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For today's Money Snapshot, we're talking salary, net worth, and more with a public policy researcher who lives in the Bay Area! She notes: “I inherited a low six-figure sum at age 25. My husband and I have 100% combined finances and savings.”
We got a few requests from readers to launch our own “money diary” series, so we've asked willing readers to fill out a form with lots of details about debt, spending, saving and more! If you’d like to fill out the form and be considered for a future personal money snapshot, please click here to submit your response! You can see a PDF of the questions if you want to review them ahead of time. See others in the Personal Money Snapshot series here.
Please remember that this is is a real person who has feelings and isn’t gaining anything from this, unlike your usual friendly (soul-deadened, thick-skinned, cold-hearted, money-grubbing) blogger — so please be kind with any comments. Thank you! — Kat
Name: LR
Location: Bay Area (very HCOL)
Age: 30
Occupation: Public policy researcher
Income: $75,000
Husband's age: 31
Husband's income: ~$140,000
Net worth: $420,000
Net worth when started working: Age 22; net worth approximately -$12,000
Living situation: Rental; $2,295
Debt
What does your debt picture look like?
I had $18,000 worth of student loan debt from undergrad, but my parents paid it off. I pay them back monthly (no interest). I recently increased payments to $500 per month (up from $150). We have no other debt.
How much money are you spending each month to pay down debt?
$500 for aforementioned student loan to parents.
How did you pay for school?
Undergrad: college fund from grandparents, $10,000 per year from parents, worked every semester in un-glamorous jobs. Grad school: chose low-cost public school, got jobs offering tuition remission, worked on the side, and paid for the final bill with inheritance money.
Have you ever done anything noteworthy to avoid or lessen debt?
We live a frugal lifestyle to avoid debt. For example, we bought a used car outright to avoid a car loan and do not intend to buy a home in our very HCOL area (which would require a jumbo mortgage).
Savings, Investments & Retirement
How much do you save for retirement?
About $1,700
How much money do you allocate to other tax-savvy investments/accounts?
$220 a month in pre-tax commuter expenses
How much do you save outside of retirement accounts?
Our household income recently increased, so this is changing, but it looks like it will be between $2,000–$4,000.
What is your investment situation like?
Vanguard Personal Adviser Services
Do you have an end goal for saving or are you just saving for a rainy day?
Early retirement; support elderly family
What's the #1 thing you're doing to save money, limit spending, or live frugally?
Find frugal strategies that benefit me in more ways than one. For example, biking to work costs less than driving, is better for my health, better for the environment, and a lot more fun. Make frugality a habit and count the positives!
When did you start saving seriously? How has your savings strategy changed over the years?
Right away after college. I began amping up savings with the goal of retiring early around age 25.
How much do you have in cash that's available today?
$5,000
How much do you have in cash that's available in a week?
$73,000
How much is in your “emergency fund,” and where do you keep it?
$73,000 (as above)
How much do you have in retirement savings?
$13,000 for me (didn't contribute while in grad school and have always had low matches from employers). Husband has $110,000 and has had amazing matches from employers.
How much $ do you have in long-term investments and savings (CDs, index funds, stocks) that are not behind a retirement wall?
~$240,000
If property values (home, car) are included in your net worth, how much are those worth?
Did not include car in net worth, but it's probably worth $16,000 (brand that holds value well).
(Read her thoughts on spending and money strategy on the next page!)
Psst: these are some of our favorite financial books for beginners if you're on the hunt…
These are some of our latest favorite financial books for beginners:
Anon
just an fyi-The headline mentions a 25 year old, but then the post says that the age is 30.
Anon
Why not say the spouse’s income? Even if you have separate finances, if he contributes to say rent — that frees up more cash for you to invest in 401k and in non-retirement investments. I feel like people want to act like “I’m doing it by myself” but you’re really not if anyone else is contributing to your rent/groceries/utilities.
Anon
It’s my money snapshot and I’m not sure why my husband’s income isn’t there – I thought I filled it out? It’s ~$140K and we have completely joint finances. The only things that are separate are our retirement accounts. Also, for context, he is a former refugee who was on “welfare” in the U.S. for a few years. I like to think that his career success now illustrates how public programs can really provide an important helping hand when needed.
Anon
Thanks for filling this in – good for both of you!
AnonMom
Thanks! That fills in a lot of blanks. And his story sounds really interesting, too!
Ellen
I think this post should have been JOINTLY written with both man and woman writing; that way, we would not have gaps b/c the man did not participate. I do not have any man, and my dad handles all the numbers for me, so I can focus on my legal carreer. FOOEY! If I did, I would have much more to spend then I do now. DOUBEL FOOEY!
AnonMom
Agree. That seems like a very large and relevant bit of information.
Anonymous
Yes–as I was reading, I was thinking, she makes $75k and spends over $2k on rent? But having the husband’s income makes a huge difference. On a 215k income, the rent number makes more sense.
Anon
A lot of people make $75K and spend that much or more on rent in the Bay Area, though. $2295 is a steal (sadly).
Anon
Yep, my husband and I spent about $1800 on rent on a combined ~$45k income (he was a grad student, I was mostly unemployed but doing some part-time contract work). Most people in the Bay Area put a huge percentage of their earnings into housing, over 50% of your after-tax income isn’t unheard of.
Anonymous
Hi, thanks for sharing. You said you received a low sixes inheritance, what did you do with that money?
Anon
Most of it went to Vanguard investment accounts, $25K paid for my graduate degree at a top school in my field, and the rest went to bolster our emergency fund.
AnonLawyer
Thanks for this post! OP, did you get a MPP or a PhD in public policy? I’ve been a lawyer, and am considering going back to get a public policy degree — I’d like to do something research focused.
Em
Is that saving $2,000–$4,000 a month?
Ps. Props for keeping the clothing budget down!
Carol
Other than the fact that they aren’t charging you interest, I’m curious why you haven’t just fully paid off the student loan to your parents? Seems like you have plenty of cash to be able to do so from your large emergency fund/cash balance.
Parfait
Isn’t that reason enough?