I’m relatively rich but absolutely poor. What should I do?


Let me first introduce myself. I’m a 24-year old grad student living in the expensive heart of Los Angeles, California.

Here’s my scenario: I earn $2,200 per month net. The only thing I pay for monthly is car lease of $383 (my haggling skills are quite questionable) and $500 credit card expenses. So really, I’m left with a reasonable amount of money. My mom pays rent, food, and utilities (I live at home). Although I’m a little bit spoiled, I try not increase my financial liability.

Roughly speaking, I’m left with $1,100 a month. Quite frankly, I don’t know what to do with it. It’s all sitting in a bank and it’s not growing any marginal amounts. My thoughts are either:
Invest $200 monthly on a Roth IRA / Mutual Fund

Save up enough money to start up some sort of business (which I haven’t really thought about)

Or stupidly spend it without remorse buying electronics and indulging on unnecessary stuff.

Really, why I ask is that (not being pessimistic) my mom won’t live forever and I want to be prepared to when I will finally start paying my own bills. For now, I want to stick to the topic. What should I do?


Well for starters, have you seen how much houses cost in SoCal? I’d start saving now if I were you. You can never have too much money.

If your mom pays for your rent, food, and utilities, and you’re only making a car payment each month, what are you doing to rack up $500 in expenses each month? I would pay off your credit card as soon as possible, and basically stop using it. Then prepay your car lease until that’s all paid off.

I would create an emergency fund for roughly about 3 months of your expenses. I do not know if your work provides a 401k if they do I would contribute the amount where you can receive full company match – many years from now you will thank me for this.

I would recommend you max out your Roth IRA – and it’s better to max it out at the beginning of the year. This is my suggestion and it depends on if you have the money otherwise you can contribute like $1000 a month.

Finally stay away from the electronics, and take your mother out for dinner she deserves it – like every month.

3 Comment(s)

  1. honey
    March 16, 2018

    i am very ppor now what i do ??

    1. Chris Patton
      March 16, 2018

      Find a way to increase your cash flow. Make more money by leveraging your time and energy into ways that bring in money.

  2. Ishaque
    April 14, 2018

    I m very poor what should i do

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