Industry: Nonprofit Health Care
Age: 28
Location: Maryland
Salary: $65,000
Net Worth: -$45,103.51 (I keep an emergency fund of $10,000. After I was laid off from my first big-girl job, I made it my mission to have at least three months’ worth of expenses at all times. I have $2,684.47 spread across three different savings accounts for travel, bills, and house repairs. I put $100 in each of these accounts every month. I have $22,433 in my 401(k) and $10,657 in my IRA. My mortgage is $90,877.98. I bought my one-bedroom condo for $110,000 last year.)
Debt: $90,877.98 (The only debt I have is my mortgage. I paid off the $15,000 I had in student loans last year.)
Paycheck Amount (biweekly): $1,546.72
Pronouns: She/her
Monthly Expenses
Mortgage: $1,076 (I live with my boyfriend, A. I pay $676 for the mortgage, and he pays $576 for the HOA, which includes utilities. I add an extra $400 a month toward the principal.)
Car Insurance: $102 (It went up from $90 and I am still annoyed.)
Verizon: $40
Health Insurance: $28
Dental Insurance: $12
Planet Fitness: $22
The New York Times: $4
The Washington Post: $4
HBO, Netflix & Hulu: $0 (I use A.’s accounts for HBO and Netflix, and my mom pays for Hulu.)
HSA: $25
401(k): $247 (I contribute 8% of my paycheck.)
Was there an expectation for you to attend higher education? Did you participate in any form of higher education? If yes, how did you pay for it?
Yes, my parents both have master’s degrees and always pushed college. For undergrad, I had an academic scholarship that covered my tuition. My mom paid for my housing during my freshman and sophomore years. I paid rent off campus for the last two years through waitressing, dog sitting, and my work-study job. For those two years, I split rent in a townhouse with four of my friends. My dad gave me money here and there for things like books or clothes if I asked, which wasn’t often. My mom paid my tuition for grad school as well. I covered my living expenses by working a part-time job at the YMCA and by taking out a $15,000 loan. My dad did not assist me financially for grad school. I would not be where I am today without financial support from my mom.
Growing up, what kind of conversations did you have about money? Did your parent/guardian(s) educate you about finances?
My parents divorced when I was young and they have very different ideas about money. I never really talked about money with my dad, but from my observations, he is more of a spender and has different priorities than my mom. He bought a vacation house in Florida the same year he stopped giving me money for school. My mom, on the other hand, often talked about 529 accounts, 401(k)s, and investing. She is more of a saver and rarely splurges on herself. I think of myself as somewhere in between the two.
What was your first job and why did you get it?
My first job was as a waitress at a nursing home. It was the only place hiring that I could walk to after school. It paid $7.25 an hour. I got the job to pay for gas and Beyoncé tickets. (Even back then, you always had to be prepared for whenever she announced a concert.)
Did you worry about money growing up?
I never worried about money. I was able to go to summer camp and took a yearly vacation with my cousins. If there was trouble, I didn’t notice.
Do you worry about money now?
Yes, very much so. I live right outside of DC, and two of my close friends have moved away due to the high cost of living here. I don’t see how I can save for retirement and a house, and I’m not sure there’s much salary growth in my current position. I know I can pay my bills now, but what about later when I’m older?
At what age did you become financially responsible for yourself and do you have a financial safety net?
My mom is my financial safety net. She cut the financial cord when I was 26 and stopped paying for my car insurance. I was on her health insurance until 25. I don’t think either of us would be thrilled to have me move back home if something disastrous happened, but I know I would always be able to. I’m super grateful for that.
Do you or have you ever received passive or inherited income? If yes, please explain.
My mom gave me $10,000 she received when my great aunt passed away. She has also said that she is planning to leave me money when she passes, but I’m not sure how much. She’s had health issues over the years and will most likely have high medical expenses as she ages. I have no idea how that will all shake out, and honestly, I don’t like to think about it.