Money Moves: This 30-year-old Makes $100,000 a Year & Still Doesn't Feel Rich
Yes, you read that headline correctly, but its not what you think.
30- year-old Gaby Dunn is a woman who has made a career off of her struggles with money management. She gets paid through YouTube videos, books, television shows, and her podcast, "Bad with Money."
Via MSN.com-
" ‘Basically anything that comes up that's in the writing or creative field," she tells CNBC Make It, she'll consider. “ I just kind of am like, 'Who, who will pay me?'
What she earns
The largest chunk of her income comes from her writing. She's sold three books: two written with her comedy partner, Allison Raskin, and one on her own. Her solo book, "Bad with Money," based on her podcast of the same name, comes out in January 2019. For that book, Dunn earned a $150,000 advance, which is paid out over four intervals.
Additionally, Dunn brings in around $2,000 a season from the podcast and various amounts from brand partnerships. She's written for television and has sold several TV shows to major networks, which can bring in up to $50,000 at a time.
The trickiest part of Dunn's financial situation is her irregular income. She says she can go months without receiving anything and then get a check for $20,000.
"When I worked at a full-time job you would get paid every week, but now it could be six months before anything goes into my income," she says.
Although Dunn is financially stable now, that wasn't always the case. "When I was in my 20s, I made almost no money. I was freelancing or I would take these really low-paying jobs, or I didn't have jobs," she says. "I realized it was a thing that no one was talking about and everyone just sort of pretended to be on the same level. And so I was embarrassed. I was ashamed.
"I would go through phases where I would have some money and then I would immediately spend it to make up for debts I had gotten into in the past."
The fact that others figured she had it made only made her feel worse. "People assumed that because I was working in entertainment I was just like a millionaire," Dunn says. "That couldn't have been further from the truth.
"There was one day where I was getting comments from people being like, 'Oh, like, rich girl.'" In reality, "that day I was actually looking for quarters in my car because my rent check had bounced, and I was like, there's such a disconnect between what people see me as and what my money situation actually is."
She continues: "I'm sure that that's the case for a bunch of people and I'm sure that people are struggling and they don't talk to their friends about it. And it's really isolating. I just was tired of it."
The drive to help make money talk less taboo inspired her to start her podcast, through which she explores her own relationship with money in a candid, straightforward way.
"I've just eliminated shame," she says. "It's a waste of time to be embarrassed. If I go into the bank and I just pussyfoot around about what's wrong, I'm not going to get the help that I need."
What she spends
Here's a breakdown of everything Dunn spends in a typical month.
Rent: $2,850
Dunn's two-bedroom apartment is her largest expense, "the most I've ever paid for rent ever in my life." But she says it's worth it. She's able to use the extra bedroom as an office and her dog loves the backyard.
Student loans: $150
Dunn has $24,000 left to go on one last student loan and puts $150 toward it each month. After selling her first two television shows, she earned a combined $52,000 and put nearly all of it toward paying down debt, including student loans, credit card debt and medical bills.
"It was exciting for a second being like, 'Oh my God, I have all this money.' And then it immediately disappeared into eight years of mistakes," she says. "But I'm so lucky that I was able to do that. I was able to fix it."
Dunn currently has around $2,000 in credit card debt, down from a high of $30,000. She doesn't put a certain amount toward it each month, but she works to keep her balance as low as she can. And she's careful about using credit cards so she doesn't run up her debt again.
Car insurance and gas: $350
Her car insurance runs $300 a month and she usually puts another $50 toward gas.
Dunn owns her Toyota Prius and, although she says it's in poor condition, she plans to drive it for as long as she can. "I'll die in it," she jokes.
That's in part because she doesn't think it's worth the money to buy a new one. "My car's real beat up, but I can't justify getting a new one," she says.
Donations: $170
Dunn donates to a variety of causes each month, including Planned Parenthood, the Los Angeles LGBT Center and Standing Rock.
Groceries: $160
She spends around $80 on groceries every couple of weeks and splurges to get them delivered.
"I don't spend that much on food," she says. "I buy a lot of vegetables because it motivates me to make them because they go bad. I try not to get so many snacks. That's more recent — I'm trying to eat better."
Everything else
Dunn has several other regular monthly expenses, including:
Health insurance: $284.75
Therapy: $125
Cell phone: $147
Internet and cable: $146
Hulu/Netflix/Spotify: $30
Utilities: $150
Gym: $40
Her other costs, including recurring business expenses and meals out with friends, vary.
What she saves
Dunn treats her savings an an important but irregular expense. For retirement, she maintains a SEP IRA; it has around $30,000 in it. She adds lump sums when she can, such as the $6,000 she recently put in. She started it two and a half years ago with most of the proceeds from selling a TV show.
She has another $32,000 in her regular savings account, most of which goes toward taxes. Now that she's freelance, Dunn pays taxes quarterly and saves up what she can to be able to cover the cost.
"I pay more in taxes than I've ever had in my life in the last, like, three years," she says. "A lot of times I get paid for something and then I immediately have to pay taxes and then I immediately have to put a lot in retirement."
What the experts say
CNBC Make It asked Pamela Capalad, a certified financial planner and founder of Brunch & Budget, to comment on where Dunn is doing well and how she could improve. Here are her thoughts.
It's great that she's saving for taxes
"I think that the fact that she's actually saving toward taxes and making quarterly tax payments, especially because she's making a good amount of income, is huge," Capalad says. “
Dunn’s story in a way reminds me of my myself. Although I’m not making $100,000 a year, I can definitely attest to getting to a point where you’re making a decent amount of money, only to realize that you actually have to use almost all of it to settle debts. I’m also at a point where I made so much money one year that I reached a tax bracket where I ended up owing money to the IRS!( I’m still salty and still paying them back!)
This article opened my eyes to not only money, but life management,
Read more of Dunn’s story here at: msn.com