Home Economics No. 29: A Single Mom in Montana Living on $80,000 a Year

Happy Memorial Day Weekend, everyone! Popping into your inbox with an interesting Home Economics for you!

In my last newsletter, I wrote about how I feel uncomfortable giving financial advice because everyone’s circumstances are different. It’s also why I think Home Economics is such an important series: It gives readers a chance to see how other people live and spend their money.

I was working on this edition of Home Ec at the same time I was writing that newsletter, and I think that’s why home-buying was top of mind. I made the briefest of comments about Ramit Sethi’s rent-versus-buy opinion that sparked a conversation in the comments. Today’s Home Ec features a divorced professor in Missoula who isn’t a homeowner but would like to be. She’s moved six times in the 10 years since her divorce. One of her top money stressors? Worrying whether her landlord will hike her rent.

Home ownership brings its own set of challenges, of course, as we saw with the family in Chicago who were struggling with $80k in consumer debt. They were renting out the home they owned in Texas because a soft housing market was making it difficult for them to sell without taking a financial loss. The writer of that Home Ec felt like many of their money problems were a result of buying more house than they could afford.

Home Economics No. 27: A Family of 4 Living In Chicago and Struggling with $82,000 in Consumer Debt

From time to time, I hear complaints from readers that everyone I feature in Home Economics has their financial shit together. And it’s true to a certain extent: Of the 27 editions I’ve published over the last year, just a handful profile people struggling to pay off consumer debt. Many other Home Ec writers will express distress that they don’t feel financially stable, but they’ll still have significant assets—

The PurseLindsey Stanberry

Katie Gatti Tassin spoke some on this topic in her most recent podcast episode, where she interviewed J.L. Collins, author of The Simple Path to Wealth. It’s an interesting listen! (Don’t forget Katie and I will be at the 92nd Street Y on June 11 to celebrate her new book, Rich Girl Nation!)

I’m definitely looking to explore this topic more in the future. If you have strong thoughts, send me an email!

If you want to share your own Home Economics, you can fill out the form here.

And just a reminder that all paid subscribers not only get access to every edition of Home Economics, but they also are automatically entered to win a monthly drawing. I really like this month’s prize, TBH. One lucky winner will receive a $25 gift certificate to the bookstore of their choice, one $25 gift certificate to the coffee shop of their choice, and a $25 donation to the charity of their choice. I’ll also be donating 20% of all new paid subscriptions during the month of May to Moms Demand Action.

And now on to today’s Home Economics!

Age: 46
Location: Missoula, MT
Relationship status: Single (divorced)

About me: I’m a 46-year-old single mother with a 14-year-old daughter. I’ve been divorced for 10 years, and we have had shared custody from the beginning. I make as much or more than my ex-husband, so neither of us has ever paid child support. I work remotely as a researcher for a public university in a neighboring state.

All expenses are monthly unless otherwise noted.

Income:

1. Your job title/salary: Assistant research professor; $80,000 (base), but up to $105,000/year dependent on my ability to bring in grant money to cover my summer salary.
2. Your monthly take-home pay (paycheck amount after taxes and other deductions): $2,737 every two weeks
3. Total monthly income: $5,930. My take-home pay is higher in the summer months because the university consolidates my health insurance premium costs across nine months.

Account balances: