I remember being really young, before working age, and wanting to buy a T-shirt at Target. I asked my dad if I could get it. He reminded me that I had money from my birthday I could use to spend on myself. At the time, this money message was an empowering one for me. If I had money, I could use it on whatever I wanted. But I also understand this memory as my parents only being able to cover necessities for the family, and anything extra wouldn’t fit in the bigger money picture. Most of what I learned about money from my parents was observing how they handled money, the way they talked about it, and the way they stressed about it; lessons were never through direct conversation. Money was something earned, spent on bills, and saved if you had it to save. I’ve inferred that we weren’t well off, but we could survive and live a little outside our means. My parents fought and worried about money but there were also gifts at Christmas and birthdays. I picked up the story that you had to be well educated to get a job in something like accounting or finance that offered job security. Otherwise, it seemed, you struggled for money in a bad job with a bad boss. My current financial knowledge has been self-taught within the past few years by listening to podcasts, reading books, and through trial and error. It can be terrifying to save, invest, and put money away when you feel you aren’t even making much; however, even the smallest amounts add up to be a lot. Money decisions become more comfortable to make. I have a loose budget. I allocate specific percentages of my income by each paycheck. My income is variable and these percentages are helpful to auto-save, auto-invest, and set up systems for myself to keep my finances under control. I’m learning more about the role money plays in my life and how finances add to my quality of life.
What was your first job and why did you get it?
I worked at a sandwich shop as soon as I turned 15. I worked there whenever I had the time until I got my first post-graduate job: during the school year, after sports and the time in between sports seasons, during winter and summer break. It was my second home. I even worked on Saturdays when I became an accountant until the busy season hit. My parents wanted us to work and earn money, but also I wanted to work and earn money. My parents required my siblings and I to work during the summer, but I was the one who wanted to work any chance I got.
Did you worry about money growing up?
I did worry about money. I took saving very seriously. Every once in a while, I would spend money at the mall on clothes or concert tickets. I wanted to be the child my parents didn’t have to worry about. They were both seriously ill in my teenage years and it felt important to afford my own life, to take one less worry off their plate. My mom ended up passing away during my senior year of high school. And my dad ended up passing away when I was in college. I’ve come to recognize people’s parents and family can be an extension of your own finances and financial wellbeing, and not having that anymore felt terrifying when I was 21 years old and still makes me uneasy now.
Do you worry about money now?
I worry more about my career than money, even though they go together. Living throughout my twenties, I’ve experienced a lot of ups and downs in my finances and job exploration. I believe I’m more than capable of getting through difficult personal financial times and I’m confident that I’m being responsible with investing for my retirement. But sometimes my worry turns into panicking about my earning potential and what my long-term goals are with money and career. My biggest worry surrounds finding the balance between being responsible by investing for long-term goals and experiencing the most out of life in the present. I’ve cycled through moments of letting my savings dwindle in order to live my life in the present and then having periods of restricting myself from spending at all. I want to find the right balance that prepares me for the future but also maximizes my happiness right now.
At what age did you become financially responsible for yourself and do you have a financial safety net?
I’d say I was partially financially responsible for myself when I was 16 or 17 years old. This was around the time when my mom was sick and passed away. If I wanted something, I had to buy it. Then I was pretty much paying for all of my expenses by the time I left for college. I’ve been officially on my own since we sold our family house after my dad’s passing. I’m realizing that this inherited income is the reason my long-term investments are where they are today.
Do you or have you ever received passive or inherited income? If yes, please explain.
I have received inherited income. When my dad passed away, his finances were put into an estate account and his retirement portfolio was divided between my siblings and me. The estate was used for our general bills living in our house until we all graduated college. Almost immediately after our graduations, we sold our family home and all moved out. The amount from the estate, retirement account, and sale of the house probably totaled around $110,000 of inherited income. I paid off my undergraduate student loans in full: $26,000. I put $12,000 towards opening and investing in my first Roth IRA. I put $10,000 down on a new car. I moved my inherited retirement account into my non-retirement investment account: $30,000. Retirement portfolio early withdrawal fees and taxes paid on it as income: $15,000. The remaining $17,000 I can’t specifically account for has likely been used over years on the following: 1) moving costs for three big moves 2) paying off the rest of my car ($10,000) 3) a three-week road trip I took to visit eight national parks on the west coast 4) taking risks at entrepreneurship 5) emergency expenses like medical costs and periods of unemployment.
