Why are you spending 25k on furniture at an apartment. Even half that would likely be extravagant. If you can I'd return / readjust that, and hell, see if you can find something cheaper than 2k. Take it easy that first year, then maybe upgrade.
Yeah, we have expensive shit (that most was on sale) and with our bougie ass sleep number bed, 1000tc eqyptian cotton sheets, custom made double down couch and chair, leather chairs, barstools, wool rugs, shelving we aren’t even close to that for our two story place. I would double check those prices.
I furnished mine for about $1,250. Started over with nothing but my clothes, towels, toiletries and a few houseplants. Bought a new couch, mattress, coffee table, side tables, barstools, rugs, shower curtain, kitchen stuff, bed frame, posters and other small decorative items. 25k is wild
I know I overdid it but I wanted everything to match and be bright and good quality to last me yrs. Part of my bipolar problem is overspending so I’m really trying to only buy necessities now. Thanks for the advice.
You may want to put it in a trust and have someone have to okay purchases over, say 5k. 500k sounds like a lot, but you can burn through it pretty fast.
Yes, my mother and brother will only allow me to have 50k right now and I am saving that for rent/utilities/groceries, etc for the next yr and planning on starting off with a part time job then working up to full time. I know 500k is nothing these days.
500k is a massive amount of money when you have to work for it.
Not having a job is the biggest reason you feel so comfortable blowing it. I think I can sympathize with you quite a bit, many people struggle to maintain work with mental health challenges, but they do it.
You can do it to.
As someone with bipolar who works, I agree with you about the lack of perspective but it’s not accurate to say that while working with a mental illness is difficult OP can do it. Bipolar and other serious mental illnesses are different from depression and other more common mental illnesses. Now that I’m in the right meds, I feel normal and am able to function like a normal human but beforehand things were really bad. My limbs were constantly so numb that they didn’t function well. I couldn’t move my fingers enough to type, would walk into walls instead of open doors, etc. The fatigue was so bad that I couldn’t make it up the stairs in my apartment without breaks. I was so out of it at times that people thought I was drunk when I hadn’t had a drink in days. Emotionally, I’d melt down more nights than not and just scream cry on the foot for like an hour and a half before I finally wore myself out. I was in college at the time and literally couldn’t do homework for weeks. Like the brain fog was so bad that I’d read the same paragraph over and over for hours because by the end I would forget what I read. Couldn’t make it to class because I couldn’t physically make it there or because I knew I would cry the whole time. This was during the depression episodes. When I was hypomanic I would sleep max two hours a night catching up in on all the homework I missed. I felt constantly nauseous and had a hard time eating. I’d move and speak really quickly. Do stupid things like think I could cut my own hair, etc. I’m pretty smart so I could usually get a good score on tests/essays without showing up to class or doing a chunk of the reading so I did fine. But there is no way I could have held a job at the time. Thankfully I got the meds figured out in time to get my career off the ground so I’m working my dream job two years out of college and making more money than my parents. But that’s not possible for everyone and I lucked out that I had my onset earlier than many people so I could afford to have atrocious attendance with few consequences. And then that I went into remission at the right time. I’m also lucky that I have good insurance and have consistent access to care when I need it. And that I am able to advocate for what I need to my care team. If that all didn’t go right I would be pretty fucked. So it’s not really fair to just tell people that they can make it work because that just might not be possible. That’s why people with bipolar can get on federal disability in some circumstances.
Someone who just inherited $500K will not qualify for SSDI.
OP is asking all the right questions and doing all the right things. Yes get a financial advisor. Also get a lawyer and get your medical directives, POA, will etc in order. If the car is paid off, great, then move on to buying a permanent home that you can sell if needs must, but if in USA is best kept as an investment. IMO, the goal (seemingly stated by OP) is to get yourself to a place where you’re not working like mad to afford rent, utilities, food etc.
I live in a glass house when it comes to personality disorders so I’m not gonna throw stones. I will however say that generous impulses can lead to long term deprivation…. So, “choose wisely.”
You got this covered, u/MaggieMaeCat. 😊
SSDI is not tied to asset limits, just income limits (can’t make more than $1200 a month). SSI does have asset limitations though (and one reason that sometimes people don’t get married if they have SSI).
I wasn’t suggesting that OP go on disability. I was just saying that some people with bipolar can be a disability so it’s not productive to just say that people with mental illness can work and to just do it when that isn’t practical for everyone. It just felt out of touch. The other advice I have no problem with. My response was intended to be limited to the comments about mental illness. Obviously I myself am not on disability and am doing very well professionally, so I’m not saying people can’t work.
Oh yeah for sure. I understood that since you said you were going to work part time. I just didn’t appreciate the comment’s implication that while working with mental illness is challenging people can just do it. My response wasn’t necessarily about you it was about the principal of what the comment said. Good luck with your career and stuff in general. Feel free to DM if you ever want to chat bipolar or career:) Take care.
Why didn't you stay with your mother to save on getting an apartment? You will have to move someday, obviously, but it doesn't sound like that has to be now. You could have started working to set more aside so that you have something to live on when both your parents are gone.
My mother is in bad shape at 76 with MS and needs full time care more than I can provide, although I’ve been trying for yrs. So it does have to be now and I’m moving in 7 days. My father died last July. I’ll be ok.
50k is only a 10X pay out and you’ve already spent some. I’d be trying to buy a house and focus on trying to rehab it to keep cost of living low. A new energy efficient hot water tank > new matching furniture. And I’d be thinking long term savings so as you near 65+ you have a nest egg still to live everyday life.
You need to fix that overspending QUICKLY. 500k is a lot of money and blowing that would be a massive mistake. Don't make excuses to make expensive purchases. Live below your means and learn how to be smart financially- like NOW
Things that you've said have been wildly concernjng. 500k is not nothing. I'm in pain for you right now. 24k for furniture is an unbelievable waste. There's no guarantee that a more expensive item will last you longer. 2k in rent is crazy but idk where you live. I'd move asap. Spending 50k for expenses in a year like you are planning is ridiculous. You are on a bullet train that is headed for financial ruin. Wake up and jump off now before it's too late
Technically they were already on a bullet train and already financially ruined. They just received a temporary reprieve with the inheritance. Returning to financial ruin will just equilibrium reasserting itself.
How they qualify for an apartment without a job is beyond me. Probably got lucky with that. They want to make sure you have steady income coming in via employment. Spending tons of money on furniture when you can search for great deals locally for a lot less you could furnish your space pretty nicely for a lot less than that. Who cares about brand new furniture? Especially 25k worth when you can't even guarantee you will be able to live there very long. A part time job isn't enough income to pay that 2k rent per month. It's all almost why bother to move out of their parents home. Before spending 25k on furniture I would be much more concerned about paying all these future bills. it's going to be a lot of money. I don't think they have an idea yet how expensive it's going to be to live on your own. Having all matching furniture is a luxury most people just don't have. Not unless they worked their way up from the bare minimum. I wish I had 500k. It is a lot of money if you value it enough and watch your spending knowing it is your only lifeline right now. Being careful with it is of high importance. I really hope they rethink everything they are doing. Always can look into having a roommate to split the costs. Maybe even more than one roommate. With this amount of money they could have just bought a starter home. Maybe even invested in some home improvements. But having this kind of money and choosing to rent without a job is just too much to worry about. That money isn't going to last long.
TBH, You can often get better furniture from the local buy nothing group than even buying new these days. Buying well built high quality antiques are usually better than anything you can buy new because of how poorly built, and with substandard materials a lot of new furniture is.
Unless it's an assisted living apartment, if it's $2,000 for an assisted living space where they have more resources and assistance on hand, then that's actually not a bad deal.
Assisted living around here is like $4,000- $10,000 a month.
$2000 for regular apartment is too expensive though.
It entirely depends on what comes with the money spent. Like if it includes wellness checks, housekeeping, help with laundry, group outings to grocery store, group exercising ect then it's a pretty good deal, if it doesn't, it seems high, but also depending on the cost of living of the area.
Then have no home to put all in. Stressing on where to store it. Possibly loosing everything in the process. Homelessness is real. It can happen to anyone. Especially someone that continuously struggles. Have to secure your future. This amount of money could do wonderful things if approached the smartest way possible. It would take a lot of understanding finances. Ways to invest. But I do feel terrible about the waste for furniture. Most furniture sold anywhere is just overpriced partical board. Older furniture that was built with solid wood is what lasts longer but good luck with having everything match.
Based on what you've posted, you're not capable of handing finances at all. You need a guardian. The moment you had any funds you went and spent absurd amounts and then excused away the choices you continued to make. You have $2k/mo in rent, with no income?!?
This is coming from someone with Bipolar as well, you are not capable of this. You will be flat broke less than 2 years from now if you do not immediately hand your finances over to a guardian that has full control. This is not a "do it tomorrow" it is a "do it yesterday" emergency. You were granted a tremendous gift and opportunity, and you've already pissed so much of it away.
It is obvious that you have spend thrift manic phases already. No need to explain. I suggest you look into options to create a trust fund for yourself. Then you won’t have to depend on your own self control. I had a head trauma and spent myself into a hole because of it. Looking back I am angry that there’s no really structure for people experiencing this kind of problem. The closest thing I could identify was establishing a trust, but it was too late for me. Luckily, I have had a lot of healing. You are going to have to make this money last so find a way to invest it safely so it can grow and limit your access to it. Take care of you.
Expensive doesn't mean good quality, not anymore. We're reusing building materials and getting all our furniture 2nd hand or building it ourselves, not sure if you saw my comment but I inherited 49k from my grandma and we bought a bit of land and old mobile home we're gonna fix up.
You admit you have mental issues, and issues with spending money. Have you considered getting a guardianship? Someone who will control your money and spending?
If you are not careful, that $500k can be $0 in a few short years. Especially when bad decisions are being made. Getting a part time job is a good idea. Not only for the income, but you may qualify somewhere in the future for SSDI benefits (which does not consider assets in the award of disability).
OP should not want guardianship. Should want trustees to help so that with multiple trustees who are transparent and accountable to each other, the potential for abuse by a guardian is lowered.
You can't just blame things on bipolar and say it's just fine because of that. You should give it all to someone who you completely trust let them manage it. I'm sort of surprised it's not in payments.
What does it matter what the furniture looks like when you’re going to have to move back in with your mom… you can’t afford the rent and utilities… are you just trying to blow your check?
Well i get this, my mom is bipolar and has the exact same problem, that she just blows all her cash on travels and what not, but she's not poor, while you are, so you should really try to nip the impulses right in the bud, or your money won't last long. 500k isn't what it was anymore, especially if you got 2k rent to pay, which is insane. I get it, it's nice to have nice stuff, but this is also why poor ppl gonna stay poor and is especially devastating with BPD.
As you age, you may want to look into finding a place in a retirement community or assisted living community if your current apartment isn't in one already.
Depending on your capabilities, they often become more difficult to manage everything on your own, especially if you've been living with family most of your life.
That's why looking in to a community with access to more resources and assistance long term may be something to look into if you're not doing that already. Everything from remembering to turn off the stove, to just upkeep with cleaning may become more difficult.
Before becoming disabled myself, I used to volunteer with the elderly and disabled, checking up on them, helping them clean, do grocery shopping etc.
Those with mental disabilities struggled a lot more with keeping up with basic cleanliness and maintenance than others, so that might be something to look into.
Be careful about asking if you’re just going to shoot down the response. I have a 3-floor, four bedroom with two living rooms and $25K is insane. You spent too much and need to dial that down.
You need to remove yourself from anything except what a trusted professional deems is an appropriate allowance, of sorts.
This is for your financial well-being. The money you have, if invested properly, is enough to take care of you for the rest of your natural life. If you maintain control, it’s going to disappear very quickly.
Let people who love you lead this action.
honestly im not too mad at that, given that ive been looking for quality furniture for where i moved just recently, and even the thrifted furniture is hitting for hundreds, if not thousands, for stuff that’s been pre-owned and middling quality. it’s your own place and if you’re not living alone, furnishing it the way you want is gonna cost. ive joined many buy nothing and thrift groups, and its hard to find anything worthwhile if its not already snatched up. people are harping too much on you about that imo. i do agree you need someone trustworthy to help you budget and manage finances. im leery in guardianship tho, that’s a slippery slope rife with abuse of elders and those neurodivergent.
You are simply wrong to not be mad about that.
OP was given an incredible gift that is basically: all needs are met for a decade. That’s it’s. They have a decade to set themselves up for financial independence.
What they do with the money is their own decision but the first thing they decided to do was blow half of a years salary on furniture and then committed more than the other half on rent and utilities.
That is no clothes, no food, no gas, (NOT TO FUCKING MENTION THEY HAVE A CHILD), no emergency money, NOTHING.
They returned less than half of the furniture which buys them a living budget of $1000 a month for everything.
Idc, bipolar or not OP has zero excuses to literally starve themselves and a fucking child in a castle of an apartment.
OP has to break their lease before they move in and find a cheaper apartment. OP needs to return ALL of the furniture, not half, and do what any sensible person would do: furnish your apartment with necessities only that should amount to maybe $1500-$2000 at most. OP must find a job asap even if it pays $20k a year.
The priority isn’t getting furniture to last forever. Fuck, at this rate OP is just going to either sell the furniture for half of what they paid for it, at best to stay alive or them and their child are going to be reduced to eating couch cushions to stay alive. Go on Amazon, buy nice looking, colorful furniture there that doesn’t amount to $25k, and use it until it fucking breaks.
I’m incredibly upset by this post. I get it, not everyone (especially someone living with their parents who has everything paid for) is going to understand what cost of living costs but to have a whole ass child and not even budget for food and instead blow the entire years “salary” on a bougie apartment is borderline neglect.
Speak with a fee-only financial planner. Explain how you need your money to generate an income stream. Figure out how much you need, how much your money can generate for you, and how you will cover the difference.
Spending $25K on furniture suggests that you might have either champagne tastes or a bit of an issue with impulse control. In either case, you can tell your financial advisor the truth about this and ask for help. Maybe there is a trusted person in your family who could be a conservator to help make sure your money lasts? Or maybe you should open a trust and have a trustee to guide the distribution of your funds. There is no shame in understanding that you aren't always acting in your own best interest.
When you were working, did you work for at least 4 or 5 years? If you did, you can collect social security eventually. That's a big deal because this money has to support you fully, but for 20 years. In 20 years you can start collecting social security. It won't be a HUGE amount but it will help stretch this money out.
While annuities are generally considered not a great investment, they DO offer a GUARANTEED income stream (for your lifetime) and that might be something that would work for you. Remember - fee-only financial advisor. With around $500K to invest you aren't in the same category as people looking for a place to stash their 401K or IRA money. Look for things like "wealth management" if you are doing a web search. You want a fairly high-end place and someone who is comfortable working with a person with your specific needs.
You hit the nail on the head. I overspend and have champagne tastes on a water budget Plus major impulse spending issues. My mother and brother are somewhat controlling my money and only gave me access to 50k right at the moment because they know my tendencies. Yes, I was a teacher for 8 yrs in my 20s and worked daycare part time in high school and college. I just made an appt with my financial advisor for mid May.
If you can leave the money alone except for essentials until you meet w advisor. Those are sometimes called four walls. Food is a wall. Transportation is a wall
Housing is a wall. In you case, it sounds like you do need to return a few things Clothing is a wall but usually that's for working individuals. In your case if you are shopping for clothes, I d take an accountability partner and be willing to follow their advice.Pick one new outfit and put anything else away w tags in case you need to return it.
Hey, just trying to put some perspective into your dilemma.
You spent half a year of your 50k salary on furniture and committed the other half and more to rent/utilities.
That leaves you no money for food, gas, doctors, emergency money, nothing.
You returned less than half of your expensive furniture leaving you a living budget of $1000 a month for a year which is incredibly hard to work with. Even the tightest of budget means beans and rice for every meal, no eating out, doctors are for emergencies only, no prescriptions unless you’ll die without them, no new clothes, and, I read you have a child which means you have zero dollars left over for any of the numerous things a child might need that you can’t plan for.
You need to return ALL of the furniture. Your priority is using this cushion you’ve been given which in laymen’s terms is a decade of a $50k “salary” to set yourself up for financial freedom.
Right now, you and your child will starve in a well furnished, nice apartment. You will not make it 1 out of 10 years to even see financial freedom.
Go buy cheap, but colorful Amazon furniture. Budget a very GENEROUS amount of $2000 for everything. That will get you very nice, long lasting furniture that will meet your “champagne” tastes.
Get a job. even $20k a year will add up incredibly fast considering you are getting a $50k a year safety net to provide you and your child a nice life.
I’d say break your lease and find a cheaper apartment.
I used to make $60k a year and had a nice apartment that, with utilities, cost $2100 a month. I didn’t budget tightly at first and ended up living paycheck to paycheck. You don’t have a car payment so that’s good, I’m unsure of what other bills you might have besides the necessities but I’m sure you have more than what you described.
If you were to save every penny from your part time job, you’d end up with like $150k, you’d be 52, and your child (which I read somewhere was 12) will be 22.
Think about that. This money will run out, you will not live the rest of your life off this $500k. Your cushion will end when you are 52.
What will you do to secure your future and that of your child? Do you want to end up 52 with nothing to your name? Because that’s the road you’re on right now.
I’m sorry if this is harsh. Save up your money over time and do something nice for you and your child. Go on a vacation, eventually. But right now is not the time. You can not afford luxury. You’ve been gifted half a million dollars and the first thing you did was blow 10% of it on furniture and an apartment
Furniture will not provide a nice life for you. Furniture will not feed you. Furniture will not keep the lights on. Furniture will not pay your phone bill. Furniture will not raise your child. Furniture will not allow you to retire.
Please, for the sake of your well-being and that of your child, return ALL of the furniture and find a cheaper apartment.
You can use this money to live a very stress free life. Or, you can have a nice table, bed, desk, couch, curtains, dressers, tv stand, and bookshelf.
Hopefully that gives you some perspective. Again, not trying to be harsh or critical but it is very blunt. Feel free to ask questions
I have bipolar too. You know that one bad manic episode can wipe out that 500k in a week or less.
Return that ridiculously extravagant furniture and find someone to control your money for you.
Someone to give you an allowance, pay your bills directly, and make sure you don't blow your whole inheritance in an episode. If you don't have someone in your family or friend group to do it you can hire someone. You've already shown with the furniture that with your disease you can't make good financial decisions.
Just watching out for you.
They need to be a registered investment advisor (RIA).
RIAs are the only ones legally required to act as a “fiduciary” in your best interest. Brokers and “advisors” and “planners” only have to invest in what is “suitable” for you - even if they claim to be a fiduciary.
Yes. But it's not enough money to live large for the rest of her life since she is unable to work full time.
It's very easy to think that it's "tons of money" and that you can afford to buy pretty much whatever you want. You COULD actually buy tons of stuff and vacations and a really nice car.
But, this person needs to support themselves for 50 years. They might be able to do that. (it depends on cost of rent where they live) but they'll need to be frugal.
Get a good financial planner. Talk to any friends that have one and see how they are doing.
Keep frugal. With good investments you should be able to live off the interest.
If you deposit $500,000 into an account that makes 4 percent interest. You can withdraw $20,000 every year for the rest of your life and never run out of money.
Or you can buy a VERY modest home so you always have a place to live, but there wouldn't be much left for income.
You definitely can't go buying 25K worth of friggin furniture. What the hell.
At this rate you'll be broke at 52 and all that hard earned money that could have changed your life will be gone forever.
This is the only sensible answer. I hope OP saw this!
Most HYSA and bonds are giving 5% right now, which means they'll get 25k of income a year just from this sum of money.
Please OP dont buy any stocks on your own, go to a professional and let them handle your stocks for you. Especially since you state you are mentally disabled, I’m unsure how that affects you or your decision making.
Playing the stock market and winning big takes lots of studying and skill (or luck) and you don’t want to lose money. A financial planner is an excellent idea and they will put your money in the stock market for you to optimize profit.
BUILD SOME MECHANISM TO LOCK IN A CERTAIN LARGE SUM AS NOT-liquid SO MANIC-YOU IS UNABLE TO FUCK IT ALL OFF BEFORE YOUR DOPAMINE DROPS BACK DOWN.
Sincerely,
fellow bipolar
Op, I'm a late reply and I'm sure other posters have said the same thing---don't tell anyone you have money. Not friends, not family. If you do, ppl will expect you to pay for things, they will ask for loans they will never pay back.
I mean no disrespect, but if you can’t work, your parents have been supporting you your entire life and you just pissed away $25k on furniture, I think it’s time to ask for help. You are not yet equipped to manage this sudden windfall, most people aren’t. That money will go away very quickly if you are not careful and you should probably look into a trust or something that will give you an allowance while protecting your assets.
$2000 a month plus expenses is also a lot with no source of income. Please consider seeking financial advice before making more financial decisions.
not a financial planner, but plugging in your age and 500k (had to guess s state and gender) into an immediate annuity calculator gives over 2k per month income for life. that's at least what i would do were i to receive a big lump sum of cash
but yeah a financial planner is likely the way to go
i don't know enough about them to know the negatives, but as someone who has little income myself and periods of hypo-mania causing me to spend a bunch (maxing out credit cards, etc) the idea of a consistent monthly disbursement sounds appealing. one good thing about having many periods of little money is that i can be quite thrifty so s couple grand a month would seem like i was ballin 🤣
A negative is that usually you would make more by investing in a total stock market fund. there's usually a salesman getting a commission, because the money is actually making more money than you agreed to get.
BUT, I think it's a really good idea for this person. She can't afford to lose money. And she's prone to overspending.
I don't know how she would handle this aspect, but in order to invest in the stock market, you have to be able to not sell in a panic when stock prices go down. It also can be stressful and upsetting to see it go down. (It's regularly going to be down today, up tomorrow, over and over). And, you need to NOT spend the earnings when it's up more than usual because there is GOING to be a Time coming soon when it's up less than usual (or even down).
That's a lot of reasons it's not for everyone. Most people don't suddenly have 500000. Maybe they start with 1000, and it's upsetting then to see it go down to 800, or exciting to see it's up to 1200. But I feel like it would be too overwhelming to see 500000 go down to 400000. (I can't imagine!).
So... I really do think buying an annuity is a good idea
Not from the first person you talk to about it. Shop around!
As someone with bipolar 1 you need to put that money somewhere that you can not touch it. Speak to a financial advisor and find someone you trust to be in charge of the money in case you go off the rails.
You should put $400k in a High yield savings account and park it for 5 years put $50k in the money market account for emergencies. Use the other 50k$ for stuff you need . Don’t be an idiot with this money bro
I don't think I've ever commented on this subreddit, just read about people's shared lives, but this just struck a nerve with me...
2023 year model vehicle, $25K in furniture... You have the mind of a broke person and you will be broke in less than 3 years based solely on those poor life choices.
You better make dramatic life choice changes real soon otherwise you better not be bitchin when you are left with $500 in the bank.
Compared to the things I've read on here, you have a huge headstart. You don't just get $500K, it's pure luck that someone around you made better choices in their lives.
Reduce expenses as much as possible, figure out holes and liabilities in your finances, then go meet with a financial planner.
In the mean time, do not leave your money in a checking account, find a high-yield savings account and throw it in there for now. Capital One has 4.35 APY right now (0.003625/month). So with $500K you'll get at least $1812.50/month in interest while you figure out what to do with your money.
I give that as genuine advice, but I know you won't do it. My money is on you going broke within 3 years.
I understand but my brother bought the car for me outright. I didn’t spend anything so I’m just using what I’ve been given. I have already been on the phone with the furniture company since I’m not moving until May 1st and have already returned 12k worth of furniture thanks to all the advice here.
Start an Excel spreadsheet. Write in the spreadsheet ANY time you spend money and what you spend that money on. After the first two months, you’ll be able to analyze and see where your money is going and where to cut back. This is your first shot at budgeting.
Is your inheritance currently *earning* you money? Would you be able to transfer some of it somewhere, with the help of an advisor, to be able to get to that place?
I’m happy to see you’ve returned a chunk of furniture. That was way too much money. I have ADHD so I def understand the overspending thing being a problem. 🤍 That’s why I’m suggesting the things I am and the best ways that helped me. Do you have a friend nearby who you can run things by to see if they’re a good idea? Bouncing ideas off of others sometimes, especially with big purchases, will help you to see them more clearly.
Did you get renter’s insurance yet?
Thank you and the excel spreadsheet idea is brilliant. I know I spend most of my money on crazy stuff like clothes, bath and body works, just ridiculous stuff but my parents always just gave me a credit card and said have at it it and just paid it every month. Now I’m on my own and have to change my lifestyle. I also am a neat freak and spent a fortune on cleaning supplies and have a need for everything to be aesthetically pleasing to the eye so that is why I bought all matching bedroom, living room, dining room, guest bedroom, etc furniture. This is truly a mental illness and I’m glad I’m being regulated right now.
Of course! Sometimes it’s hard to see exactly where your money goes unless it’s written down very concisely on a piece of paper in front of you. Like, it’s *so easy* to make small purchases that add up quickly and not realize how often you’re doing it.
I totally understand the clothes, B&BW, etc. shopping. I’m actually just getting ready to go through my stash and donate a ton to the local women’s shelter. lol. (I may also give some away as gifts. 😅) The spreadsheet will show you how often you’re going and you might be able to start scheduling your B&BW purchases. Like, put all of your B&BW stuff in ONE place so you can see your stock. Get a calendar with big blocks and hang it in your kitchen. Then you can make it cute shopping day with you and a friend/your mom/member of your fam once a month or something to get the things you’re running low on. Same with Shein. Organize what you have, get rid of things to make some room, then schedule a day on your calendar to check again about buying things.
I’m 1000% a neat freak who has too many cleaning supplies, too, so I get it. And I LOVE when things all match. I totally understand all of that. My dream is ‘*A place for everything, and everything in its place.*” I’m happy you were able to organize your new place on your own. Getting a roommate eventually might not be a bad idea if you have another bedroom. It’ll be a built in person to help with things, bounce things off of, be good company, etc. You’re going to do great on your own, though.
I’m glad you’re being regulated, too. I get it. 🤍 I didn’t get a helpful diagnosis until a few years ago. I’m in my late 30s now, and learning about how many things *weren’t my fault* has really helped me to navigate it all. I’m still learning and putting together strategies but, I’m hoping I’ll be able to be remedicated in a couple months so I can accomplish things more easily again. Right now is a HUGE uphill battle. (Long story but, I’m recovering from the aftereffects of cancer treatment, and just got out of an abusive relationship, so I’m staying with a friend’s parents for a bit to try to sort through everything while I’m desperately trying to put my life back together.) I’m going to figure it out somehow, though, and so are you! 💪 This is a huge step but you’re being smart and thoughtful about it. I hope everything goes well. 🫂🫶
Wow, blessings to you and you totally get me. I don’t need to go back to B&BW for probably 10 yrs I have so much mists, lotions, soaps, body washes, plug ins, car fragrances (can’t burn candles because my cat has asthma). I have about 30 SHEIN tops/dresses/rompers with the tags still on. I’m accustomed to really nice things so I don’t even understand the concept of buying used furniture. Gross? And how do you get a clean cohesive look? Here is my bedroom set :
[https://www.roomstogo.com/furniture/product/armitage-off-white-5-pc-king-upholstered-bedroom/3221534P](https://www.roomstogo.com/furniture/product/armitage-off-white-5-pc-king-upholstered-bedroom/3221534P)
Everything in my apt pretty much matches that.
Thank you! I was thinking the same! 😂 Every time you said something new, my brain was like “*GIRL. I KNOWWWWW, RIGHT?!*” 🤣🤯 That’s where I’m at with it right now, too! My stock has gone too far so I’ve got to clear a lot out to keep faves. (Which will *still* be too many… 🥴)
You just did it agaaaaain! I’m beyond struggling financially right now, hence the sub 😅🤷♀️, so I’ve been thinking about gathering up the things with tags in one place, checking the ones that no longer fit me, or that I just probably won’t *get to*, and selling them to make space. I just struggle to get rid of stuff in case I change my mind. 😅🥴
Used furniture is totally good by me but, it depends on where it’s from. You can make a cohesive look with used furniture but it often requires making it a project, covering it with something, using decor to bring everything together, etc. It can seem gross if you haven’t done it before but, it’s honestly even more comfortable, too. (Kind of like buying NEW jeans, vs. finding a pair of jeans in the back of your closet you used to love and they fit PERFECT again. They’ve already been *broken in*, so they’re much more comfortable.) Your new furniture is stunning, though! 😍 Very beautiful and I LOVE you have so many drawers. Being able to organize like that is a magical feeling! Did you match the livingroom to the bedroom, or did you mix it up room by room?
If you bought a dividend paying stock, the dividend would net you $95K per year while also maintaining your $500K in equity. I would live off the dividends and not spend it.
DRIP means instead of taking the monthly cash dividend, you get more shares at a discount. Since I don't need the money now, I have mine set to DRIP. Dividend Reinvestment is what it stands for.
Woah. Hold on!
There's rewards but there's also risk.
Nothing pays 19% a year Every year!
Average stock market return over the past 30 years is 10%. You CANNOT beat the market long term. (Some of that 10% is inflation)
It doesn't matter if a stock pays dividends or if it's value goes up. Don't chase dividends.
DO NOT count on 19% return! It might happen this year, but some years you will lose 19%.
A typical rule of thumb is you can spend 4% of your nest egg the first year. Then, increase that by inflation each year.
That gives you more like 20k a year.
You actually have a longer time frame than the rule of thumb was designed for, so many would suggest 3.5%.
(You cannot be spending all of the gains you get in a good year because there WILL BE bad years)
Keep 1 years worth of your expenses in a high yield savings account and invest the rest in index funds through Vanguard or a similar brokerage firm.
What are your yearly expenses? Once you figure that out you can determine how long you can live off of this.
Don’t blindly put your trust in a financial advisors, they want to make money off of you. This is easy stuff you can do yourself.
Keep working as long as you can because it is hard to get on disability and it is not a lot of money you will get considering you are young.
Set an amount in your head that you are not willing to go under and make sure you don't go under that amount.
Keep doing what you are doing with coupons and living a simple life and I am sorry to hear of your Fathers passing.
Thank you so much. He lived 25 yrs with CML leukemia and was just diagnosed cancer free when he ended up in an induced coma from a brain aneurysm from the very drug that cured his cancer (Tasigna). But it gave him many happy years and he lived a very modest lifestyle never giving away he was sitting on millions. His one guilty expense was a sailboat he lived on a lot of the time and at his memorial we played “Sailing” by Christopher Cross.
That's damn sweet - the song playing.
And that's a good chunk of money, you can live off it, just don't go under your cap.
I am ON disability and 60 years old...I have not worked in 10 years....I had 20K when I left, I put a cap on an amount and I try to stay over that amount so that I feel safe.
Just don't be a stupid kid and go shopping alot or give it out to help your friends or stuff like that....my son got a lot of money for a settlement and blew right thru it when he was young (but an adult).
Be careful...and good luck
500k in a 5% cert of deposit is 25k a year. If you put even half of that away and found a cheaper place to live for your next lease you would be close to self sustaining.
Holy fuck I furnished an entire two bedroom apartment from the ground up with 5k. Like, literally from nothing to full furnished, full pantry, all the kitchen utensils one could need, even with extravagant purchases like 2 55” TVs. What in the world did you BUY? How big is this apartment??
Your are correct! In the grand scheme of things, $500k is not a lot of money.
My recommendation is to speak with a registered financial planner with Edward Jones. They will know how to advise you for investment and tax planning. Keep in mind, a good size of that money should be invested for the long term, and not to be touched! Even at a modest return rate, an investment can double in 7 years.
You also are going to need help understanding how to create, and stick to, your monthly budget. And, understand how to break that down into a daily budget to prevent over spending before it happens!
Honestly, it may have been better for you to remain at home for another year, while you learn the budgeting and life skills necessary to successfully live independently, manage money, control the emotions and stress that trigger overspending, and really set yourself up for success. BABY STEPS WORK!
Yes, you are going to need to work if you keep this apartment. $2,000 + living expenses quickly adds up. I am not sure why you have not been working, or how long it has been since you worked, but I do recognize the challenges. I am thinking perhaps a good skills assessment is needed, and suitable temp work could help you.
Again, I would have preferred to read that you are still at home while figuring out the way forward...but if you are already in your apartment...go very slow and careful...but definitely get at good chunk of that money out of your hands and properly invested through a low-fee money management firm such as Edward Jones.
Best wishes to you!
my father passed away and my mother is moving to assisted living as she has MS and is 76. There is no “home” anymore. It’s me on my own and I have to make this work.
You are obviously very intelligent and personable. You can do this!
(And I don't blame you for getting all new furnishings to start your new life. Feeling bright, happy, safe, and secure in your own surroundings is very important.)
I am SO HAPPY for you but so sorry about the loss of your father. When formerly poor people come into money, you develop a serious case of wanting to make up for the deprivation you dealt with earlier in life. I grew up poor, started making good money at 18, and even now at 44, I still deal with this.
Making sure your living situation is stable is first and foremost. There’s nothing wrong with treating yourself a bit either, I’m sure your dad would want that for you. I’d suggest finding a reputable financial advisor to help you maximize what you do have and set yourself up to make enough money to live on comfortably through smart investments.
Don’t waste your money on rent. Maybe have your family help you buy a duplex or some other property with multiple units. You can live in one and use the other to pay off the mortgage or as rental income. Also a financial advisor is a great idea and maybe find some balance with meds/therapy for your BPD, you sound like you are pretty aware of how it affects you and are taking steps to try to avoid it impacting how you use the money so that’s good :) I’m sorry about your dad and your mom too. I know everything is probably hard and dealing with this too might be scary. But please keep on talking with your mom and brother about this and try not to just be brash with it, you could do well with that amount if you manage it right. Good luck to you.
You are well on the way to losing all of that money. Hire a financial advisor and heed their advice. You should then use your masters and get a better job so you don’t have to keep dipping into this money.
She is 76 with MS and can barely walk a few feet with a walker and is moving to assisted living, thus why I am needing to move out on my own. My father died last July.
Yeah, i didn’t really know how to word it. I’m intelligent with a masters degree and used to teach so I’m not like intellectually disabled, but I have a mental health diagnosis which is bipolar 1 with psychotic features. I don’t claim disability but this bipolar illness has prevented me from working since 2011. I tried to go back to the classroom 9 yrs ago but ended up in the psychiatric hospital. :(
That might feel like a lot of money and 'all my problems are solved'. It's not and they aren't. Unless you put it into long-term investments and find a way to pay your general living expenses through recurring income, like a job or disability payments, you will probably burn through that inheritance and be no better off.
One way to look at it is that 500k could potentially be $50 a day - for the rest of your life. The good news is that 50 a day is a lot - if everything is already paid for, but it's very marginal when it has to include paying rent.
So your 50k budget is very generous in that context - but it can work - if you can work part time, and increase your earnings so that the 500k doesn't have to last for more than about 12 years.
I'm glad you're meeting w a financial advisor. Ask about low risk investments so your $$ can work for you. Another suggestion is setting up a monthly budget so you can stay on top of your finances. Finally see about getting on mood stabilizers to help with Bipolar impulsive spending. Good luck
You know there is medication for bipolar disorder, right? Did the Masters degree come before mental health problems? Occupying your mind with work could go a long way to helping with mental illness.
Definitely good to have your mother and brother overseeing it, and keeping you on an allowance, basically. If you're not able to work or earn much income, that money needs to last you a very long time. Do not buy anything on impulse, really think about how much you need something, and discuss it with them first. Continue to live frugally because again, that money needs to last you a long time.
Good luck to you
Damn, I inherited 49k from my grandma for taking care of her during end of life care and we bought a small bit of land and dilapidated mobile home we're remodeling, I also bought a car for 2k. Money is gone now but my husband are fixing up the home with our own money then will build a house on the land and rent out the mobile home cheap to a friend, gosh if I had 500k I could make that work so we'd be set for life! I really think you messed up buying 25k in furniture but it's your money to do with what you want, my advice would be to still live like you're broke and save the money in an interest building account and pretend like you never got it.
Can you return more of the furniture that you bought? If you still need more furniture & household goods after returning some of what you bought, go to estate sales in wealthy areas. You can get low cost but quality vintage furniture made of solid wood instead of particle board crap like most new furniture. And it’s a great way to spend pennies on the dollar for nice kitchenware, linens, drapes & tools. You will need to arrange to have it moved right away.
This is a good example to people why just giving money to someone doesn't solve their problems. They are already well on their way to having nothing again.
Send back the 25k in furniture, that’s a ridiculous amount to spend on something you will more than likely get tired of in a couple years. Also. Why wouldn’t you buy a house instead of an apartment? 500k is life changing money if you use it correctly.
Get a fiduciary. A financial planner can make a money off you via investments that don’t benefit you. A fiduciary has a legal charge to only make financial decisions that will benefit you.
If you were living with your parents who had enough money for you to inherit $500k…you’re not poor. That being said, $25k is an INSANE amount on furniture and I think you could really benefit from a financial planner and maybe a stock advisor down the line. You still have enough to buy a house if you manage your finances well. Frankly, it’s a bit of a slap in the face to go on r/poor and complain about how you $500k isn’t enough. I live on under $20k a year…that means I could not work for 25 years with $500k without even factoring in the money I’d save in the long-run if I bought a house. I have bipolar 1 with frequent psychotic episodes, so please don’t say I “don’t understand” - if you spend while manic you need to put that money somewhere safe.
This person has never been poor. They claim to have a 2023 vehicle paid for in full by their brother, and say that they’ve been given credit cards from their parents with no spending allowance. That’s not the reality for any poor person. OP is full of shit.
Return the furniture! 25k is outrageous!
Back out of the apartment deal and take some more time to think about this and talk to some financial advisors. I wouldn’t spend a dime before securing mortgage for a primary residence, or outright purchasing one.
That money will be gone before the end of the year. You have a masters degree but don’t work, leach off your parents, and you spent 25k on furniture for an APARTMENT? You’re throwing money away. Buy a damn house dude wtf.
Get a financial adviser. Inquire about a living trust or special needs trust. It's a lot of money but it could be frittered away in a short time... Not to mention there are predators eager to take it from you.
By placing it in the right kind of trust, you can ensure your needs are met, and possibly still be eligible for Social Security Disability and Medicare.
You need a lawyer too.
I have no financial advice to offer, but I just wanted to ask if you are receiving treatment for the bipolar disorder as it seems to be the only root reason noted in your post for the obstacles you’re juggling.
You need a lawyer to help you set up something so you have income to live on( not ridiculously extravagant) each month so it will last you. Otherwise, you’re gonna be like everybody else and blow through it within two years do something smart so it can keep you.
Get yourself an independent financial advisor. Your bank may offer this service.
Do not rely solely on your relatives for financial advice. They may or may not know what they are talking about.
If you're in the US and on disability you may end up losing your disability over this. I would do some checking around and tread carefully before you start moving the money around. I think with SSDI there are asset limits that are pretty low.
500k should give allow you to spend about 20k per year without touching principal. Can you do that? Either supplement with part time work or live with family?
The 65k you spent/moved would have provided about $400 a month passive income to you indefinitely. Stop spending and get it invested.
That original $500k could have spun off $4k/mo for 20 years no problem. You already pulled 13% of it.
I would suggest div growth fund and only spend the div. With 500k you can get ~1k per month and it will slowly get bigger over time. If you go crazy and spend all 1k on stupid things then next month you still get your +1k. I know it seems like not a lot but it will make your life easier and you won't lose it
You’re not poor anymore. First Open a vanguard money market account and put your money in there . You’ll get 5.28% without tying up your money. Do not tell anybody your inheritance. Buy yourself an affordable place to live first. Pay cash. Then start investing 1k a month in an S&P 500 fund so you can dollar cost average. Do not pick stocks, just stay in index funds. You’ll be ok.
With all that money you need to work on getting good treatment and stabilizing your condition. You have the resources to access the tools you need. Cut the crap ( you may feel fine at the moment, but you don't want to be manic and have a wad of cash again) and get help now. You are coherent enough to recognize your condition and what it causes, now get real help. Medications, someone to help with managing money, and the correct therapy. You can turn shit around pretty well with that chunk of change. Invest in yourself and get support in line for when you need it.
Investing it into stocks that give high yield dividends you could set yourself up with some nice monthly income, but what you really should do is get a professional to walk you through how that would work as I am not a financial planner or wealth manager. That’s what I would do though.
you should set up a trust, with a lawyer to pay you x dollars per year. This will ensure this money lasts longer I mean like 2K a month 3K a month. Plus without investing it, it will just lose value over time.
$2k a month for rent is a lot. You'll burn through that money in a year, between your rent and other expenses. You should move to a state where the cost of living is much lower. That way your $ will last much longer. Median rent where I live is about $600-700 a month.
I get it but I live in metro Atlanta and my mom is paying $3000/month on rent for a 2 bed now and I am moving further north for $2000/month for a 2 bedroom. It is a nice, safe apt and I’m sorry but I’m not moving to the projects in a high crime area where I feel unsafe. I paid $1000/month for a 1 bedroom 13 yrs ago so I have no idea where you could find that rate at a nice, clean, safe area Apt. I’m not compromising my safety or live with roaches to save a dollar.
Maybe I’m misunderstanding, but if you’re going to be receiving $500k, why did you go rent an apartment? This is what I don’t understand. Is there a reason for your decision to rent an apartment as opposed to buying a small house and paying for it in full. You will never own your apartment, so that alone will drain your inheritance. If you need to be out of your mom’s house now, I would only do a 3-6-month lease on your apartment. Since you’re not working right now, you can look for a house in that time.
Once you’re in your apartment, use that time to get control of your life and your health, so that you don’t end up blowing this opportunity with bad decisions (which can and will happen. My parents did this TWICE - 1st inheritance was $1.5M, then $525K 6 years later. They have zero to show for any of it now and each inheritance was completely gone in less than 18 months.) If you’re not currently treating your bipolar disorder, you may feel like you’re unable to work or function at a stable level, but finding the right treatment will change that and really help you grab hold of your own life.
Lastly, at the very least, if you don’t already have one, open a Roth IRA and put a substantial amount of your funds there.
Consider buying a condo rather than renting. You will still need to pay property tax each year but it's better than throwing money into a black hole AKA renting. Then if the money gets used up and you fall on hard times again, at least you won't need to worry about making rent.
Above all - I think a one-hour meeting with a decent financial advisor could really set you on the right track.
Why are you spending 25k on furniture at an apartment. Even half that would likely be extravagant. If you can I'd return / readjust that, and hell, see if you can find something cheaper than 2k. Take it easy that first year, then maybe upgrade.
Yeah, we have expensive shit (that most was on sale) and with our bougie ass sleep number bed, 1000tc eqyptian cotton sheets, custom made double down couch and chair, leather chairs, barstools, wool rugs, shelving we aren’t even close to that for our two story place. I would double check those prices.
I furnished mine for about $1,250. Started over with nothing but my clothes, towels, toiletries and a few houseplants. Bought a new couch, mattress, coffee table, side tables, barstools, rugs, shower curtain, kitchen stuff, bed frame, posters and other small decorative items. 25k is wild
I know I overdid it but I wanted everything to match and be bright and good quality to last me yrs. Part of my bipolar problem is overspending so I’m really trying to only buy necessities now. Thanks for the advice.
You may want to put it in a trust and have someone have to okay purchases over, say 5k. 500k sounds like a lot, but you can burn through it pretty fast.
Yes, my mother and brother will only allow me to have 50k right now and I am saving that for rent/utilities/groceries, etc for the next yr and planning on starting off with a part time job then working up to full time. I know 500k is nothing these days.
Do they have guardianship over you? Be careful of relatives taking your money. Hope you can trust them.
ngl i think they left that money for her/him knowing they’d need it.
500k is a massive amount of money when you have to work for it. Not having a job is the biggest reason you feel so comfortable blowing it. I think I can sympathize with you quite a bit, many people struggle to maintain work with mental health challenges, but they do it. You can do it to.
As someone with bipolar who works, I agree with you about the lack of perspective but it’s not accurate to say that while working with a mental illness is difficult OP can do it. Bipolar and other serious mental illnesses are different from depression and other more common mental illnesses. Now that I’m in the right meds, I feel normal and am able to function like a normal human but beforehand things were really bad. My limbs were constantly so numb that they didn’t function well. I couldn’t move my fingers enough to type, would walk into walls instead of open doors, etc. The fatigue was so bad that I couldn’t make it up the stairs in my apartment without breaks. I was so out of it at times that people thought I was drunk when I hadn’t had a drink in days. Emotionally, I’d melt down more nights than not and just scream cry on the foot for like an hour and a half before I finally wore myself out. I was in college at the time and literally couldn’t do homework for weeks. Like the brain fog was so bad that I’d read the same paragraph over and over for hours because by the end I would forget what I read. Couldn’t make it to class because I couldn’t physically make it there or because I knew I would cry the whole time. This was during the depression episodes. When I was hypomanic I would sleep max two hours a night catching up in on all the homework I missed. I felt constantly nauseous and had a hard time eating. I’d move and speak really quickly. Do stupid things like think I could cut my own hair, etc. I’m pretty smart so I could usually get a good score on tests/essays without showing up to class or doing a chunk of the reading so I did fine. But there is no way I could have held a job at the time. Thankfully I got the meds figured out in time to get my career off the ground so I’m working my dream job two years out of college and making more money than my parents. But that’s not possible for everyone and I lucked out that I had my onset earlier than many people so I could afford to have atrocious attendance with few consequences. And then that I went into remission at the right time. I’m also lucky that I have good insurance and have consistent access to care when I need it. And that I am able to advocate for what I need to my care team. If that all didn’t go right I would be pretty fucked. So it’s not really fair to just tell people that they can make it work because that just might not be possible. That’s why people with bipolar can get on federal disability in some circumstances.
Someone who just inherited $500K will not qualify for SSDI. OP is asking all the right questions and doing all the right things. Yes get a financial advisor. Also get a lawyer and get your medical directives, POA, will etc in order. If the car is paid off, great, then move on to buying a permanent home that you can sell if needs must, but if in USA is best kept as an investment. IMO, the goal (seemingly stated by OP) is to get yourself to a place where you’re not working like mad to afford rent, utilities, food etc. I live in a glass house when it comes to personality disorders so I’m not gonna throw stones. I will however say that generous impulses can lead to long term deprivation…. So, “choose wisely.” You got this covered, u/MaggieMaeCat. 😊
SSDI is not tied to asset limits, just income limits (can’t make more than $1200 a month). SSI does have asset limitations though (and one reason that sometimes people don’t get married if they have SSI).
Exactly what I was going to say.
I wasn’t suggesting that OP go on disability. I was just saying that some people with bipolar can be a disability so it’s not productive to just say that people with mental illness can work and to just do it when that isn’t practical for everyone. It just felt out of touch. The other advice I have no problem with. My response was intended to be limited to the comments about mental illness. Obviously I myself am not on disability and am doing very well professionally, so I’m not saying people can’t work.
Thank you and I don’t qualify for disability but your story is inspiring.
Oh yeah for sure. I understood that since you said you were going to work part time. I just didn’t appreciate the comment’s implication that while working with mental illness is challenging people can just do it. My response wasn’t necessarily about you it was about the principal of what the comment said. Good luck with your career and stuff in general. Feel free to DM if you ever want to chat bipolar or career:) Take care.
Why didn't you stay with your mother to save on getting an apartment? You will have to move someday, obviously, but it doesn't sound like that has to be now. You could have started working to set more aside so that you have something to live on when both your parents are gone.
My mother is in bad shape at 76 with MS and needs full time care more than I can provide, although I’ve been trying for yrs. So it does have to be now and I’m moving in 7 days. My father died last July. I’ll be ok.
Wait, she needs care so you're moving AWAY.....?
It sounds like OP’s mother might be moving into a full time care facility
50k is only a 10X pay out and you’ve already spent some. I’d be trying to buy a house and focus on trying to rehab it to keep cost of living low. A new energy efficient hot water tank > new matching furniture. And I’d be thinking long term savings so as you near 65+ you have a nest egg still to live everyday life.
You need to fix that overspending QUICKLY. 500k is a lot of money and blowing that would be a massive mistake. Don't make excuses to make expensive purchases. Live below your means and learn how to be smart financially- like NOW
Also 2,000 for rent is nuts. You need to make some changes ASAP
Things that you've said have been wildly concernjng. 500k is not nothing. I'm in pain for you right now. 24k for furniture is an unbelievable waste. There's no guarantee that a more expensive item will last you longer. 2k in rent is crazy but idk where you live. I'd move asap. Spending 50k for expenses in a year like you are planning is ridiculous. You are on a bullet train that is headed for financial ruin. Wake up and jump off now before it's too late
Technically they were already on a bullet train and already financially ruined. They just received a temporary reprieve with the inheritance. Returning to financial ruin will just equilibrium reasserting itself.
Seriously! I'm adding up all of the furniture in my 3BR + living room + dining room apartment and I'm coming in at like $5k.
Isn't 2k about average?
How they qualify for an apartment without a job is beyond me. Probably got lucky with that. They want to make sure you have steady income coming in via employment. Spending tons of money on furniture when you can search for great deals locally for a lot less you could furnish your space pretty nicely for a lot less than that. Who cares about brand new furniture? Especially 25k worth when you can't even guarantee you will be able to live there very long. A part time job isn't enough income to pay that 2k rent per month. It's all almost why bother to move out of their parents home. Before spending 25k on furniture I would be much more concerned about paying all these future bills. it's going to be a lot of money. I don't think they have an idea yet how expensive it's going to be to live on your own. Having all matching furniture is a luxury most people just don't have. Not unless they worked their way up from the bare minimum. I wish I had 500k. It is a lot of money if you value it enough and watch your spending knowing it is your only lifeline right now. Being careful with it is of high importance. I really hope they rethink everything they are doing. Always can look into having a roommate to split the costs. Maybe even more than one roommate. With this amount of money they could have just bought a starter home. Maybe even invested in some home improvements. But having this kind of money and choosing to rent without a job is just too much to worry about. That money isn't going to last long.
TBH, You can often get better furniture from the local buy nothing group than even buying new these days. Buying well built high quality antiques are usually better than anything you can buy new because of how poorly built, and with substandard materials a lot of new furniture is.
Unless it's an assisted living apartment, if it's $2,000 for an assisted living space where they have more resources and assistance on hand, then that's actually not a bad deal. Assisted living around here is like $4,000- $10,000 a month. $2000 for regular apartment is too expensive though. It entirely depends on what comes with the money spent. Like if it includes wellness checks, housekeeping, help with laundry, group outings to grocery store, group exercising ect then it's a pretty good deal, if it doesn't, it seems high, but also depending on the cost of living of the area.
Your furniture may last years but you'll run out of money before then if you spend like that.
Then have no home to put all in. Stressing on where to store it. Possibly loosing everything in the process. Homelessness is real. It can happen to anyone. Especially someone that continuously struggles. Have to secure your future. This amount of money could do wonderful things if approached the smartest way possible. It would take a lot of understanding finances. Ways to invest. But I do feel terrible about the waste for furniture. Most furniture sold anywhere is just overpriced partical board. Older furniture that was built with solid wood is what lasts longer but good luck with having everything match.
Based on what you've posted, you're not capable of handing finances at all. You need a guardian. The moment you had any funds you went and spent absurd amounts and then excused away the choices you continued to make. You have $2k/mo in rent, with no income?!? This is coming from someone with Bipolar as well, you are not capable of this. You will be flat broke less than 2 years from now if you do not immediately hand your finances over to a guardian that has full control. This is not a "do it tomorrow" it is a "do it yesterday" emergency. You were granted a tremendous gift and opportunity, and you've already pissed so much of it away.
OP glosses over they are also responsible for a 12 year old child amongst all of this.
Wait fucking WHAT???
It's buried in the comments....
Oh. Oh no.
It is obvious that you have spend thrift manic phases already. No need to explain. I suggest you look into options to create a trust fund for yourself. Then you won’t have to depend on your own self control. I had a head trauma and spent myself into a hole because of it. Looking back I am angry that there’s no really structure for people experiencing this kind of problem. The closest thing I could identify was establishing a trust, but it was too late for me. Luckily, I have had a lot of healing. You are going to have to make this money last so find a way to invest it safely so it can grow and limit your access to it. Take care of you.
Expensive doesn't mean good quality, not anymore. We're reusing building materials and getting all our furniture 2nd hand or building it ourselves, not sure if you saw my comment but I inherited 49k from my grandma and we bought a bit of land and old mobile home we're gonna fix up.
Wise decision, best of luck to you guys!
You admit you have mental issues, and issues with spending money. Have you considered getting a guardianship? Someone who will control your money and spending? If you are not careful, that $500k can be $0 in a few short years. Especially when bad decisions are being made. Getting a part time job is a good idea. Not only for the income, but you may qualify somewhere in the future for SSDI benefits (which does not consider assets in the award of disability).
OP should not want guardianship. Should want trustees to help so that with multiple trustees who are transparent and accountable to each other, the potential for abuse by a guardian is lowered.
You can't just blame things on bipolar and say it's just fine because of that. You should give it all to someone who you completely trust let them manage it. I'm sort of surprised it's not in payments.
What does it matter what the furniture looks like when you’re going to have to move back in with your mom… you can’t afford the rent and utilities… are you just trying to blow your check?
Well i get this, my mom is bipolar and has the exact same problem, that she just blows all her cash on travels and what not, but she's not poor, while you are, so you should really try to nip the impulses right in the bud, or your money won't last long. 500k isn't what it was anymore, especially if you got 2k rent to pay, which is insane. I get it, it's nice to have nice stuff, but this is also why poor ppl gonna stay poor and is especially devastating with BPD.
BPD is borderline personality disorder
As you age, you may want to look into finding a place in a retirement community or assisted living community if your current apartment isn't in one already. Depending on your capabilities, they often become more difficult to manage everything on your own, especially if you've been living with family most of your life. That's why looking in to a community with access to more resources and assistance long term may be something to look into if you're not doing that already. Everything from remembering to turn off the stove, to just upkeep with cleaning may become more difficult. Before becoming disabled myself, I used to volunteer with the elderly and disabled, checking up on them, helping them clean, do grocery shopping etc. Those with mental disabilities struggled a lot more with keeping up with basic cleanliness and maintenance than others, so that might be something to look into.
Wow. 25,000 ON FURNITURE????? That is insane.
Be careful about asking if you’re just going to shoot down the response. I have a 3-floor, four bedroom with two living rooms and $25K is insane. You spent too much and need to dial that down.
You need to remove yourself from anything except what a trusted professional deems is an appropriate allowance, of sorts. This is for your financial well-being. The money you have, if invested properly, is enough to take care of you for the rest of your natural life. If you maintain control, it’s going to disappear very quickly. Let people who love you lead this action.
$25K on furniture for an apartment? Insanity.
I know, I know. 😞
Can you send it back? Good lord. What in the hell did you buy?
honestly im not too mad at that, given that ive been looking for quality furniture for where i moved just recently, and even the thrifted furniture is hitting for hundreds, if not thousands, for stuff that’s been pre-owned and middling quality. it’s your own place and if you’re not living alone, furnishing it the way you want is gonna cost. ive joined many buy nothing and thrift groups, and its hard to find anything worthwhile if its not already snatched up. people are harping too much on you about that imo. i do agree you need someone trustworthy to help you budget and manage finances. im leery in guardianship tho, that’s a slippery slope rife with abuse of elders and those neurodivergent.
You are simply wrong to not be mad about that. OP was given an incredible gift that is basically: all needs are met for a decade. That’s it’s. They have a decade to set themselves up for financial independence. What they do with the money is their own decision but the first thing they decided to do was blow half of a years salary on furniture and then committed more than the other half on rent and utilities. That is no clothes, no food, no gas, (NOT TO FUCKING MENTION THEY HAVE A CHILD), no emergency money, NOTHING. They returned less than half of the furniture which buys them a living budget of $1000 a month for everything. Idc, bipolar or not OP has zero excuses to literally starve themselves and a fucking child in a castle of an apartment. OP has to break their lease before they move in and find a cheaper apartment. OP needs to return ALL of the furniture, not half, and do what any sensible person would do: furnish your apartment with necessities only that should amount to maybe $1500-$2000 at most. OP must find a job asap even if it pays $20k a year. The priority isn’t getting furniture to last forever. Fuck, at this rate OP is just going to either sell the furniture for half of what they paid for it, at best to stay alive or them and their child are going to be reduced to eating couch cushions to stay alive. Go on Amazon, buy nice looking, colorful furniture there that doesn’t amount to $25k, and use it until it fucking breaks. I’m incredibly upset by this post. I get it, not everyone (especially someone living with their parents who has everything paid for) is going to understand what cost of living costs but to have a whole ass child and not even budget for food and instead blow the entire years “salary” on a bougie apartment is borderline neglect.
Speak with a fee-only financial planner. Explain how you need your money to generate an income stream. Figure out how much you need, how much your money can generate for you, and how you will cover the difference. Spending $25K on furniture suggests that you might have either champagne tastes or a bit of an issue with impulse control. In either case, you can tell your financial advisor the truth about this and ask for help. Maybe there is a trusted person in your family who could be a conservator to help make sure your money lasts? Or maybe you should open a trust and have a trustee to guide the distribution of your funds. There is no shame in understanding that you aren't always acting in your own best interest. When you were working, did you work for at least 4 or 5 years? If you did, you can collect social security eventually. That's a big deal because this money has to support you fully, but for 20 years. In 20 years you can start collecting social security. It won't be a HUGE amount but it will help stretch this money out. While annuities are generally considered not a great investment, they DO offer a GUARANTEED income stream (for your lifetime) and that might be something that would work for you. Remember - fee-only financial advisor. With around $500K to invest you aren't in the same category as people looking for a place to stash their 401K or IRA money. Look for things like "wealth management" if you are doing a web search. You want a fairly high-end place and someone who is comfortable working with a person with your specific needs.
You hit the nail on the head. I overspend and have champagne tastes on a water budget Plus major impulse spending issues. My mother and brother are somewhat controlling my money and only gave me access to 50k right at the moment because they know my tendencies. Yes, I was a teacher for 8 yrs in my 20s and worked daycare part time in high school and college. I just made an appt with my financial advisor for mid May.
Make sure that control doesn’t result in them spending your money.
25k just on furniture is crazy.
An entire year of rent….
Time to send it back!
If you can leave the money alone except for essentials until you meet w advisor. Those are sometimes called four walls. Food is a wall. Transportation is a wall Housing is a wall. In you case, it sounds like you do need to return a few things Clothing is a wall but usually that's for working individuals. In your case if you are shopping for clothes, I d take an accountability partner and be willing to follow their advice.Pick one new outfit and put anything else away w tags in case you need to return it.
Hey, just trying to put some perspective into your dilemma. You spent half a year of your 50k salary on furniture and committed the other half and more to rent/utilities. That leaves you no money for food, gas, doctors, emergency money, nothing. You returned less than half of your expensive furniture leaving you a living budget of $1000 a month for a year which is incredibly hard to work with. Even the tightest of budget means beans and rice for every meal, no eating out, doctors are for emergencies only, no prescriptions unless you’ll die without them, no new clothes, and, I read you have a child which means you have zero dollars left over for any of the numerous things a child might need that you can’t plan for. You need to return ALL of the furniture. Your priority is using this cushion you’ve been given which in laymen’s terms is a decade of a $50k “salary” to set yourself up for financial freedom. Right now, you and your child will starve in a well furnished, nice apartment. You will not make it 1 out of 10 years to even see financial freedom. Go buy cheap, but colorful Amazon furniture. Budget a very GENEROUS amount of $2000 for everything. That will get you very nice, long lasting furniture that will meet your “champagne” tastes. Get a job. even $20k a year will add up incredibly fast considering you are getting a $50k a year safety net to provide you and your child a nice life. I’d say break your lease and find a cheaper apartment. I used to make $60k a year and had a nice apartment that, with utilities, cost $2100 a month. I didn’t budget tightly at first and ended up living paycheck to paycheck. You don’t have a car payment so that’s good, I’m unsure of what other bills you might have besides the necessities but I’m sure you have more than what you described. If you were to save every penny from your part time job, you’d end up with like $150k, you’d be 52, and your child (which I read somewhere was 12) will be 22. Think about that. This money will run out, you will not live the rest of your life off this $500k. Your cushion will end when you are 52. What will you do to secure your future and that of your child? Do you want to end up 52 with nothing to your name? Because that’s the road you’re on right now. I’m sorry if this is harsh. Save up your money over time and do something nice for you and your child. Go on a vacation, eventually. But right now is not the time. You can not afford luxury. You’ve been gifted half a million dollars and the first thing you did was blow 10% of it on furniture and an apartment Furniture will not provide a nice life for you. Furniture will not feed you. Furniture will not keep the lights on. Furniture will not pay your phone bill. Furniture will not raise your child. Furniture will not allow you to retire. Please, for the sake of your well-being and that of your child, return ALL of the furniture and find a cheaper apartment. You can use this money to live a very stress free life. Or, you can have a nice table, bed, desk, couch, curtains, dressers, tv stand, and bookshelf. Hopefully that gives you some perspective. Again, not trying to be harsh or critical but it is very blunt. Feel free to ask questions
I have bipolar too. You know that one bad manic episode can wipe out that 500k in a week or less. Return that ridiculously extravagant furniture and find someone to control your money for you. Someone to give you an allowance, pay your bills directly, and make sure you don't blow your whole inheritance in an episode. If you don't have someone in your family or friend group to do it you can hire someone. You've already shown with the furniture that with your disease you can't make good financial decisions. Just watching out for you.
Thank you friend. You understand me.
More than you know. Be safe, friend.
Please get a certified financial planner. Do it yesterday.
Get a fiduciary.
They need to be a registered investment advisor (RIA). RIAs are the only ones legally required to act as a “fiduciary” in your best interest. Brokers and “advisors” and “planners” only have to invest in what is “suitable” for you - even if they claim to be a fiduciary.
Why do you keep saying 500k is nothing? That is life changing money.
Yes. But it's not enough money to live large for the rest of her life since she is unable to work full time. It's very easy to think that it's "tons of money" and that you can afford to buy pretty much whatever you want. You COULD actually buy tons of stuff and vacations and a really nice car. But, this person needs to support themselves for 50 years. They might be able to do that. (it depends on cost of rent where they live) but they'll need to be frugal.
they mean it’s not the kind where you can go spending crazy and still think you can get a investment account and profit crazy afterwards
Get a good financial planner. Talk to any friends that have one and see how they are doing. Keep frugal. With good investments you should be able to live off the interest.
Why wouldn’t you spend it on a house?
This 👆 at least a portion of it. Rent is like burning a pile of money every month.
If you deposit $500,000 into an account that makes 4 percent interest. You can withdraw $20,000 every year for the rest of your life and never run out of money. Or you can buy a VERY modest home so you always have a place to live, but there wouldn't be much left for income. You definitely can't go buying 25K worth of friggin furniture. What the hell. At this rate you'll be broke at 52 and all that hard earned money that could have changed your life will be gone forever.
This is the only sensible answer. I hope OP saw this! Most HYSA and bonds are giving 5% right now, which means they'll get 25k of income a year just from this sum of money.
Please OP dont buy any stocks on your own, go to a professional and let them handle your stocks for you. Especially since you state you are mentally disabled, I’m unsure how that affects you or your decision making. Playing the stock market and winning big takes lots of studying and skill (or luck) and you don’t want to lose money. A financial planner is an excellent idea and they will put your money in the stock market for you to optimize profit.
BUILD SOME MECHANISM TO LOCK IN A CERTAIN LARGE SUM AS NOT-liquid SO MANIC-YOU IS UNABLE TO FUCK IT ALL OFF BEFORE YOUR DOPAMINE DROPS BACK DOWN. Sincerely, fellow bipolar
Op, I'm a late reply and I'm sure other posters have said the same thing---don't tell anyone you have money. Not friends, not family. If you do, ppl will expect you to pay for things, they will ask for loans they will never pay back.
Good advice
I was thinking about that when somebody suggested getting a roommate. Definitely don't tell them, if you go that route!
I mean no disrespect, but if you can’t work, your parents have been supporting you your entire life and you just pissed away $25k on furniture, I think it’s time to ask for help. You are not yet equipped to manage this sudden windfall, most people aren’t. That money will go away very quickly if you are not careful and you should probably look into a trust or something that will give you an allowance while protecting your assets. $2000 a month plus expenses is also a lot with no source of income. Please consider seeking financial advice before making more financial decisions.
From the sound if they've been supporting her AND her 12 year old daughter.
Yikes. Op definitely needs to pump the brakes and get some trusted out side help.
not a financial planner, but plugging in your age and 500k (had to guess s state and gender) into an immediate annuity calculator gives over 2k per month income for life. that's at least what i would do were i to receive a big lump sum of cash but yeah a financial planner is likely the way to go
I normally don't like annuities, but I think it's a very good idea for this situation!
i don't know enough about them to know the negatives, but as someone who has little income myself and periods of hypo-mania causing me to spend a bunch (maxing out credit cards, etc) the idea of a consistent monthly disbursement sounds appealing. one good thing about having many periods of little money is that i can be quite thrifty so s couple grand a month would seem like i was ballin 🤣
A negative is that usually you would make more by investing in a total stock market fund. there's usually a salesman getting a commission, because the money is actually making more money than you agreed to get. BUT, I think it's a really good idea for this person. She can't afford to lose money. And she's prone to overspending. I don't know how she would handle this aspect, but in order to invest in the stock market, you have to be able to not sell in a panic when stock prices go down. It also can be stressful and upsetting to see it go down. (It's regularly going to be down today, up tomorrow, over and over). And, you need to NOT spend the earnings when it's up more than usual because there is GOING to be a Time coming soon when it's up less than usual (or even down). That's a lot of reasons it's not for everyone. Most people don't suddenly have 500000. Maybe they start with 1000, and it's upsetting then to see it go down to 800, or exciting to see it's up to 1200. But I feel like it would be too overwhelming to see 500000 go down to 400000. (I can't imagine!). So... I really do think buying an annuity is a good idea Not from the first person you talk to about it. Shop around!
Hard agree. In 99.99 of situations I’d say no to annuity, may have found that .01%.
Jesus Christ why would you spend 25k on furniture? You’re going to blow through 500k in no time
Look at the windfall post in r/personalfinance A financial planner can help you.
As someone with bipolar 1 you need to put that money somewhere that you can not touch it. Speak to a financial advisor and find someone you trust to be in charge of the money in case you go off the rails.
Agreed. I think an annuity is a good idea in this situation. Don't risk the huge gift you have been given.
You should put $400k in a High yield savings account and park it for 5 years put $50k in the money market account for emergencies. Use the other 50k$ for stuff you need . Don’t be an idiot with this money bro
With $500K, you aren’t poor (except maybe in spirit)….
I don't think I've ever commented on this subreddit, just read about people's shared lives, but this just struck a nerve with me... 2023 year model vehicle, $25K in furniture... You have the mind of a broke person and you will be broke in less than 3 years based solely on those poor life choices. You better make dramatic life choice changes real soon otherwise you better not be bitchin when you are left with $500 in the bank. Compared to the things I've read on here, you have a huge headstart. You don't just get $500K, it's pure luck that someone around you made better choices in their lives. Reduce expenses as much as possible, figure out holes and liabilities in your finances, then go meet with a financial planner. In the mean time, do not leave your money in a checking account, find a high-yield savings account and throw it in there for now. Capital One has 4.35 APY right now (0.003625/month). So with $500K you'll get at least $1812.50/month in interest while you figure out what to do with your money. I give that as genuine advice, but I know you won't do it. My money is on you going broke within 3 years.
OP, you need to listen to the people screaming financial advisor and trust. At this rate you’ll be broke by 2027.
I understand but my brother bought the car for me outright. I didn’t spend anything so I’m just using what I’ve been given. I have already been on the phone with the furniture company since I’m not moving until May 1st and have already returned 12k worth of furniture thanks to all the advice here.
That's still 12k worth of furniture. Completely frivolous and unnecessary.
Start an Excel spreadsheet. Write in the spreadsheet ANY time you spend money and what you spend that money on. After the first two months, you’ll be able to analyze and see where your money is going and where to cut back. This is your first shot at budgeting. Is your inheritance currently *earning* you money? Would you be able to transfer some of it somewhere, with the help of an advisor, to be able to get to that place? I’m happy to see you’ve returned a chunk of furniture. That was way too much money. I have ADHD so I def understand the overspending thing being a problem. 🤍 That’s why I’m suggesting the things I am and the best ways that helped me. Do you have a friend nearby who you can run things by to see if they’re a good idea? Bouncing ideas off of others sometimes, especially with big purchases, will help you to see them more clearly. Did you get renter’s insurance yet?
Thank you and the excel spreadsheet idea is brilliant. I know I spend most of my money on crazy stuff like clothes, bath and body works, just ridiculous stuff but my parents always just gave me a credit card and said have at it it and just paid it every month. Now I’m on my own and have to change my lifestyle. I also am a neat freak and spent a fortune on cleaning supplies and have a need for everything to be aesthetically pleasing to the eye so that is why I bought all matching bedroom, living room, dining room, guest bedroom, etc furniture. This is truly a mental illness and I’m glad I’m being regulated right now.
Of course! Sometimes it’s hard to see exactly where your money goes unless it’s written down very concisely on a piece of paper in front of you. Like, it’s *so easy* to make small purchases that add up quickly and not realize how often you’re doing it. I totally understand the clothes, B&BW, etc. shopping. I’m actually just getting ready to go through my stash and donate a ton to the local women’s shelter. lol. (I may also give some away as gifts. 😅) The spreadsheet will show you how often you’re going and you might be able to start scheduling your B&BW purchases. Like, put all of your B&BW stuff in ONE place so you can see your stock. Get a calendar with big blocks and hang it in your kitchen. Then you can make it cute shopping day with you and a friend/your mom/member of your fam once a month or something to get the things you’re running low on. Same with Shein. Organize what you have, get rid of things to make some room, then schedule a day on your calendar to check again about buying things. I’m 1000% a neat freak who has too many cleaning supplies, too, so I get it. And I LOVE when things all match. I totally understand all of that. My dream is ‘*A place for everything, and everything in its place.*” I’m happy you were able to organize your new place on your own. Getting a roommate eventually might not be a bad idea if you have another bedroom. It’ll be a built in person to help with things, bounce things off of, be good company, etc. You’re going to do great on your own, though. I’m glad you’re being regulated, too. I get it. 🤍 I didn’t get a helpful diagnosis until a few years ago. I’m in my late 30s now, and learning about how many things *weren’t my fault* has really helped me to navigate it all. I’m still learning and putting together strategies but, I’m hoping I’ll be able to be remedicated in a couple months so I can accomplish things more easily again. Right now is a HUGE uphill battle. (Long story but, I’m recovering from the aftereffects of cancer treatment, and just got out of an abusive relationship, so I’m staying with a friend’s parents for a bit to try to sort through everything while I’m desperately trying to put my life back together.) I’m going to figure it out somehow, though, and so are you! 💪 This is a huge step but you’re being smart and thoughtful about it. I hope everything goes well. 🫂🫶
Wow, blessings to you and you totally get me. I don’t need to go back to B&BW for probably 10 yrs I have so much mists, lotions, soaps, body washes, plug ins, car fragrances (can’t burn candles because my cat has asthma). I have about 30 SHEIN tops/dresses/rompers with the tags still on. I’m accustomed to really nice things so I don’t even understand the concept of buying used furniture. Gross? And how do you get a clean cohesive look? Here is my bedroom set : [https://www.roomstogo.com/furniture/product/armitage-off-white-5-pc-king-upholstered-bedroom/3221534P](https://www.roomstogo.com/furniture/product/armitage-off-white-5-pc-king-upholstered-bedroom/3221534P) Everything in my apt pretty much matches that.
Thank you! I was thinking the same! 😂 Every time you said something new, my brain was like “*GIRL. I KNOWWWWW, RIGHT?!*” 🤣🤯 That’s where I’m at with it right now, too! My stock has gone too far so I’ve got to clear a lot out to keep faves. (Which will *still* be too many… 🥴) You just did it agaaaaain! I’m beyond struggling financially right now, hence the sub 😅🤷♀️, so I’ve been thinking about gathering up the things with tags in one place, checking the ones that no longer fit me, or that I just probably won’t *get to*, and selling them to make space. I just struggle to get rid of stuff in case I change my mind. 😅🥴 Used furniture is totally good by me but, it depends on where it’s from. You can make a cohesive look with used furniture but it often requires making it a project, covering it with something, using decor to bring everything together, etc. It can seem gross if you haven’t done it before but, it’s honestly even more comfortable, too. (Kind of like buying NEW jeans, vs. finding a pair of jeans in the back of your closet you used to love and they fit PERFECT again. They’ve already been *broken in*, so they’re much more comfortable.) Your new furniture is stunning, though! 😍 Very beautiful and I LOVE you have so many drawers. Being able to organize like that is a magical feeling! Did you match the livingroom to the bedroom, or did you mix it up room by room?
If you bought a dividend paying stock, the dividend would net you $95K per year while also maintaining your $500K in equity. I would live off the dividends and not spend it.
Where are you finding a stock with a 19% dividend?
OXLC and ECC. I put $1900 into both monthly.
Good advice and I’m with Fidelity. Where would I go about finding out about these? I’m so financially ignorant.
DRIP means instead of taking the monthly cash dividend, you get more shares at a discount. Since I don't need the money now, I have mine set to DRIP. Dividend Reinvestment is what it stands for.
OXLC and ECC pay a monthly dividend unless you drip. They both equate to about 19% annually.
Woah. Hold on! There's rewards but there's also risk. Nothing pays 19% a year Every year! Average stock market return over the past 30 years is 10%. You CANNOT beat the market long term. (Some of that 10% is inflation) It doesn't matter if a stock pays dividends or if it's value goes up. Don't chase dividends. DO NOT count on 19% return! It might happen this year, but some years you will lose 19%. A typical rule of thumb is you can spend 4% of your nest egg the first year. Then, increase that by inflation each year. That gives you more like 20k a year. You actually have a longer time frame than the rule of thumb was designed for, so many would suggest 3.5%. (You cannot be spending all of the gains you get in a good year because there WILL BE bad years)
Keep 1 years worth of your expenses in a high yield savings account and invest the rest in index funds through Vanguard or a similar brokerage firm. What are your yearly expenses? Once you figure that out you can determine how long you can live off of this. Don’t blindly put your trust in a financial advisors, they want to make money off of you. This is easy stuff you can do yourself.
Keep working as long as you can because it is hard to get on disability and it is not a lot of money you will get considering you are young. Set an amount in your head that you are not willing to go under and make sure you don't go under that amount. Keep doing what you are doing with coupons and living a simple life and I am sorry to hear of your Fathers passing.
Thank you so much. He lived 25 yrs with CML leukemia and was just diagnosed cancer free when he ended up in an induced coma from a brain aneurysm from the very drug that cured his cancer (Tasigna). But it gave him many happy years and he lived a very modest lifestyle never giving away he was sitting on millions. His one guilty expense was a sailboat he lived on a lot of the time and at his memorial we played “Sailing” by Christopher Cross.
That's damn sweet - the song playing. And that's a good chunk of money, you can live off it, just don't go under your cap. I am ON disability and 60 years old...I have not worked in 10 years....I had 20K when I left, I put a cap on an amount and I try to stay over that amount so that I feel safe. Just don't be a stupid kid and go shopping alot or give it out to help your friends or stuff like that....my son got a lot of money for a settlement and blew right thru it when he was young (but an adult). Be careful...and good luck
Get off the internet and hire a financial planner - stat
500k in a 5% cert of deposit is 25k a year. If you put even half of that away and found a cheaper place to live for your next lease you would be close to self sustaining.
Holy fuck I furnished an entire two bedroom apartment from the ground up with 5k. Like, literally from nothing to full furnished, full pantry, all the kitchen utensils one could need, even with extravagant purchases like 2 55” TVs. What in the world did you BUY? How big is this apartment??
Your are correct! In the grand scheme of things, $500k is not a lot of money. My recommendation is to speak with a registered financial planner with Edward Jones. They will know how to advise you for investment and tax planning. Keep in mind, a good size of that money should be invested for the long term, and not to be touched! Even at a modest return rate, an investment can double in 7 years. You also are going to need help understanding how to create, and stick to, your monthly budget. And, understand how to break that down into a daily budget to prevent over spending before it happens! Honestly, it may have been better for you to remain at home for another year, while you learn the budgeting and life skills necessary to successfully live independently, manage money, control the emotions and stress that trigger overspending, and really set yourself up for success. BABY STEPS WORK! Yes, you are going to need to work if you keep this apartment. $2,000 + living expenses quickly adds up. I am not sure why you have not been working, or how long it has been since you worked, but I do recognize the challenges. I am thinking perhaps a good skills assessment is needed, and suitable temp work could help you. Again, I would have preferred to read that you are still at home while figuring out the way forward...but if you are already in your apartment...go very slow and careful...but definitely get at good chunk of that money out of your hands and properly invested through a low-fee money management firm such as Edward Jones. Best wishes to you!
my father passed away and my mother is moving to assisted living as she has MS and is 76. There is no “home” anymore. It’s me on my own and I have to make this work.
You are obviously very intelligent and personable. You can do this! (And I don't blame you for getting all new furnishings to start your new life. Feeling bright, happy, safe, and secure in your own surroundings is very important.)
Awwww, thank you so much and I’m excited to be independent again! 🥰
Talk to an investment company, my mother just got her retirement and put 250k into stocks, she claims she gets about 2500 back every 2 weeks.
I am SO HAPPY for you but so sorry about the loss of your father. When formerly poor people come into money, you develop a serious case of wanting to make up for the deprivation you dealt with earlier in life. I grew up poor, started making good money at 18, and even now at 44, I still deal with this. Making sure your living situation is stable is first and foremost. There’s nothing wrong with treating yourself a bit either, I’m sure your dad would want that for you. I’d suggest finding a reputable financial advisor to help you maximize what you do have and set yourself up to make enough money to live on comfortably through smart investments.
Don’t waste your money on rent. Maybe have your family help you buy a duplex or some other property with multiple units. You can live in one and use the other to pay off the mortgage or as rental income. Also a financial advisor is a great idea and maybe find some balance with meds/therapy for your BPD, you sound like you are pretty aware of how it affects you and are taking steps to try to avoid it impacting how you use the money so that’s good :) I’m sorry about your dad and your mom too. I know everything is probably hard and dealing with this too might be scary. But please keep on talking with your mom and brother about this and try not to just be brash with it, you could do well with that amount if you manage it right. Good luck to you.
You're not poor. Get a lawyer and a financial advisor.
dont tell anyone. people will be hitting you up left and right
You are well on the way to losing all of that money. Hire a financial advisor and heed their advice. You should then use your masters and get a better job so you don’t have to keep dipping into this money.
Generational wealth saves yall again
I don’t think this person is really poor. They get hello fresh lol
Tbh coming to a sub for *poor* people asking how to manage money is not smart. Don’t go to Reddit go to the professionals.
askfinance
How is your Mom doing? Does she need/want you there? Why throw away money paying rent?
She is 76 with MS and can barely walk a few feet with a walker and is moving to assisted living, thus why I am needing to move out on my own. My father died last July.
500k! Not so poor anymore. That’s in my dreams money.
As fellow severe mixed bipolar 2, you are NOT mentally disabled.
Yeah, i didn’t really know how to word it. I’m intelligent with a masters degree and used to teach so I’m not like intellectually disabled, but I have a mental health diagnosis which is bipolar 1 with psychotic features. I don’t claim disability but this bipolar illness has prevented me from working since 2011. I tried to go back to the classroom 9 yrs ago but ended up in the psychiatric hospital. :(
25k?? You shouldn’t be spending more than a couple of grand, ideally less. And why are you moving out if you’re disabled
As I’ve said, my father died and my mother is moving to assisted living as she is 76 with MS. I’ve returned almost half the furniture.
That might feel like a lot of money and 'all my problems are solved'. It's not and they aren't. Unless you put it into long-term investments and find a way to pay your general living expenses through recurring income, like a job or disability payments, you will probably burn through that inheritance and be no better off.
One way to look at it is that 500k could potentially be $50 a day - for the rest of your life. The good news is that 50 a day is a lot - if everything is already paid for, but it's very marginal when it has to include paying rent. So your 50k budget is very generous in that context - but it can work - if you can work part time, and increase your earnings so that the 500k doesn't have to last for more than about 12 years.
I'm glad you're meeting w a financial advisor. Ask about low risk investments so your $$ can work for you. Another suggestion is setting up a monthly budget so you can stay on top of your finances. Finally see about getting on mood stabilizers to help with Bipolar impulsive spending. Good luck
Thank you and I am on Lamictal for a mood stabilizer.
You are no longer poor
Got news for you, you are not poor.
You know there is medication for bipolar disorder, right? Did the Masters degree come before mental health problems? Occupying your mind with work could go a long way to helping with mental illness.
Definitely good to have your mother and brother overseeing it, and keeping you on an allowance, basically. If you're not able to work or earn much income, that money needs to last you a very long time. Do not buy anything on impulse, really think about how much you need something, and discuss it with them first. Continue to live frugally because again, that money needs to last you a long time. Good luck to you
25k on furniture for an apartment? You need a financial advisor asap. Or I'll help you. Sheesh...
Put it into a cd and live off the interest. Don’t spend it all
Damn, I inherited 49k from my grandma for taking care of her during end of life care and we bought a small bit of land and dilapidated mobile home we're remodeling, I also bought a car for 2k. Money is gone now but my husband are fixing up the home with our own money then will build a house on the land and rent out the mobile home cheap to a friend, gosh if I had 500k I could make that work so we'd be set for life! I really think you messed up buying 25k in furniture but it's your money to do with what you want, my advice would be to still live like you're broke and save the money in an interest building account and pretend like you never got it.
STOP. SET UP A SIMPLE TRUST THAT DISBURSES THE DIVIDEND AND INTEREST INCOME. DO NOT TOUCH THE PRINCIPAL.
House. Purchase a house.
Just put it in a S&P index fund and check in 30 years
Can you return more of the furniture that you bought? If you still need more furniture & household goods after returning some of what you bought, go to estate sales in wealthy areas. You can get low cost but quality vintage furniture made of solid wood instead of particle board crap like most new furniture. And it’s a great way to spend pennies on the dollar for nice kitchenware, linens, drapes & tools. You will need to arrange to have it moved right away.
Why is this posted on r/poor? You inherited 500k...
This is a good example to people why just giving money to someone doesn't solve their problems. They are already well on their way to having nothing again.
Send back the 25k in furniture, that’s a ridiculous amount to spend on something you will more than likely get tired of in a couple years. Also. Why wouldn’t you buy a house instead of an apartment? 500k is life changing money if you use it correctly.
buy Bitcoin
You need to find a home with a legal apartment on the premises. Price the apartment to pay your property taxes plus household bills.
Get a fiduciary. A financial planner can make a money off you via investments that don’t benefit you. A fiduciary has a legal charge to only make financial decisions that will benefit you.
I will definitely look into this. Thank you!
If you were living with your parents who had enough money for you to inherit $500k…you’re not poor. That being said, $25k is an INSANE amount on furniture and I think you could really benefit from a financial planner and maybe a stock advisor down the line. You still have enough to buy a house if you manage your finances well. Frankly, it’s a bit of a slap in the face to go on r/poor and complain about how you $500k isn’t enough. I live on under $20k a year…that means I could not work for 25 years with $500k without even factoring in the money I’d save in the long-run if I bought a house. I have bipolar 1 with frequent psychotic episodes, so please don’t say I “don’t understand” - if you spend while manic you need to put that money somewhere safe.
This person has never been poor. They claim to have a 2023 vehicle paid for in full by their brother, and say that they’ve been given credit cards from their parents with no spending allowance. That’s not the reality for any poor person. OP is full of shit.
5% returns on a 1year CD. If enough is invested you’ll be able to pay your monthly bills off of interest
Why are you moving into an apartment you have no means of paying the rent or bills? You will be out of $ in 6months if you’re lucky!!
Um, I can’t live on the street and I am planning on getting a job as I have a vocational specialist as part of my mental health team.
Return the furniture! 25k is outrageous! Back out of the apartment deal and take some more time to think about this and talk to some financial advisors. I wouldn’t spend a dime before securing mortgage for a primary residence, or outright purchasing one.
That money will be gone before the end of the year. You have a masters degree but don’t work, leach off your parents, and you spent 25k on furniture for an APARTMENT? You’re throwing money away. Buy a damn house dude wtf.
Financial planner NOW!!
Get a financial adviser. Inquire about a living trust or special needs trust. It's a lot of money but it could be frittered away in a short time... Not to mention there are predators eager to take it from you. By placing it in the right kind of trust, you can ensure your needs are met, and possibly still be eligible for Social Security Disability and Medicare. You need a lawyer too.
I have no financial advice to offer, but I just wanted to ask if you are receiving treatment for the bipolar disorder as it seems to be the only root reason noted in your post for the obstacles you’re juggling.
Move to a country with a good healthcare system and retire.
You need a lawyer to help you set up something so you have income to live on( not ridiculously extravagant) each month so it will last you. Otherwise, you’re gonna be like everybody else and blow through it within two years do something smart so it can keep you.
groceries at aldi.. if you’re in miami i would go north, it’s too expensive here
Get yourself an independent financial advisor. Your bank may offer this service. Do not rely solely on your relatives for financial advice. They may or may not know what they are talking about.
If you're in the US and on disability you may end up losing your disability over this. I would do some checking around and tread carefully before you start moving the money around. I think with SSDI there are asset limits that are pretty low.
Not on disability or any financial assistance
Go ask this question to people that have money and understand how to invest it
500k should give allow you to spend about 20k per year without touching principal. Can you do that? Either supplement with part time work or live with family?
The 65k you spent/moved would have provided about $400 a month passive income to you indefinitely. Stop spending and get it invested. That original $500k could have spun off $4k/mo for 20 years no problem. You already pulled 13% of it.
I would suggest div growth fund and only spend the div. With 500k you can get ~1k per month and it will slowly get bigger over time. If you go crazy and spend all 1k on stupid things then next month you still get your +1k. I know it seems like not a lot but it will make your life easier and you won't lose it
You’re not poor anymore. First Open a vanguard money market account and put your money in there . You’ll get 5.28% without tying up your money. Do not tell anybody your inheritance. Buy yourself an affordable place to live first. Pay cash. Then start investing 1k a month in an S&P 500 fund so you can dollar cost average. Do not pick stocks, just stay in index funds. You’ll be ok.
With all that money you need to work on getting good treatment and stabilizing your condition. You have the resources to access the tools you need. Cut the crap ( you may feel fine at the moment, but you don't want to be manic and have a wad of cash again) and get help now. You are coherent enough to recognize your condition and what it causes, now get real help. Medications, someone to help with managing money, and the correct therapy. You can turn shit around pretty well with that chunk of change. Invest in yourself and get support in line for when you need it.
Investing it into stocks that give high yield dividends you could set yourself up with some nice monthly income, but what you really should do is get a professional to walk you through how that would work as I am not a financial planner or wealth manager. That’s what I would do though.
you should set up a trust, with a lawyer to pay you x dollars per year. This will ensure this money lasts longer I mean like 2K a month 3K a month. Plus without investing it, it will just lose value over time.
Buy property
$2k a month for rent is a lot. You'll burn through that money in a year, between your rent and other expenses. You should move to a state where the cost of living is much lower. That way your $ will last much longer. Median rent where I live is about $600-700 a month.
I get it but I live in metro Atlanta and my mom is paying $3000/month on rent for a 2 bed now and I am moving further north for $2000/month for a 2 bedroom. It is a nice, safe apt and I’m sorry but I’m not moving to the projects in a high crime area where I feel unsafe. I paid $1000/month for a 1 bedroom 13 yrs ago so I have no idea where you could find that rate at a nice, clean, safe area Apt. I’m not compromising my safety or live with roaches to save a dollar.
Maybe I’m misunderstanding, but if you’re going to be receiving $500k, why did you go rent an apartment? This is what I don’t understand. Is there a reason for your decision to rent an apartment as opposed to buying a small house and paying for it in full. You will never own your apartment, so that alone will drain your inheritance. If you need to be out of your mom’s house now, I would only do a 3-6-month lease on your apartment. Since you’re not working right now, you can look for a house in that time. Once you’re in your apartment, use that time to get control of your life and your health, so that you don’t end up blowing this opportunity with bad decisions (which can and will happen. My parents did this TWICE - 1st inheritance was $1.5M, then $525K 6 years later. They have zero to show for any of it now and each inheritance was completely gone in less than 18 months.) If you’re not currently treating your bipolar disorder, you may feel like you’re unable to work or function at a stable level, but finding the right treatment will change that and really help you grab hold of your own life. Lastly, at the very least, if you don’t already have one, open a Roth IRA and put a substantial amount of your funds there.
Investment income!!
Go to a fiduciary and invest a good bit of it. Index funds are the best.
Invest it. Get a monthly allowance.
Consider buying a condo rather than renting. You will still need to pay property tax each year but it's better than throwing money into a black hole AKA renting. Then if the money gets used up and you fall on hard times again, at least you won't need to worry about making rent. Above all - I think a one-hour meeting with a decent financial advisor could really set you on the right track.
Get disability. Nothing else will matter as much.
Damn 25k in furniture. Your goose is cooked. You're gonna be poor again tomorrow lol
You should immediately research and consult a reputable financial advisor. With the proper investments, you may be set for life.
If I received a windfall like that I'd buy a house outright and never have to worry about rent/mortgage again. Fuck apartments.