Industry: Telecommunications
Age: 29
Location: Los Angeles, California
Salary: $70,000. My husband, N., and I have combined finances. N. is previously enlisted and is in full-time graduate school covered by the military. He receives $2481/month 12 months a year and $3636/month prorated when enrolled in school. Both of these payments are tax free. due to the tax-free element of accepting N.’s salary, our joint salary amount is approximate.
Assets: Checking Account: $10,000; contingency fund: $42,000; investments: $65,500; my Roth IRA: $110,000. N.’s Roth IRA: $40,000; my Roth 401(k): $3000? My HSA: $500. rental property: $430,000; We also bought a new car worth $17,000.
Debt: Mortgage: $296,000
Payroll Amount (Biweekly): $2,692 (before taxes)
Pronouns: She/her
Monthly expenses
Monthly housing costs: $2,499 (N. and we rented a 706 sq. ft. one bedroom/one bath condo that includes a parking space.) We recently moved from the Washington, DC area where I had a house that I bought before we met. We lived in the house for a year before moving to Los Angeles and turned it into a rental property when we left. The property is rented for $2500/month (this is included in the joint salary amount).
All other monthly expenses
INSURANCE: $337.31 (This includes auto insurance for two vehicles, renters insurance, landlord insurance for our rental property, jewelry insurance for my engagement ring, and umbrella insurance)
Gym: $56 (My job pays me back $20/month)
Spotify: $5.99 (I have a student rate. N is part of a family plan with his siblings, but they don’t make him pay.)
Water: $100
Electricity: $50
Internet: $30 (We get a military discount with T-Mobile.)
Mortgage payment: $1276 (for rental property)
HOA: $278 (for rental property)
Property management fee: $197.50 (for rental property)
Weekly Expenses (Pay per salary):
Health Insurance: $44.47 (before tax)
Dental insurance: $10.67 (for N and I, before tax)
Vision Insurance: $4.28 (before tax)
Annual Expenses
My Roth IRA: $7,000
Roth 401(k): $23,000 (my company matches $2,800)
HSAs: $3,850 (my company contributes an additional $300/year)
Property Taxes: $4,100 (for rental property)
Was there an expectation to attend higher education? Did you participate in any form of higher education? If so, how did you pay for it?
Yeah, it wasn’t really an option not to go to college after graduating high school. I originally went to an out-of-state public school that wasn’t a good fit for me. After a year there, I transferred to a public school in the state. My parents saved in a 529 college fund for me when I was very young. Both of my parents are engineers and my parents budgeted our family to live on just my dad’s income which left my mom’s income to be saved for various things including 529 accounts for me and my brother. They put a lump sum into my 529 when I was a baby and let it grow over time. I had more than enough to graduate and still have $5,000 in the account.
Growing up, what kind of money conversations did you have? Did your parents/guardians educate you about finances?
I wouldn’t say my parents and I had any real meaningful conversations about money, but I learned a lot from observing how my parents managed their money. However, it was not a matter that was out of the question. Growing up, when I had questions I felt very comfortable going to my dad.
What was your first job and why did you get it?
My first job was a summer job in college working at a retail store. I hated it but I did it mostly because I knew I had to do something with my summer. I didn’t need the money so I saved it all.
Were you worried about money growing up?
Yes and no. My mom immigrated to the United States after being a refugee for six months and really made a path for herself. She put herself through college and became a very successful engineer. But I wouldn’t say that her concern for survival was left behind when she came to the US. As a child, I could feel her worrying even though we were financially stable, which made me worry. This was quite the polar opposite of my unconcerned Caucasian father. As I got older, I realized that this wasn’t a reflection of my parents’ financial situation – it was a reflection of my mom’s upbringing in her country.
Are you worried about money now?
Because there were many years of my adult life where I worried a lot about money, I still worry now, even though I know we are in a very good place financially. It’s this scarcity mentality: No matter how much money I have, I’ll always think I’d be more secure if I had more saved.
At what age did you become financially responsible for yourself and have a financial safety net?
I would say that at 22 I started to become financially responsible for myself — but knowing that my family would be my financial safety net, I leaned on them and have continued since I graduated college. I made very little money out of college for the first two years and was really struggling financially. I could meet my basic needs, but anything extra was difficult — like on vacation, my parents would pay for my flights back home. I grew up playing competitive golf and always wanted to see how far I could go as a career playing golf, so when I was 25 I decided to go for it. I quit my full time job and for two years my mom supported me by giving me $3,000 a month and for another year $2,000 a month while I wasn’t working full time. When I got married was when my mom reduced the amount she was giving me from $3,000 to $2,000. At the time, it didn’t feel right to spend money from my family when I was sharing my finances with someone else, so we saved the $2,000 a month my mom gave me and survived on my husband’s income. A year after the wedding, I decided to re-enter the workforce and asked my mom to stop helping me financially. At present, we do not financially rely on my family on a regular basis. However, I know that in the future if something important comes up, I could count on them.
Do you have or have you ever received passive or inherited income? If so, please explain.
Yes. I received an inheritance from both my grandmother and my aunt, totaling about $40,000. My parents also helped me buy my home in the DC area. They gifted me about $50,000 for the down payment.
