31-year-old self-made millionaire: 2 costs I find worth the money, even if I'm usually frugal (2024)

By his 30th birthday, Todd Baldwin had been a self-made millionaire for about five years. One of the key factors that helped him get there: a frugal lifestyle.

As of 2020, Baldwin and his wife, Angela, saved around 80% of their six-figure income from both their full-time jobs and real estate ventures in part by refusing to spend money on certain items, he told CNBC Make It at the time.

Baldwin avoided paying for entertainment and leisure, such as going to the movies or out to restaurants, because he could do those things for free as a secret shopper. He also made sure none of his bank accounts or credit cards charged fees.

Another portion of Baldwin's wealth could be attributed to "house hacking," which can take a number of forms. It might mean renting a 3-bedroom apartment and finding roommates who will pay you slightly more than the total rent, or it could be buying a single-family home and renting it out by the bedroom, which Baldwin did several times over.

The couple still lives somewhat frugally, but a number of things have changed. While Baldwin, now 31, continues to avoid banks and accounts that charge fees, the pandemic shut down a lot of the secret shopping programs he used to participate in.

Additionally, their income has gone up. The couple earned $1.4 million in 2021, and around the same in 2022. Their combined net worth is over $4 million.

Baldwin retired from his full-time job and has taken a step back from house hacking, but lives in a duplex with a tenant in the other unit and a renter in the basem*nt apartment, which makes it so he and his wife only pay around $700 a month on their mortgage.

Baldwin says he's always looking for another property to buy — whether to rent out by the room or list on Airbnb — but he hasn't seen anything on the market that's captured his interest in a while.

When CNBC Make It spoke with Baldwin back in 2020, he said invested almost all of his earnings back into his real estate business. These days his priorities are a little bit different, and his spending reflects it.

Part of Baldwin's choice to retire from his full-time job and do less of the time-intensive house hacking was the birth of his son in July of 2022. "I grew up without a dad," Baldwin says. "So I want to be very involved in my children's lives and I don't want to be stuck at work all day."

He's able to do that, in part, by buying a lot of his time back.

"I don't spend my own time cleaning my house, washing my car or mowing the lawn," Baldwin says. "It doesn't make a lot of sense for me to spend time cleaning, cooking or doing yard work when I can instead take that same time and generate income."

In place of his old 9-to-5, Baldwin started consulting with clients who are interested in learning about his business and how they can get started investing in real estate on their own. However, he didn't love how much time he spent on the phone, so he decided to pre-record and sell an on-demand course online.

This way he's still bringing in revenue — about $10,000 so far in total — but he's not talking on the phone for hours a day, or spending long stretches in an office.

Though living with roommates and tenants has gotten Baldwin this far, he and Angela are ready to upgrade.

They've purchased land and started designing the house of their dreams right on the Puget Sound outside of Seattle. The mansion will have a bowling alley, athletic fields, an in-home theater and more, Baldwin says. Despite his frugal nature, he's planning to throw some money at it.

"This is our dream house that we're gonna live in forever," Baldwin says. "I don't want to build something now and then remodel it in 10 years — I just want to get what we want, so we're kind of going ham on it."

The house is a worthwhile investment, he says. It will help him continue to grow his family and dedicate time to being with them.

In addition to the main home, Baldwin plans to build a cottage on a corner of the property where his mother will live and be able to see her grandchildren all the time. Family has always been a top priority for Baldwin, and his wealth is allowing him to express that in a variety of ways, he says.

Aside from the dream house, Baldwin isn't interested in spending money on expensive luxury items just because he can.

"There's not a lot of things that appeal to me that cost money," Baldwin says. "A walk in the park with my wife and my son — I enjoy that more than I would a brand new Rolls Royce. Why spend the 300 grand if it's not going to bring me the same amount of joy?"

He'd rather put his money toward helping those he loves. Along with building a home for his mother to live in, Baldwin paid off her credit card debt and paid for his brother to get dental implants after he lost his teeth to substance issues.

Although he's had a fair amount of success, he's not done yet. While his main priority is spending time with his infant son for now, he's still looking to acquire more assets and continue to build his passive income streams.

"I just [want] to do what I can to take care of my people and to teach others," Baldwin says.

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