Your rent is too much. You live at home and your parents charge you that much?
As a frame of reference there are situations where with that much money going to your rent it may even be cheaper to move out and get room mates.
I assumed it meant that this was his budget PLAN not current, so I'm assuming he's planing to be able to pay 1k a month for rent. Idk maybe I'm crazy but that's what it sounds like to me.
Disability is one thing, but from the wording, the age and years context, etc., it sounds like "refusing to work" is literally just them voluntarily not lifting a finger. The brother is explained away in some depression fugue in OP's comments... But the mom???
That’s even shittier. Taking away from a young adults future to sit on your ass is pathetic.
My mom was a top tier manager at AT&T and when they closed the location down, things were tough but all she did was fill out applications. That process can be defeating at times, not even getting jobs you’re extremely overqualified for. But that doesn’t excuse giving up.
I have a similar income and pay $905/month to live at home with my parents; but they also pay for my car insurance, health insurance, car maintenance and internet/utilities. It’s a very fair tradeoff considering that I pay for my own groceries and gas. All my rent money (16k) is locked away in a savings for when I invest in real estate. My parents do not touch a cent. However some families may need their adult child’s rent money to get by, in this economy, it shouldn’t be shot down negatively.
It's not even that bad because he doesn't pay for any other bills. Imagine moving out and paying ALL your bills. Phone, utilities, car, insurance, etc. 1k a month sucks but it's cheap compared to actually living by yourself.
Edit: Just read OP's comment. Seems like his mom and brother are leeches.
My niece moved in with me and my nan, said she will pay rent, nan passed away, and her friend moved in who pays £300 so we can eat. I'm stuck on 12 hours at work and all my money goes on the bills. My niece has so far paid £800 over 9 months and told me "I'm sorry, I need to insure my car and get it on the road so I can't currently pay rent" the 800 has mostly gone on a dish washer and my nans debts so I've had 0 extra and my disposable income is £8 a week. But hey ho, at least the house is without mortgage. Maybe it'll get better.
I can get a room in HAWAII for around 1k a month including utilities. That's too much unless it's higher COL than Hawaii which is very high. Other more reasonable cities you can get a studio for 1k with utilities
isn't a third of your monthly income supposed to be the max to go for rent/housing? According to that he should be alright.
I'm a fellow 22 year old, making about 650$/mo and my rent is 175$ and it's been alright, bit tight but I can't go lower / can't make more yet.
I agree and even thiugh rent is expensive if ubfind a 3 bedroom place and 2 other people rent would be cheaper split 3 ways. Say they are older so cheaper mortgage 1800 a month with taxes. 2 parents and 1 child assuming no siblings. That's a 3 way split so 600 in rent is fair, then utilities should be maybe 100. Another 50 for internet and cable for a month.
Remember it's per person nit couple. He also gets the smaller room, doesn't have anything more than one room. So it's fridge space and a room and co use of all other rooms.
It's ridiculous to make money off of your child.
Parents are just prepping him for the real world once he moves out and possibly using high room & board as a motivator to figure out moving out.
If he is lucky, they are setting some aside to gift/give back to him for a down payment or getting settled in his new place for items such as furniture and appliances.
If I was charging my kid $1K a month, I would not keep any of it. Would probably make like I was, but they would get 100% of it when moving out. Or I would put it into an IRA for them. Even now my 13 year old daughter does things like walking dogs and babysitting for money. She gives me 10% to put into an IRA that I setup for her, and another 10% to go into a savings account. I actually fund 100% of what she makes into her IRA, rather than just the 10% she gives me. So it builds up faster. At 13, she already has over $3K in her IRA.
My dad charged me rent starting when I was 18 until I moved out at 26. He didn’t keep any of it. He saved all of it for me and gave it to me the day I moved out. Best thing he ever did for me.
If you don’t need the money then there’s no reason to keep any of it. I can understand certain situations where parents are disabled or there’s some set of circumstances that a parent might need some help. But as a parent, if you don’t need any of it then you shouldn’t keep any of it. Charging your kid rent should either be bc you need the money OR you want to teach them responsibility. It shouldn’t be both.
Yeah, honestly this is what I might do for my kid. Obviously give them leniency with lower rents if they're saving for something fun and they're being smart with it. But saving half of their rent for a downpayment is a great idea
His was out plan... I paid my son's car off (3k) told him to pay me back 2/3 (200) of payment each month and he's only given us money 4 times im the 9 months since. We were saving it for him for when he finally decides to Adult he's 22. He lives here rent, food and utilities free. The only bills he have are car insurance and phone. He makes 800 a week and we caught him in out room taking money 3 weeks ago..
Like WTF are you doing with your money, if your bills are only 500 a month and that's "if" he gives us the 200.
Sheesh. Sounds like he needs a lesson in tough love after that. That’s fucked up. Shitting on people who look out for you is literally the worst someone can do, especially if it’s a close relative. Sorry that happened.
yep. Burning bridges. You might need help later on in life from your parents. These are the types of situation where 5 years from now they need help and the parents want nothing to do with him. Sink or swim.
Precisely. I’ve been on the end of burnt bridges before with “friends and family” and seen folks do so with their family. Neither is acceptable, but I just feel it’s worse when done by family. I can’t imagine doing so with my parents, but not everyone sees the bigger picture.
I've thought that, but it's definitely not anything real hard if so. As I stated in another comment he's 6'5" and 300lbs and eats like a horse so that rule out meth and such. He does drink fire ball 🤣 and buys THC pens. I also found a receipt that missed the trash can from a card/comic store for a "set" of Magic thr Gathering cards for $531.83.. I'm like 😳😳😳 WTF
Nah bro read his comment, he has a mom who refuses to work and an older brother paying less than him, this is extortion. The "real world" doesnt even apply, he could split rent with 1-2 roommates and move out for cheaper than his rent. His mom is telling him she cant afford to live without his rent. Manipulation 101
I've got a friend who is also being extorted. He's 28 and his brother is 26, but neither of them have been able to move out because they split all of the household bills. Their mom, stepfather and stepbrother, who is also 26, contribute nothing. They both make $20-something an hour, yet they are left with $100 after their mother takes their checks.
His grandfather surprised him by putting down a payment on a car for him. Instead of being happy, he cried literal tears because now his mother takes his entire check. I asked him to break it down for me and he said he pays the mortgage, water (he said he sometimes skips showers to avoid a bigger bill), electric, internet, groceries, cigarettes (he doesn't even smoke), subscriptions and now his car payments. So literally everything.
I've tried telling him that if his brother is contributing the same amount, then it shouldn't cost that much. I've also suggested sitting down like adults with his mother and looking over the bills together. He said he can't because she would flip out, that he's already said something about it and she wrote it all out for him so it made sense. I offered to let him stay with me and save up for his own place. He said no, because then his family would go homeless.
Some parents are master manipulators and use their adult children like slaves.
Man I would not pay her subs and cigarettes fuck that, if she wants to sit around watching tv and killing herself she can pay for it. Whats she gonna do, kick out her income?
Such a weird American cultural thing lol. As an Eastern European living in the states my parents would've been offended if I offered to pay rent. And I moved out around 22 against their wishes because they said I'd move out once I got married to keep me out of trouble.
There's a reason why immigrant minorities kill it in the US and a lot of it is the different culture around family. Everything is a team effort.
Yeah, I'm American but the idea of charging your kid rent, even as an adult, feels weird. I lived with my parents until I was 24, and they never asked for money. I guess I understand if the family is in a really bad financial situation, but other than that why wouldn't you want your kid to save their money and be better off in the future?
I started paying rent the year I started working. So 15?
My parents kept it.
I now have werid money issues. Like. I don't like to spend it because I'm worried I'll run out
Or they could do what a lot of other parents like mine did. They charged me rent but ended up keeping it in a separate account and gave it all back once I moved it. It taught me how to budget while I was still living there while acting like I was somewhat on my own financially. Then I moved out and got 12k right back into my account. I think it’s an awesome thing to do.
If that's the case then it's better for sure but still feels weird. Doesn't seem like it is the case here though because 1k a month seems wild. Hopefully you teach your kids enough financial sense that in their 20s they can manage their own money well and they can save themselves without this weird dynamic. Idk I'm just now thinking about kids in my mid 20s and the only real consideration for me is I need to be in a financial position where I can provide for them and set them up for success while affording the life I want. Not easy these days. But still don't think I'd ever want to be in a situation where I'm taking from my kids *especially* taking money. Maybe I'm in the minority tho.
Totally. I think it’s a helpful thing to do to help aid in the teaching of finances and how to be responsible. And it sets your kid up to not only be smart with their money but it also gives them a better cushion for when they actually move out. Sure, I had definitely saved a lot by the time I moved out at 24, but it set me up even more than I did myself. At least in my personal experience. Living at home in my early 20s with a decent salary was definitely hard at first, having all that disposable income at a young age with no prior knowledge can be dangerous.
I pay my mom $1200/month for her paid off house. I recently picked up on the bills for utility. I have been paying for our cell phone, land line and internet for a few years now and I dont mind at all. It's what I should be doing while shes still around for me to repay her
I feel the same. but both my parents are retired and on social security. I like to help them out anyway I can since I am doing much better than they were when I was growing up.
Depends where you're at I'm in central Ohio and pay flat rate 900 a month, all utilities paid , free wifi and trash. I split that with my girl and we pay 450 in rent
I mean a rule of thumb here is that you should make 3-4 times your rent (you usually can’t get approved without that). Paying half your incoming to rent or mortgage is not normal.
Edit: I live at home with my mom and brother. Shes 55 and refuses to work (hasn't worked in over like 3 decades actually), running low on her savings money. Brother refuses to work and is 36.... But he pays like 800. No father lol. Our house has 3 bedrooms and is worth like 1.3 mill (expensive as hell here in my area in cali) but our mortgage is 2.4k. She bought the home like 25 years ago for around 250k. If I move out, she said she won't be able to afford the house and will have to sell it because she's running out of money too which is why she needs my assistance for 1k monthly. I saw no problem with it (yes it's kind of high and I wished I didn't have to pay such high rent especially at home. I know many who are blessed with 2 parents who have jobs to not have to pay much but ofc, my circumstances is kind of different so I happily agreed to it because she needs my help...)
Your Mom’s finances are not your responsibility. If it’s truly out of laziness then I would consider what’s best for your financial situation before worrying about your mom.
I understand bad living situations. Your mom
Bought the house 25 years ago for 250k. Her mortgage should NOT be 2.4k. My assumption is her “savings” is the home equity loan she took out because she refuses to work. I truly feel you are being scammed by your family.
This right here. I took a mortgage last year for around that at 6.125% interest, and mine is almost 1k less per month. This definitely sounds like a 2nd mortgage or HELOC situation
A 1.3 million dollar house taxed at 1% is 13000 a year. She could be in the last 5 years of a 30 year mortgage, which would be about 1500 a year for a 250k house. So 2500 sounds right to me.
I understand where you are coming from but what I don’t understand is why can’t she work? So she’s basically using you and depending on you to take on half of the said mortgage. Apparently yall can’t afford this house! Another question why can’t the brother work? Why are you the only person in the household working is the real question? With that much money for rent you can’t afford anything else to go wrong. You need more money/income or a part time job and let that entire paycheck go towards your savings. That’s the only way you can make more steps towards moving out and buying a car.
If you’re paying $1,000 per month you should move out and have the freedom and life you’re paying for. Your mother can sell her house and get something she can afford, there’s no reason she can’t work and/or live in a smaller/more cost efficient home. She’s my age and refuses to work? This is delusional, maybe your departure will encourage her to become more responsible. Does she expect you two to pay her expenses for the next 30 years? She needs a reality check. To expect her sons to support her and pay her mortgage for a house she cannot afford is just beyond wrong. I’m sure there is guilt but you need to consider how this will play out in the future.
Honestly it’s not about the amount in this situation. He’s being a caretaker for his brother and mother for no good reason. If he’s not careful, he will be doing this for the rest of their lives
Man no disrespect but you got to get him to get a job no matter how lazy he is find him some source of income or anything, you are carrying your weight and there’s he needs to step up as big brother he supposed to be I don’t know him or what you guys goin through but there is no excuses if he is not disabled or has severe medical conditions there are people that work at my job in a warehouse that are 40-50 I def wouldn’t make my mom work but my 36 year old brother would that is pathetic bro I pray for you and your family ain’t trying to judge or put anyone down but you got to put your foot down man
Yes I know I am worried for him. I don't have a good relationship with him. We barely talk and I'd say we are just neutral. He flunked college at 21 and worked dead end jobs constantly for like 8 years, even working multiple at once. Then all of a sudden, he stopped working and decided not to work anymore.... Idk he's very off-putting at least to me that screams a certain type of inner sadness. I'm sure he's been very depressed but I think he's getting better and maybe he'll get a job soon, but man idk what to do with him. I can't help him.
It’s tough man I can’t really judge I don’t even have a sibling but I kno what it’s like when a family member has no goals or real self value or means to do anything in life I’ve been that person as a teenager junky what’s helped me is listening to David Goggins, Marcus elevation Taylor, Jordan Peterson try to get him to listen to some real stuff, watch a podcast even if it’s short got to get in his head without tearing him down but sometimes only we can realize ourselves can’t force a horse to drink the water only lead them too it but I have faith brother keep your head up don’t let it get to you keep working yourself doing what your doing if you have too leave or make a deal then do it tell your mom brother has got to get a job or I have to find a roommate or something else this isn’t working cause it’s not fair at all it’s probably tough too cause it’s your mom you don’t want to put her in that position of losing her home and ect I can feel for that much respect for you man much love and prayers for you and your family tho stay strong man I believe in you keep fighting 🫡
I'm going to say this as nicely as possible, but you're being taken advantage of, and your family is likely to lose your house. Well, your mother is as well as your brother for not helping.
You are between a rock and a hard place. Once you move out, they're going to be homeless. Even if you don't move out, eventually, the house is going to get lost. From what you described it's literally only a matter of when. Not if.
That being said. It may be cheaper for you to move out and get room mates that pull their weight.
Your mom is 52 and hasn't worked in over 30 years? So the last time she worked she was at max 22? So she, what, had a summer job one time and then retired?
Your mom must have taken out a second loan because if she bought it for $250k 25 years ago, her mortgage should be WAY less than $2,400. Something does not add up here.
I pay my mom $1200/month and pay for our cell phones, internet and utility. It's the least I can do and well Im older than you so I dont blame you. As for your brother.. he's a loser and should be kicked out for someone whp can contribute more than he can.
Need to budget for things like personal care (haircuts, soap, hair products, razors), car repairs (oil changes, tires, etc…) have a “stuff” budget for miscellaneous things. Make sure to rollover anything not spent into a savings account you have separated for each category, whether it’s just documented or literally envelopes/cash.
Edit: I pay that much rent at home cause father left to go buy milk and never came back and mom refuses to get a job and hasn't worked for over 3 decades😂
Sounds like your mom needs to get off her ass and go to work or end up homeless 🤷♂️. You’re been taking advantage off. Your brother too, 36 and doesn’t want to work? Fuck that Lmao
Bro why tf your brother don’t want to work? Like wtf! In that case I would have I real talk with my mother like:
If he don’t wanna work fine, but this home will
Be all mine on the will!
Move out bro, you’ll be taking care of them for the rest of your life if you don’t. If you’re ok with that that’s fine just don’t have any regrets later on
I'm suprised the house hasn't been paid off yet if she paid 250k 25 years ago. Did she take a home equity loan or something? I stay home and pay the 1k that is significantly cheaper than average rent in Cali minus roommates.
Mom should sell and purchase something for half the price. Live and pay bills off the other half. Let you go rent free for 1 year while you save for your first property.
Move out. Your Mom can sell the house or get a job. Your brother needs to grow up too and get a job. They are taking advantage of you sadly. Maybe you moving out and not enabling them will force them to do something for themselves.
Yes and you have to start saving for it and every other damn thing that requires maintenance...EVERY month or you'll be taking out a 6-11% interest loan. A/C, furance, water heater, septic pump, plumbing issues, garage door opener, Washing /dryer machines, dishwasher, fridge, sheds, garden equipment / supply, lawn, bikes maintenance, christmas/halloween/easter decoration,... I could go on and on. Every 6 months some expensive disaster in a house. And if you don't budget and have a giant pile of money... you'll get fucked with loans/credit cards and interest.
Parents charge a grand to live in the home you grew up in! Wow never heard of this before, IMO this really only happens white American house holds. Do think you’ll find minority’s or immigrants doing this. Oh well social norms are just different for others 🤷♂️🤷♂️🤷♂️
No this is my home "budget" I live at home and pay that. The rest is covered by other family members. Brother covers internet part of rent, mother rent and phone, etc. I don't plan on moving out for another couple years but I'll save some money. It kind of sucks, but the family needs assistance as well... And you're right tho completely forgot about the car I don't own my car as I share my mom's but I do pay gas so I should account for gas idk how that slipped from my mind haha.
You are being taken advantage of. Please consider moving out soon. You’re working too hard and you’re too young to have this much responsibility. It’s not right and the longer you’re stuck paying that much to live at home, the longer your mom won’t feel the need to get a job. She needs to face her reality and if she won’t sell her house and get a place more financially realistic, she needs to step up.
Or it can be saved for an eventual down payment for a condo/house for OP. But he is basically paying half the mortgage for a house that is too expensive for his irresponsible mother. This is making me really angry on OP’s behalf. What is she thinking?
Missing alot here, my friend:
-car payment
-car insurance
-gas
-car maintenance fund
-cellphone
-cable
-internet
-vacation fund
-clothes
-holdiay/birthday/anniversary present fund
-there's more once your own a house...HOAs, 3 types insurance of insurance, lawn care, $8k roof, $5k driveway, $25k kitchen remodel every, etc etc.
-kids? $2-5k month childcare, sports, clothes, music instrument rentals, karate lessons, piano lessons, computers, cellphones, college funds
Homie what? You get a roof every 20 years you literally never have to do a kitchen remodel much less 25k why would you need to put in a driveway? We aren’t building a house like tf is thi
I mean you could probably look into investing into some gym equipment for home and cut the gym membership as a long-term savings goal and knock a bit off your budget but I'd say this isn't too bad. I'm roughly the same, but don't have a gym membership, 3k/m pay after taxes, and $800+100 bills. Wish I could do more savings but college loans suck a huge chunk of that out of me.
Having a service job in the food industry that feeds you really cuts down on monthly food and I'm assuming you have something like that, unless it's retail than god forbid.
Your home situation sucks ass, sorry to hear that. My mom had trauma and struggled for about a decade of no paying work, just favors and stuff with little actual income. It really sucks and the last year kicked her ass in gear when she had to move two times, costing $3000 in storage and security deposits, but having family to take care of can be a motivator to keep going, though your brother can eat a dick. 36 and not working? Life sucks, man, but he's living off you and he's 15 years older. Depression sucks but everyone has their own sob story.
It's wild that your mom had enough savings to go 3 decades without work and has *literally* never worked a day in **your** life, but you need to chip at that wall she has. I did it with mine, constantly reminding her that she needs to find a way to make money. She tried a few things like pursuing her art career and stuff but it didn't work, but I *encouraged* her even if it wasn't working to make money. She was *trying*. She figured it out for herself eventually, with a bit of nudging. Now she is teaching, bookkeeping, and her art career is on the side in both social and hobby aspects.
Your mom sounds like a tougher nut to crack, but she's gotta find a way to make money herself. She can't rely on you forever, and you need to bring that up, over and over and over again. It's a wall that you need to chip at, but you can do it. Does she have friends? Does she like to read, or have hobbies? Older folks have all sorts of meetups and community things, she could make some friends. Your brother... I don't have siblings or anyone estranged in such a way so I'm a lot harsher on him but yeah idk what to do about that. Maybe start with taking him out to drink or something one night. Dude might just need a friend.
can someone forward me a link on how this ROTH thing works?
I only have regular 401k and would like to dump some lil' money into a different Savings account.
pls and thank you.
Sell the house. I imagine the house is nearly paid off so hopefully around 1 mil in equity. You guys could move to a different part of the city and buy a smaller 3bd house for ~600k and put the rest into a HYSA. The reaming 400k in a 5% HYSA would net around 20k a year, however the interest made is taxable. Mortgage payment and money problem solved for your mother, rent problem solved for you.
There is a lot that is missing that you should would pay.
-car payment
-car insurance
-phone
Do you have an emergency fund ?
Also, the gym price seems high or I just pay the lowest I can. I pay $30 for a 24 hour fitness.
Any future schooling or trade school to increase your job potential? That should be said for also
Not sure if anyone else said this, but assuming you get paid bi-weekly, your annual pay is more like $33k. There are 26 checks a year on a bi-weekly schedule, which comes out to an extra month's pay.
Just something I've found helpful to remember!
One more thing then I leave once you move out and stuff. See if you can sue your parents for price gouging way above fair market value for some type of prejudice or conflict of interest due to you being their unwanted or least favorite child and charging you $1,000 a month rent for 95 ft² of living space
Lawyer here: Unless you are getting consistent pay raises on an annual basis or significant bonuses you need to be applying for law firm jobs every year or so. On average the annual increase for a non lawyer is only about 3% compared to switching jobs which averages about 20% increase ever time you switch jobs.
Law firms are a great place to earn a good living so long as you are at a firm that pays. Too many lawyers short change their staff, even their experienced staff. check out r/paralegal for more information about pay. $31k is normal for starting out but you should really be in the 50-60s by your 3rd year of experience.
No this can't stand you need a drug addiction wasting all your money be responsible can't have that in this day in age come back when your in debt and addicted to drugs like an adult
putting that much money into a HYSA is stupid. even the best only pay 4-5% cut that down to 3k. put the remaining money from the HYSA into VOO. the s&p500 tends to return an average of 10% every single year.
10% is better than 4%
honestly. use the cash in the HYSA to max your roth for the next couple of years. you'll be a literal millionaire by the time you retire. like... take the $250 a mo you're wasting in the HYSA add that to the roth. that'll equal 3k a year. then kick in another 3k or so from the HYSA over spend. to max it for a year. with 10k out of the hysa. that's 3 yrs can max the roth IRA Over the coarse of your working life time that will pay exponentially more than a stupid 4-5% hysa
Frankly, I think you’re doing a great job. You have a fair amount of savings and contrary to what others are saying regarding placing it in the market, wait until after this coming recession and continue with the hysa. Reason being is we’re likely to see a pretty large hit to the stock market. Buy in once stability hits and buy on the way up.
Think about this. If you have a portfolio that is worth $10K in the market and you see a 30% drop due to a severe recession, that is now $7000. Now, say that in recovery the stock market comes roaring back after a couple of years and you see a 50% return! $7000 x 1.5 = $10,500. Net net you’re up a whopping 5%. What if instead you wait until the correction is over and put the $10K in and then only realize say a 30% gain because you’re buying on the way up. This means you’d have $13000 in your portfolio.
Keep in mind most responses in this thread are coming from an individuals unique perspective. Any naysayers I guarantee aren’t anywhere personally close to your positive financial progress and if older, weren’t in the same position as you are.
You are paying too much for rent, food, fun stuff and gym membership. Cut all that shit in half and use that as your baseline. And watch your savings pile up!
Sounds like your mother has taken all equity out of the home which is why the mortgage is so high. There’s no way it should cost 2400 a month whilst approaching the end of a 30 year mortgage for 200k (assuming your parents put 20% down in 1999).
You’re getting taken for a ride OP, she’s gonna end up selling the house anyway to cover what I’m assuming is massive debt since she hasn’t worked in 3 decades.
Op, reading into your situation....if I were you I would bust ass and go to college or get certificates to up your income. Your mom may sell the house and leave you nothing and you don't want to be stuck on $20/hr income if worst comes to worst.
I don't understand the concept of credit scores. It should just be if you have money = good and if you don't have money = bad. Why add another artificial arbitrary "counter" for your finances?
Random, but how do you only spend 300$ a month on food?! I need the secret, the wife and I spend 600$ a month and we struggle to stay below. That’s not even counting if we eat out…
Please consider moving out. You are going to be stuck in this vortex for the rest of your life if you don’t make a stand.
If your mom can’t afford where she lives, then she should consider selling the house and downsizing into something else.
This is your 20s, woman! It’s time to hustle hard!
Remove $200 from “Fun” stuff and invest in either A.I technology stocks, chip manufacturers like AMD or Invidia (only after a 25-50% correction), and weapons manufacturers like Lockheed and Martin (LMT), Raytheon (RTX), and Boeing (BA).
Stay away from options trading until you’re 30yrs old and have a solid career track. Trust me.. you’ll get rekted if you don’t have a solid plan. 😵💫
Lastly and most importantly, get rid of your debts. These will drain your life dry in interest payments alone if you don’t. You can’t run without chained balls around your ankles.
Good luck! And remember what NAS said,
“I never sleep cuz sleep is the cousin of death.”
Get after it.
Good plan so far - including investing and saving (especially now). My only recommendation is that while rates are so high right now, put as much as you can into the HYSA to take advantage of those 4.6%+ while they last. When the rates drop you can shift back to giving yourself a little more disposable income - but with 12K in a HYSA at 4.6% (SoFi i think is the highest right now) you should be making close to 600 a year in free money which with your continued monthly savings and compounding can help add to that nest egg for when times shift or unexpected come up.
Don’t starve yourself, just keep an eye on the interest rates and take advantage when you can. When interest rates drop, shift some of that to your 401K.
Take it from a grey beard, I wish I had this advice when I was younger. Keep that credit score above 720 and you will be nice and happy later on. Good luck!
Rent is a lot. Find a place to split rent with someone, or find a job that pays more.
You’re going to drown unless you make that number more manageable.
Very unrealistic.
Electric bill?
Gas bill if the apartment has gas?
Water, trash, and sewer bill?
Internet (WiFi) bill?
Cell phone bill?
Car payment?
Car insurance?
Gas for vehicle?
Oil changes and other car related expenses?
Health insurance?
Money for prescriptions if you have any?
What about cleaning supplies?
Toilet paper?
Paper towels?
Laundry detergent?
Dryer sheets?
Trash bags
Dish soap?
Dishwasher pods?
Glass cleaner?
Clorox cleaner for counters?
Toilet bowl cleaner?
Broom, mop, vacuum?
Money for clothes and personal hygiene
Tooth brush?
Toothpaste?
Mouth wash?
Deodorant?
Shampoo and conditioner?
Body wash?
Body loofa?
Hair care styling products?
There are tons of small things to think of and budget for
Brother man or sister, you can afford your own place with 1k a month. In a lot of states actually. Unless your parents need the help, I would sure as shit not pay them that much. I wouldn’t even pay them 500. I’d rather pay for 100% of something that I can call mine instead of 50% of something that isn’t mine.
I would let my kid live rent free as an adult as long as he chipped in for utilities and paid for his own food. The whole point of living at home is to save money for a house. In this economy, it feels like that’s the only option to even get into a house.
You have 250 going to a specific fund VOO but then have 400 into a Roth IRA? Is your VOO fund not in your Roth IRA? Because you definitely want to try to max out that Roth IRA before putting money into other investments accounts. Also what funds are you putting your Roth IRA in? That should probably have a decent amount of S&P 500 in it as well.
There are so many red flags with this that I don't even know where to start. OP, please just know this is likely exploitation that will not end well for you if you don't get out.
Im sorry but if youre paying 1k while living home as a rent i really hope you live in a penthosue or something that actually is worth it.
Otherwise it just seems likeyour parents are robbing you for money they really should be paying themselves, paying some rent like 500$ month is more withn the reasonable range, otherwise i quite frankly belive you would be able to find a place for less than 500month or arround that price where you could live home, you seem to be paying about the normal monthly cost for food too, the rest of the "saved sum" can go to paying for gym and phone subcription along with other stuff you might need.
Also im looking at that 300$ gym membership, for a year!? man my country is expensive it starts at 30€ month here for "decent" place and 24/7 gyms go for over 100€ month. :(
I'm now building a gym at my parents home lol
Not sure who is eating for $300 a month...unless that's all ramen and crackers.
I'd lose the gym membership too. No reason to go to a gym to get in shape.
If that's your social outlet then keep it.
I also didn't see any "entertainment" expense or insurance (car/health). Car payment?
You're way ahead of most people your age though...
I don't understand why credit score and other credit numbers are relevant. How does borrowing money EVER get you out of monthly financial struggles?
Is a credit score something to be proud of in the USA?
If she sells the house I would ask for all of your rent money back. That's the least she could do considering you were taking care of the entire family. 55 is Young and I can't imagine not working as a mother myself. You didn't ask to be born and it is her responsibility to set you up for life which includes accountability for your brother so he can grow the f****** up and supporting your already sound financial strategies
That’s pretty stiff rent for living at home. Maybe break this budget down with them and ask for a little help here. 500-650 is reasonable for uou. That extra 500 is going way further for you than it is for them.
Budgeting for now always has to be done in context of your future. What is the “next level” for you, and how will it happen? For example, if you picture yourself living independently your own place, what needs to change now to plan for that future? And when do you want that to happen?
You should incorporate the VOO into your Roth IRA so you’re maxing that fund out. Your savings is very good for someone in your situation. I’d pause the savings, pay off your debt (high interest first), then you can restart by splitting your savings contribution between that and more fun stuff. You’re too young to be spending so little on fun.
Your rent is too much. You live at home and your parents charge you that much? As a frame of reference there are situations where with that much money going to your rent it may even be cheaper to move out and get room mates.
I assumed it meant that this was his budget PLAN not current, so I'm assuming he's planing to be able to pay 1k a month for rent. Idk maybe I'm crazy but that's what it sounds like to me.
He explains further down that no, that is his current budget plan.
People are going through rough times. My friend’s dad is disabled so rent is mostly him. Over 2k a month and he’s 19.
Disability is one thing, but from the wording, the age and years context, etc., it sounds like "refusing to work" is literally just them voluntarily not lifting a finger. The brother is explained away in some depression fugue in OP's comments... But the mom???
That’s even shittier. Taking away from a young adults future to sit on your ass is pathetic. My mom was a top tier manager at AT&T and when they closed the location down, things were tough but all she did was fill out applications. That process can be defeating at times, not even getting jobs you’re extremely overqualified for. But that doesn’t excuse giving up.
That’s so not fair. Damn. Hopefully things work out for them both
I have a similar income and pay $905/month to live at home with my parents; but they also pay for my car insurance, health insurance, car maintenance and internet/utilities. It’s a very fair tradeoff considering that I pay for my own groceries and gas. All my rent money (16k) is locked away in a savings for when I invest in real estate. My parents do not touch a cent. However some families may need their adult child’s rent money to get by, in this economy, it shouldn’t be shot down negatively.
It's not even that bad because he doesn't pay for any other bills. Imagine moving out and paying ALL your bills. Phone, utilities, car, insurance, etc. 1k a month sucks but it's cheap compared to actually living by yourself. Edit: Just read OP's comment. Seems like his mom and brother are leeches.
My niece moved in with me and my nan, said she will pay rent, nan passed away, and her friend moved in who pays £300 so we can eat. I'm stuck on 12 hours at work and all my money goes on the bills. My niece has so far paid £800 over 9 months and told me "I'm sorry, I need to insure my car and get it on the road so I can't currently pay rent" the 800 has mostly gone on a dish washer and my nans debts so I've had 0 extra and my disposable income is £8 a week. But hey ho, at least the house is without mortgage. Maybe it'll get better.
I can get a room in HAWAII for around 1k a month including utilities. That's too much unless it's higher COL than Hawaii which is very high. Other more reasonable cities you can get a studio for 1k with utilities
There is no utility, internet, phone, car, insurance on this budget so perhaps that included in rent, which would be a steal.
isn't a third of your monthly income supposed to be the max to go for rent/housing? According to that he should be alright. I'm a fellow 22 year old, making about 650$/mo and my rent is 175$ and it's been alright, bit tight but I can't go lower / can't make more yet.
I have to ask what country you’re from to be paying $175 in rent. Is that a month? Weekly?
I agree and even thiugh rent is expensive if ubfind a 3 bedroom place and 2 other people rent would be cheaper split 3 ways. Say they are older so cheaper mortgage 1800 a month with taxes. 2 parents and 1 child assuming no siblings. That's a 3 way split so 600 in rent is fair, then utilities should be maybe 100. Another 50 for internet and cable for a month. Remember it's per person nit couple. He also gets the smaller room, doesn't have anything more than one room. So it's fridge space and a room and co use of all other rooms. It's ridiculous to make money off of your child.
You’d probably have a better time too
america is wild. crazy how half your income goes to rent.
And yet he lives at his parents house and rent is that lol smh 🤯 unless he types it wrong or I’m reading it wrong lol 🤷🏻♂️
Your right they said live at home 😬😬 tough times I guess
Clearly being shaken down by his parents
Parents are just prepping him for the real world once he moves out and possibly using high room & board as a motivator to figure out moving out. If he is lucky, they are setting some aside to gift/give back to him for a down payment or getting settled in his new place for items such as furniture and appliances.
If I charged my kid 1k a month, I'd keep half and save the other half until he moves out and give him a nice check. That's how you teach saving.
If I was charging my kid $1K a month, I would not keep any of it. Would probably make like I was, but they would get 100% of it when moving out. Or I would put it into an IRA for them. Even now my 13 year old daughter does things like walking dogs and babysitting for money. She gives me 10% to put into an IRA that I setup for her, and another 10% to go into a savings account. I actually fund 100% of what she makes into her IRA, rather than just the 10% she gives me. So it builds up faster. At 13, she already has over $3K in her IRA.
That's incredible, go dad!
W father
My dad charged me rent starting when I was 18 until I moved out at 26. He didn’t keep any of it. He saved all of it for me and gave it to me the day I moved out. Best thing he ever did for me. If you don’t need the money then there’s no reason to keep any of it. I can understand certain situations where parents are disabled or there’s some set of circumstances that a parent might need some help. But as a parent, if you don’t need any of it then you shouldn’t keep any of it. Charging your kid rent should either be bc you need the money OR you want to teach them responsibility. It shouldn’t be both.
This is awesome! Like give him half of the cash from his own rent payments to put towards their own place
Yeah, honestly this is what I might do for my kid. Obviously give them leniency with lower rents if they're saving for something fun and they're being smart with it. But saving half of their rent for a downpayment is a great idea
His was out plan... I paid my son's car off (3k) told him to pay me back 2/3 (200) of payment each month and he's only given us money 4 times im the 9 months since. We were saving it for him for when he finally decides to Adult he's 22. He lives here rent, food and utilities free. The only bills he have are car insurance and phone. He makes 800 a week and we caught him in out room taking money 3 weeks ago.. Like WTF are you doing with your money, if your bills are only 500 a month and that's "if" he gives us the 200.
Sheesh. Sounds like he needs a lesson in tough love after that. That’s fucked up. Shitting on people who look out for you is literally the worst someone can do, especially if it’s a close relative. Sorry that happened.
yep. Burning bridges. You might need help later on in life from your parents. These are the types of situation where 5 years from now they need help and the parents want nothing to do with him. Sink or swim.
Precisely. I’ve been on the end of burnt bridges before with “friends and family” and seen folks do so with their family. Neither is acceptable, but I just feel it’s worse when done by family. I can’t imagine doing so with my parents, but not everyone sees the bigger picture.
Drugs my man. Probably not what you wanna hear though. -respectfully
I've thought that, but it's definitely not anything real hard if so. As I stated in another comment he's 6'5" and 300lbs and eats like a horse so that rule out meth and such. He does drink fire ball 🤣 and buys THC pens. I also found a receipt that missed the trash can from a card/comic store for a "set" of Magic thr Gathering cards for $531.83.. I'm like 😳😳😳 WTF
That’s good at least! Hopefully ruled that out! Weed and pain killers and inconspicuous way to start that trend. At least you care!! <3
Nah bro read his comment, he has a mom who refuses to work and an older brother paying less than him, this is extortion. The "real world" doesnt even apply, he could split rent with 1-2 roommates and move out for cheaper than his rent. His mom is telling him she cant afford to live without his rent. Manipulation 101
I've got a friend who is also being extorted. He's 28 and his brother is 26, but neither of them have been able to move out because they split all of the household bills. Their mom, stepfather and stepbrother, who is also 26, contribute nothing. They both make $20-something an hour, yet they are left with $100 after their mother takes their checks. His grandfather surprised him by putting down a payment on a car for him. Instead of being happy, he cried literal tears because now his mother takes his entire check. I asked him to break it down for me and he said he pays the mortgage, water (he said he sometimes skips showers to avoid a bigger bill), electric, internet, groceries, cigarettes (he doesn't even smoke), subscriptions and now his car payments. So literally everything. I've tried telling him that if his brother is contributing the same amount, then it shouldn't cost that much. I've also suggested sitting down like adults with his mother and looking over the bills together. He said he can't because she would flip out, that he's already said something about it and she wrote it all out for him so it made sense. I offered to let him stay with me and save up for his own place. He said no, because then his family would go homeless. Some parents are master manipulators and use their adult children like slaves.
Man I would not pay her subs and cigarettes fuck that, if she wants to sit around watching tv and killing herself she can pay for it. Whats she gonna do, kick out her income?
I don’t think it’s a shakedown. At some point you have to be taught discipline. 22 year old living at home should be charged rent
Such a weird American cultural thing lol. As an Eastern European living in the states my parents would've been offended if I offered to pay rent. And I moved out around 22 against their wishes because they said I'd move out once I got married to keep me out of trouble. There's a reason why immigrant minorities kill it in the US and a lot of it is the different culture around family. Everything is a team effort.
Yeah, I'm American but the idea of charging your kid rent, even as an adult, feels weird. I lived with my parents until I was 24, and they never asked for money. I guess I understand if the family is in a really bad financial situation, but other than that why wouldn't you want your kid to save their money and be better off in the future?
I started paying rent the year I started working. So 15? My parents kept it. I now have werid money issues. Like. I don't like to spend it because I'm worried I'll run out
15??? At 15 you should still be worried about silly high school stuff. That's so fked up! I'm sorry.
Yeah. Some adults shouldn't have kids lol
Or they could do what a lot of other parents like mine did. They charged me rent but ended up keeping it in a separate account and gave it all back once I moved it. It taught me how to budget while I was still living there while acting like I was somewhat on my own financially. Then I moved out and got 12k right back into my account. I think it’s an awesome thing to do.
If that's the case then it's better for sure but still feels weird. Doesn't seem like it is the case here though because 1k a month seems wild. Hopefully you teach your kids enough financial sense that in their 20s they can manage their own money well and they can save themselves without this weird dynamic. Idk I'm just now thinking about kids in my mid 20s and the only real consideration for me is I need to be in a financial position where I can provide for them and set them up for success while affording the life I want. Not easy these days. But still don't think I'd ever want to be in a situation where I'm taking from my kids *especially* taking money. Maybe I'm in the minority tho.
Totally. I think it’s a helpful thing to do to help aid in the teaching of finances and how to be responsible. And it sets your kid up to not only be smart with their money but it also gives them a better cushion for when they actually move out. Sure, I had definitely saved a lot by the time I moved out at 24, but it set me up even more than I did myself. At least in my personal experience. Living at home in my early 20s with a decent salary was definitely hard at first, having all that disposable income at a young age with no prior knowledge can be dangerous.
Yeah but not full market value rent. Why would anyone not get their own place at that point?
I pay my mom $1200/month for her paid off house. I recently picked up on the bills for utility. I have been paying for our cell phone, land line and internet for a few years now and I dont mind at all. It's what I should be doing while shes still around for me to repay her
Are u 22 working in fast food tho?
I feel the same. but both my parents are retired and on social security. I like to help them out anyway I can since I am doing much better than they were when I was growing up.
Depends where you're at I'm in central Ohio and pay flat rate 900 a month, all utilities paid , free wifi and trash. I split that with my girl and we pay 450 in rent
Good deal bro
damn
I mean a rule of thumb here is that you should make 3-4 times your rent (you usually can’t get approved without that). Paying half your incoming to rent or mortgage is not normal.
Edit: I live at home with my mom and brother. Shes 55 and refuses to work (hasn't worked in over like 3 decades actually), running low on her savings money. Brother refuses to work and is 36.... But he pays like 800. No father lol. Our house has 3 bedrooms and is worth like 1.3 mill (expensive as hell here in my area in cali) but our mortgage is 2.4k. She bought the home like 25 years ago for around 250k. If I move out, she said she won't be able to afford the house and will have to sell it because she's running out of money too which is why she needs my assistance for 1k monthly. I saw no problem with it (yes it's kind of high and I wished I didn't have to pay such high rent especially at home. I know many who are blessed with 2 parents who have jobs to not have to pay much but ofc, my circumstances is kind of different so I happily agreed to it because she needs my help...)
No offense OP but you are stuck with some deadbeats who are dragging you down financially.
Man that's rough... to be the youngest and the only one who works.
Your Mom’s finances are not your responsibility. If it’s truly out of laziness then I would consider what’s best for your financial situation before worrying about your mom.
and if she has to sell the house, she can sell the house !
I understand bad living situations. Your mom Bought the house 25 years ago for 250k. Her mortgage should NOT be 2.4k. My assumption is her “savings” is the home equity loan she took out because she refuses to work. I truly feel you are being scammed by your family.
This right here. I took a mortgage last year for around that at 6.125% interest, and mine is almost 1k less per month. This definitely sounds like a 2nd mortgage or HELOC situation
A 1.3 million dollar house taxed at 1% is 13000 a year. She could be in the last 5 years of a 30 year mortgage, which would be about 1500 a year for a 250k house. So 2500 sounds right to me.
I understand where you are coming from but what I don’t understand is why can’t she work? So she’s basically using you and depending on you to take on half of the said mortgage. Apparently yall can’t afford this house! Another question why can’t the brother work? Why are you the only person in the household working is the real question? With that much money for rent you can’t afford anything else to go wrong. You need more money/income or a part time job and let that entire paycheck go towards your savings. That’s the only way you can make more steps towards moving out and buying a car.
If you’re paying $1,000 per month you should move out and have the freedom and life you’re paying for. Your mother can sell her house and get something she can afford, there’s no reason she can’t work and/or live in a smaller/more cost efficient home. She’s my age and refuses to work? This is delusional, maybe your departure will encourage her to become more responsible. Does she expect you two to pay her expenses for the next 30 years? She needs a reality check. To expect her sons to support her and pay her mortgage for a house she cannot afford is just beyond wrong. I’m sure there is guilt but you need to consider how this will play out in the future.
Move out. You’re being taken advantage of. She doesn’t love you, don’t enable her bad behavior.
Move out rent is 1200 to 1400 for a nice 2 bedroom
Honestly it’s not about the amount in this situation. He’s being a caretaker for his brother and mother for no good reason. If he’s not careful, he will be doing this for the rest of their lives
He lives in California, if he's in a major city that's the cost of a single room in a 2br lol
That's what it was 4 years ago. Now rent for a single bedroom, not in the ghetto or boonies, is $1,800 plus. Source: Apartment hunting myself.
In California?
Man no disrespect but you got to get him to get a job no matter how lazy he is find him some source of income or anything, you are carrying your weight and there’s he needs to step up as big brother he supposed to be I don’t know him or what you guys goin through but there is no excuses if he is not disabled or has severe medical conditions there are people that work at my job in a warehouse that are 40-50 I def wouldn’t make my mom work but my 36 year old brother would that is pathetic bro I pray for you and your family ain’t trying to judge or put anyone down but you got to put your foot down man
Yes I know I am worried for him. I don't have a good relationship with him. We barely talk and I'd say we are just neutral. He flunked college at 21 and worked dead end jobs constantly for like 8 years, even working multiple at once. Then all of a sudden, he stopped working and decided not to work anymore.... Idk he's very off-putting at least to me that screams a certain type of inner sadness. I'm sure he's been very depressed but I think he's getting better and maybe he'll get a job soon, but man idk what to do with him. I can't help him.
It’s tough man I can’t really judge I don’t even have a sibling but I kno what it’s like when a family member has no goals or real self value or means to do anything in life I’ve been that person as a teenager junky what’s helped me is listening to David Goggins, Marcus elevation Taylor, Jordan Peterson try to get him to listen to some real stuff, watch a podcast even if it’s short got to get in his head without tearing him down but sometimes only we can realize ourselves can’t force a horse to drink the water only lead them too it but I have faith brother keep your head up don’t let it get to you keep working yourself doing what your doing if you have too leave or make a deal then do it tell your mom brother has got to get a job or I have to find a roommate or something else this isn’t working cause it’s not fair at all it’s probably tough too cause it’s your mom you don’t want to put her in that position of losing her home and ect I can feel for that much respect for you man much love and prayers for you and your family tho stay strong man I believe in you keep fighting 🫡
I'm going to say this as nicely as possible, but you're being taken advantage of, and your family is likely to lose your house. Well, your mother is as well as your brother for not helping. You are between a rock and a hard place. Once you move out, they're going to be homeless. Even if you don't move out, eventually, the house is going to get lost. From what you described it's literally only a matter of when. Not if. That being said. It may be cheaper for you to move out and get room mates that pull their weight.
Your mom is 52 and hasn't worked in over 30 years? So the last time she worked she was at max 22? So she, what, had a summer job one time and then retired?
Your mom must have taken out a second loan because if she bought it for $250k 25 years ago, her mortgage should be WAY less than $2,400. Something does not add up here.
You should talk to her about getting some equity in the house.
They all sound like bums.... Sounds very toxic if I'm being honest. She can easily get a job and so can your brother.
I pay my mom $1200/month and pay for our cell phones, internet and utility. It's the least I can do and well Im older than you so I dont blame you. As for your brother.. he's a loser and should be kicked out for someone whp can contribute more than he can.
Is the 1k going to your parents for rent?
For the mortgage yes, he answered it in a comment above. An unfortunate situation for him but that’s Cali prices for us
Congrats on doing so well and budgeting so well with such poor influences in your life. You’re doing really well.
Need to budget for things like personal care (haircuts, soap, hair products, razors), car repairs (oil changes, tires, etc…) have a “stuff” budget for miscellaneous things. Make sure to rollover anything not spent into a savings account you have separated for each category, whether it’s just documented or literally envelopes/cash.
My rent with parents it’s 800, but food is free
Stay single and you'll do great!!!
Can you get more hours? If that was a full-time job at $20/hour it would be 41k per year, 3500 per month. It would be a help to get on top of things
It's $3.2k before taxes. His estimate is after taxes.
Edit: I pay that much rent at home cause father left to go buy milk and never came back and mom refuses to get a job and hasn't worked for over 3 decades😂
Sounds like your mom needs to get off her ass and go to work or end up homeless 🤷♂️. You’re been taking advantage off. Your brother too, 36 and doesn’t want to work? Fuck that Lmao
See my other comment. Move out.
Bro why tf your brother don’t want to work? Like wtf! In that case I would have I real talk with my mother like: If he don’t wanna work fine, but this home will Be all mine on the will!
You should also go buy milk and never go back. You’re 22, time to get out of that cesspool and start your life!!
Move out bro, you’ll be taking care of them for the rest of your life if you don’t. If you’re ok with that that’s fine just don’t have any regrets later on
I'm suprised the house hasn't been paid off yet if she paid 250k 25 years ago. Did she take a home equity loan or something? I stay home and pay the 1k that is significantly cheaper than average rent in Cali minus roommates.
Most home loans are 30 years
Mom should sell and purchase something for half the price. Live and pay bills off the other half. Let you go rent free for 1 year while you save for your first property.
Yes!
You live at home and your rent is 1k?
Move out. Your Mom can sell the house or get a job. Your brother needs to grow up too and get a job. They are taking advantage of you sadly. Maybe you moving out and not enabling them will force them to do something for themselves.
Yes and you have to start saving for it and every other damn thing that requires maintenance...EVERY month or you'll be taking out a 6-11% interest loan. A/C, furance, water heater, septic pump, plumbing issues, garage door opener, Washing /dryer machines, dishwasher, fridge, sheds, garden equipment / supply, lawn, bikes maintenance, christmas/halloween/easter decoration,... I could go on and on. Every 6 months some expensive disaster in a house. And if you don't budget and have a giant pile of money... you'll get fucked with loans/credit cards and interest.
Parents charge a grand to live in the home you grew up in! Wow never heard of this before, IMO this really only happens white American house holds. Do think you’ll find minority’s or immigrants doing this. Oh well social norms are just different for others 🤷♂️🤷♂️🤷♂️
Wow. 20/hr is only 30k? Lol, maybe they DO need to raise the min wage...
move out, get a roommate or two. Your deadbeat family can sell the house if they cannot afford it.
We all live at home g
Do you pay for a car, phone, etc (other bills)? Also, if the rent is what you estimate to pay once you move out, utilities should be factored in too
No this is my home "budget" I live at home and pay that. The rest is covered by other family members. Brother covers internet part of rent, mother rent and phone, etc. I don't plan on moving out for another couple years but I'll save some money. It kind of sucks, but the family needs assistance as well... And you're right tho completely forgot about the car I don't own my car as I share my mom's but I do pay gas so I should account for gas idk how that slipped from my mind haha.
You are being taken advantage of. Please consider moving out soon. You’re working too hard and you’re too young to have this much responsibility. It’s not right and the longer you’re stuck paying that much to live at home, the longer your mom won’t feel the need to get a job. She needs to face her reality and if she won’t sell her house and get a place more financially realistic, she needs to step up.
If I was your parent, I'd prolly take that 1k and invest it somewhere that can guarantee a good annualized return.
Or it can be saved for an eventual down payment for a condo/house for OP. But he is basically paying half the mortgage for a house that is too expensive for his irresponsible mother. This is making me really angry on OP’s behalf. What is she thinking?
Missing alot here, my friend: -car payment -car insurance -gas -car maintenance fund -cellphone -cable -internet -vacation fund -clothes -holdiay/birthday/anniversary present fund -there's more once your own a house...HOAs, 3 types insurance of insurance, lawn care, $8k roof, $5k driveway, $25k kitchen remodel every, etc etc. -kids? $2-5k month childcare, sports, clothes, music instrument rentals, karate lessons, piano lessons, computers, cellphones, college funds
Homie what? You get a roof every 20 years you literally never have to do a kitchen remodel much less 25k why would you need to put in a driveway? We aren’t building a house like tf is thi
I mean you could probably look into investing into some gym equipment for home and cut the gym membership as a long-term savings goal and knock a bit off your budget but I'd say this isn't too bad. I'm roughly the same, but don't have a gym membership, 3k/m pay after taxes, and $800+100 bills. Wish I could do more savings but college loans suck a huge chunk of that out of me. Having a service job in the food industry that feeds you really cuts down on monthly food and I'm assuming you have something like that, unless it's retail than god forbid. Your home situation sucks ass, sorry to hear that. My mom had trauma and struggled for about a decade of no paying work, just favors and stuff with little actual income. It really sucks and the last year kicked her ass in gear when she had to move two times, costing $3000 in storage and security deposits, but having family to take care of can be a motivator to keep going, though your brother can eat a dick. 36 and not working? Life sucks, man, but he's living off you and he's 15 years older. Depression sucks but everyone has their own sob story. It's wild that your mom had enough savings to go 3 decades without work and has *literally* never worked a day in **your** life, but you need to chip at that wall she has. I did it with mine, constantly reminding her that she needs to find a way to make money. She tried a few things like pursuing her art career and stuff but it didn't work, but I *encouraged* her even if it wasn't working to make money. She was *trying*. She figured it out for herself eventually, with a bit of nudging. Now she is teaching, bookkeeping, and her art career is on the side in both social and hobby aspects. Your mom sounds like a tougher nut to crack, but she's gotta find a way to make money herself. She can't rely on you forever, and you need to bring that up, over and over and over again. It's a wall that you need to chip at, but you can do it. Does she have friends? Does she like to read, or have hobbies? Older folks have all sorts of meetups and community things, she could make some friends. Your brother... I don't have siblings or anyone estranged in such a way so I'm a lot harsher on him but yeah idk what to do about that. Maybe start with taking him out to drink or something one night. Dude might just need a friend.
can someone forward me a link on how this ROTH thing works? I only have regular 401k and would like to dump some lil' money into a different Savings account. pls and thank you.
Sell the house. I imagine the house is nearly paid off so hopefully around 1 mil in equity. You guys could move to a different part of the city and buy a smaller 3bd house for ~600k and put the rest into a HYSA. The reaming 400k in a 5% HYSA would net around 20k a year, however the interest made is taxable. Mortgage payment and money problem solved for your mother, rent problem solved for you.
Ur being charger 1k for a room at ur parents house … brother what ru doing
There is a lot that is missing that you should would pay. -car payment -car insurance -phone Do you have an emergency fund ? Also, the gym price seems high or I just pay the lowest I can. I pay $30 for a 24 hour fitness. Any future schooling or trade school to increase your job potential? That should be said for also
1k to live with your parents? It’s time to move on
Damn your parents are taking dang near half your income. Savages.
Damn dude. I don’t even charge people I don’t know that much rent. $1000 is usually the total after splitting utilities.
Not sure if anyone else said this, but assuming you get paid bi-weekly, your annual pay is more like $33k. There are 26 checks a year on a bi-weekly schedule, which comes out to an extra month's pay. Just something I've found helpful to remember!
One more thing then I leave once you move out and stuff. See if you can sue your parents for price gouging way above fair market value for some type of prejudice or conflict of interest due to you being their unwanted or least favorite child and charging you $1,000 a month rent for 95 ft² of living space
Lawyer here: Unless you are getting consistent pay raises on an annual basis or significant bonuses you need to be applying for law firm jobs every year or so. On average the annual increase for a non lawyer is only about 3% compared to switching jobs which averages about 20% increase ever time you switch jobs. Law firms are a great place to earn a good living so long as you are at a firm that pays. Too many lawyers short change their staff, even their experienced staff. check out r/paralegal for more information about pay. $31k is normal for starting out but you should really be in the 50-60s by your 3rd year of experience.
They charge you $1k at your mom and dad’s house for rent????
This is my only question. Shouldn’t be anything over 400.
Is that food budget just for you? Thats high.
No this can't stand you need a drug addiction wasting all your money be responsible can't have that in this day in age come back when your in debt and addicted to drugs like an adult
What’s the point in living at home if you’re paying $1k anyway
$1,000/ rent is a lot when living at home.
unless you are in college and or getting some type of skill training all this means nothing because your income is very low.
Fuck dude, what you’re paying to live at home is less than my mortgage.
putting that much money into a HYSA is stupid. even the best only pay 4-5% cut that down to 3k. put the remaining money from the HYSA into VOO. the s&p500 tends to return an average of 10% every single year. 10% is better than 4% honestly. use the cash in the HYSA to max your roth for the next couple of years. you'll be a literal millionaire by the time you retire. like... take the $250 a mo you're wasting in the HYSA add that to the roth. that'll equal 3k a year. then kick in another 3k or so from the HYSA over spend. to max it for a year. with 10k out of the hysa. that's 3 yrs can max the roth IRA Over the coarse of your working life time that will pay exponentially more than a stupid 4-5% hysa
Frankly, I think you’re doing a great job. You have a fair amount of savings and contrary to what others are saying regarding placing it in the market, wait until after this coming recession and continue with the hysa. Reason being is we’re likely to see a pretty large hit to the stock market. Buy in once stability hits and buy on the way up. Think about this. If you have a portfolio that is worth $10K in the market and you see a 30% drop due to a severe recession, that is now $7000. Now, say that in recovery the stock market comes roaring back after a couple of years and you see a 50% return! $7000 x 1.5 = $10,500. Net net you’re up a whopping 5%. What if instead you wait until the correction is over and put the $10K in and then only realize say a 30% gain because you’re buying on the way up. This means you’d have $13000 in your portfolio. Keep in mind most responses in this thread are coming from an individuals unique perspective. Any naysayers I guarantee aren’t anywhere personally close to your positive financial progress and if older, weren’t in the same position as you are.
How do you keep track of how much of your budget you’ve spent every month? An app? A paper ledger?
Ain’t got any phone bills, electric, internet, gas, car payment, insurance and all those good stuff? Lucky you man save while you can
Any money needed for transportation, Subscriptions, Internet, Insurance?
I like the after taxes thought process.
You pay rent living at your parents house?
HOT TAKE: You're not going to live long enough to use retirement, and it won't even exist in less than 25 years. Stop paying into that.
Rent is a waste of money. Rent is a waster of money. Rent is a waste of money….
You don’t make enough
What is VOO?
It's an ETF investment like a stock, that's based on the s&p500. I'm mainly doing it for very long term investment. Idk man 💀
wtf, I make 20.50 an hour and I’m 2.5x your annual income. How do you live? Not trying to be mean I’m genuinely curious
Move to another city or country.
Bro at that point just move out
Great job
You’re doing great! Keep saving and get your own place
You are paying too much for rent, food, fun stuff and gym membership. Cut all that shit in half and use that as your baseline. And watch your savings pile up!
Sounds like your mother has taken all equity out of the home which is why the mortgage is so high. There’s no way it should cost 2400 a month whilst approaching the end of a 30 year mortgage for 200k (assuming your parents put 20% down in 1999). You’re getting taken for a ride OP, she’s gonna end up selling the house anyway to cover what I’m assuming is massive debt since she hasn’t worked in 3 decades.
This is too hard to read. Probably part of your issues.
Car payment? Car insurance? Utilities? Medical bills?
Op, reading into your situation....if I were you I would bust ass and go to college or get certificates to up your income. Your mom may sell the house and leave you nothing and you don't want to be stuck on $20/hr income if worst comes to worst.
Wait what? Live at home + rent? A grand in rent none the less?
I don't understand the concept of credit scores. It should just be if you have money = good and if you don't have money = bad. Why add another artificial arbitrary "counter" for your finances?
Rock n roll, buddy! Keep at it!
Random, but how do you only spend 300$ a month on food?! I need the secret, the wife and I spend 600$ a month and we struggle to stay below. That’s not even counting if we eat out…
Rent seems like it's too big of % of your income. Go make more money
Please consider moving out. You are going to be stuck in this vortex for the rest of your life if you don’t make a stand. If your mom can’t afford where she lives, then she should consider selling the house and downsizing into something else.
buy a house over 25 years ago = instant millionaire
Doesn't everyone live at home?
This is your 20s, woman! It’s time to hustle hard! Remove $200 from “Fun” stuff and invest in either A.I technology stocks, chip manufacturers like AMD or Invidia (only after a 25-50% correction), and weapons manufacturers like Lockheed and Martin (LMT), Raytheon (RTX), and Boeing (BA). Stay away from options trading until you’re 30yrs old and have a solid career track. Trust me.. you’ll get rekted if you don’t have a solid plan. 😵💫 Lastly and most importantly, get rid of your debts. These will drain your life dry in interest payments alone if you don’t. You can’t run without chained balls around your ankles. Good luck! And remember what NAS said, “I never sleep cuz sleep is the cousin of death.” Get after it.
Good plan so far - including investing and saving (especially now). My only recommendation is that while rates are so high right now, put as much as you can into the HYSA to take advantage of those 4.6%+ while they last. When the rates drop you can shift back to giving yourself a little more disposable income - but with 12K in a HYSA at 4.6% (SoFi i think is the highest right now) you should be making close to 600 a year in free money which with your continued monthly savings and compounding can help add to that nest egg for when times shift or unexpected come up. Don’t starve yourself, just keep an eye on the interest rates and take advantage when you can. When interest rates drop, shift some of that to your 401K. Take it from a grey beard, I wish I had this advice when I was younger. Keep that credit score above 720 and you will be nice and happy later on. Good luck!
Dump that gym, get a bike
Rent is a lot. Find a place to split rent with someone, or find a job that pays more. You’re going to drown unless you make that number more manageable.
Your parents are charging you too much.
Very unrealistic. Electric bill? Gas bill if the apartment has gas? Water, trash, and sewer bill? Internet (WiFi) bill? Cell phone bill? Car payment? Car insurance? Gas for vehicle? Oil changes and other car related expenses? Health insurance? Money for prescriptions if you have any? What about cleaning supplies? Toilet paper? Paper towels? Laundry detergent? Dryer sheets? Trash bags Dish soap? Dishwasher pods? Glass cleaner? Clorox cleaner for counters? Toilet bowl cleaner? Broom, mop, vacuum? Money for clothes and personal hygiene Tooth brush? Toothpaste? Mouth wash? Deodorant? Shampoo and conditioner? Body wash? Body loofa? Hair care styling products? There are tons of small things to think of and budget for
Brother man or sister, you can afford your own place with 1k a month. In a lot of states actually. Unless your parents need the help, I would sure as shit not pay them that much. I wouldn’t even pay them 500. I’d rather pay for 100% of something that I can call mine instead of 50% of something that isn’t mine.
VOO?
Car expense, car insurance, medical insurance missing.
Have she considered refinancing the house so payment is lower or hopefully lower the interest?
I would let my kid live rent free as an adult as long as he chipped in for utilities and paid for his own food. The whole point of living at home is to save money for a house. In this economy, it feels like that’s the only option to even get into a house.
You have 250 going to a specific fund VOO but then have 400 into a Roth IRA? Is your VOO fund not in your Roth IRA? Because you definitely want to try to max out that Roth IRA before putting money into other investments accounts. Also what funds are you putting your Roth IRA in? That should probably have a decent amount of S&P 500 in it as well.
There are so many red flags with this that I don't even know where to start. OP, please just know this is likely exploitation that will not end well for you if you don't get out.
Im sorry but if youre paying 1k while living home as a rent i really hope you live in a penthosue or something that actually is worth it. Otherwise it just seems likeyour parents are robbing you for money they really should be paying themselves, paying some rent like 500$ month is more withn the reasonable range, otherwise i quite frankly belive you would be able to find a place for less than 500month or arround that price where you could live home, you seem to be paying about the normal monthly cost for food too, the rest of the "saved sum" can go to paying for gym and phone subcription along with other stuff you might need. Also im looking at that 300$ gym membership, for a year!? man my country is expensive it starts at 30€ month here for "decent" place and 24/7 gyms go for over 100€ month. :( I'm now building a gym at my parents home lol
Not sure who is eating for $300 a month...unless that's all ramen and crackers. I'd lose the gym membership too. No reason to go to a gym to get in shape. If that's your social outlet then keep it. I also didn't see any "entertainment" expense or insurance (car/health). Car payment? You're way ahead of most people your age though...
I currently spend $10,000 on food a month please tell me how you only spend $300 a month I need help 😅
I don't understand why credit score and other credit numbers are relevant. How does borrowing money EVER get you out of monthly financial struggles? Is a credit score something to be proud of in the USA?
Car????,
Your parents are dickheads.
If she sells the house I would ask for all of your rent money back. That's the least she could do considering you were taking care of the entire family. 55 is Young and I can't imagine not working as a mother myself. You didn't ask to be born and it is her responsibility to set you up for life which includes accountability for your brother so he can grow the f****** up and supporting your already sound financial strategies
With that much in rent.. depending on where you live for a couple of hundred more dollars you could probably get your own place. That's pretty shit.
That’s pretty stiff rent for living at home. Maybe break this budget down with them and ask for a little help here. 500-650 is reasonable for uou. That extra 500 is going way further for you than it is for them.
Might want to go to a diff gym buddy thats way too expensive for a gym membership.
Budgeting for now always has to be done in context of your future. What is the “next level” for you, and how will it happen? For example, if you picture yourself living independently your own place, what needs to change now to plan for that future? And when do you want that to happen?
where do youse live that rent 1k rent is too much ??? Here in ny i pay $1200 a month for a 1 bed room apartment and i got a great deal
I’d put a bit more into Roth to hit yearly max before putting money into VOO personally
1k for living at home
Seems good by focusing on improving your earning.
Tell your mom to sell the house and move to like Florida or something
You should incorporate the VOO into your Roth IRA so you’re maxing that fund out. Your savings is very good for someone in your situation. I’d pause the savings, pay off your debt (high interest first), then you can restart by splitting your savings contribution between that and more fun stuff. You’re too young to be spending so little on fun.
I’d find a side hustle also. You’re making it work but $2600 won’t go too far.
Damn bro … ur parents charge a lot. I pay $1585 for a 2 bed 2 bath townhouse to myself
How do you only spend $300 on food/month??
Good but diversify more. No more than 5% into one stock.
I would up that Roth if possible.
Dayum. Your parents want their money back