Financial Situation?

Question

Here's the deal. I'm 22 and want to move out on my own. My parents are no help in telling me if my budget is feasible or not... so, I'm going to ask total strangers. I'm single, no kids, two dogs.

The place I want rent is 815/month. It's 760 sq. ft, so I'm assuming that utilities (I would have to pay gas and electric) are $150/month. I would want cable/internet, that's another $100/month. Total is $1065/month.

My other necessities are: my dogs ($100/month) & food ($300/month)

So, I'm looking at $1465/month in fixed expenses

I Gross about 2400 a month, net about $1800 (after health insurance and other things)

So, that would leave me $335 a month for household necessities, fun, and savings... is this reasonable????

Also, I estimated most thing up, so there's potential for a $200+ difference.

Also, I have no transportation costs. I use public transportation and the cost of my pass is deducted from my pay check.

I doubt I will get any new answers, but I guess I should have added that I do have a considerable amount saved up for a rainy day - passed what I have saved up to move out.

Also, in regards to transportation - if I have a pet emergency, I will have to get someone to take me to the e-vet, but I'd have to do that now, I don't drive at all. And I can use public transportation for shopping.

I also have an apartments worth of furniture and other times, I will need things like toilet paper and cleaning supplies, but I've rolled that into moving expenses.

I also have no debts at all.

Answer 1

I think you have made a reasonable estimate on your expenses, and it seems to me that you could live fairly comfortably with what you have laid out. The only thing I would add is to put away a small amount of money in savings so you can build some savings in case of emergencies.

I think you can do it! Plus, you will never know if you don't try! Go for it!

Answer 2

Yes, it sounds like you can 'afford' it, but as everyone else here has mentioned you're going to be on a bit of a tight budget. It seems you've done a fantastic job putting together what would be considered "normal expenses", but you need to consider the "what if's" that could really cause issues.

These things could very easily pop up and could potentially easily put you into debt. What if you need new clothes for going out or for work? What if you get sick and need medical care past what your insurance pays? What about simple health care like going to the dentist or getting your hair cut? What if one of the dogs getting sick? You've got a new place what about some furniture, pots and pans, dishes & silverware, decoration? Also consider that it's a good idea to save for the future. You should be putting a minimum of 10% of your salary into some kind of savings plan for the future.

Maybe hold off on getting the apartment until you have a chunk of emergency money saved up. Another thing to consider is looking for a roommate or a smaller place. This will dramatically reduce your costs and free up some of the rent $ for other things.

Best wishes

Answer 3

hmm...It sounds like you did plan it out fairly well. ...but here are a few other concerns...
Transportation costs...I know you said you don't have any. What about...shopping? Taking the dogs to the vet? As far as I know public transportation generally does not allow pets, well not in my area anyway. Once you move out you can not depend on being able to borrow your parents' car, assuming you have in the past to take care of shopping or getting the dogs to the vet.
Outstanding debts..I don't know whether or not you have any. If you have student loans, other loans, or credit cards you'll end up using your $335 to pay these debts which will leave you with little or no money.
Quite frankly I wouldn't suggest moving out unless you have a significant amount in savings (at least $5000) and have at least $500 left after paying all expenses including debt payments and putting at least 10% of your income in savings each month (no less than $180 in your case).

Answer 4

Well...I do see the potential for having more left over after all expences. For example...for a single person, $300 a month for food is sort of high. You can easily eat well on $150 a month. Also, what do you buy that 2 dogs cost you $100 a month?

If you use basic cable and an internet provider like Netzero, that would be half the cost of premium cable and internet cable.

Gas and electric shouldnt be as high as $150 for a place that small.

Answer 5

It's feasible but it doesn't leave much for fun. Also, you should have a little extra for emergencies. Possibly a part time job would help. Is the place you want to rent going to allow the dogs? Usually they make you pay more if you have pets. Do you have a place to take your dogs for their walks? Think all things out.

Answer 6

It sounds well thought out to me. I am surprised you wish to start off with the best of everything. Why don't you start out simple. Then as you demonstrate your self sufficiency you make upgrades.

I am not sure how you are planning for your future but since I started work I have always managed to save 50% of my after tax and health insurance income. It is a disciplin that is paying off now that I am 34. I can't recommend it highly enough.

Your choice.

Answer 7

I don't think you have much to worry about. Is that because the numbers seem to add up as they should? No; it's because you engaged your brain and applied some reality. In other words, you PLANNED with your money. That's something we don't see enough of these days. There's no doubt in my mind that you're gonna be fine.