This as-told-to essay is based on conversations with Morgan S., a 37-year-old strategy senior manager in Houston. It has been edited for length and clarity.
Life in Houston offers a unique blend of financial security and cultural diversity, but it comes with its own challenges. For Morgan S., a strategy senior manager enjoying a lucrative corporate salary, Houston’s high property taxes and cost of living are offset by the absence of a state income tax and the vibrant life the city offers.
Despite Houston’s reputation for high property taxes, Morgan manages to maintain financial stability through a combination of income streams and disciplined spending habits. With a monthly take-home pay of nearly $10,000, Morgan feels financially ahead, thanks to a corporate job in the energy sector, rental property income, and social media endeavors.
Multiple Income Streams
Having dedicated 15 years to the energy industry, Morgan benefits from a job that provides significant compensation perks, including a defined contribution plan and Restricted Stock Units (RSUs). Morgan’s work schedule is hybrid, with two to three days spent in the office, and the daily commute takes about 25 minutes each way. Health insurance, which costs $92 a month, is another job perk that simplifies healthcare management.
Investments play a crucial role in Morgan’s financial strategy. A rental property yields $2,900 monthly, while a private equity investment adds $1,250. Additionally, Morgan has ventured into social media for supplemental income, recognizing the potential of building a monetizable personal brand.
Real Estate and Future Plans
Morgan resides in the walkable Rice Military neighborhood, just five miles from downtown Houston. The three-bedroom townhouse, purchased for $465,000, incurs a $3,186 monthly house payment plus $300 in utilities. Despite the neighborhood’s appeal, owning real estate has proven costly due to unexpected repairs. Morgan plans to sell the property in 2025, aiming to invest the proceeds to achieve a “coast FIRE” goal of $1.3 million.
Budgeting and Spending
With a net worth of $1.1 million, Morgan adheres to a lifestyle of living below means. A used 2019 Mazda CX5 serves as reliable transportation, and Morgan is content without the allure of upgrading. Monthly grocery expenses are kept to $400, with most meals prepared at home to avoid dining out frequently.
While debating whether to allocate $50,000 for a wedding or save it for the future, Morgan remains committed to frugal living. This includes maintaining a simple wardrobe, buying secondhand, and forgoing costly beauty treatments.
City Living vs. Suburban Life
Morgan has always preferred city life over suburban living, valuing walkability and proximity to amenities. Although the suburbs offer more space for the money, the trade-off is worthwhile for Morgan, who enjoys being close to family and the urban environment.
However, future family plans might prompt a move to the suburbs to access better schools, a consideration many millennials face when contemplating parenthood.
The Appeal of Houston
Houston’s diverse culture, high-paying jobs, and access to amenities make it an attractive city for Morgan. With plans to invest over $100,000 this year and save or invest 53% of gross income, Morgan finds living in Houston worthwhile, with no intentions of relocating.
