Time to move out?

Question

My monthly income averages from $600 to $800 a month. Two of my friends want to get an apartment together. The rent would only be $250/each a month. I don't think that's too bad.

But, will that be enough money left over for me to live on? I've been trying to calculate my expenses and see how much I spend each month, but I'm still not sure. ... just because I've never done this before!

I'm a little nervous ...

How much money can the average person get by on each month?

Answer 1

You have to make out a budget. This can be either monthly or yearly (divided by 12).
Things to include: Rent, Move-in deposit, Moving expense, Utilities (phone, cable, internet, elec, gas, water, trash, etc.), Gasoline, Car Insurance/Tag, Household items (toiletries, kitchen supplies, etc.), Personal items (clothes, perfumes, makeup, sanitary products, etc.), Food (for you and partly for them - roommates always eat each other's food!), and then extra's like CD's, eating out, nails and hair, car repairs, etc
Be as thorough as you can and even add a little extra on top of that as a fail-safe margin in case something totally unexpected happens. It's not rocket science, so don't be scared, just take your time and make sure you've done the necessary calculations. Then when you see the figures, decide whether you are comfortable with that living arrangement.

A little "fatherly" advice: Unless you know these two friends very well (and I don't mean "all through school"), you may want to rethink whether you can depend on them to also pull their weight. If they don't, and your lease states that there's an early cancellation fee, then you may get stuck either paying all of the rent yourself until you get someone else in there or paying a ton of money for that fee. In a multiple signature lease, everyone who signs is wholly and separately responsible. That means that the apartment management can take only you to court for all of it (especially if your friends dip without a trace), or they can sue each of you for your respective part. I think that you are doing the right thing though in making sure that you are financially able to take this on; just don't do the wrong thing and count on someone that you've never seen their dependability tested. Good luck and I hope it works out for the best!!!

Answer 2

First of all, consider your income on the low end of the average and not the high end... assume your income is $600. Now $250 for rent isn't bad at all; however, does that include utilities? What happens if you or one of the other three bail out... can you guys still meet expenses? Who is going to be listed on the lease and what'll happen if one of you defaults on it? Friends don't always make the best of roommates. Think very seriously about the pros and cons before you sign or commit to anything. If that $250 doesn't include utilities do you all agree on a 1/3rd split? Will you have one phone or each have their own? How will you handle food and cooking and other duties??? It's hard for two people to share a place... let alone three. I think you should consider a part time job for some extra income. Why not put away that $250 a month for the next month or two to make sure you can afford it.

Answer 3

You need to sit down and do your own budget. Make sure to think of all the extra stuff you actually pay for in a given month.

Utilities, food, coffee, lunches out, bars, drinks, and one that no one ever thinks to budget for: GIFTS!

Much could depend on living costs in your area. I bet there's some online budgeting tools you could find that could really help you. But it really needs to be done yourself.

$250 is 41% of $600, your base gross monthly income. That's fairly high for a housing payment. If you can consistently make $800/mo, you're down to about 31%. If you were buying a home, 31% going towards housing is considered a reasonable percentage. 41% is high, unless you are otherwise debt-free.

Answer 4

This really depends on the cost of living in your area.

You need to sit down with a piece of paper and add up the following things:

Rent

Approximate cost of utilities including heat, electric, water, garbage, internet and telephone

Cost of commuting to and from work

If you have a car, insurance, maintenance, gasoline, registrations, inspections

Cost of a month's worth of food for one, and what you will eat when (not IF) your roommates chow down on your Ramen noodles

Cost of clothing, shoes

Toilet paper, Tampax, Cosmetics, paper towels, etc.

Think about EVERYTHING you spend money on in a year. Add in the new costs of rent/utilities/etc, find out how much money you need to live for a year. Don't forget to budget a little bit in there for fun and games, Christmas, birthdays, etc. Divide by 12. If you make enough to cover the number you come up with, and a little left over, you can probably afford it.

Answer 5

well... are you already living in an apartment? i heard that it is about 800$ a month. but since you guys would be splitting the cost it would be a great deal!! lets see... are you making car payments? maybe try it out for a month and see how far you get with 400ish$.

Answer 6

well, can you live on 350-550 a month? That sounds pretty hard but do-able