I'm relatively new at managing my own money for true expenses (since I'm just moving out). I'm 21 years old, I work in Television and I make about 3 grand a month right now (will eventually go up). My only real bill is my car insurance bill right now (which is 120 a month).
I'm looking to get an apartment closer to where I work, I think I've found one I really like and it's $1100 a month (and I'm gonna say about 150 maxed out at utilities every month as well). Do you guys think I'm managing my money well if I'm living in this place? I'm not really saving towards anything. I have a newish car already paid off.. I mean, there's the saving for an eventual house and family stuff.. but I figure that's a ways off (if it'll ever happen anyway).
So what do you guys think? When I look at the numbers, it looks feasible to me, but then I think of the money and I shy away.
Thanks in advance! If you have another question for me, I will reply as soon as you post it. I'm quick, so just refresh.
2007-10-16 14:07:39 · 10 answers · asked by Jay 3 in Business & Finance ➔ Renting & Real Estate
I work in Philadelphia and currently live an hour and a half away.
Commuting is not pleasant. I know I won't be getting a raise, but the job will shift and I'll get more work days.
2007-10-16 14:21:04 · update #1
Earn- 3000
Rent- 1100
Car ins- 120
Bills- 150
Food- ?
Petrol- ?
Entertainment ?
Clothes ?
I think its feasible- fill in the blanks and work out how much you would have left over. As long as you would feel comfortable with the amount left over- i cant see a problem
2007-10-16 15:37:00 · answer #1 · answered by Anonymous · 0⤊ 0⤋
My advice....live wherever you can 'rent free' for as long as you can stand to (bank money for later). Yes I believe you will be ok on your money situation as you explained. Think also of groceries/ and possible car troubles (maybe farther down the road). Everyone says you should have at least 2 months worth of money to pay the bills in your bank acct in case of an emergency. I don't know where you live, but geez $1100 seems extreme. I owned a house for less than $1000/month. Maybe (if you plan to stick with this job) you should just save & wait to buy a house?! Seems more practical than tossing $1100 out the door every month for (in the long run) nothing....Be wise, and think very carefully before getting into something you may regret later. Good luck & congrats on the job!
2007-10-16 14:15:18 · answer #2 · answered by daisyflower_21 2 · 0⤊ 0⤋
That's just about right. In geneal, your housing costs should be about 1/3 of your gross monthly income - and that's the rule of thumb for families so you should be fine. Your commute is a bit long, so I wouldn't go much higher than that if you want to be able to put money away to eventually buy a house.
If you had a little bit of savings, you could actually benefit from buying a house now. Prices are likely to continue their downward trend for at least another year or so. By the time you save up for a downpayment, you should be able to judge how much you can comfortably afford.
2007-10-16 21:20:53 · answer #3 · answered by Hatlady 3 · 0⤊ 0⤋
i think the rule of thumb is your rent/mortgage should not be more than 25% of your after tax take home pay. making three grand a month after or before tax? you should make $4000 or more after tax in order to live good in an $1100 apartment.
2007-10-16 14:14:14 · answer #4 · answered by bebop_music 5 · 0⤊ 0⤋
each and every toddlers are depending to their mum and dad rather at the same time as don't have a job that would properly be their components in getting money. because you're already graduated, you'll come across a robust earning interest so as that each and every individual the failings that you'll opt for in renting an living house will be supported and there is no opt for therefore that you may invite help for your mum and dad.
2016-10-21 07:04:30 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Unless you really blow your money on junk and it sounds like you won't do that, you should be not only able to afford the apartment but to save some money each month so that some day you can buy your own place.
Good luck
2007-10-16 14:25:24 · answer #6 · answered by annigoodhere 3 · 0⤊ 0⤋
As a landlord I would not rent to anyone when the rent is more than 33% of their gross monthly income. Some follow the 25% rule.
2007-10-16 14:55:00 · answer #7 · answered by Bibs 7 · 0⤊ 0⤋
consider getting a roommate? it would be nice to have extra $ to save every month for a down payment on a condo or house... plus when you own, you can deduct all the mortgage interest on your taxes!
2007-10-16 14:28:21 · answer #8 · answered by jiffypop12182 2 · 0⤊ 0⤋
you are slightly over the 33 % of gross income for housing level, but if you know you will get raises soon and are careful with discretionary expenses such as socializing, you should be OK.
2007-10-16 14:17:27 · answer #9 · answered by Mike 7 · 0⤊ 0⤋
talk them down to $1000 and go for it. Quality of life is more important and you could be relaxing during that 3 hour round trip commute.
2007-10-16 14:29:47 · answer #10 · answered by Mark 1 · 0⤊ 0⤋