I’m 23, I Make $150k & I’m Worried I’ll Forget To Make My 20s The Best Years Of My Life
Both my parents attended college, chose STEM majors, and graduated top of their class. It was expected that I would do the same. I majored in computer science at a well-respected university in the field. I also received a merit scholarship that covered my entire tuition for all of my years in college. I only had to cover rent and food. For my first year, my parents gave me money to cover these living expenses. During my second year, I worked a part-time job as a software engineer intern and used that income to cover living expenses. I kept this part-time through the remainder of college.
Growing up, what kind of conversations did you have about money? Did your parent(s) educate you about finances?
Growing up, my parents spoke about spending habits and the importance of saving. We lived extremely frugal lives and tried to save as much money as we could. For example, nearly all my clothes were bought second-hand, and we tuned our diet for the week based on what was on sale at the grocery store. Still, we were never worried about money. My parents made it clear that our frugal lifestyle was not because we lacked money, but rather we wanted to save for rainy days and future purchases, such as my college and their retirement. After I got my first job, my parents taught me about various investment options, such as CDs, treasury bonds, mutual funds, and day trading. Under their supervision, I placed some day trades to gain familiarity with trading and acclimate myself to the associated risk. If I lost money on some trades, they helped me understand my mistakes and gave pointers on how I could offset the loss. For instance, one of their mantras is that if a stock we buy goes into a loss, unless the company is in dire circumstances (e.g., a lawsuit), it’s usually better to hold. “A high tide in the market will lift all stocks, just wait for it and then settle the trade,” they say.
What was your first job and why did you get it?
My first job was a part-time software engineering internship I took at college. I took the job primarily so I could show something on my resume when applying for summer internships.
Did you worry about money growing up?
No, I knew my parents had a good grasp on our finances. While our lifestyle was modest, they ensured I had everything I needed. They also reassured me that we had enough for rainy days. I remember there were a couple of months where my dad was out of work, yet they never showed any signs of stress or shared any concerns about money. “This is part of life”, they said, “we have saved enough for such rainy days, so don’t worry. And remember, this time will pass, and it’ll be back to normal.”
Do you worry about money now?
Kind of. I have a solid job, decent savings, and with my frugal/minimalist lifestyle, I am not worried about money in the short term. Long-term is another story. With the rise of AI, it’s uncertain if software engineering is a good, sustainable career. If AI replaces my job or reduces my earning potential, I would definitely be in trouble, and that’s my greatest worry. Consequently, I am constantly worried about saving for the future.
At what age did you become financially responsible for yourself and do you have a financial safety net?
I am still not financially independent. I live with my parents, and while I do pay the bills, I know they will happily cover for me if needed. Thus, I don’t feel the same level of responsibility as someone living by themselves. I do have a financial safety net; I have enough savings to cover my living expenses for a few months. Plus, I know my parents will help me out if needed.
Do you or have you ever received passive or inherited income? If yes, please explain.
My parents gave me $10,000 when I started college. I used some of that to cover my living expenses the first year of college and put the rest in a savings account.
