My mother gave me my $100,000 inheritance early. I struggled to pay my bills before — now I'm set up for life.

• Jillian Pretzel received a gift of $100,000 from her mother when her grandmother died.
• She decided to use the money for a down payment on a condo, which now generates passive income.
• She plans to sell the condo and give her daughters an early inheritance when they get older.

At 25, I was working a 9-to-5 sales job along with four different side hustles and still struggling to pay my bills. Between my steep Southern California rent, utilities, and grad-school tuition, I was just barely scraping by.

When my apartment complex raised my rent from $1,600 to $1,800 a month in early 2016, I cried.

Around that time, my grandma passed away, and she left some money to my mom. My mom, in turn, generously offered the bulk of it — $100,000 — to me.

"At this point in my life, I don't need that kind of cash," she said. After years of working and single-mom penny-pinching, she'd done well for herself and had recently upgraded from my childhood townhome to a beautiful home with a small yard. "Think of it as your early inheritance," she told me.

It was an immense gift, and I wasn't sure if I felt comfortable accepting it. But she insisted, noting that as an only child, I'd eventually get any assets she left behind. She wasn't planning to spend that kind of money and didn't want this inheritance to simply sit in her bank account. "If you invest this money now," she said, "it could help set you up for the rest of your life."

As housing prices continue to rise, early inheritances, in some form or another, have become more common. I was lucky enough to benefit from my mom's financial position and immense generosity. The most important thing was to figure out the best way to use the gift.

I chose to focus on my long-term financial planning

I thought of investing in the stock market, but because I was already considering moving out of my pricey apartment, using my mom's money as a down payment on my first home seemed like the best choice. Putting down more cash up front meant I'd have a lower mortgage rate, and I wouldn't have to worry about rent hikes ever again.

I went house hunting, and after a lot of tours and careful thought, I put in an offer on a small one-bedroom condo with a detached garage. The place wasn't fancy — it had a dated kitchen and purple walls — but it was in a nice complex with lots of trees.

We settled on a sale price of just under $400,000, a modest amount for a starter home in my suburban area.

Part of me thought that with the inheritance money and my own home, my financial woes would soon be over. But I struggled with money more than ever during my first years as a homeowner. My mortgage was about the same as my previous rent, but I also paid a hefty $540 a month in homeowner-association fees and home-maintenance costs, so my bills were overwhelming.

I was stressed about money, and for a while, I was afraid I would default on the loan. But I cut some of my costs, thrifted everything, and got up the courage to ask for — and got — raises at some of my jobs. I barely squeaked by for a while, but eventually, I started to see the investment pay off.

Now I'm benefiting from the investment

I got married in 2020, and my husband and I had a baby. We stayed in the condo I bought for a while, but around our little one's first birthday, it became clear that we were quickly outgrowing the space.

Despite steep price hikes during the pandemic, my husband and I were able to buy a three-bedroom townhouse nearby. We had been carefully saving and were able to get a down payment together without selling the one-bedroom.

Now, I rent the condo out annually to tenants, and while there are still maintenance costs and annual HOA increases to consider, I typically make a few hundred dollars in profit every month. It's not a lot, but I know that as market prices increase, I'll have the potential to collect more.

With two young kids at home now, I'm thankful for that passive income. With extra cash coming in, I'm comfortable working part time as a writer and seasonally at a theme park. I spend the rest of my time with my girls, and it's a luxury I'm so grateful to have.

When my husband was unexpectedly laid off from his job earlier this year, our rental income made the ordeal much less stressful. While the layoff was disappointing, it wasn't cause for panic.

Not only did we have the extra cash coming in every month, but we also had the option to refinance and take money out of the home if needed. We weren't so tight on cash that we needed to do this, but it was nice to have the extra sense of security.

I hope to help my own kids in the same way

My early inheritance has meant so much to me. It created a dependable investment and a valuable safety net. I know that it's going to help support my family long-term.

I want to set my daughters up for success in the same way, so I plan to sell the condo when my girls are starting off on their own and gift them the profits as their own early inheritance.

I think it will be a meaningful way to pass on the same life-changing gift I received, and I hope my girls will know how lucky they are to get that gift not just from me, but from their grandmother and great-grandmother, too.