Industry: Public relations
Age: 32
Location: Chicago
My Salary: $105,000
My Husband’s Salary: $95,000 (He’ll receive a ~$10,000 commission bonus around the end of the year.)
Net Worth: -$116,000 (home equity: $175,000; my 401(k) and IRA: $65,000; husband’s retirement accounts: $50,000; savings: $12,000 — this took a hit earlier this year due to hospital expenses, plus our dog got sick — we’re working to rebuild.)
Debt: $418,000 (mortgage: $395,000; 0% APR credit card: $13,000; home renovation labor: $8,000; hospital bill: $2,000)
My Paycheck Amount (2x/month): $2,644.43
My Husband’s Paycheck Amount (2x/month): $2,505.26
Pronouns: She/her
Monthly Expenses
Mortgage, Property Taxes & Home Insurance: $2,979.49
Loan Payments: ~$2,000 (varies month to month for the credit card and home reno labor)
Electricity: ~$125
Gas: ~$100
Water & Trash Collection: ~$50
Internet: $85
Car Lease: $360
Car Insurance: $128.60
Health & Dental Insurance: $576 ($476 for me and my son, and $100 for my husband)
Phones: $216.76
Pet Insurance: $46.91
Peloton Subscription: $44
Netflix, Hulu + Live TV, Spotify, Apple Storage: ~$140
Hospital: $500 (This debt will be paid in four months.)
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?
I was a good student, so there was never any question that I’d attend a four-year college after high school. Because of that expectation, getting as much scholarship money as I possibly could was drilled into me from the start of high school. My parents pushed me to have a “robust résumé” that included good grades, plenty of clubs, and community service. It worked out: I attended a private university out of state, funded by a 50% academic scholarship. The remaining balance was split between a few smaller grants, some federal student loans (paid off in 2021), and my parents graciously covering a portion (I don’t have an exact figure but probably about 25%).
Growing up, what kind of conversations did you have about money? Did your parent(s)/guardian(s) educate you about finances?
I don’t remember having explicit conversations about money, but my parents (Dad, specifically) would sprinkle in tidbits here and there, like contributing to your 401(k) as soon as you qualify and making sure to reach the employer contribution maximum, having a credit card and paying off the balance each month, etc.
What was your first job and why did you get it?
My first job was working the concession stand at the local swim club at 13 or 14. I got it mainly because all of my friends were also working at the swim club, and it was the cool thing to do. We didn’t even make minimum wage, but the extra spending money was nice. Toward the end of high school, I got a summer job as a camp counselor and saved that money for college living expenses.
Did you worry about money growing up?
No. My parents were always solidly middle class. In order to maintain a job in his industry, my dad had to work out of town for a few years, so he’d be gone most of the week and return on the weekends. My mom did a mix of full- and part-time work while I was growing up, but if there were actual money concerns, they were kept from us kids. We never did anything super lavish, but my siblings and I were always able to participate in extracurriculars, we’d go on vacation usually once a year, and we ate out frequently, plus my parents contributed to all of our higher-education pursuits.
Do you worry about money now?
Yes. I worry specifically that we don’t have enough in savings if something drastic comes up, and I feel this more acutely now that we have a kid. Day to day, I tend not to worry about money too much. We’ve never had an issue covering our bills and always have enough for necessities and the not-as-necessary treats. I do anticipate needing to be more focused on our spending and trim non-essentials once the kid starts daycare next year — it’s so expensive — and we continue to pay off the bulk of our home renovation expenses.
At what age did you become financially responsible for yourself and do you have a financial safety net?
It was a slow progression through my 20s. In college, I paid for all my living expenses (rent, utilities, groceries, et cetera), then once I had a full-time job at 23, I got off my parents’ insurance. Finally, around 27, I got off their phone plan, which was the last remaining regular bill they covered for me. I do have a financial safety net in my husband, W. I would hope there’s never a case in which we’re both unemployed, and, in an emergency, both sets of parents would do what they can to help us out. Our parents do still find little ways to support us, like treating us to dinner when they’re in town or covering the cost of a shared Airbnb. Plus, my mom loves to shop a sale, so she’s always picking up clothes for our son or little things for our house without the expectation of being paid back. Gift giving is definitely her love language.
Do you or have you ever received passive or inherited income? If yes, please explain.
I have never received a lump-sum inheritance, but my parents did pay for a portion of my college tuition and for the majority of our wedding. Their significant financial contributions to our wedding helped us become homeowners sooner than we expected because we were able to reallocate the majority of our wedding savings toward a home down payment, while still having the wedding we hoped for.
Source link
