Hi there,
I came across this forum recently and think it's an amazing resource for all types of people for achieving financial success and eventually financial freedom. I'm 21 years old and a senior in college graduating in May and am glad I've gotten into the financial freedom mindset this young.
There is this one issue however, and it's my mother financial issues. Money in our family like many others is a sensitive issue.. I"m sure because it's caused so much frustration and pain in the past that everyone wants to avoid it. My parents divorced when I was about 8 or 9 and I can guarantee that money played a large part of it. I'm dedicated that in my life and family that that will never be the case.
With that said, unfortunately I can't stop feeling frustrated over my mothers financial situation because it's just simply STUPID. Let me explain.
My mom works in a management position at one of the largest and most prestigious law firms in the world. Filling out student loans one year I accidentally and unfortunately came across her annual income. I truly wish I hadn't because ever since then this constant anger and rage has somewhat built up inside me. Her annual income is about 175K.
I can't stop questioning how this is happening?
How the hell can you be drowning in debt? She told me it was about $10K, not sure if she's lying about that though, because I would think 10K would be pretty easy to pay off with such an income as 175K.
(Her credit is so bad that she cannot get a credit card anymore, and needs to use her company's.)
I always want to ask where exactly is your money going? You must have another family your spending all your money on.
The income tax rate is 5% in my state.. and it's a flat rate, so it doesn't increase because of her higher income.
She's taking over 13K in / month.
With a little nosiness on my part the monthly expenses I"m aware of are:
$1,800 in rent
$300 phone bill (ridiculousness)
A large car insurance bill $600-700 (I feel bad because I made it go up quite a lot being a young male)
Car payment of $400-$500
Then of course food.. not sure how much she spends on that.
She has no cable or internet..
She travels to LA frequently.. about once every couple months.. but I cannot imagine it costing thousands of dollars. She also travels to D.C a decent amount but that's for work.
I always try to tell myself, "Look that's her issue, don't get involved, accept her as she is even with her financial flaws, and learn from her mistakes."
But now she has been asking me for some money, and while she has paid most of it back on time.. every time she asks for money I just want to scream "WHY????"
However it's hard for me to say anything other than "sure," because I feel partly bad considering she's paid for a considerable amount of my student bills over the past four years. (Totaling $50K over the past 4 years) and I also contribute to that horrid family phone bill and car insurance bill.
Does anyone have any advice on helping resolve this issue.
Also should I even bring up this issue with her? If so how should I go about bringing up this issue without ruining my relationship with my mom, and also so that she stops stressing out about bills and such.
Thanks everyone!