Home Economics No. 3: Single and Living in Southwest Ohio on $62,000 a year

$60 for Internet, $100 for subscriptions, and a $3,875 monthly inheritance

Hello! Welcome to another edition of Home Economics! Before I kick things off, two quick announcements!

First, I want to say a BIG congrats to my friend Matt Schulz on the launch of his new book Ask Questions, Save Money, Make More: How to Take Control of Your Financial Life. I got a chance to read the book last summer when it was still in draft form, and it’s just so good. Matt’s advice to easy to follow, and he taps all of my favorite experts for their smart insights. (And fun fact, it’s the first book I’ve ever blurbed!) Pick up a copy! You won’t regret it!

And second, my friend Catherine Brown (of this edition of Division of Labor) is launching her second virtual mom group cohort. She’s still got a few slots open for the 7:30-9:30 p.m. session. (Note: Times are PST, so ideal for West Coasters!) You can find more info here.

Okay! Let’s get onto today’s edition of Home Economics, which features a 46-year-old single woman who lives with her mother in West Chester, OH.

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About me: It might be rare, but I am single and childless and live in the suburbs. I’ve always lived here, and I enjoy the life I have. I live with my mother, who’s in her 80s. My dad died a few years ago. I have two dogs. I’m an active volunteer at my church as well as at a local historic village and research center. I love to go to concerts and sporting events with friends and family. 

Age: 46
Location: West Chester, OH
Relationship status: Single

All expenses are monthly unless otherwise noted.

Income:

1. Your job title/salary: Internal Auditor - $62,000

2. Your monthly take-home pay (paycheck amount after taxes and other deductions): $2,050

3. Additional monthly income: Inheritance, $3,875

Account balances:

4. Checking account balance: $5,100

5. Savings account balance: $2,000

6. High-yield savings account balance: $13,200

7. Monthly contribution to savings account: Varies from month to month

8. Retirement account(s) balance: 

   1. 401(k): $104,000

   2. IRA: $439,000 

   3. Roth IRA: $6,300

9. Monthly contribution to retirement accounts: $870 into my 401(k)

10. Investment account balance: Brokerage account, $113,000

11. Monthly contribution to investment accounts: $130

12. Emergency fund balance: I keep savings in cash in my brokerage account, as it is paying more interest than my regular savings account.

Housing:

Note on these expenses: I pay all the expenses associated with my vacation home; for the house I share with my mother, we have divided up who pays what bill and it comes out pretty even. This is a list of all our housing expenses, and I haven’t indicated who pays which bill. 

13. Size of your home: I live with my mom in my parents’ house; it’s a 3,000-square-foot, four-bedroom house. I’ve lived there ever since I finished college. In 2008, I paid to build an addition onto the house that’s essentially a mother-in-law suite with a kitchen, bathroom, and separate entrance. I recently bought a 1,700-square-foot, three-bedroom, two-bath vacation house in Michigan.

14. Mortgage: My parents paid off the mortgage on their home 30 years ago. I pay $1,750 for the mortgage on the vacation house.

15. Current home value: $430,000 parents’ house, $309,000 vacation house

16. Current mortgage balance: $200,000 vacation house

17. Year you bought your home: My parents bought our house in 1984; I bought the vacation house in 2022.

18. Price you paid for your home: I paid $284,000 for the vacation house; I believe my parents spent $120,000 for our house.

19. Mortgage interest rate: 6.75% (on vacation home)

20. Home taxes: $4,400 per year for our primary residence and $4,200 a year for the vacation home. (I pay the taxes on both houses.)

21. Home insurance: $1,200/year for both homes

22. Electricity: $200 for primary, $55 for vacation house

23. Water: $30 for primary, $70 with sewer for vacation house

24. Internet: $60 for primary, $60 for vacation house

25. Housekeeper: N/A

26. Gardener: $110 for primary, $60 for vacation house

27. Natural gas: $30 for vacation house

28. Cellphone: $225. This plan covers me and my mom, with unlimited data, as it is a back-up Internet source since I work from home.

29. Trash: $30 for primary, $30 for vacation house

30. Security system: $100 for primary, $100 for vacation house

Transportation:

31. Monthly car payment: $0. I bought the car in 2017 and paid it off in 2020. I was going to pay cash for the car, but I couldn’t pass up the 0% interest loan.

32. Car insurance payment: $90

33. Gas: $50

34. Car maintenance: $40

35. Parking: ~$75/year for occasional airport parking

Debts:

36. Student loan total balance: $0. Thank you to my parents, who worked hard so I could go to an in-state school and graduate debt-free.

37. Credit card balance (if you carry a balance month to month): Paid off every month

Food:

38. Groceries: $250

39. Dining out: $400

Socializing and Entertainment:

40. Subscriptions (streaming services, magazines, etc.): Probably ~$100 a month. I have Netflix, Hulu/Disney/ESPN bundle, Peacock, Amazon Prime, and the Happier App.

41. Memberships (museums, etc.): $75/year. I am a charter member (and former board member) of a research center and a member of a local historic village.

42. Movies, concerts, other events: $60. I get a season pass to Kings Island, plus I like to attend various CCM concerts that come to Cincinnati or Dayton, and I also get season tickets to watch college football.

Miscellaneous:

43. Clothing: $75

44. Home supplies: $400. I was setting up the vacation house so it was high. Hopefully that will come down this year.

45. Exercise: $0

46. Personal and self-care (haircuts, manicures, massages, etc.): $100/month for my hair, $400/year for pedicures/facials. Work and volunteering has been stressful since 2020, and the occasional facial is just so relaxing.

47. Monthly vet plan: $120

48. Donations: $10 to various organizations

49. Tithing: $200. I used to be a youth leader. A couple of my youth kids are now in full-time ministry, and I’m on their support team.

50. Gifts: $1,000/year. I like to give gifts.

Insurance:

51. Life Insurance: $0

52. Health: $48

53. HSA Contributions: $130

54. HSA Balance: $21,800

Tell us more:

55. What are your top financial priorities?
    Paying off the mortgage, building up my savings accounts, and of course retirement.
    

56. How do you feel about your current financial situation?
    I feel like I'm in a good place, but I often wonder, What am I missing? I run the numbers, and everything looks good, but I worry about the other shoe dropping.
    
    It felt a little crazy for me to buy the vacation home, even though I knew it made a lot of sense, both as an investment property and as a place for us to vacation. When my dad was alive, we would camp together in an RV. But after his death, we gave that up. I used some of the inheritance I received from him to pay for the vacation house, so I had the money to pay it—it wasn’t a financial stressor. And now that my job is fully remote, I can spend more time up there. I spent about 12 weeks up there last year.
    

57. What are your money stressors?
    Not screwing up the money that my dad saved. My dad worked his whole life for that money. He was a tradesman, and he worked 10 hours a day, 13 days a week, because that was what the automaker he worked for required in the ’90s. 

    
    I know I inherited a good chunk of money, so no one feels sorry for the poor little rich girl, but it has definitely added complexity that I spend a lot of time thinking about. Losing him felt like losing my safety net. And now I’m the one who’s responsible for figuring out how I’m supposed to spend this money to support me and my mom. It’s a lot to think about.

58. Do you expect to receive (or have you received) an inheritance from a family member?
    When my dad died three years ago, I inherited a $600,000 IRA, and I’m required to take money out of that account over the next 10 years. (It’s my choice if I reinvest it or spend it—I do a little of both.) I’m an only child, and I’m on the deed of my parents’ house where I live with my mom. I have an aunt who will probably leave something. It could be $50k or $500k or any number in the middle. I really have no idea.
    

59. Do you receive any financial support from your family?
    After I finished college, I moved back in with my parents to save money as I decided what to do next, and then I never left. I haven’t had a desire to live alone. 

    
    As I mentioned earlier, I added a mother-in-law suite onto my parents’ house 15 years ago, which gives me a separate space. My mom and dad lived at home with their parents until they got married in their 30s. 

    
    I know some people might raise their eyebrows, but I was always expected to pay my own bills. Meanwhile, I have friends in their 40s who are still on their parents’ cell phone plan. So while I was living at home and benefiting from it, my parents were paying very little, as opposed to some of their friends who were writing rent checks for their kids.  Hopefully, that doesn’t sound overly defensive.
    

60. Do you financially support any family members beyond yourself and your nuclear family?
    My mom and I both have separate bills we pay, but I think it comes out fairly close to 50/50. Some of the utilities are just what she has always paid. She joined my cell phone plan, as the additional line would be cheaper. I pay the house taxes, as I can itemize them on my taxes.

    
    At this point, my mom is still very independent, but I don’t know if she would be okay on her own. 
    

61. How does being single impact how you think about your finances?
    On one hand, I’m totally in control. If I want to fly to Wisconsin for the weekend to attend a conference, I don’t have to check with anyone before I buy the ticket. But at the same time, sometimes it would be nice to have someone to talk to about those decisions who also had a vested interest in my future.
     

62. What is one financial goal you still want to achieve?
    Paying off the mortgage on my vacation house. I hate seeing that most of the payment goes to interest each month. I am paying an extra $75 each month—I actually pay $1,835 monthly—so I can pay it down sooner.
    

63. What do you regret spending your money on the most?
    At the time that I was buying the vacation house, I thought it seemed sketchy to go through the developer for a home loan. However, if I had, I would have locked in a 2.25% interest rate in late 2021 instead of when the house was finished, and it ended up triple the amount. 
    

64. What is one thing you spend money on that makes your life better?
    I don't know that I could pick just one thing—maybe the girls’ weekend I take with my college roommates each year. It's just great to get away.
    

65. What is one thing you spend money on that drives you crazy?
    I know I shouldn't have as many subscriptions as I do, but like my oversize closet, I like options.

I’m excited to open the comments for Home Economics, but I ask that people please be thoughtful in what they post. I reserve the right to delete any comments that are not kind. Thank you!