant being in charge of cleaning the floors, and was told that corporate policy required a college degree to be a shift leader. I quit that day.
I tried to go to college that fall, but again, I could not make it work financially, so I went to a temp agency. I got a job as an accounting clerk at Fox TV when it first started. It was an exciting job, although it only paid a bit over minimum wage.
A few years later, I joined the world of freelancers and have spent over 30 years going from project to project, making TV shows and movies.
Freelancers are valued for their experience and achievements more than their pedigree. So my million-plus dollars was earned through years of hard work, successful projects and long hours, but more than that, I had no fallback, so I hustled more than most of my peers.
(Image credit: Getty Images)
I also focused on the expense side. Military vets are able to receive VA loans with no down payment, so I fixed my expenses when I was in my early 20s by buying a two-unit apartment building and living in one unit while the tenant paid the mortgage. That allowed me the flexibility I needed to freelance.
I also stuck to a budget and limited interest expenses by driving lower-priced cars and paying them off and never creating credit card debt.
I’ve lived a nice life and have never felt that I’ve done without, but I have always made choices that supported saving my money over being extravagant — although I never look at a price on a menu. I choose restaurants that are reasonably priced, and I choose whatever I want.
It may sound silly, but eating out is a special treat for the working poor, and you can’t have just anything on the menu, so for me, I celebrate my success every time I go out for lunch or dinner.
(Image credit: Getty Images)
What are you doing with the money?
It took a long time to save my first million. I started investing early with a 401(k) and then opened an online brokerage account. One of my 401(k)s lost so much money that the account was closed.
I also spent a ton of money and bought a business that ended up not being a great investment. My idea was that if I owned my own company, my destiny would be in my hands, not the stock market’s. I learned a lot.
(Image credit: Getty Images)
But my most important gift was that I gave my mom the money for a down payment on a house so she could afford to fix her costs. She now owns her house outright, so her future is less of a concern for me, and she loves her house. I’m very happy that I could do that for her.
The Fun Stuff
What is the best part of making $1 million?
When you grow up with little opportunity, having financial freedom opens a world you could never have imagined. It’s fantastic and horrifying to be in a world of opportunity. It’s so easy to make the wrong choices, but it’s exciting to even have the options.
Did you do anything to celebrate?
My money was finally making real money, so I bought an expensive house. I lived there for five years and loved it, but I realized that expensive houses come with high taxes and carry costs, so the money that my money was making was being given to the government.
(Image credit: Getty Images)
I loved the experience and have no regrets, but I moved to Florida, where there are no state employment taxes and lower real estate taxes.
Did your life change?
Money makes living life easier. It definitely did for me.
Does anyone know you’re a millionaire?
I have told a few family members and friends. I am proud of my success, but sharing that information is a double-edged sword. People don’t understand the compromises I’ve had to make for my success.
Do you plan to retire early?
I am planning to retire at 60. I am 58 now and am excited and scared at the same time. It’s kind of like graduating from high school. It’s a chance to reinvent yourself and create something amazing.
(Image credit: Getty Images)
Looking Back
Anything you would do differently?
I would do so many things differently if I had the opportunity, but you have to play the hand you are dealt. Even today, not having the college degree limits my options.
I was a super networker and hustled hard to get work, so I got a lot of project offers as I grew my brand. I often made safer choices and probably limited my potential.
I don’t regret it, because I love my life and appreciate my success and how far I’ve come, but I sometimes feel like I did not achieve my potential.
What advice would you give to your younger self?
You define you. Don’t let anyone tell you who or what to be. The number in your bank account is only important as it relates to paying for your lifestyle.
Did you read any books that helped you on your journey?
At Pepsi, they gave everyone a book about empowerment. I think it was called Buzz. It was a management book, but it taught me to listen to people and collaborate.
I am a big reader of money magazines and love Kiplinger.
I also read tons of investing articles online.
Did you work with a financial adviser?
I worked with an adviser at my bank for a year and did not like it. I worked for every penny I have and often juggled multiple projects at the same time.
I have met many and never found anyone who valued my money in the same way as me. They basically regurgitated the company line.
(Image credit: Getty Images)
I find that magazines and internet research serve me just as well.
Did anyone help you early on?
No one helped me. Thanks to the magazines that taught and inspired me.
Looking Ahead
Plans for your next $1 million?
I am having fun investing and love trying different investment strategies, but my money makes money, so I hope to focus less on wealth building and more on making the world a better place.
Any advice for others trying to make their first $1 million?
It may seem odd, but my money makes me feel safe. So my mantra is, “Be the slow and steady turtle.”
(Image credit: Getty Images)
Invest early. Be consistent. Control your spending. Buy a house in your 20s, even if it’s not your perfect house. You can always sell it, and the equity moves you.
Learn about investing in companies and not placing bets on tickers. I like to invest in companies that make money, have cash flow and share their profits with me, but I also invest in very safe things like annuities.
Find what works for you by asking yourself what wealth means to you.
Do you have an estate plan?
I don’t have an estate plan yet, but it is on my list to complete by the time I retire. I married my partner of 26 years who has a trust. We don’t share money.
In the meantime, I have beneficiaries designated on my accounts, so it’s halfway there.
What do you wish you’d known …
When you first started saving? I wish I knew the importance of investing in dividend-paying companies.
When you first started investing? How to choose investments.
When you first started working with a financial professional? I was shocked to learn that they are no smarter or wiser about specific investments than me. They have certain investment instruments that they represent, but there are many, many options.
Don’t be forced into one of two to three options. To me, 5% to 7% is a good return — when you realize that, you can focus on the many roads to getting there.
Before you retire? We will see. My partner thinks that I need to focus on what my day-to-day life will be like when I retire. I think his biggest lesson was that he was alone. Everyone he knew was working, so there was no one to play with.
(Image credit: Getty Images)
I hope to spend time making the world a better place, so in this broken world, I may find myself busier than ever.
If that doesn’t work out, I also wouldn’t mind working at an ice cream store part-time to keep me active.
If you have made $1 million or more and would like to be anonymously featured in a future My First $1 Million profile, please fill out and submit this Google Form or send an email to MyFirstMillion@futurenet.com to receive the questions. We welcome all stories that add up to $1 million or more in your accounts, although we will use discretion in which stories we choose to publish, to ensure we share a diversity of experiences. We also might want to verify that you really do have $1 million. Your answers may be edited for clarity.
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