Living On $120K A Year In The D.C. Area | Millennial Money
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- Опубликовано: 22 май 2024
- Garrett Ramela, a 24-year-old former Marine, earns $120,000 a year as a defense contractor in the Washington, D.C. area. He owns three properties that bring in nearly $40,000 a year in rental income, but nets far less since this income pays off mortgages on the properties. Here's how Garrett makes and spends his money.
This is the latest installment of Millennial Money, which profiles people across the U.S. and details how they earn and spend their money.
Read more about Garrett's budget breakdown here:
cnb.cx/37MEt5O
Sitting on his new West Elm bed in his two-bedroom condo in National Harbor, Maryland, 24-year-old Garrett Ramela flashes bill after colorful bill: bright red from Singapore, pale purple from England, teal and brown from Sudan.
He started the collection during his years in the Marine Corps, when he spent time stationed across three different continents and traveled to more than a dozen countries. In a nearby box, a collection of coins and medals shine in the mid-morning sun.
Ramela’s collection of foreign currency symbolizes more than just his past. Money is part of what motivates him to work so hard, pursue multiple graduate degrees and invest in real estate. He’s working toward a future where he can enjoy a comfortable lifestyle and the flexibility to travel or live anywhere in the world.
Today, he’s employed full-time at a tech company as a defense contractor (where he earns a base salary of $120,000). He owns three properties (which bring in another $38,000 a year in rental income). And he’s meticulous in his day-to-day financial decision making, which is reflected in his carefully curated budgeting spreadsheet.
“I joined the Marine Corps because I graduated high school and fell on my face,” he admits.
Balancing online college courses with a string of odd jobs left Ramela both overwhelmed and directionless. The military not only provided structure but offered him tuition benefits and the ability to travel, so in 2013, he enlisted. He went to boot camp in 2014 and was stationed in Virginia Beach, Virginia.
From there, he volunteered for an assignment in Okinawa, Japan, and later another deployment in Djibouti, Africa, where he spent a year before returning to Japan.
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Living On $120K A Year In The D.C. Area | Millennial Money
he looks 34 and 17 at the same time
I'm mad I understood this Lol
Ahahahaha that is a fact
The reason you think he looks 17 is because TV shows and movies always cast actors in their late 20s to portray 17 YOs. He definitely looks like he's in his early 30s though...
LOLOLOL
shauna schanck Yeah, he will probably age quickly because of stress. Making 120k in DC is nothing. You need to make at least 350k there to be truly comfortable. DC is one of the most overpriced places to live in the country, especially when you factor in that the area sucks (no beach, no mountains, ugly city).
I feel like this guy is simultaneously responsible and also irresponsible at the same time.
One step forward, one step back...
Josh Wynn 💯
@@ca8a Yeah he is going nowhere right now hahaha
Josh Wynn he’s doing good but he could be doing great
Josh Wynn 1.5k on food per month, that’s able to pay 2 families with 4 households per month.
This dude has put on the golden handcuffs. Matching his cost of living almost exactly to his income. If that job lays him off tomorrow he'd be in serious trouble.
Lifestyle inflation. Always live below your means.
This!!! Spitting facts
But if he gets sick or in an accident and can’t work? Or there is a catastrophic incident at one of his homes, he’ll be in a world of hurt. Insurance does not pay right away necessarily.
Hopefully in 9 months when the debt is paid he continues to save 5k for investment and savings
He's a contractor...hopefully his employer has another project for him when the other contract is over.
I appreciate his honesty, a lot of people are coming for him in the comments but he's young, has 3 properties, and a good salary. he will be out of debt in no time and is enjoying life.
yeah he's doing well, but 1.5k a month in eating out is ridiculous especially when compared to what he said he was saving. That's the one thing that's really financially stupid.
He doesn’t have to travel back home to eat... that’s what Tupperware is for...
He can't cook
Leftover?
Michelle A preach
He's just lazy and doesn't want to cook anything
Agreed, I never eat out at work. Glass Tupperware from IKEA and microwave does the trick
Him: I found out about a personal finance class and everything just clicked!
Also him: I spend $1,500 on eating out and only save $100 per month on $12k take home
Hustle Bus the kid needs to stop eating out and work harder on clearing his debt!
I Love Dogs nawwww. You have to learn how to use debt to your advantage. Difference from the rich and the poor.
Dj Speechless lmao u dumb
RamboSyl it’s the truth. Debt in homes rentals can make you money which many poor people don’t understand. Most people just buy crap they shouldn’t be buying like cars that cost what they make in a year or two and expensive material objects that they think make them look rich. My dad is a self made millionaire and drives his trucks till they won’t turn on and wears basic clothes his wife buys him from Ross and kohl’s while on the other hand you have people like my cousins who lease cars every 2-3 years walk around with designer bags and new clothing weekly and always transferring credit card balances all while making 30k a year with no savings or investments..... that is what most people do
He's saying he saves $100 per month. In reality, it's more complicated than that. You should look at his $5,000 debt repayment as part of his savings. Every payment builds equity in his homes because each mortgage payment pays down the principal. If he wanted to, he could later refinance his rental properties to get cash on hand. The $100/month is probably towards his rainy day fund.
I feel like the whole video he was trying to convince the audience and himself that he’s good with money when he’s clearly not.
lmaoo couldn't agree more
😂
He’s 24 making 100+k a year and with interest in property ownership and repaying his student debt as soon as possible. Can you clarify where he is bad with money besides eating out too much?
Facts but hey YOLO it’s cool 😎
Kevin’s List Two words: no savings
Garrett: I'm smart with money
Also Garrett: I ran up all my credit cards and spend 18,000 on food every year
*$20,400
This guy is kind of all over the place. He has some good habits and then other things I'm just shaking my head at. I live in dc and make half his income but am arguably doing better.
Right? It was going well until he said he spends $1300 a month on eating out... Why?? You may not be a good cook but it doesn't take a chef to a salad or a wrap at home when you're on the go.
@@raissakabeya87 Agree making a salad or a wrap would be so easy and cheap. Also if he hates cooking that much he could order HelloFresh. To most people that would be overpriced but he'd still be saving so much more on food that way, and he'd get the recipe and portions laid out in the easiest way possible
But then again , you need to enjoy life, you can't just live a life of compleate frugality
@@AlfoncinaMatilda I mean there's such thing as balance haha. Eating out for 3 dinners a week to see friends and enjoy nice food? Not the biggest deal when you make enough money. Eating out for every single meal and snack to the point where you can only save .01% of your monthly income because you're too lazy to learn to make a sandwich or boil an egg? That's a problem
$2,436 in free money a month. Easy come easy go.
I would like to see someone making 33000 a year.
Rent, food, transportation, aaaaaaand you're broke!
What is there to see? Lol
cardboard box, find spare change, eating out means eating out of a garbage can.
Me too!
😭😭😭😭😭
@s n think that what's she was aiming for 😂
How is this possible he is 24 with a bachelors, 2 masters, 3 homes, making over 3 times what people his age make on average 😵. How did he gain work experience to surpass entry level pay??
Red HawK15 ehhh getting your degree before 20 isn’t always a good thing. I know people who got a double major at 23 and had a higher paying, stable job and house by 26. It’s because undergrad let them develop and connect more and they did coops.
He gets veteran preference, which bumps him over regular people
Hard work and privilege..can't forget that part
Depending on his work experience in the Marine Corp, he most likely leveraged his previous role into his current defense contracting position. Oftentimes, in the right field, it is substantially easier to get a great paying defense contracting position with relevant military experience. The military provided his training, experience, and paid for his security clearance. The security clearance alone is sometimes all you need to get a six figure job in defense contracting. Then he used his GI bill benefits to pay for his education. He may have even had access to employer based education benefits to pay for his second master's degree. The military can be a great opportunity to get a great career later if you plan and make good choices. I've meant many smart people like him during my time in the military.
@Saffron Sinclair its called who u knw!! The current govt is a prime example!!
Him: “$1500 a month on food”
Me: Complains about spending $40 a week on groceries for two people.
$2,436 in free money a month. Easy come easy go.
Hey some people like to eat good food and don’t got the time to cook. I spend $250 a week on takeaways and eating out and I’m on $5000 a month
Graham is gonna have a stroke watching this one. I know I am
Haha I can visualize that
Duncan Fowler who cares about that idiots opinion
PinoEE only over a million people...nbd
Duncan Fowler ,,, Hooo no no no, graham is a Cheapskate. 👎 This smart guy is working the things on his way and is working for him, good for him. 👍
p.s. Lucky him, Enjoy your $1500 on yummy food! 😋
When I saw that he basically spends more than he makes and only saves $100 a month, I was like “Oh, Graham is going to have a field day with this one”
Graham is gonna eat your lunch for spending that much on food! Literally lol
I cant wait to see his video
$2,436 in free money a month. Easy come easy go.
@@JohnLee-fr6pi so when are you going to stop calling it free money??🤔🤷 And that benefit is only for so long, so it will soon go away...
Phil Thomas,,, Hooo no no no, graham is a Cheapskate. 👎 This smart guy is working the things on his way and is working for him, good for him. 👍
p.s. Lucky him, Enjoy your $1500 on yummy food! 😋
Kathy R I agree with you on enjoy the food lol
But that’s the difference between the financially free and non financially free. Let your assets pay for your lifestyle.
P.S. If you look at the comparison between Graham’s income vs expenses, he won’t have to worry about down-sizing his lifestyle if things go bad b/c he’s living way below his means 💯
To each their own 😁
Graham is gonna have a field day with this lad 😂
That North Old Town rental property is going to appreciate so much when Amazon finally comes to Crystal City! Great buy
Garrett seems like a good guy. I like how he doesn't price gouge his tenants like everyone else in DC. Keep up the good work, Garrett! 👍🏽
Actually after watching this, I know so many messed up 24 years old, he is an overachiever, he is doing a lot of things right, yeah he has no savings, but he is doing after a second masters degree while employed full time, has rental properties, is mastering the debt repayment, and has goals and visions. I will look over the money your spending eating out, because if your that busy (and I've been that busy) you just don't have the time or energy for elaborate meals.
coco marineblu Meal dude lol 1500 a month eating out is no excuse. I live in Orange County, CA (rent is pretty expensive) and I just turned 26. My salary is close to 140,000 and I work quite a bit, still have a social life, and spend some time self learning but I still have time to meal prep over the weekends and not knowing how to cook is no excuse when you have the internet/youtube for recipes and tips.
What do u do?
He's in a ton of debt and totally dependent on his income
"1500$ on food because you dont want to do dishes" you better wait until graham talk about it.
blackwitness aaa ,,, Hooo no no no, graham is a Cheapskate. 👎 This smart guy is working the things on his way and is working for him, good for him. 👍
p.s. Lucky him, Enjoy your $1500 on yummy food! 😋
@@kathyr2090 well if he can spend that much for food, why doesnt he put that money aside for emergency funds
Does he not realize paper plates exist?
The currency used at 6:39 is the Sudanese pound if you wanted to know. I am from sudan and found it strange but yeah.
He was stationed in East Africa..did you watch the video?
@@sobc2737 Djibouti yes... not Sudan lol. I don't think Nicaragua is the same as USA
Him: “I don’t want to put my money into a retirement account.”
Graham: WHAT DID U JUST SAY?
LOL that s so true
You understand the reasoning behind his intentions though, right?
@@ayetreyyy yes he did mention his priority right now is to pay off his debt first which s valid
I’d rather put it real real Estate
@@Mav0585 No, debt is dumb. Get debt free then go full fledge on investing.
if you add together student debts, taxes and the fact that he spends like is jay-z this guy is broke as hell with also a mortgage and credit card debts to pay back... good luck son! hope everything will keep going well
This guy thinks he’s smart with money, and then spends over 1000 bucks a month on food, he has debt and has multiple properties that almost break even.......
Good luck to him.
How do you cashflow with a VA loan on 0% as well? No way he's breaking even
Graham is going to love this episode
I also live in the DC area and am a UVa alum! It's great he's tackling his credit card debt, though he'd probably knock it out way sooner if he cut back on food!
Graham will be pulling his hair out at some parts while sipping his 20¢ iced coffee
Armita H Hell he might just spit out his 20 cent coffee and cost himself 40 cents for the day.
Totally! hahaha
LMAO Graham probably saved millions the way this guy lives
So THAT's where his hair is going!
His honesty is very refreshing
S CP yeah. what seems to set him apart from some of the other people is how he said he's happy to help a friend out, and he feels better about himself so it's a win-win.
Income= 120k (likely pre tax)
Expenses= 12k monthly.... How does that work?
I had the same question lol
He gets $40k from rental income on top of that.. It's in the description box
Yes but most of that goes towards the properties mortgages. It’s in the description and he also said it during the video.
@@TheXdarkfairy He only makes $300 from the total rents
He said he brought in 2k+ in credits from his GI bill education program
I hope he sees this comment. Eating out that much is *so* unhealthy. You’re not getting a balanced diet. Restaurant meals are dense in empty calories and have more added chemicals than most meals prepared at home. Try to cook at home more for your health not even for money’s sake. You may not feel the effects now, but in ten years your body’s gonna be hurting from your choices. You can even try meal subscription service that may be at least a little healthier. Health is wealth.
I agree with you that eating out is extremely unhealthy. Restaurant food has a lot of fat, sodium, carbs, and almost no fiber. Also renting houses is definitely not passive income. Managing a house and dealing with tenants takes a lot of time. Living in the DMV myself I know that National Harbor in PG County is a bad neighborhood.
Zxc no, it is not.
outsidegirl100
Shut up.
You have no idea where he goes out to eat. You are doing the most.
Come for Millennial Money stay for the comments predicting what Graham's reaction will be.
Thank you for your service!
Also, how’s YOUR commuter experience?
It's very informative video. I really enjoyed.
Graham will love this one! I can hear his voice already.
Awesome vid, this guy is doing some great things so set himself up for the rest of his life.!
$5000 debt? A month? Just because you make a lot of money does not mean you know how to manage it..
This guy is a pure example of this lmao
I agree with you 100%
How isn't he managing it? You see in the video what that debt is for, and he is clearly putting far above the minimum payment. He's on track to eliminate all of his debt in a span of less than two years. Pretty good to me.
FinanceFaucet he could transfer it to a zero interest credit card and pay it off faster. Also, he is spending 1500 on food per MONTH and only 100 on savings
Homeboys doing the debt snowball. I’m sure he’s not paying interest on the debt and wants to get rid of it before it accrues interest. I’m willing to bet he already has money saved for emergencies and getting rid of that debt in what seems like less than 10 months will be a huge relief. When you’re doing the debt snowball you don’t save or invest
I went to grad school at Kogod, American University with Garrett . He's such a great guy, and very brilliant too .I think he has what it takes to be a billionaire.
1,300 on food - bro thats like rent money, so one call graham!
sicheng weng ,,, Hooo no no no, graham is a Cheapskate. 👎 This smart guy is working the things on his way and is working for him, good for him. 👍
p.s. Lucky him, Enjoy your $1500 on yummy food! 😋
@@kathyr2090 Graham is also a millionaire so....I mean if he values spending 1300 on eating out over investing that money then good for him. Thats 13K on food a year - if you invest that, you could eat out as much as you want with the returns you would get thru investing
How does this man have a monthly budget of $12,232 if he only makes $120k annually? 🧐
He’s on the right track..Buying real estate in prime areas using VA loans is smart. The appreciation over the next several years will put him ahead big time. Salute to this guy..doing big things at only 24. Easily a millionaire by 30.
The military offers so many great benefits - during enlistments and afterwards. Good for Garrett for utilizing these.
I can already see the thumbnail of Graham’s next reaction video: GUY SPENDS $1500 ON FOOD/MONTH
miya lu $50 a day on healthy food isn’t out of the question
Ikr
And savings 100 dollars only
miya lu ,,, Hooo no no no, graham is a Cheapskate. 👎 This smart guy is working the things on his way and is working for him, good for him. 👍
p.s. Lucky him, Enjoy your $1500 on yummy food! 😋
WHO IS THIS GRAHAM PERSON?! 😂
When you lived in the DMV and know where he lives even though they blurred it out (not gonna go to his home lmao)
If I earned that type of money I would for sure be doing the exact same thing which is gaining rental properties. He's so young and does so great. This is motivation to help me level up my game.
Guy was smart and chose an mos that translated skills well into jobs. Also most likely went to school while he was in. Smart dude I’m having Uncle Sam pay my mortgage too
Very interesting since I was pretty sure you weren’t allowed to use a VA loan to finance a rental property....
Probably lived in it for 2 years and moved.
@@jjordan6066 we are going to hope that is what he did lol
Graham’s voice...”Wait for it...Millennial Money”💰
lolllll
1500 dollars for foood whaat? *Rubs his eyes
I’m assuming spending “$1,500 eating out” is code for escorts and strippers... LOL 😂😂
I think so.. he was eating a frickin wrap...
Exactly, what is he spending $50 per day, every day of the month on food wise.
Aside from some debatable budget decisions, I was glad to see a service member utilize the assets he has (VA loan) to build a business after the military. Good luck with your investments!
Pretty standard stuff - it seems like everyone does rental properties and/or stocks as these things have been a one-way bet for so long!
You really think spending 18k a year on food is good
Rental properties and Index mutual funds investing have a great track record of success. If it isn't broken, why change?
This is the most interesting military ad I have ever seen.
I enjoyed this episode. Especially because I live in the DC Area. Investment Properties are my next avenue. Great episode, at 24yrs old he is doing phenomenal!
I think so too, I can't understand these other comments. I don't even want to think about where I was financially at 24 yrs old lol
He'll go far. I'd bet on it.
I'm trying real hard to not be all green with envy, but despite a bad habit here or there, there's parts of this that are attainable.
Ok, but if you make a grilled cheese sandwich you DON'T HAVE TO WASH A LOT OF DISHES!
Yes ! A new episode.
Finally Graham Stephen is going to have a lot to talk about.
Nobody cares about him anymore
@@JohnLee-fr6pi its just you, by the way!🤭 WE care✌️
Homie used a VA loan for the rental property in Alexandria??! VA loans are supposed to be for owner occupants only
If you live in it for 365 days it satisfies the owner occupancy requirement then just refinance to free up to cap on the VA loan so he could use it a 2nd time on his 400k apartment in DC
Sam White yup but he never occupied that property. Unless he just never mentioned it
He is an awesome guy, sometimes we don’t have the things we want when we’re younger!!! Once we’re adults we splurge on certain things we once did not have!!! If you work hard for it Go For It!!!!
He’s doing well for 24! He will learn to budget better but he’s building himself for the future! He will be a future CFO and real estate mogul in no time!
Thank you for your service to our great Nation!
US gives the social benefits to veterans that Finland gives to everyone
But to get the benefits, you must risk your life and return home alive.
Finland only has 5.5 million people . The US has almost 400 million. Big difference
@@AverageJoe483 yeah and taxes is different
US potential to be in upper middle class is higher
how is it 12,000 monthly if he makes 120k a year. even if that was his take home. what is happening?
Shani Ballard I’ve watched a couple of these videos and non of the math makes sense. Even if his take home after taxes WAS $120k, his budget adds up to almost $150k! If you take away his roommates share of $1k, his budget STILL adds up to over $130k.
Shani Ballard I meant I’ve watched other Millennial Money episodes. I feel like each of them has the same issue where it’s not clear whether the income stated is pre or post tax and the budgets math just doesn’t add up.
They probably counted his gi bill which pays him 2300$ a month in that area. I do the same
More D.C. videos, thank you!
Graham is actually gonna love it. Despite the fact that he spends 1300$ on food, he already has like 3 properties, while he is only 24. And! even this 1300$ he spend in order not to waste time on cooking and cleaning, I guess it is worth it. What is more, he literally goes the same path as Graham, save-buy house-rent it-repeat
Sergey Dazzle And taking advantage of all his VA benefits to advance his education. He has a plan and on track! As he said $1.300 opportunity costs.
Even with his great plans, he can still cut down on eating out. Maybe bring it down to $700 per month and save the rest in emergency funds.
I thought he was 38 he looks older way older
People handed things usually do
Needs to add ironing to his budget.
Damn...seeing his girlfriend once every other month? Brutal
$18,000 a year on food... Imagine using that towards his debt. It would be paid off so much faster.
$1500 a month on food? What 3rd world country are you taking to dinner? Easy could pay off you student debt.
angel gonzalez ,,, This smart guy is working the things on his way and is working for him, good for him. 👍
p.s. Lucky him, Enjoy your $1500 on yummy food! 😋
*$1,700
from first impression he seems like a very good person! Hope he's doing good!
ahhhh yes to md!! love national harbor!M
These are the numbers I'm coming up with after some quick math:
-According to SmartAsset, 120k salary in the DC area = $6,793
NET income a month ($10,000 GROSS)
- Using the GI Bill at American University = $2,535 a month (not taxed since it's a VA benefit) for "Housing Allowance" PLUS tuition fully paid (you only get paid while in school, so between semesters you do not get paid the "housing allowance" - mentioned at 08:30)
- His roommate is paying him $1,000 a month
- 38k (3166 a month, assuming that this is net) yearly income from rental homes
Monthly NET Income
13,494 (Net Monthly Salary + GI Bill income + roommate money + rental home money)
12,231 Chart at 01:03 indicates this as his monthly expenses
1,263 remaining after all expenses (if we don't count the GI Bill, $-1272)
At 06:59 it says that he owes about $47,500 in debt (not counting his properties). His 5k a month payment rate will knock that out easily, especially if he tosses some of his remaining money in there - so that's around 5-6 months (or more depending on interest rates, but still not very long).
Someone correct my math if its wrong, I'm just trying to look at everything realistically. I reckon that the monthly food and debt payments probably fluctuate a little bit.
thanks for the break down! i was like i ear close to that and there is no way i am bring that home. lol
Your math is a little off but just because he's still paying a mortgage on at least one home. Even if he was pocketing everything and not paying taxes his income would have to be $140k+. Something about these numbers is way off
I am sure this will get buried, but I would really like to know what is Garrett's connection to Dominica? I noticed at @ 3:13, the island's flag on his refrigerator ?
So his monthly budget is >12k. 12,000*12 = 144,000 per year. He only makes 120,000 per year so hes going into 24k of debt per year? What am I missing? Also where are the taxes?
I eat out every day in an expensive area and I spend 500 a month and I thought I was way too crazy, but this guy...!
My man in PG county!! I’ve toured that complex he stays in. The price was ridiculous better off getting a townhouse; great that he has a roommate to split the cost.
Mark my words...Graham is going to put his head in his hands when reacting to this one.
I can already see Graham screaming about his savings 😖
Semper Invest, little Devil. Implementing all the strategies at one time and living by design. Well played.
When buying property have a large cushion of money put up for major expenses
yep, he realizes this now since he took out debt on credit cards and a personal loan because of rental property renovations.
Here I am thinking I was doing bad by just saving $2500 a month this man is saving $100 dollars while making the same salary as I am !!! Just wow !!! How scary !!!
Can I ask what kind of job u have?
Alright where is my graham fam at? Cant wait for him to react to this🤣
I love that we all love Graham Stephen 💜💵
since his high school graduation he went college and quit, joined the army and quit, got a master’s degree and now going for another. I’m confused, how old was he when he graduated??
I live in the DMV this one makes me cry 😢
The privilege is sickening
I agree with him. Washing dishes is the worst chore ever lol
This dude is very likeable and nice, good for him
Graham Stephan just blew up when he heard about the $47,500 in credit card debt LOL
Bravo to him for using EVERY OPPORTUNITY advance himself!! Wow! He's only 24.
I use the GI bill as well, that thing is life changing. Look into it if you want free school!
Hey Graham ....you got some work dude ...all the best
I used to live in national harbor, it’s lovely
Millennial Match: Graham vs. Garrett. 'nuff said.
You can see this dude hasn't eaten a vegetable in years.
His talking about your grilled cheese sandwich Graham 😂😂😂
finally a sane and relatable person that doesn't cut back on food haha
This guy spends more on food than my mom could spend for a family of three... For everything!
If your salary is 120k a year, your monthly take home pay is not 12k or anyway near that. Did you guys not use correct numbers?
Holding the Horn of Africa medal 🏅 is great especially with that green color. 😍 I’m from Somalia 🇸🇴
I feel you on the eating out 👌👌