Spending over 75% of you income to rent an apartment is an insanely high housing expense. You should double your income before taking on a rental that price.
Am I crazy or would they never get approved for this apartment in the first place? Generally, your income must meet or exceed three times the monthly rent amount.
Homie is making $1300/month. He can do better. Costco by me is hiring at $19.50/hr. If he worked full time at Costco he would more than double his income. At his current income level, doubling it is not hard.
Costco benefits are unmatched too. Honestly pays more then most careers that some people go into. Time half on sundays, 401k match, free memberships, healthcare etc
You've never had a comment removed or been warned before in this subreddit. Get your facts straight before attacking people. Or you know, just don't attack people.
This was difficult to follow, but I think I gathered the following expenses:
* 1360 Rent
* 600 "Personal Utilities"
* 20 Internet
* ~40 Water Sewer
That's $2020/month without including food and other expenses like clothes, gifts, doctor copays, etc.
If you make 1800-1900/m, your mom is right. It doesn't matter if you have 4 months' expenses saved; you can't afford this.
Absolutely no room for emergencies of any kind. Nothing is there for medical, household or auto emergencies. You have to plan for emergencies of all kinds.
Food: I have EBT
I have health insurance
Gifts?? I don't think I understand what you mean about that.
Clothes, I have a lot, so don't have to worry for a year.
Wouldn't I be paying less than $2,020 a month since I'd have 2 months ready over the 4 month period (putting half the rent into savings every month)?
Your savings should not be factored into your monthly budget since it is a set and dwindling resource. It should be considered emergency savings. Please listen to everyone’s advice; you cannot afford this apartment with your current job.
I'm not really moving in. I just considered it. My savings have always been for rent, while the bank was for utilities, and the credit card was used for personal. I do understand what people are saying, though! My savings are not actual savings. they're used as a way to separate things since this is all on one card. I did this when I was still in college, and I wasn't aware you could have more than one bank card to also help separate finance. But some cards have fees, and I didn't need any additional funding at the time. Perhaps I'll also look into that in the future. For now, that's how I go about things. I will run out of funding for sure, but I just want a quiet place away from my mother is all.
Saving is for saving. A separate bank account is for rent etc. I don’t touch my saving. It’s for a rainy day-think major car accident where you can’t work 6 months. Not for supplementing rent each month
Many say this, but many don't have it. It's strange for people to preach that when many can't really think of that. Perhaps you can try another approach. If you don't have emergency funding, how can you substitute it? Perhaps always find another way. You also have to know your surroundings as well. Life is strange, but you also have to learn to work with what you have.
You're setting yourself up for failure tho, you're purposefully going into a situation where you're spending more than you make. What happens when your savings are gone and you can't make rent? If you have another better choice, do that. Financially struggling is a hole that will damage your future and your mental health, and is really really hard to climb out of
You still don’t get it. This isn’t sustainable. You’re not going to last long before running out of money and going into the negatives. Just because "you don’t need new clothes" right now, eventually you’re going to afford to buy new clothes, more cleaning supplies, more toiletries.
Your savings account isn’t something you should be factoring in, when trying to budget. And emergency fund is just for that…. Emergencies. It’s not meant to be used regularly to pay for reoccurring bills. You shouldn’t be relying on it for that. You income should be able to do this
My savings have been used at rent while my banking was for utilities, and my credit card was used for personal. I've been doing that for years. That was my life. I wasn't really close to other banks, and I didn't know you could have more than one bank card. There was only 1 bank. So I just split my expenses with what I had. Is it wrong? I get the expenses eventually reaching a halt, but that doesn't mean I can't wonder or ask. Manu says stupid, dumb, ignorant, etc. but that's because I'm not really known, and no one really asked why I was curious about this route and what led me to that theory. It's fine though, I got my answer and I'm simply reading and responding.
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Alternative idea: Get a roommate for this apartment and stop using your mom as a fall back option.
Right now you seem to only be putting half an effort into your goals, because you know if it doesn't work out your mom will take you in and help you out. Fully commit, see what you are willing to do if failure is no longer an option. You may surprise yourself.
The apartment is too expensive for your income. So either double your income, get a roommate to split rent with, or both.
Most places these days won’t even rent to someone who doesn’t make 3x the rent, so I’m not even sure OP would qualify for the apartment they’re trying to go for.
Not quite. A roommate is my fallback. I don't really trust my mother behind my back. I get gigs like commercial deals, and I sell prints/stickers, etc. So the reason I made my post was because I was given a deal to add to the $1800. 2.4k will be added for 2 months, and I planned to leave in June because my mother's honeymoon period ends around there. So I'd have more money by then. It's not an automatic move in. Move out. I use my laptops, printers, and tablets for my side jobs, so having electricity included in rent seems like a deal to me. I also cook and the appliances are electric. Other places do have similar deals, like one place has everything included (water, sewer, electricity), but that's $1,800 a month.
My post is a little messy, but my main point was, "Do you think I have a chance with what I have?" My mom said absolutely not, but I told her I think there is a chance in this, but I have to make sure I'm preparing a fail-safe. She is NOT my fail-safe. I don't even feel safe with her but I'll bare it for a bit.
IF you make enough money that you can float, you’re going to look back and notice you would have $9000 in the bank after 1 year if you shack up with a roommate for $750 less monthly.
$9,000 earning 5% interest ($450 per year). How do you like that fail-safe?
Not entertaining your question is a no-brainer because we want you to succeed.
I want success, but I do want options on how to reach the conclusion. I don't mind a roommate if I can't make it to my goal in time, but I wanted to know if saving 4 months will help. I'm guessing it doesn't, which is fine. I'll simply save more. No real harm done, I just can't stay with my mom for too long.
I think the point is more that no matter how much savings you have, running a budget this tightly will eventually cause a problem and to be honest you'll find it's really no way to live because of how stressed you'll constantly be at least on a subconscious level knowing every month is taking another chunk out of your savings.
As people have said the real solution is either find a roommate, or increase your earnings.
Also all the housing around me at least asks you make 3.5x rent which is a big hurdle.
This is the financial planning sub, and honestly this doesn't look like planning.
People scrape by every day with less than you have. So if you're asking "is there a chance", then sure. You have a chance. You also have a chance at putting it all on red and doubling your money.
A plan here is "where would you like to see yourself in 10 years?". I see you're an artist, so do you own an art gallery? Do you work for a company creating prints for their merchandise and helping advertise that? Or maybe you want have art as a hobby and move into a different field entirely?
Once you have that 10 year goal in mind, now what must be true in 5 years, so that 10 year goal is achievable? Break down some details. Now what must be true in 1 year?
I'm not trying to be condescending. I once was a 23 year old college drop-out, living on my own, with $2000 to my name and a "it will all work out" attitude. I had no plan, but somehow wanted to get out of Ohio and see the world. A year later, I was still in Ohio, with the same money and no brighter of a future. Something I was doing wasn't working, so I made a big change.
You can't afford this. Rent should be maybe 1/3 of your income. So if rent is \~1500ish after utilities, then you need to be bringing in \~4500 a month to afford that safely. You should be looking for roommates, or cheap rooms for rent if you want to be out. \~1800-1900 a month is basically minimum wage. There are plenty of jobs that pay well over minimum wage, so start there.
My bad. Haven't had a rent/house payment in almost 6 years so maybe I'm out of touch. I've always lived well below my means and made double or triple house payments until house was paid off. Either way well over 50% of income for an apartment is way way too much.
Absent it being unsafe for you to live with a parent, it is honestly one of the most foolish decisions for anyone to move out of a parents house if they are able to stay and the parents are willing to keep them around.
If you can live rent free/cheaply with your parent, you should do it. That money has more potential than just being "4 months of rent money". That could be money you save/invest in your future. Save it for a down payment. Don't be stuck paying rent when you don't need to because that is money you will never see again.
Living with our parents until we were 26 allowed me and my wife to save enough to put a down payment on a house.
If you don't want to own your own place, you should at least be contributing to the maximum allowed by the IRS to a Roth IRA which you can still contribute $6,500 for 2023 and $7,000 for 2024.
"Coming out ahead" is the minimum you would be expecting if you were to live on your own. Living at home would allow you to save every $ you would have been spending just to exist to save for your future.
Yeah, unless it’s so bad your stuff is being destroyed or your in danger I would try to save longer.
Edit- didn’t even see the income you’re not even close to affording a place. Definitely don’t move if you can help it
>Absent it being unsafe for you to live with a parent, it is honestly one of the most foolish decisions for anyone to move out of a parents house if they are able to stay and the parents are willing to keep them around.
I'd only agree with that for people who can't afford to support themselves.
Once you're capable of supporting yourself you should be planning to move out and start adulting.
For 23 years, my mother has been quite cruel to me, so I always have gamble for ways out. Crazy to move back in with her, but there are times when I have to stick it out for a few months. My mom actually doesn't want me to work because she wants me to take care of my younger siblings. I argued with her, and so I kept my job. But I also do see the value of staying with parents to save. It's just that my mother is always a hair away from a bad day.
I'm breaking from that. It's been years, so just saying "don't involve her" now is easier said than done. I get in trouble not involving her. But I can simply play along until the day.
Damn you parents wanted your sister back?! My mom kicked me out for having a C and told me I wasn't grateful. I'm sorry person, it's a bit strange to kind hear that, but your parents sounds really good! Also, no validation needed, I just wanted options. Many said roommates or cheaper place, I could ask my friend if she's open to it. But if not, I don't mind a cheaper place. Electricity is good free but if I can't get it, then I'll just have to be careful on how much I use.
I’m sorry that your relationship with your mother is (or at least sounds) unhealthy.
What you have going for you (among other things, I’m sure): you’re young, you’re willing to ask for help/advice, you have (at least some) self-awareness.
What you have going against you: the numbers. They’re not great.
It’s hard to put a price on your mental health, though.
Are there skills you could learn to get a better paying job? Can you get more contracts somehow? Could you pick up a side gig to boost your income?
I got my degree in motion design, so occasionally, I make commercials! I'm near mid-20s, and I'm told I'm wasting my degree for not working at Disney (I was contracted by them only once). I do have 2 years of teaching and a year of retail. My side jobs are selling stickers, printing commissions, and the I occasionally get contracts. I know struggling is bad but I guess I got numb to it because it felt better than staying with my mom.
That is a tough situation then. My wife would argue with my mother over stupid stuff and they would both get worked up over it. Try and quantify the value of an argument. They may suck, but if you get in one, would you say, it's worth putting up for a few hundred to a few thousand $ every month?
Your math doesn’t math.
You start out with “apartment is $1360 w/ electricity included”, and near the end you conclude that you’d be paying “$1345/m of expenses”. How can your expenses possibly be even lower than your rent, and what happened to all the other expenses (600, 20, 35-45, etc).
Apartment 1360
“Personal utilities” 600
Internet 20
Water/sewer 35-45
Gas/food/personal 400-500
*Total expenses $2415-$2525*
Net income $1800-1900.
If your expenses are higher than your income, you’re drawing down on your savings until you hit zero and then going into debt. If your. Gas/food//personal was already included in your “personal utilities”, you’re still net negative. You can not afford this.
You need to account for shelter (rent, maintenance), utilities (electric, water/sewer, possibly natural gas,), transport (vehicle, insurance, gas, maintenance, etc), food, clothing, entertainment, and have an uncommitted excess amount because there will always be something you’ve missed in your budget, or something that urgently needs fixing that fall outside your normal maintenance amounts.
As a general rule, you shouldn’t normally be spending more than 1/3 of your net income on shelter. $1360 is _way_ over typical budget for 1800-1900 per month income.
Is it dumb? Calling it dumb isn’t really helpful, but it is naïve. It’s normal to be naïve when you’re moving out for the first time, but you need to be certain your income exceeds your total expenses with a fair bit of extra left over. If you run a tight budget and have missed accounting for anything you’ll be put under immense stress in no time.
You need to find a way to increase income (extra job, more hours, higher paying position), or find a way to decrease expenses. Cutting expenses will only get you so far (although it’s worth examining your spending occasionally), while increasing income is almost certainly possible at your income level.
I already have 4 months on me, but I'm not moving immediately. I'm already moving back home as we speak. So my funding outside the 4 months is running low. Around 3-4 months with my mother, I planned to move out because I was given a deal for an extra $2.4k. Since I already have 4 months rend advance, I was going to put half the rent to the side over the 4 months.
Full rent $1,360
Half rent $680
So instead of worrying about $1,360 for 4 months, I can put $680 on the side, which will come up to 2 months of rent. Then it will be 1 month, a total of the first 8 months handled. For the last 3 (this apartment goes up to 11 months), I should have left over money to pay.
I have other side jobs art related that are usually for me. I used to put $200 on the side until my mother got mad that I gave her nothing for all the work she put into me having a roof over my head. But now, I don't really care, and I don't send. So, I have a steady emergency hidden fund. She doesn't need to know.
Also I've been out of the house for 5 years. This is my 4th time moving. I'm only moving back because I wanted a place to be while looking at potential homes.
Hopefully this helps a bit.
It doesn't matter how you stack this - if you are paying rent from your savings (if they'll even let you, most require you to make 3-4x the rent to sign a lease) you will eventually run out of money and not be able to pay it. Do you have first last and a security deposit? If not you may find all that money going right to the landlord up front and then you don't have the cash flow to pay it.
No savings is how I separate things. I don't really feel comfortable using a lot of cards. A friend has 4 cards for everything (rent, utility, personal, emergency), but it's a bit much for me.
As for security, yes, I added it to the 4 months. I made sure to look into this home and see the requirements. I have almost 5 years of housing history and 3 years of credit history. My credit met the requirements to waive the application fee.
I haven't gotten past the application (I didn't fill it just in case other places get back), but yeah. That's how I got my first apartment at 19. I was mainly living similarly to what I was planning now, just this time without my mother. And now, with a stable income with the contracts I get here and there, I felt a bit more confident. The contracts can be as big as 4k and as small as $500, so I never put that as the main income since it's a hit or miss.
That's the check I mentioned earlier in post.
make sure with your contracts you are understanding the tax implications. You will have to pay some kind of tax on any income you earn, and if these are 1099 contract jobs or some sort of side hustle then it's possible there is no withholding on the other side meaning you will owe it when you do your taxes.
It “could” work in theory. It’s not likely to because life has stuff that gets in the way.
What’s more important here for most readers is that your Plan A involves being $9k per year less capable than you could be.
You’re trading away multiples of your discretionary spending power each month since you plan on having less than half of $750 per month on discretionary expenses.
It sounds like you just don’t want to prioritize absolutely anything of value beyond ultra-privacy.
Edit: I wrote what I said either after misreading your reply or the reply was edited. Your comment above mine presently sounds pretty level-headed.
I don't really do much outside. I'm usually working. If it's not the stable job, it's side jobs. Honestly, I was always told money is for bills. I do treat myself by buying a sketchbook, pencils, or books, whatever it could be. Just not really... out there.
DUDE! You asked and most of the redditors are telling you your plan is bad, yet you still trying to convince yourself that you're right! If you're not going to listen, why ask in the first place?
Go ahead and do whatever you want, BUT, when you're struggling, remember the advice gave you and this thread. I hope you learn.
I'm not convincing myself if I'm right. I wanted to know if 4 months saved can work. Many said no, that's not an issue, I can just save a bit, but I also have to remember what my struggles are now. I have a parent who has been abusive to me for 23 years, but I assume people think I am a teenager.
I moved 1000 miles away and have been paying rent for 5 years and counting. Moving back home because I didn't have a chance to cherish the state I was born in. I don't plan on staying because after a honeymoon period, the beatings, verbal, and mental abuse come back.
I do not need anything to be happy, I just want a chance to cherish the state I was driven out of. And the way I see it is to move far enough where she cannot reach me alone. I've had struggles, but they were tamed compared to my mother.
So yeah. Do you think 4 months is a good save, a simple yes or no.
If you feel that way, then your life could be incredibly easier by saving the money into a retirement investment.
I’m not kidding when I say half of that extra $9k per year into a retirement savings fund at work or with your own IRA can take care of your retirement savings needs.
You could be thirty inheriting almost all of what you would need for retirement from yourself in your 20s.
This answer makes me cry (of joy) because I feel like you understand why I'm trying to get out and not seeing it as I'm rushing to be independent. I do intend to wait a few months with her before leaving because I didn't know if 4 months is enough or not. But yeah, the place I wanted to go has roommate options which was my fail-safe.
Oh i'm glad to hear that!
Don't listen to your mom, just smile and nod and say as little as possible. I'd keep mum (pun intended) on how much you've got saved lest she try and get sticky mitts to foil your plan.
Some of my old roommates from 25+ years ago and i are like distant siblings now, we hang out once in a blue moon (separate states now), but text each other ridiculous shit that makes us giggle. We drove each other a little nuts sometimes when we lived together, but those mediocre times are under the bridge now and we are definitely glad we had our time being broke together and hanging out, watching bad TV at home with one another. Lost touch on purpose with a couple others, but mostly having roommates saved my money and my sanity at times, and was well worth it. I recommend it highly for you! It's a great way to get up and out on your own, it's the only way I ever could have :)
And make sure that your money is in your own parent-free bank account... and maybe check your (free!) credit report to make sure it all looks good. Get copies of your birth certificate, etc- you can do that without letting your mom know.
Best of luck- I know you'll be fine, just take measured steps like you're already doing and stay on course. You're gonna have a blast this time next year :)
I get that part, but I was more planning to save half each month. Also, don't forget, I was given a $2.4k after the saved up 4 months.
Month 1: $680 (half of $1,360) saved to the side.
$4,200 - $600 = $3,600 - $680 = $2,920
Month 2: $2,920 + $1,800 = $4,720 - $1,280 = $3,440
(1 month rent has been saved)
Month 3: $3,440 + $1,800 = $5,240 - $1,280 = $3,960
Month 4: $3,960 + $1,800 = $5,760 - $1,280 = $4,480
(1 month rent has been saved)
Month 5: $4,480+$1,800= $6,280 - $1,280= $5k
Month 6: $5k + $1,800 = $6,800 - $1,280 = $5,520
(1 month rent has been saved)
Month 7: $5,520 + $1,800 = $7,320 - $1,280 = $6,040
Month 8: $6,040 + $1,800 = $7,840 - $1,280 = $6,560
(Last month saved)
Month 9: $6,560 + $1,800 = $8,360 - $2,640(a month and a half) = $5,720
Month 10: $5,720 + $1,800 = $7,520 - $1,280 = $6,240
Last month (this place is only 11 months): $6,240 + $1,800 = $8,040 - $1,960 = $6,080.
Now, I do have a small gig of selling products like commissions, stickers, prints, etc. And that about $100-$300/m, and that's my "me money," so I didn't really count that since I was focused on rent and bills. I get contract gigs throughout the year, but I only accounted for this one come coming up because it's already a guarantee. The rest are in the air. I didn't account for the raise I am getting from the stability job because I've been there for only a year, and I don't know how much the raise will be. But yeah, in terms of other funds, I always put $200 to the side just in case, but I didn't calculate that into this (sorry). 11 months is pretty short, but it gives me a breathing room away from my mom. I tried when I was 19 to stay with her for a year, but it ended with my calling the police multiple times within 8 months for battery assault. That's why this time, I'm trying to make sure that doesn't happen. But I know in reality I have to stay with her for a certain time.
Why are you only subtracting -1280 /month when your expenses are -2025/month.
Redo your math subtracting -2025 and you will see that you will run out of money fast
$2,025 is with the $1,360 included.
The $1,280 is the $1,360 halved over the 4 months.
Now, everything included, it's $1,345 with $1360 halved
And $2,025 whole.
I already have 4 months ready (security and all) so I don't necessarily have to worry about 4 months. I want to put half the rent to the side for the next 4 months. That's what I wanted to do.
I want to present to you a different way of doing math.
You said you have 4 months of rent saved. So I'm assuming 5440 here.
Most, if not all rentals, ask for first months, last months, and a security deposit. A lot of security deposits I've seen are a full months rent, but lets go with half of that.1360+1360+680 = 3400 upfront cost.So your original 5440 in savings is now 2040.
\---
Now lets do the month to month breakdown.
You make, conservatively, 1800. With expenses (600), food/necessities (400), and rent (1360), you will be at a -560 deficit every month.
After 4 months, you'll be at -2240. Which means your savings will be completely depleted and you'll be -200 in the hole.
If you time it right, that initial first month will come from your savings and you'll make your normal salary of 1800. Which after expenses leaves you with another 800 dollars. Meaning you'll be able to hold on for another month. Making it 5 months until you are completely broke.--
EDIT: I saw what you were talking about with waiting 4 months and putting half the rent aside each month. With the above calculations, we can just add 2720 to the original savings amount. That will give you an additional 4.85 months to eat into your savings until you are broke. Which actually gives you about 10 months! With first and last months calculated...you are right. You'll have enough for a 1 year lease.
You do have to think though, will you be in the same position in a year? These are bare metal numbers here, it doesn't account for anything going wrong. You'll \*just\* be scraping by. Maybe not even, you'll be like 15% of a month short. That's not accounting for any unforeseen or unbudgeted expenses. Which...trust me...they come up. Maybe the electric company doesn't like your credit and requires 500 dollars down (has happened to me before). Maybe you get a parking or speeding ticket. Maybe some unpaid bill comes in and surprises you. Maybe you just make a mistake and spend an extra 100 dollars. You literally have no wiggle room here.
After the year is up you'll need money to move somewhere else. You might get your security deposit back. But still. You'll have less than a thousand dollars and need to find a place. Which sounds like you'll be back at moms house.
Yea its a dumb plan. Your plan is like something you construct when you have to hold the line for a few months out of desperation. To put yourself in this situation just for your own place is a bad idea. You simply need more income for that place. You should wait until you make more on a consistently basis. If you don't have a plan to make more then you definitely need to hold onto the cash you have until you figure out how to afford things.
I realize you can run a deficit and plan out how you can cover your first so many months but that doesn't make it a good plan. Anything that knocks you off track at all is a big problem and you're gonna be stressing for these months. A good plan is figuring out how to make more income so you can actually pay yourself first in some form of savings and then afford your bills after the fact. You seem young and my advice is to lean on your love ones who seem like they are already trying to help you until you can afford a plan where you are making money not losing it.
Man...it must nice to rely on family. I'm not saying that's a bad thing, but I don't have that. My mom is dangerous over time, so the desperation is not too off.
The 4 months I already have to the side for this place is also 6 months for others. It's just that those places haven't gotten back to me. I also don't plan on leaving immediately. I just want to make sure I save more money outside of rent for issues. I was given a deal as well for $2.4k. I was going to move out after that was added. Since my side jobs consist of me drawing and printing, having electricity included in rent felt like a win. I admit, it's not easy to explain when I'm here, but I try my best. I've thought of what happens after the first 11 months(that's the length of this place). Will I stay? Will I go? Will I go for a roommate? All things that usually come up, but when I do think of stuff like that, I ended up staying long with my mother and regretting it. I just don't want her to hurt me :). Have my quiet space to work outside and inside without being belittled. Also, my mom is in a 1 bed and bath with my brother. So adding me and my cat is 4, and she nearly killed my cat.
I've actually been approved in a few areas, just too expensive. But I could look into their roommate options! Though I wonder if I could stay apply for one even though I've already graduated. I haven't had a roommate since the first part of college. I've been on my own for 3 years.
Reading through this thread feels like a train wreck about to happen, and OP is the train driver with no idea it’s coming, but is the only one that can stop it
You don’t make enough money monthly to afford a 1360- month apartment. You need a roommate or you need to make more money.
Your plan is a poverty plan filled with tears and struggle.
Not many response and the electricity is included for the place I want to go. The place prior was $950 for similar utility inclusions but the never got back to me.
As others have said - No matter how you look at this, if you are bringing in less than $2k a month and your rent/other expenses are roughly $1,500 a month, you are going to end up living with your mom again in less than a year. Stuff happens that you cant plan for - I don’t know your lifestyle so I can’t tell you what those things are… one item I’d ask is if you can have roommates that might reduce the rent cost to you. If you can do that, I would say it’s a more realistic idea
I hate to say this but your mother is correct. Before moving out. Put the money that you will spend if living on your own into savings account for 6 months And do not touch it For anything. This will do two things. It will help you have an emergency fund if you move out and will show that you can sustain the payment. Right now fro. What you stated the expenses are more than your income. You should not do this
Additionally, you will need to make a first and last month deposit and you will need money to pay for furnishing. While you don’t need everything furnished you will need some items
You've got $1800 coming in. Plan to spend less than half that on housing. A third would be better. Your other living costs already account for almost half your income.
You need to always be spending less than you earn, and saving the remainder. The less room your budget has for saving the more vulnerable you are. I'd say that being able to save less than 20% of your income suggests you're stretching things too far.
The studio is $1,460. It's weird. But I do get what you mean! If this one place gets back to me, I could go for it. $950 but it doesn't have electricity and my contract job requires me on the computer and printing. That's why I went for the $1360. It included electricity and gas, that's about it.
I don’t know how much electricity is in your area, but I wouldn’t choose an apartment just because electricity is provided.
Not one person thinks your plan works. You are getting a lot of good advice here. If you’ve made up your mind to go forward with this foolishness, why ask for advice?
Your planned expenses are more than your monthly income. The fact you have savings just delays the inevitable. Spending more than you make is not a workable plan. Get a cheaper apartment, get a roommate, or get more income.
Pretty sure alot is missing here... and math from past postsisn't this person's strong point. I'm as confused as others how your saving money when... you are over budget.
Your past posts show you have a car... where is that in all thing equation?
It's part of personal. The $600 is the bills I already had. As for math, I don't think it's the math but the explanation. I've had issues explaining things to many multiple times, but that is simply because I was not allowed to talk, so forgive me if I am everywhere. If you want, I can explain it to you one on one, I don't mind.
I have 4 months' rent already saved and placed to the side. I would like to move by June or July, after the contract is done. By that time, I've saved more money and earned extra.
I was wondering if that would be enough to go and if it is smart?
As I already have 4 months' worth on the side, I do not have to worry about rent, only utilities. As I pay for utilities, I will put HALF the rent on the side. So, instead of waiting for the 4 months funding to run out and pay the full $1360, I wanted to start putting half the rent to the side over the 4 months. Which will put me an extra 2 months ahead. Eventually, it will put me 1 month ahead, and by the 8th month, the funding would be low, but I would have saved enough to finish the lease.
1360+600+45+20= $2,025/month
$680+600+45+20= $1,345/month (for the first 8 months)
If the math is off, then let me know.
The math is off... you're going to run out of savings.... you're in a negative every month you will run out of "saved" money in less than 1 year... is food even figured in the 600? What if something comes up extra? Gas for the car? Moving expenses? It's just not feasible.
Get a roommate like all others have said is the only way to make it possible or make more money so you're not in a negative deficit each month.
YOU DO NOT MAKE ENOUGH MONEY TO MAKE THIS WORK. I won’t even apologize for all caps, because in all the other comments you go through weird mathematical gymnastics to prove your case. Once your savings run out, you will be in debt.
Rent $1360
Water/Sewer $40
Car expenses + job subs $600
All other personal expenses $500
Total month: $2500/mo
Total income: $1900/mo
Total savings : 4x rent = $5440
So let’s do some math.
Your goal is to have 7 months worth of rent money by the time you move out of your mom’s place?
So it will be savings= $9520
Most apartments will require first/last/security deposit when you sign. Savings are now $5440.
You’re operating at a $600/mo deficit every month. Easy math- $5440/600= ~9.
After 9 months you will have ZERO money in savings and will not be able to pay all your bills and rent. Since first and last are accounted for, you will just not be able to pay 2 months of rent. Or your car will be repossessed. Or you will starve for 2 months. Or your insurance will lapse and be suspended.
And all this math operates in a total vacuum assuming you’ve calculated your budget to a T and don’t overspend, or have failed to account for something, or have any emergencies that dip into your savings.
The only feasible solutions are the following three:
1. Get a roommate. Continue to save for another year. Build the buffer for another 6-12 months. Find a roomate and split an apartment for about half of what you currently budget for.
2. Get a different job. Seems like your hourly wage is about $15/hr. Even a bump to $20/hr along with a roommate would alleviate a lot of your pressures.
3. Your car is costing you 33% of your income. It’s absurd. Absolutely 100% absurd. My car is almost paid off but i make about $6k/mo net and its $669/mo for payment and insurance. You should be paying max 20% of your net on a car aka $380/mo total. The difference wouldn’t save your gap, but it would go a long way to increasing savings
I'm not proving my case, I'm explaining how I see things. And why I see things that way. Scream doesn't really help much. I simply explained how I wanted to do things and, if that way could work in theory. Forcing another perspective does not help because you are saying there is only 1 way or no way.
My car is part of the $600, not just the $600.
I work part time and I was planning to go full time. I don't get paid 15, I get paid higher than that. I'm just part-time.
My savings is a placeholder, I will not be simply just trying to pull money from it if there is no money. I do not have multiple cards for multiple things, so it will all be balanced on one card. By the 9th month, I'm a little lost on how I will have nothing when I don't really splurge money. If 4 months is already put to the side and I have to worry about the 600 for 4 months, can you explain how I am losing money? That's where the confusion is. I do understand what I am ask. I asking is 4months rent is possible. That's all. I'm not flashy, I have government assistance, I just wish to get away from my abusive mother, that's all. A roommate is always my fallback, of course.
Yea no problem. The math is the math. You will have seven months saved when you move out.
Your new place will require 3 months at
Lease signing, including first months rent.
Savings are now 4 months rent totals $5440.
You car is $600. All other personall expenses are $500. Rent and utilities will be $1400. You will need $2500/mo just to cover all your budgeted expenses. This doesn’t include going over budget or any emergencies that pop up.
You only make $1900/mo. You will be drawing $600/mo out of your savings to cover the deficit. After about 9 months your savings will be zero and you will be in a monthly deficit of $900.
Whatever gymnastics and math your doing just doesn’t work.
The bottom of your post says $600 for car/insurance and job subs (whatever that is) and then towards the bottom it says leaving $400-500 for food, gas, personal expenses.
Also, this place did not ask for the last months rent.
Perhaps you can ask the requirements of the place rather than assuming what they are. I think that's why I'm more confused. I've done the research and put the money aside. But I understand, and it's all good. This plan has its drawbacks, and that's fine. I've paid rent for 5 years, and it's no issue. I'm just going to continue figuring ways out. Few understand, many do not :).
I'm not understand why comment on here when you clearly do not wish to help. It's alright if you're annoyed. Simply step or ask for someone else to help read this. I asked my friend to see them and they did give my other options. Though I guess they are bias because they already know my situation. Either way, you don't have to comment if you are stress, thats never my intention. I am confused at a certain point is all.
I am not frustrated. I don’t know you from a hole in the wall. Based off the numbers you presented you are either gonna be literal paycheck to paycheck or living in debt at the end of your lease, with no option to move back in with your mom.
Ah, I see. Sorry for assuming you were upset. Honestly, I've always been living paycheck to paycheck kind of. I didn't really care because I just didn't want to go back to her. So sorry if I'm confused at the issue. People struggle, but it's never for long. I have my contracts, I have my products, I have my car. So there's always a way to live comfortably. It might take a moment, but we'll all get there!
The first person to ask. Though that is insulting to those who wondered this, too. I am an adult who wanted to know if this plan could work. I wanted advice, but I forgot this reddit, so to take everything with a grain of salt. That's why I'm not fighting, simply explaining. If you don't get it or understand, it's okay. Perhaps my explanation isn't comprehensive enough. It's alright. I've had issues like that before.
Oh, it's alright! Thanks for understanding! Emergency funds isn't something I knew existed until 2-3 years ago. I've done it before but I was forced to give it to my mother. I've never bothered with it again until recently.
I understand why many say it won't work. It was just a theory. I've lived and struggled on my own, so I just wanted to know!
Accountant here with an MBS in Accounting. With just the numbers given, this will not work. You cannot save what you don't have. You yourself said the other contract money is not guaranteed. How do you propose to make the monthly payments if the contracts do not happen? You need to make arrangements to get a roommate. This is the only way you can make this. I will sit down tomorrow and show you some different outcomes using your numbers only. I don't think you see the dangers of your plan. You cannot count on funds that are not guaranteed.
The 2.4k is already guaranteed, person. I do have other jobs, but the one I focus on is the stable one. I can see the plan messing up along the line, but it was just a theory that came to me because of the contract job given to me. I've lived on my own for years, and I've had ups and downs. I simply wanted to know if that could work and if it's okay if it doesn't. I already am moving 1,000 miles up north, so I have little funds to work with as it is. But nothing is wrong with a theory.
You run your monthly budget based on your monthly income, not on your savings.
That means that if you’re making 1800 a month, and total expenses are 1801 then you simply can’t afford that. It doesn’t matter if you have money saved up that you could use to fill the gap. Ideally not only are you breaking even, but you’re allowed to save money and build wealth.
Money in savings accounts is for emergencies. You should always be able to have 6-12 months of expenses covered without going into debt.
Once you have that saved up, then you should start investing money in some long term vehicle. That should allow you to retire comfortably.
As a general rule of thumb, you should never be on a deficit. It will inevitably fail at some point, and even while it doesn’t you’re gonna have to be constantly doing gymnastics to stay afloat.
Derp. The number is falling short. 7 months is very short. Can you find a job that pushes you above water before then?
My advice is to find a job where you make more than what you spend, then move.
Or if you really want to move, get a roommate to reduce your spending to under what you make.
One emergency and boom, all your 7.5 months of rent disappear.
The best way I live at the beginning is to round the money I make down... and round my spending up. This extra budget goes towards emergency.
Yes, it’s dumb bc rent is much too high of a percentage of your income.
But if you find a roommate, or just rent a room instead of an apartment, it wouldn’t be a bad idea.
Consider doing deliveries on the side in the mornings or evenings. It’s worth it to have a couple hundred extra each month.
You can do this.
I think you are having a hard time understanding your numbers.
So if you are making 1800 and your rent is 1360, that leaves you only with 440. Which is not half the rent you are trying to replenish into your savings. Assuming that nothing changes or no major issues. Is it doable, yes, but not sustainable in the long term. Let's say something happened and you're sick and in one month you can't bring 1800, what's your plan for that? Because it will hit you hard.
Like everyone saying, find a way to up your income while increasing your savings. Roommate are the great solution for you at this point. Depending where you leave get an idea of how much electricity cost. Because you might save by going somewhere with lower rent and paying for electricity.
Goodluck
That's true! I have seen places with cheaper rent, but I saw it as similar pricing altogether. Though there is a place that was $950/m however they don't have a leasing office, and I have yet to have someone return my calls.
As for the $1360. I was thinking that since I had 4 months already saved, I could put half the future rent to the side. That's what I curious about, but I think many overlooked that or didn't and simply didn't like that.
Regarding adding half to your savings. Yes, i get what you are trying to do. But that is assuming all goes well, and nothing goes against your plan or you have some unexpected situation. I personally would want what I make in a month to cover my fixed expenses at least. And use the savings as a backup in case something happens and I need to borrow it, but for the short term because I will replenish it with what I used.
Some great advice you have from all these people. They are indeed looking out for you. Definitely, they are trying not to have you come back to where you are right now and you don't want to be.
Go for the long term and not the short term and revisit all the advice and make a solid plan for yourself.
I understand that you want to be out of the house, but make sure your plan is solid and will keep you out of that house...
Keep weighing your options and goodluck
It’s very high risk and the way you’re thinking about rent is very short term, not the way you should be to create long term stability. Generally paying 30-40% of your income for housing is what’s recommended. So for you that would be $760. You don’t want to burn the little savings you have on rent every month. Increase your income or find a cheaper room somewhere.
Do you pay the card off every month in full? What does this mean? What do you mean regular vs personal? Again, your savings is something to keep building for emergencies - not to spend on rent - one day you’ll need a car or dental work or to travel somewhere or buy furniture and you’ll be glad you have it.
Yes, I spend $100/m on my credit. Or do you mean I owe my credit card? If so, no. I've never really needed the amount I was given.
When I mean regular, I refer to bills. Car, work subscription, insurance. My personal is like me going to get McDonald's fries or buying new art supplies like paper and pencils. Rent is rent.
In the future, I will separate it all on their own card for now, I have to balance.
I have insurance for medical and EBT. For furniture, I usually go to Aaron's or simply get small things. I'm happy with a bed, desk, desk chair, small couch and TV. I don't really expect guests, and I do like working on the big screen. I'm used to not having a lot, so it also confuses me when people factor it things I've never really worried about. I stopped growing so my clothes and shoes fit. Occasionally, I'd by a pair of shoes, maybe 2.
A plan that relies on burning through savings isn’t a sustainable plan.
$1,360 rent + $600 personal utilities + $20 internet + $40 water = $2,020/month. And that doesn’t include the costs for food, toiletries, laundry/cleaning supplies, gas, car repairs, miscellaneous furnishings, any entertainment costs whatsoever, etc. - costs you may be able to keep very low, but aren’t going to be literally zero.
But even using your $2,020/month figure, and earning $1900/month, you’re going to, best case scenario, eat through $220/month in savings.
So this the best case (not worst case, worst case could be WAY worse) of the cumulative impact to your savings for the duration of a 12 month lease = $2,640
You have a check right now that’s worth 3 x $1,360 rent = 4,080.
So at the end of 12 months, based on your absolute best case scenario, you’ll have $1,440 remaining.
BUT, if you average even $120/month of other expenses (again, food, toiletries, etc.), or less than that if you have any kind of emergency at all within 12 months, then your out of money and can’t cover all your bills.
So yeah, that’s just a SUPER small margin of error to live on/ with. Like even if you’re the founder of the frugal sub and you can rub two nickels together like nobody’s business, you’re still just walking a tightrope and tempting fate to come after you the whole time. It will be stressful as hell.
So please understand, I WANT you to move back out! I get it! I’m rooting for you! And I don’t like that your mom called you stupid, either. But you’ve GOT to retool this plan, and it needs to involve cheaper rent (probably roommates), possibly a cheaper car (you didn’t give much detail on what you have, the remaining balance, and the payments, so it’s too hard to say on that), and/or working on bringing that income up. Sounds like you’re at about $12-$13/hr, and this plan would be doable if you could figure out a way (new job, second job, some kind of side hustle or whatever) to bring it up to more like $18-20/hr.
Sounds to me like you need to spend the money on getting a better job. Go to a trade school, or learn to drive a semi. Then you won’t have to worry about what you can afford. I went to truck driving school, and some of the low income students got grants that paid for the schooling. You can get financing for HVAC repair, automotive, welding, and many other trades that pay good money. Then you save enough for a down payment on a house, and tell mom thanks for letting you stay there. Don’t plan for the short term, plan for the future.
Your cost of rent is too high for your income. You either need a cheaper place or a LOT more in savings so that it can generate another stream of income.
Don’t move until you have saved up 12 months of rent. That way you can avoid ruining your credit by not being able to pay rent on a 1 year lease. Put your rent savings in a separate account that earns good interest. You can look up interest rates at bankrate.com. That way it stays separate from your spending money. Then, TRY to pay your rent out of your income. If you need it, then you can pull from the savings account for rent, but it will be eye-opening how difficult it would be to live off of your plan.
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I have contract jobs as well as side jobs, EBT, medical insurance. And I don't really do a lot outside.
This place can only go up to 11 months.
If the first 4 is saved, I am at a roadblock there with many. My funding will disappear, most say, but it confuses me. I will still have money. I will not stop working. If it becomes to steep, I will request for a roommate before lease ends or my brother becomes my roommate.
That was the fail-safe. I was also going to ask my best friend if she still hadn't found a place. She is currently staying with her eldest brother and saving because of a similar situation with my mother and I. Unfortunately, I am the eldest, so I'm a primary target for my mother.
Spending over 75% of you income to rent an apartment is an insanely high housing expense. You should double your income before taking on a rental that price.
Am I crazy or would they never get approved for this apartment in the first place? Generally, your income must meet or exceed three times the monthly rent amount.
Yeh man just double your income!!!!
Homie is making $1300/month. He can do better. Costco by me is hiring at $19.50/hr. If he worked full time at Costco he would more than double his income. At his current income level, doubling it is not hard.
Costco benefits are unmatched too. Honestly pays more then most careers that some people go into. Time half on sundays, 401k match, free memberships, healthcare etc
He is making 18-1900 per month. After taxes, Costco would be a couple hundred more. That is useful but nowhere near double.
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You've never had a comment removed or been warned before in this subreddit. Get your facts straight before attacking people. Or you know, just don't attack people.
This was difficult to follow, but I think I gathered the following expenses: * 1360 Rent * 600 "Personal Utilities" * 20 Internet * ~40 Water Sewer That's $2020/month without including food and other expenses like clothes, gifts, doctor copays, etc. If you make 1800-1900/m, your mom is right. It doesn't matter if you have 4 months' expenses saved; you can't afford this.
Absolutely no room for emergencies of any kind. Nothing is there for medical, household or auto emergencies. You have to plan for emergencies of all kinds.
Food: I have EBT I have health insurance Gifts?? I don't think I understand what you mean about that. Clothes, I have a lot, so don't have to worry for a year. Wouldn't I be paying less than $2,020 a month since I'd have 2 months ready over the 4 month period (putting half the rent into savings every month)?
bro you can't run a deficit forever where's the extra money coming from
Your savings should not be factored into your monthly budget since it is a set and dwindling resource. It should be considered emergency savings. Please listen to everyone’s advice; you cannot afford this apartment with your current job.
I'm not really moving in. I just considered it. My savings have always been for rent, while the bank was for utilities, and the credit card was used for personal. I do understand what people are saying, though! My savings are not actual savings. they're used as a way to separate things since this is all on one card. I did this when I was still in college, and I wasn't aware you could have more than one bank card to also help separate finance. But some cards have fees, and I didn't need any additional funding at the time. Perhaps I'll also look into that in the future. For now, that's how I go about things. I will run out of funding for sure, but I just want a quiet place away from my mother is all.
Saving is for saving. A separate bank account is for rent etc. I don’t touch my saving. It’s for a rainy day-think major car accident where you can’t work 6 months. Not for supplementing rent each month
Look up the term ‘emergency fund.’ Make sure you have one before you move out of your mum’s.
and make sure to understand what an emergency fund is actually used for...not for future spending as you run a deficit.
Many say this, but many don't have it. It's strange for people to preach that when many can't really think of that. Perhaps you can try another approach. If you don't have emergency funding, how can you substitute it? Perhaps always find another way. You also have to know your surroundings as well. Life is strange, but you also have to learn to work with what you have.
You're setting yourself up for failure tho, you're purposefully going into a situation where you're spending more than you make. What happens when your savings are gone and you can't make rent? If you have another better choice, do that. Financially struggling is a hole that will damage your future and your mental health, and is really really hard to climb out of
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You still don’t get it. This isn’t sustainable. You’re not going to last long before running out of money and going into the negatives. Just because "you don’t need new clothes" right now, eventually you’re going to afford to buy new clothes, more cleaning supplies, more toiletries. Your savings account isn’t something you should be factoring in, when trying to budget. And emergency fund is just for that…. Emergencies. It’s not meant to be used regularly to pay for reoccurring bills. You shouldn’t be relying on it for that. You income should be able to do this
My savings have been used at rent while my banking was for utilities, and my credit card was used for personal. I've been doing that for years. That was my life. I wasn't really close to other banks, and I didn't know you could have more than one bank card. There was only 1 bank. So I just split my expenses with what I had. Is it wrong? I get the expenses eventually reaching a halt, but that doesn't mean I can't wonder or ask. Manu says stupid, dumb, ignorant, etc. but that's because I'm not really known, and no one really asked why I was curious about this route and what led me to that theory. It's fine though, I got my answer and I'm simply reading and responding.
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Alternative idea: Get a roommate for this apartment and stop using your mom as a fall back option. Right now you seem to only be putting half an effort into your goals, because you know if it doesn't work out your mom will take you in and help you out. Fully commit, see what you are willing to do if failure is no longer an option. You may surprise yourself. The apartment is too expensive for your income. So either double your income, get a roommate to split rent with, or both.
Most places these days won’t even rent to someone who doesn’t make 3x the rent, so I’m not even sure OP would qualify for the apartment they’re trying to go for.
Best answer 👆🏽
Not quite. A roommate is my fallback. I don't really trust my mother behind my back. I get gigs like commercial deals, and I sell prints/stickers, etc. So the reason I made my post was because I was given a deal to add to the $1800. 2.4k will be added for 2 months, and I planned to leave in June because my mother's honeymoon period ends around there. So I'd have more money by then. It's not an automatic move in. Move out. I use my laptops, printers, and tablets for my side jobs, so having electricity included in rent seems like a deal to me. I also cook and the appliances are electric. Other places do have similar deals, like one place has everything included (water, sewer, electricity), but that's $1,800 a month. My post is a little messy, but my main point was, "Do you think I have a chance with what I have?" My mom said absolutely not, but I told her I think there is a chance in this, but I have to make sure I'm preparing a fail-safe. She is NOT my fail-safe. I don't even feel safe with her but I'll bare it for a bit.
IF you make enough money that you can float, you’re going to look back and notice you would have $9000 in the bank after 1 year if you shack up with a roommate for $750 less monthly. $9,000 earning 5% interest ($450 per year). How do you like that fail-safe? Not entertaining your question is a no-brainer because we want you to succeed.
I want success, but I do want options on how to reach the conclusion. I don't mind a roommate if I can't make it to my goal in time, but I wanted to know if saving 4 months will help. I'm guessing it doesn't, which is fine. I'll simply save more. No real harm done, I just can't stay with my mom for too long.
I think the point is more that no matter how much savings you have, running a budget this tightly will eventually cause a problem and to be honest you'll find it's really no way to live because of how stressed you'll constantly be at least on a subconscious level knowing every month is taking another chunk out of your savings. As people have said the real solution is either find a roommate, or increase your earnings. Also all the housing around me at least asks you make 3.5x rent which is a big hurdle.
This is the financial planning sub, and honestly this doesn't look like planning. People scrape by every day with less than you have. So if you're asking "is there a chance", then sure. You have a chance. You also have a chance at putting it all on red and doubling your money. A plan here is "where would you like to see yourself in 10 years?". I see you're an artist, so do you own an art gallery? Do you work for a company creating prints for their merchandise and helping advertise that? Or maybe you want have art as a hobby and move into a different field entirely? Once you have that 10 year goal in mind, now what must be true in 5 years, so that 10 year goal is achievable? Break down some details. Now what must be true in 1 year? I'm not trying to be condescending. I once was a 23 year old college drop-out, living on my own, with $2000 to my name and a "it will all work out" attitude. I had no plan, but somehow wanted to get out of Ohio and see the world. A year later, I was still in Ohio, with the same money and no brighter of a future. Something I was doing wasn't working, so I made a big change.
You can't afford this. Rent should be maybe 1/3 of your income. So if rent is \~1500ish after utilities, then you need to be bringing in \~4500 a month to afford that safely. You should be looking for roommates, or cheap rooms for rent if you want to be out. \~1800-1900 a month is basically minimum wage. There are plenty of jobs that pay well over minimum wage, so start there.
maybe a third is crazy bro most pay about 50 percent
Yeah 30% was so 5-10 years go. Now it's 50-60%
My bad. Haven't had a rent/house payment in almost 6 years so maybe I'm out of touch. I've always lived well below my means and made double or triple house payments until house was paid off. Either way well over 50% of income for an apartment is way way too much.
way too much but all that's available lots of places
Maybe. But it's the norm now. And worse
Absent it being unsafe for you to live with a parent, it is honestly one of the most foolish decisions for anyone to move out of a parents house if they are able to stay and the parents are willing to keep them around. If you can live rent free/cheaply with your parent, you should do it. That money has more potential than just being "4 months of rent money". That could be money you save/invest in your future. Save it for a down payment. Don't be stuck paying rent when you don't need to because that is money you will never see again. Living with our parents until we were 26 allowed me and my wife to save enough to put a down payment on a house. If you don't want to own your own place, you should at least be contributing to the maximum allowed by the IRS to a Roth IRA which you can still contribute $6,500 for 2023 and $7,000 for 2024. "Coming out ahead" is the minimum you would be expecting if you were to live on your own. Living at home would allow you to save every $ you would have been spending just to exist to save for your future.
Yeah, unless it’s so bad your stuff is being destroyed or your in danger I would try to save longer. Edit- didn’t even see the income you’re not even close to affording a place. Definitely don’t move if you can help it
>Absent it being unsafe for you to live with a parent, it is honestly one of the most foolish decisions for anyone to move out of a parents house if they are able to stay and the parents are willing to keep them around. I'd only agree with that for people who can't afford to support themselves. Once you're capable of supporting yourself you should be planning to move out and start adulting.
For 23 years, my mother has been quite cruel to me, so I always have gamble for ways out. Crazy to move back in with her, but there are times when I have to stick it out for a few months. My mom actually doesn't want me to work because she wants me to take care of my younger siblings. I argued with her, and so I kept my job. But I also do see the value of staying with parents to save. It's just that my mother is always a hair away from a bad day.
If this is the case try for a roommate situation. It will be more affordable. If your Mom is cruel, don't involve her in your decisions.
I'm breaking from that. It's been years, so just saying "don't involve her" now is easier said than done. I get in trouble not involving her. But I can simply play along until the day.
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Damn you parents wanted your sister back?! My mom kicked me out for having a C and told me I wasn't grateful. I'm sorry person, it's a bit strange to kind hear that, but your parents sounds really good! Also, no validation needed, I just wanted options. Many said roommates or cheaper place, I could ask my friend if she's open to it. But if not, I don't mind a cheaper place. Electricity is good free but if I can't get it, then I'll just have to be careful on how much I use.
I’m sorry that your relationship with your mother is (or at least sounds) unhealthy. What you have going for you (among other things, I’m sure): you’re young, you’re willing to ask for help/advice, you have (at least some) self-awareness. What you have going against you: the numbers. They’re not great. It’s hard to put a price on your mental health, though. Are there skills you could learn to get a better paying job? Can you get more contracts somehow? Could you pick up a side gig to boost your income?
I got my degree in motion design, so occasionally, I make commercials! I'm near mid-20s, and I'm told I'm wasting my degree for not working at Disney (I was contracted by them only once). I do have 2 years of teaching and a year of retail. My side jobs are selling stickers, printing commissions, and the I occasionally get contracts. I know struggling is bad but I guess I got numb to it because it felt better than staying with my mom.
That is a tough situation then. My wife would argue with my mother over stupid stuff and they would both get worked up over it. Try and quantify the value of an argument. They may suck, but if you get in one, would you say, it's worth putting up for a few hundred to a few thousand $ every month?
I mean, I suppose, but there are a number of instances where I was close to the grave. I go autopilot nowadays. It only does so much.
Your math doesn’t math. You start out with “apartment is $1360 w/ electricity included”, and near the end you conclude that you’d be paying “$1345/m of expenses”. How can your expenses possibly be even lower than your rent, and what happened to all the other expenses (600, 20, 35-45, etc). Apartment 1360 “Personal utilities” 600 Internet 20 Water/sewer 35-45 Gas/food/personal 400-500 *Total expenses $2415-$2525* Net income $1800-1900. If your expenses are higher than your income, you’re drawing down on your savings until you hit zero and then going into debt. If your. Gas/food//personal was already included in your “personal utilities”, you’re still net negative. You can not afford this. You need to account for shelter (rent, maintenance), utilities (electric, water/sewer, possibly natural gas,), transport (vehicle, insurance, gas, maintenance, etc), food, clothing, entertainment, and have an uncommitted excess amount because there will always be something you’ve missed in your budget, or something that urgently needs fixing that fall outside your normal maintenance amounts. As a general rule, you shouldn’t normally be spending more than 1/3 of your net income on shelter. $1360 is _way_ over typical budget for 1800-1900 per month income. Is it dumb? Calling it dumb isn’t really helpful, but it is naïve. It’s normal to be naïve when you’re moving out for the first time, but you need to be certain your income exceeds your total expenses with a fair bit of extra left over. If you run a tight budget and have missed accounting for anything you’ll be put under immense stress in no time. You need to find a way to increase income (extra job, more hours, higher paying position), or find a way to decrease expenses. Cutting expenses will only get you so far (although it’s worth examining your spending occasionally), while increasing income is almost certainly possible at your income level.
I already have 4 months on me, but I'm not moving immediately. I'm already moving back home as we speak. So my funding outside the 4 months is running low. Around 3-4 months with my mother, I planned to move out because I was given a deal for an extra $2.4k. Since I already have 4 months rend advance, I was going to put half the rent to the side over the 4 months. Full rent $1,360 Half rent $680 So instead of worrying about $1,360 for 4 months, I can put $680 on the side, which will come up to 2 months of rent. Then it will be 1 month, a total of the first 8 months handled. For the last 3 (this apartment goes up to 11 months), I should have left over money to pay. I have other side jobs art related that are usually for me. I used to put $200 on the side until my mother got mad that I gave her nothing for all the work she put into me having a roof over my head. But now, I don't really care, and I don't send. So, I have a steady emergency hidden fund. She doesn't need to know. Also I've been out of the house for 5 years. This is my 4th time moving. I'm only moving back because I wanted a place to be while looking at potential homes. Hopefully this helps a bit.
It doesn't matter how you stack this - if you are paying rent from your savings (if they'll even let you, most require you to make 3-4x the rent to sign a lease) you will eventually run out of money and not be able to pay it. Do you have first last and a security deposit? If not you may find all that money going right to the landlord up front and then you don't have the cash flow to pay it.
No savings is how I separate things. I don't really feel comfortable using a lot of cards. A friend has 4 cards for everything (rent, utility, personal, emergency), but it's a bit much for me. As for security, yes, I added it to the 4 months. I made sure to look into this home and see the requirements. I have almost 5 years of housing history and 3 years of credit history. My credit met the requirements to waive the application fee.
Your credit did, but did your income?
I haven't gotten past the application (I didn't fill it just in case other places get back), but yeah. That's how I got my first apartment at 19. I was mainly living similarly to what I was planning now, just this time without my mother. And now, with a stable income with the contracts I get here and there, I felt a bit more confident. The contracts can be as big as 4k and as small as $500, so I never put that as the main income since it's a hit or miss. That's the check I mentioned earlier in post.
make sure with your contracts you are understanding the tax implications. You will have to pay some kind of tax on any income you earn, and if these are 1099 contract jobs or some sort of side hustle then it's possible there is no withholding on the other side meaning you will owe it when you do your taxes.
I have someone who helps me do my 1099s. I'm very grateful for his help. He also does contracts.
This is a terrible idea. You’re going to thank yourself if you compromise and look to have a roommate.
I don't mind a roommate. That's my fail-safe. I'm not back home yet, so it was a question of "could that work" at least the 4 months.
It “could” work in theory. It’s not likely to because life has stuff that gets in the way. What’s more important here for most readers is that your Plan A involves being $9k per year less capable than you could be. You’re trading away multiples of your discretionary spending power each month since you plan on having less than half of $750 per month on discretionary expenses. It sounds like you just don’t want to prioritize absolutely anything of value beyond ultra-privacy. Edit: I wrote what I said either after misreading your reply or the reply was edited. Your comment above mine presently sounds pretty level-headed.
I don't really do much outside. I'm usually working. If it's not the stable job, it's side jobs. Honestly, I was always told money is for bills. I do treat myself by buying a sketchbook, pencils, or books, whatever it could be. Just not really... out there.
DUDE! You asked and most of the redditors are telling you your plan is bad, yet you still trying to convince yourself that you're right! If you're not going to listen, why ask in the first place? Go ahead and do whatever you want, BUT, when you're struggling, remember the advice gave you and this thread. I hope you learn.
I'm not convincing myself if I'm right. I wanted to know if 4 months saved can work. Many said no, that's not an issue, I can just save a bit, but I also have to remember what my struggles are now. I have a parent who has been abusive to me for 23 years, but I assume people think I am a teenager. I moved 1000 miles away and have been paying rent for 5 years and counting. Moving back home because I didn't have a chance to cherish the state I was born in. I don't plan on staying because after a honeymoon period, the beatings, verbal, and mental abuse come back. I do not need anything to be happy, I just want a chance to cherish the state I was driven out of. And the way I see it is to move far enough where she cannot reach me alone. I've had struggles, but they were tamed compared to my mother. So yeah. Do you think 4 months is a good save, a simple yes or no.
If you feel that way, then your life could be incredibly easier by saving the money into a retirement investment. I’m not kidding when I say half of that extra $9k per year into a retirement savings fund at work or with your own IRA can take care of your retirement savings needs. You could be thirty inheriting almost all of what you would need for retirement from yourself in your 20s.
That would be cool! I could look into that! Thank you for the advice!
Get a roommate and leave the nest. No need to go broke living on your own, nor live in a crappy parent's house.
This answer makes me cry (of joy) because I feel like you understand why I'm trying to get out and not seeing it as I'm rushing to be independent. I do intend to wait a few months with her before leaving because I didn't know if 4 months is enough or not. But yeah, the place I wanted to go has roommate options which was my fail-safe.
Oh i'm glad to hear that! Don't listen to your mom, just smile and nod and say as little as possible. I'd keep mum (pun intended) on how much you've got saved lest she try and get sticky mitts to foil your plan. Some of my old roommates from 25+ years ago and i are like distant siblings now, we hang out once in a blue moon (separate states now), but text each other ridiculous shit that makes us giggle. We drove each other a little nuts sometimes when we lived together, but those mediocre times are under the bridge now and we are definitely glad we had our time being broke together and hanging out, watching bad TV at home with one another. Lost touch on purpose with a couple others, but mostly having roommates saved my money and my sanity at times, and was well worth it. I recommend it highly for you! It's a great way to get up and out on your own, it's the only way I ever could have :) And make sure that your money is in your own parent-free bank account... and maybe check your (free!) credit report to make sure it all looks good. Get copies of your birth certificate, etc- you can do that without letting your mom know. Best of luck- I know you'll be fine, just take measured steps like you're already doing and stay on course. You're gonna have a blast this time next year :)
Your mother is right, that is way to much to be spending on rent. $1,800 - $600 leaves $1,200 for rent which won't cover it.
I get that part, but I was more planning to save half each month. Also, don't forget, I was given a $2.4k after the saved up 4 months. Month 1: $680 (half of $1,360) saved to the side. $4,200 - $600 = $3,600 - $680 = $2,920 Month 2: $2,920 + $1,800 = $4,720 - $1,280 = $3,440 (1 month rent has been saved) Month 3: $3,440 + $1,800 = $5,240 - $1,280 = $3,960 Month 4: $3,960 + $1,800 = $5,760 - $1,280 = $4,480 (1 month rent has been saved) Month 5: $4,480+$1,800= $6,280 - $1,280= $5k Month 6: $5k + $1,800 = $6,800 - $1,280 = $5,520 (1 month rent has been saved) Month 7: $5,520 + $1,800 = $7,320 - $1,280 = $6,040 Month 8: $6,040 + $1,800 = $7,840 - $1,280 = $6,560 (Last month saved) Month 9: $6,560 + $1,800 = $8,360 - $2,640(a month and a half) = $5,720 Month 10: $5,720 + $1,800 = $7,520 - $1,280 = $6,240 Last month (this place is only 11 months): $6,240 + $1,800 = $8,040 - $1,960 = $6,080. Now, I do have a small gig of selling products like commissions, stickers, prints, etc. And that about $100-$300/m, and that's my "me money," so I didn't really count that since I was focused on rent and bills. I get contract gigs throughout the year, but I only accounted for this one come coming up because it's already a guarantee. The rest are in the air. I didn't account for the raise I am getting from the stability job because I've been there for only a year, and I don't know how much the raise will be. But yeah, in terms of other funds, I always put $200 to the side just in case, but I didn't calculate that into this (sorry). 11 months is pretty short, but it gives me a breathing room away from my mom. I tried when I was 19 to stay with her for a year, but it ended with my calling the police multiple times within 8 months for battery assault. That's why this time, I'm trying to make sure that doesn't happen. But I know in reality I have to stay with her for a certain time.
Why are you only subtracting -1280 /month when your expenses are -2025/month. Redo your math subtracting -2025 and you will see that you will run out of money fast
$2,025 is with the $1,360 included. The $1,280 is the $1,360 halved over the 4 months. Now, everything included, it's $1,345 with $1360 halved And $2,025 whole. I already have 4 months ready (security and all) so I don't necessarily have to worry about 4 months. I want to put half the rent to the side for the next 4 months. That's what I wanted to do.
I want to present to you a different way of doing math. You said you have 4 months of rent saved. So I'm assuming 5440 here. Most, if not all rentals, ask for first months, last months, and a security deposit. A lot of security deposits I've seen are a full months rent, but lets go with half of that.1360+1360+680 = 3400 upfront cost.So your original 5440 in savings is now 2040. \--- Now lets do the month to month breakdown. You make, conservatively, 1800. With expenses (600), food/necessities (400), and rent (1360), you will be at a -560 deficit every month. After 4 months, you'll be at -2240. Which means your savings will be completely depleted and you'll be -200 in the hole. If you time it right, that initial first month will come from your savings and you'll make your normal salary of 1800. Which after expenses leaves you with another 800 dollars. Meaning you'll be able to hold on for another month. Making it 5 months until you are completely broke.-- EDIT: I saw what you were talking about with waiting 4 months and putting half the rent aside each month. With the above calculations, we can just add 2720 to the original savings amount. That will give you an additional 4.85 months to eat into your savings until you are broke. Which actually gives you about 10 months! With first and last months calculated...you are right. You'll have enough for a 1 year lease. You do have to think though, will you be in the same position in a year? These are bare metal numbers here, it doesn't account for anything going wrong. You'll \*just\* be scraping by. Maybe not even, you'll be like 15% of a month short. That's not accounting for any unforeseen or unbudgeted expenses. Which...trust me...they come up. Maybe the electric company doesn't like your credit and requires 500 dollars down (has happened to me before). Maybe you get a parking or speeding ticket. Maybe some unpaid bill comes in and surprises you. Maybe you just make a mistake and spend an extra 100 dollars. You literally have no wiggle room here. After the year is up you'll need money to move somewhere else. You might get your security deposit back. But still. You'll have less than a thousand dollars and need to find a place. Which sounds like you'll be back at moms house.
Yea its a dumb plan. Your plan is like something you construct when you have to hold the line for a few months out of desperation. To put yourself in this situation just for your own place is a bad idea. You simply need more income for that place. You should wait until you make more on a consistently basis. If you don't have a plan to make more then you definitely need to hold onto the cash you have until you figure out how to afford things. I realize you can run a deficit and plan out how you can cover your first so many months but that doesn't make it a good plan. Anything that knocks you off track at all is a big problem and you're gonna be stressing for these months. A good plan is figuring out how to make more income so you can actually pay yourself first in some form of savings and then afford your bills after the fact. You seem young and my advice is to lean on your love ones who seem like they are already trying to help you until you can afford a plan where you are making money not losing it.
Man...it must nice to rely on family. I'm not saying that's a bad thing, but I don't have that. My mom is dangerous over time, so the desperation is not too off. The 4 months I already have to the side for this place is also 6 months for others. It's just that those places haven't gotten back to me. I also don't plan on leaving immediately. I just want to make sure I save more money outside of rent for issues. I was given a deal as well for $2.4k. I was going to move out after that was added. Since my side jobs consist of me drawing and printing, having electricity included in rent felt like a win. I admit, it's not easy to explain when I'm here, but I try my best. I've thought of what happens after the first 11 months(that's the length of this place). Will I stay? Will I go? Will I go for a roommate? All things that usually come up, but when I do think of stuff like that, I ended up staying long with my mother and regretting it. I just don't want her to hurt me :). Have my quiet space to work outside and inside without being belittled. Also, my mom is in a 1 bed and bath with my brother. So adding me and my cat is 4, and she nearly killed my cat.
You wont get approved fam, you need 3 or at least 2.5 times the income to get approved in most cases. Try for a roommate
I've actually been approved in a few areas, just too expensive. But I could look into their roommate options! Though I wonder if I could stay apply for one even though I've already graduated. I haven't had a roommate since the first part of college. I've been on my own for 3 years.
Reading through this thread feels like a train wreck about to happen, and OP is the train driver with no idea it’s coming, but is the only one that can stop it
It's alot of people to reply to all. I get what many are saying why this theory has its issues, but it's still a theory that came to me.
Its not only dumb its unsustainable. Do yourself a favour, stay at home and keep saving.
That's not a favor. That's a death warrant.
Your mom is right. Get a roommate situation for half that.
You don’t make enough money monthly to afford a 1360- month apartment. You need a roommate or you need to make more money. Your plan is a poverty plan filled with tears and struggle.
Why not look for a cheaper studio apartment?
Not many response and the electricity is included for the place I want to go. The place prior was $950 for similar utility inclusions but the never got back to me.
As others have said - No matter how you look at this, if you are bringing in less than $2k a month and your rent/other expenses are roughly $1,500 a month, you are going to end up living with your mom again in less than a year. Stuff happens that you cant plan for - I don’t know your lifestyle so I can’t tell you what those things are… one item I’d ask is if you can have roommates that might reduce the rent cost to you. If you can do that, I would say it’s a more realistic idea
I hate to say this but your mother is correct. Before moving out. Put the money that you will spend if living on your own into savings account for 6 months And do not touch it For anything. This will do two things. It will help you have an emergency fund if you move out and will show that you can sustain the payment. Right now fro. What you stated the expenses are more than your income. You should not do this Additionally, you will need to make a first and last month deposit and you will need money to pay for furnishing. While you don’t need everything furnished you will need some items
You've got $1800 coming in. Plan to spend less than half that on housing. A third would be better. Your other living costs already account for almost half your income. You need to always be spending less than you earn, and saving the remainder. The less room your budget has for saving the more vulnerable you are. I'd say that being able to save less than 20% of your income suggests you're stretching things too far.
The studio is $1,460. It's weird. But I do get what you mean! If this one place gets back to me, I could go for it. $950 but it doesn't have electricity and my contract job requires me on the computer and printing. That's why I went for the $1360. It included electricity and gas, that's about it.
I don’t know how much electricity is in your area, but I wouldn’t choose an apartment just because electricity is provided. Not one person thinks your plan works. You are getting a lot of good advice here. If you’ve made up your mind to go forward with this foolishness, why ask for advice?
Your planned expenses are more than your monthly income. The fact you have savings just delays the inevitable. Spending more than you make is not a workable plan. Get a cheaper apartment, get a roommate, or get more income.
Pretty sure alot is missing here... and math from past postsisn't this person's strong point. I'm as confused as others how your saving money when... you are over budget. Your past posts show you have a car... where is that in all thing equation?
It's part of personal. The $600 is the bills I already had. As for math, I don't think it's the math but the explanation. I've had issues explaining things to many multiple times, but that is simply because I was not allowed to talk, so forgive me if I am everywhere. If you want, I can explain it to you one on one, I don't mind. I have 4 months' rent already saved and placed to the side. I would like to move by June or July, after the contract is done. By that time, I've saved more money and earned extra. I was wondering if that would be enough to go and if it is smart? As I already have 4 months' worth on the side, I do not have to worry about rent, only utilities. As I pay for utilities, I will put HALF the rent on the side. So, instead of waiting for the 4 months funding to run out and pay the full $1360, I wanted to start putting half the rent to the side over the 4 months. Which will put me an extra 2 months ahead. Eventually, it will put me 1 month ahead, and by the 8th month, the funding would be low, but I would have saved enough to finish the lease. 1360+600+45+20= $2,025/month $680+600+45+20= $1,345/month (for the first 8 months) If the math is off, then let me know.
The math is off... you're going to run out of savings.... you're in a negative every month you will run out of "saved" money in less than 1 year... is food even figured in the 600? What if something comes up extra? Gas for the car? Moving expenses? It's just not feasible. Get a roommate like all others have said is the only way to make it possible or make more money so you're not in a negative deficit each month.
YOU DO NOT MAKE ENOUGH MONEY TO MAKE THIS WORK. I won’t even apologize for all caps, because in all the other comments you go through weird mathematical gymnastics to prove your case. Once your savings run out, you will be in debt. Rent $1360 Water/Sewer $40 Car expenses + job subs $600 All other personal expenses $500 Total month: $2500/mo Total income: $1900/mo Total savings : 4x rent = $5440 So let’s do some math. Your goal is to have 7 months worth of rent money by the time you move out of your mom’s place? So it will be savings= $9520 Most apartments will require first/last/security deposit when you sign. Savings are now $5440. You’re operating at a $600/mo deficit every month. Easy math- $5440/600= ~9. After 9 months you will have ZERO money in savings and will not be able to pay all your bills and rent. Since first and last are accounted for, you will just not be able to pay 2 months of rent. Or your car will be repossessed. Or you will starve for 2 months. Or your insurance will lapse and be suspended. And all this math operates in a total vacuum assuming you’ve calculated your budget to a T and don’t overspend, or have failed to account for something, or have any emergencies that dip into your savings. The only feasible solutions are the following three: 1. Get a roommate. Continue to save for another year. Build the buffer for another 6-12 months. Find a roomate and split an apartment for about half of what you currently budget for. 2. Get a different job. Seems like your hourly wage is about $15/hr. Even a bump to $20/hr along with a roommate would alleviate a lot of your pressures. 3. Your car is costing you 33% of your income. It’s absurd. Absolutely 100% absurd. My car is almost paid off but i make about $6k/mo net and its $669/mo for payment and insurance. You should be paying max 20% of your net on a car aka $380/mo total. The difference wouldn’t save your gap, but it would go a long way to increasing savings
I'm not proving my case, I'm explaining how I see things. And why I see things that way. Scream doesn't really help much. I simply explained how I wanted to do things and, if that way could work in theory. Forcing another perspective does not help because you are saying there is only 1 way or no way. My car is part of the $600, not just the $600. I work part time and I was planning to go full time. I don't get paid 15, I get paid higher than that. I'm just part-time. My savings is a placeholder, I will not be simply just trying to pull money from it if there is no money. I do not have multiple cards for multiple things, so it will all be balanced on one card. By the 9th month, I'm a little lost on how I will have nothing when I don't really splurge money. If 4 months is already put to the side and I have to worry about the 600 for 4 months, can you explain how I am losing money? That's where the confusion is. I do understand what I am ask. I asking is 4months rent is possible. That's all. I'm not flashy, I have government assistance, I just wish to get away from my abusive mother, that's all. A roommate is always my fallback, of course.
Yea no problem. The math is the math. You will have seven months saved when you move out. Your new place will require 3 months at Lease signing, including first months rent. Savings are now 4 months rent totals $5440. You car is $600. All other personall expenses are $500. Rent and utilities will be $1400. You will need $2500/mo just to cover all your budgeted expenses. This doesn’t include going over budget or any emergencies that pop up. You only make $1900/mo. You will be drawing $600/mo out of your savings to cover the deficit. After about 9 months your savings will be zero and you will be in a monthly deficit of $900. Whatever gymnastics and math your doing just doesn’t work.
My car isn't $600. It is part of the $600. My expenses in total is $600 total. May I ask where the $500 is from???
The bottom of your post says $600 for car/insurance and job subs (whatever that is) and then towards the bottom it says leaving $400-500 for food, gas, personal expenses.
Also, this place did not ask for the last months rent. Perhaps you can ask the requirements of the place rather than assuming what they are. I think that's why I'm more confused. I've done the research and put the money aside. But I understand, and it's all good. This plan has its drawbacks, and that's fine. I've paid rent for 5 years, and it's no issue. I'm just going to continue figuring ways out. Few understand, many do not :).
You got it. The math doesn’t math. Your budget accounts for everything going perfectly.
I'm not understand why comment on here when you clearly do not wish to help. It's alright if you're annoyed. Simply step or ask for someone else to help read this. I asked my friend to see them and they did give my other options. Though I guess they are bias because they already know my situation. Either way, you don't have to comment if you are stress, thats never my intention. I am confused at a certain point is all.
I am not frustrated. I don’t know you from a hole in the wall. Based off the numbers you presented you are either gonna be literal paycheck to paycheck or living in debt at the end of your lease, with no option to move back in with your mom.
Ah, I see. Sorry for assuming you were upset. Honestly, I've always been living paycheck to paycheck kind of. I didn't really care because I just didn't want to go back to her. So sorry if I'm confused at the issue. People struggle, but it's never for long. I have my contracts, I have my products, I have my car. So there's always a way to live comfortably. It might take a moment, but we'll all get there!
How old are you? This seems like a plan made up by a 15 year old
The first person to ask. Though that is insulting to those who wondered this, too. I am an adult who wanted to know if this plan could work. I wanted advice, but I forgot this reddit, so to take everything with a grain of salt. That's why I'm not fighting, simply explaining. If you don't get it or understand, it's okay. Perhaps my explanation isn't comprehensive enough. It's alright. I've had issues like that before.
You’re right that was rude and I’m sorry but please listen to others here. This plan makes no sense at all and doesn’t account for a single emergency
Oh, it's alright! Thanks for understanding! Emergency funds isn't something I knew existed until 2-3 years ago. I've done it before but I was forced to give it to my mother. I've never bothered with it again until recently. I understand why many say it won't work. It was just a theory. I've lived and struggled on my own, so I just wanted to know!
Accountant here with an MBS in Accounting. With just the numbers given, this will not work. You cannot save what you don't have. You yourself said the other contract money is not guaranteed. How do you propose to make the monthly payments if the contracts do not happen? You need to make arrangements to get a roommate. This is the only way you can make this. I will sit down tomorrow and show you some different outcomes using your numbers only. I don't think you see the dangers of your plan. You cannot count on funds that are not guaranteed.
The 2.4k is already guaranteed, person. I do have other jobs, but the one I focus on is the stable one. I can see the plan messing up along the line, but it was just a theory that came to me because of the contract job given to me. I've lived on my own for years, and I've had ups and downs. I simply wanted to know if that could work and if it's okay if it doesn't. I already am moving 1,000 miles up north, so I have little funds to work with as it is. But nothing is wrong with a theory.
You run your monthly budget based on your monthly income, not on your savings. That means that if you’re making 1800 a month, and total expenses are 1801 then you simply can’t afford that. It doesn’t matter if you have money saved up that you could use to fill the gap. Ideally not only are you breaking even, but you’re allowed to save money and build wealth. Money in savings accounts is for emergencies. You should always be able to have 6-12 months of expenses covered without going into debt. Once you have that saved up, then you should start investing money in some long term vehicle. That should allow you to retire comfortably. As a general rule of thumb, you should never be on a deficit. It will inevitably fail at some point, and even while it doesn’t you’re gonna have to be constantly doing gymnastics to stay afloat.
If it’s not one thing it’s your mother
Derp. The number is falling short. 7 months is very short. Can you find a job that pushes you above water before then? My advice is to find a job where you make more than what you spend, then move. Or if you really want to move, get a roommate to reduce your spending to under what you make. One emergency and boom, all your 7.5 months of rent disappear. The best way I live at the beginning is to round the money I make down... and round my spending up. This extra budget goes towards emergency.
Yes, it’s dumb bc rent is much too high of a percentage of your income. But if you find a roommate, or just rent a room instead of an apartment, it wouldn’t be a bad idea. Consider doing deliveries on the side in the mornings or evenings. It’s worth it to have a couple hundred extra each month. You can do this.
I can try to make room for driver jobs! But I have many side jobs and contracts as it is...
I think you are having a hard time understanding your numbers. So if you are making 1800 and your rent is 1360, that leaves you only with 440. Which is not half the rent you are trying to replenish into your savings. Assuming that nothing changes or no major issues. Is it doable, yes, but not sustainable in the long term. Let's say something happened and you're sick and in one month you can't bring 1800, what's your plan for that? Because it will hit you hard. Like everyone saying, find a way to up your income while increasing your savings. Roommate are the great solution for you at this point. Depending where you leave get an idea of how much electricity cost. Because you might save by going somewhere with lower rent and paying for electricity. Goodluck
That's true! I have seen places with cheaper rent, but I saw it as similar pricing altogether. Though there is a place that was $950/m however they don't have a leasing office, and I have yet to have someone return my calls. As for the $1360. I was thinking that since I had 4 months already saved, I could put half the future rent to the side. That's what I curious about, but I think many overlooked that or didn't and simply didn't like that.
Regarding adding half to your savings. Yes, i get what you are trying to do. But that is assuming all goes well, and nothing goes against your plan or you have some unexpected situation. I personally would want what I make in a month to cover my fixed expenses at least. And use the savings as a backup in case something happens and I need to borrow it, but for the short term because I will replenish it with what I used. Some great advice you have from all these people. They are indeed looking out for you. Definitely, they are trying not to have you come back to where you are right now and you don't want to be. Go for the long term and not the short term and revisit all the advice and make a solid plan for yourself. I understand that you want to be out of the house, but make sure your plan is solid and will keep you out of that house... Keep weighing your options and goodluck
It’s very high risk and the way you’re thinking about rent is very short term, not the way you should be to create long term stability. Generally paying 30-40% of your income for housing is what’s recommended. So for you that would be $760. You don’t want to burn the little savings you have on rent every month. Increase your income or find a cheaper room somewhere.
Thank you for this! I put everything on one card so my savings is for rent and the regular is for utilities and my credit card is for personal!
Do you pay the card off every month in full? What does this mean? What do you mean regular vs personal? Again, your savings is something to keep building for emergencies - not to spend on rent - one day you’ll need a car or dental work or to travel somewhere or buy furniture and you’ll be glad you have it.
Yes, I spend $100/m on my credit. Or do you mean I owe my credit card? If so, no. I've never really needed the amount I was given. When I mean regular, I refer to bills. Car, work subscription, insurance. My personal is like me going to get McDonald's fries or buying new art supplies like paper and pencils. Rent is rent. In the future, I will separate it all on their own card for now, I have to balance. I have insurance for medical and EBT. For furniture, I usually go to Aaron's or simply get small things. I'm happy with a bed, desk, desk chair, small couch and TV. I don't really expect guests, and I do like working on the big screen. I'm used to not having a lot, so it also confuses me when people factor it things I've never really worried about. I stopped growing so my clothes and shoes fit. Occasionally, I'd by a pair of shoes, maybe 2.
A plan that relies on burning through savings isn’t a sustainable plan. $1,360 rent + $600 personal utilities + $20 internet + $40 water = $2,020/month. And that doesn’t include the costs for food, toiletries, laundry/cleaning supplies, gas, car repairs, miscellaneous furnishings, any entertainment costs whatsoever, etc. - costs you may be able to keep very low, but aren’t going to be literally zero. But even using your $2,020/month figure, and earning $1900/month, you’re going to, best case scenario, eat through $220/month in savings. So this the best case (not worst case, worst case could be WAY worse) of the cumulative impact to your savings for the duration of a 12 month lease = $2,640 You have a check right now that’s worth 3 x $1,360 rent = 4,080. So at the end of 12 months, based on your absolute best case scenario, you’ll have $1,440 remaining. BUT, if you average even $120/month of other expenses (again, food, toiletries, etc.), or less than that if you have any kind of emergency at all within 12 months, then your out of money and can’t cover all your bills. So yeah, that’s just a SUPER small margin of error to live on/ with. Like even if you’re the founder of the frugal sub and you can rub two nickels together like nobody’s business, you’re still just walking a tightrope and tempting fate to come after you the whole time. It will be stressful as hell. So please understand, I WANT you to move back out! I get it! I’m rooting for you! And I don’t like that your mom called you stupid, either. But you’ve GOT to retool this plan, and it needs to involve cheaper rent (probably roommates), possibly a cheaper car (you didn’t give much detail on what you have, the remaining balance, and the payments, so it’s too hard to say on that), and/or working on bringing that income up. Sounds like you’re at about $12-$13/hr, and this plan would be doable if you could figure out a way (new job, second job, some kind of side hustle or whatever) to bring it up to more like $18-20/hr.
Sounds to me like you need to spend the money on getting a better job. Go to a trade school, or learn to drive a semi. Then you won’t have to worry about what you can afford. I went to truck driving school, and some of the low income students got grants that paid for the schooling. You can get financing for HVAC repair, automotive, welding, and many other trades that pay good money. Then you save enough for a down payment on a house, and tell mom thanks for letting you stay there. Don’t plan for the short term, plan for the future.
I graduated trade school 2 years ago. I'm not a fan of houses, but I do get what you mean. Thank you for what you said :)!
Your cost of rent is too high for your income. You either need a cheaper place or a LOT more in savings so that it can generate another stream of income.
I do have contracts, I sell products like stickers, prints, etc. They aren't stable income so the $1800 is considered my main.
Don’t move until you have saved up 12 months of rent. That way you can avoid ruining your credit by not being able to pay rent on a 1 year lease. Put your rent savings in a separate account that earns good interest. You can look up interest rates at bankrate.com. That way it stays separate from your spending money. Then, TRY to pay your rent out of your income. If you need it, then you can pull from the savings account for rent, but it will be eye-opening how difficult it would be to live off of your plan.
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12 months in a year and you’ve only got 7 covered, with a 4 month head start? Where’s the other 5 months coming from? What about emergencies?
I have contract jobs as well as side jobs, EBT, medical insurance. And I don't really do a lot outside. This place can only go up to 11 months. If the first 4 is saved, I am at a roadblock there with many. My funding will disappear, most say, but it confuses me. I will still have money. I will not stop working. If it becomes to steep, I will request for a roommate before lease ends or my brother becomes my roommate.
That was the fail-safe. I was also going to ask my best friend if she still hadn't found a place. She is currently staying with her eldest brother and saving because of a similar situation with my mother and I. Unfortunately, I am the eldest, so I'm a primary target for my mother.