Norris and Reneau Curl are seeing the rewards of proper money management. One smart money move they're proud of is faithfully squirreling away 20% of their income each paycheck. "We're savers by nature,†says Reneau, 50, who has been married to Norris for 12 years. "We ask ourselves why we're making a purchase and whether it's something we need or want.†The Carson, California, couple has a household income of $137,000 in addition to $30,000 in rental income. Norris teaches seventh grade world history and Reneau is a credit union manager. The Curls bought a four-bedroom, two-bathroom home with a swimming pool in 1996 for $175,000 that today is worth approximately $530,000. The home is now used to generate rental income. Two years ago, they decided to downsize to a home that required less maintenance, so they purchased a two-bedroom, two-bathroom condo in a gated, resort-style community for $440,000. Norris, also 50, has $106,000 in his 403(b). Reneau has $72,000 in her 401(k) and a $155,000 pension. They also have an emergency fund of $30,000. What's their secret? "We live below our means. It's given us an edge,†says Norris, whose wardrobe is mostly khakis and white shirts. Reneau shares his spending sensibilities. "I don't buy anything that's not on sale. We haven't ever paid full price for anything, be it a house, a car, or whatever. We have a set price that we will pay and we don't pay more than that.†They both had frugal mothers. "I watched my mother. She started as a classroom aide and eventually became a teacher, but she never changed her lifestyle,†says Norris. For recreation, the Curls engage in low-cost activities such as bike riding, taking a walk on the beach, or visiting museums. They occasionally splurge on tickets to a concert or sporting event. While the couple pays their credit card bills in full each month, they still have some debt. There's nearly $30,000 in car loans and a home equity line of credit with a balance of $136,000 that they used for the down payment on their condo. Then there's Reneau's $28,000 personal loan that was used to consolidate credit card debt that she amassed before the couple was married. The Curls realize their accomplishments. "We've been able to set savings goals and meet them,†says Reneau, but they are far from satisfied. "We have a financial vehicle, but not a financial engine. I want to build something that empowers us financially,†says Norris. "We want our financial legacy to be that of an abundant life, one that we can leave to posterity.†The Advice Gwendolyn V. Kirkland, a certified financial planner and managing principal with Kirkland, Turnbo & Associates, reviewed the Curls' finances. Shore up risk management. Kirkland says the Curls have tremendous exposure on their rental property. "I suggest they consult with legal counsel and discuss the benefits of having the property placed in a limited liability company, since it will provide some protection from personal liability,†says Kirkland. Furthermore, future properties should each have a separate L.L.C. This will isolate legal responsibility in case of a lawsuit to one property. They should also get a personal liability umbrella insurance policy. The umbrella policy would dictate that their liability level coverage on homes and autos be reviewed and perhaps increased by their property and casualty insurance provider. The umbrella policy would provide a higher level of liability coverage for them and a shield if they were ever sued regarding their real estate ownership. Prepare for the unexpected. In addition, Norris has no long-term disability coverage. Kirkland says he should get disability insurance that covers 60% to 80% of his income. Although they are in good health, neither of them has long-term care insurance, which provides for cost of care if either became chronically ill, disabled, or infirm. The couple may be able to get attractive rates now given their age and health. Furthermore, Norris has a one-time death benefit of nearly $25,000 that has no beneficiary designation. "They should verify all their beneficiary designations on their insurance and retirement plans,†says Kirkland. Get ready for the future. Neither Norris nor Reneau have wills, revocable trusts, or durable powers of attorney for healthcare. Kirkland says they should seek the help of an attorney who specializes in estate planning to draw up those documents. Reneau is currently contributing 4% to her retirement plan, and the max is 8%. They should both consider increasing their contributions to the $20,500 level this year to help fund their retirement goals. Reneau's asset allocation is 70% stocks and 30% cash. Reneau should revisit that allocation and do another risk tolerance questionnaire with their broker. Financial Snapshot Norris & Reneau Curl Carson, CA Household Income Gross Income   $167,000 Assets Savings   $30,000 Norris' 403(b)   106,000 Reneau's 401(k)   72,000 Reneau's Pension   155,000 Rental House   530,000 Condo   400,000 2002 Ford F150 Truck*   9,360 2001 Corvette*   20,830 2001 BMW 540i*   13,600 1972 Sea Ray Boat   7,000 CD      2,200 Individual Stocks   835 Bonds   200 Total   $1,347,025 Liabilities Mortgage on Rental House   $143,750 Mortgage on Condo   332,600 Home Equity Line of Credit   136,000 Auto Loans   29,435 Personal Loan   28,800 Total    $670,585 Net Worth   $676,440 *Estimated trade-in value according to Kelley Blue Book This story originally appeared in the January 2009 issue of Black Enterprise magazine.