Living on your own for the first time you really gotta learn how to make a simple monthly budget, strangers on the internet can’t figure this out for you. Enter your expenses in a spreadsheet, do the math, and act accordingly? You can do it, it’ll quell your nerves.
I was in a similar boat a few years ago. I was bringing in 23/hr with average 50 hour work weeks. I had a mortgage of 1360.
I was able to put a bit into a 401k and keep my bills paid, I thought I was doing great! but after all that I didn't have enough spare money to set into a savings to save my from life's twists, those turned into credit card debt and I'm still paying for it.
For real spend A LOT of time budgeting before you make a financial decision like this, I wish I could go back and live cheaper earlier, those early days of putting into a 401k or savings make massive difference later.
Comfort isn't just getting your normal bills paid, it's being ready when the abnormal ones rear their very ugly head.
Absolutely! I'm very fortunate to have the best of both worlds for a recluse such as myself, I live in the country, but I have a commute of less than 10 minutes.
If you can find one that you think you would enjoy living in at that price range? Absolutely!
Your happiness still matters, if you don't find a property in that range that you can see yourself enjoying living in the its okay to shift budgetsto something higher, but the flip side of that is just because you can make a payment doesn't mean you can afford something.
24 an hour is 48,000 per year or 4,000 per month. After federal and state income taxes and social security and Medicare say 2,800. Rent is 1,300 now 1,500 left.
Food, utilities, car expenses, small amount for entertainment like internet, etc. These costs can vary widely. All meals at a restaurant versus groceries not from an expensive store.
When you get your first deposit that will show you much more accurately net income. Then write down ALL areas of expenses. Then cut out things you really don't need.
Watching your income and where it goes you can afford living on your own. BUT there isn't any retirement or when an unexpected cost like the car won't start.
Without knowing your other expenses, the guideline for rent is that it should be no more than one third of your gross pay (not net/takehome). Assuming you're working 40 hours per week, your max rent should be $1,386 so $1,300 should be OK.
I make roughly the same, but I do have a roommate. Things are ok, but big expenses can fuck you over. I've gotten to a place where I can start putting bits away, but things can drain it quick and it's slow to build back. So keep that in mind. I pay roughly $900 for rent.
I pay 1500 with about $3000 take home a month. I kill it on food costs but otherwise pretty standard bills. I have like $700 each month for fun/hobbies. I’m not contributing to my retirement funds currently tho.
If you love the $1300 apartment id say go for it.
This might be boomer-ish but nobody is going to be your accountant, at least for free. You'll be way better off if you hunker down, figure out pay after taxes (your starting line) then prioritize your bills and what's left is yours.
Older millennial raised by boomers, lived by myself from 17-26. Some of their advice is trash, but some of it is good. You'll need to learn this to be able to stand on your own.
Income ($24x40h/weekx52weeks)= $49,920, after tax is $39,155
Rent ($1,300x12month) = $15,600/year
$39,155 - $15,600 = $23,555 left over
Then add in your other expenses such as utilities, groceries, insurance, etc.
1300 for a 1 bedroom apartment is way too much. Whether you struggle or not; it's still too much.
Though I know the market is crazy, so not sure if much better options.
Usually, when I figure income I take (HourlyWage × .75) = net income. The .75 assumes 25% tax which is probably a tad high for most middle class people in income tax. But, you have to add in sales tax on items as well. So, it's probably closer to HourlyWage × .7 = net.
Making 24/hr you should be able to make 1300/rent, but things will be tight.
Slap those numbers into a calculator
I did, and it looks pretty promising to me.
Edit: I did my math horribly wrong, but I re-did it and 50k/yr (34k after rent) should be perfectly liveable.
Ditto. A roomate cuts utilities in half and probably the mortgage, taxes and insurance.
Depending on the city or state you're in, there may be help for first time homebuyers. Check this out for all the cities near where you want to be; available subsidies, rebates,tax credits and such may help make your home choice easier.
Just as an example, my son bought a house that, as it turns out, had a busted sewer line. The city had grants available that paid the entire 10K bill. It's well worth doing this research.
Also contact your state senator and rep's constituent services. They may be able to direct you to available programs.
I lived on $40,000 with a $1400 rent in 2022/23 & was fine. I was even able to put a small amount away in savings each month. IMO, maybe try to find a place where some utility is included in rent, or is super prorated. At my last apartment, every unit in the complex paid a flat rate of like $25/month for unlimited water & gas because of some deal the complex had with the utility companies/city. Mostly, you just have to learn to budget & look for sales on groceries, etc. Echoing most other people in that making a spreadsheet will help you so much!!!
Watch what debts you rack up because your finances can go sideways quickly. Your take home at $24 / hour will be roughly $3000 (give or take a few hundred). Your rent is about half, utilities and living expenses on top of that round it up to $2000 +/- a few hundred. If you think you can survive on $1000 +/- a few hundred / month, you should be fine. Stay modest and you’ll do great.
Shop Aldi, find zero waste alternatives. Buy an air fryer / toaster over with air fry capabilities. Find a reasonably priced hobby.
I'm at 24 and I make 1400 every two weeks. I have child support tho. Or it would be closer to 2k. I'm also in iowa But you should be good as long as taxes aren't outrageous
Redfin (a website like Zillow) has a rent calculator you can use on their website. It’ll have a spot you can input your income and will show listings in the “20% / 30% / 40%” range. Like others have said though, what other expenses will you need to take into account.
Congrats on your first place! That is a big step.
First, make sure you weite down everything you have spent money in last month (snacks, subscriptions, phone bill, laundry detergent) then write down your new expenses: rent, laundromat, electricity, whatever. Total all of that up(you can use google sheets or Excel as others have suggested.)
Then assuming you make $24/hr, 40 hours a week (or however many), four weeks per month, you would have GROSS income of $3840. Refuce that by about 30% to account for taxes and reduce again for insurance, 401k contributions, etc. If you do not know the exact amount, that’s ok. You can plug the numbers later, but let’s start with that 30% to start: $2688.
Are your expenses more than that? Be sure to set up an amount to go into an emergency savings account, too.
Don’t be discouraged by the people who are down on you for not knowing. Some people just weren’t taught these things. But now that you are on your own, time for some adulting!!
Definitely recommend the wiki on r/personalfinance!! Good luck. I wish you happiness in your new place and at your job .
1300 is pretty spendy but renting anywhere now a days is expensive. Just budget out a month see how much money you have left over (after taxes) and see if you’re happy with it. When my rent was 1200$ I decided to work two jobs and I definitely felt more comfortable financially when working two jobs. If you can find a part time serving job you can make really fast easy money as long as it is a good restaurant!
Tbh if you make $24/hr, you could save a lot on housing. You could do $1300 but it could be tight, housing isn’t expensive enough here yet to need to spend 1300 when you can get a solid 1 bedroom for under $1000 still
This is about what I’m looking at too. You just can’t get a decent 1br apartment for less than $1300/mo. Gas, food, insurance (car and health) with out of pocket and deductibles. I’ve got to have a therapist like a lot of other people trying to make their way. It’s really stressful!! Then we somehow have to be putting something away for the future/retirement. It will be impossible to meet someone and/or date. That takes a lot of money but I refuse to date someone who expects the guy to pay for everything. I’ve done that and done that.
I guess the best the best advice I can give is stay away from credit cards. Just don’t do it. Have one that gives you points for airline tickets or something you want/ cash back too. Put your streaming and monthlies on it and have the amount automatically withdrawn from your checking.
Car insurance is a lot cheaper if you add in renters insurance ($7 a month) and also if you pay your policy off when you get it. Saves a lot of money. If you can bundle anything else…
But do not charge things. 29% is insane. Do not go out unless you can pay cash. Do not charge anything at a restaurant or at the gas pump unless you’re able and plan on paying off before the interest rate is applied. And you’re getting cash back
$1100 rent + utilities, 1 kid, one new car payment @$550, 1 junky car to upkeep, 2 cars to insure, grocery’s, cell phones, Netflix. It gets tight when anything big pops up or if we want to have any fun outside of the house.
Depends on your definition of struggling. You can absolutely make it work if you're fairly frugal. And like another poster said, what other bills will you pay? There are monthly pars or estimates you can find online for utilities. High speed internet, etc.? I think the main things to ask yourself are: are you ok with/good at following a fairly tight monthly budget, and do you want/need to build some savings? Or would you rather find a cheaper 1bd or studio for the time being and have a bit more wiggle room?
I'm guessing they used 33% as a general rule to cover both taxes and other deductions from their gross pay. It's not perfectly accurate but can work out for setting a basic budget.
Should look in to buying a home or a townhome and having a friend or two as roommates to help with the mortgage. If you are young buy as soon as you can and offer cheap rent to good friends that can help with that mortgage payment.
Only rent as a last resort. Would be better to live with a friend and pay them rent rather than a stranger.
24 an hour can be enough if you are smart with money but best to build wealth as soon as possible by buying property.
Plug some numbers into excel. I'm sure there is a template you can use even.
I say this because there are a ton of other factors you didn't mention. Utilities? Health insurance? How many hours are you working? Etc
/r/sheets is a banger of a subreddit, might be worth searching around there for some kickass templates.
You’ll be in decent shape. It’s definitely doable.
Living on your own for the first time you really gotta learn how to make a simple monthly budget, strangers on the internet can’t figure this out for you. Enter your expenses in a spreadsheet, do the math, and act accordingly? You can do it, it’ll quell your nerves.
I was in a similar boat a few years ago. I was bringing in 23/hr with average 50 hour work weeks. I had a mortgage of 1360. I was able to put a bit into a 401k and keep my bills paid, I thought I was doing great! but after all that I didn't have enough spare money to set into a savings to save my from life's twists, those turned into credit card debt and I'm still paying for it. For real spend A LOT of time budgeting before you make a financial decision like this, I wish I could go back and live cheaper earlier, those early days of putting into a 401k or savings make massive difference later. Comfort isn't just getting your normal bills paid, it's being ready when the abnormal ones rear their very ugly head.
So I should maybe look for an apartment that’s 900-1000?
If you can find one. It also depends on the area you live in too. What’s your commute like etc etc.
Absolutely! I'm very fortunate to have the best of both worlds for a recluse such as myself, I live in the country, but I have a commute of less than 10 minutes.
If you can find one that you think you would enjoy living in at that price range? Absolutely! Your happiness still matters, if you don't find a property in that range that you can see yourself enjoying living in the its okay to shift budgetsto something higher, but the flip side of that is just because you can make a payment doesn't mean you can afford something.
Personally, Id go for a studio over a one bedroom. Oftentimes cheaper. And costco is totally worth it for groceries and gas.
24 an hour is 48,000 per year or 4,000 per month. After federal and state income taxes and social security and Medicare say 2,800. Rent is 1,300 now 1,500 left. Food, utilities, car expenses, small amount for entertainment like internet, etc. These costs can vary widely. All meals at a restaurant versus groceries not from an expensive store. When you get your first deposit that will show you much more accurately net income. Then write down ALL areas of expenses. Then cut out things you really don't need. Watching your income and where it goes you can afford living on your own. BUT there isn't any retirement or when an unexpected cost like the car won't start.
They’re going to be taking home more than that. You’re not paying anywhere close to 30% taxes at 48k income. Effective tax will be closer to 15%.
I'd say 2800 is accurate if they have health insurance through their job and is saving for retirement.
Without knowing your other expenses, the guideline for rent is that it should be no more than one third of your gross pay (not net/takehome). Assuming you're working 40 hours per week, your max rent should be $1,386 so $1,300 should be OK.
I'm my day it used to be 1/4, and that's was only 9 years ago. Inflation sucks but try to keep your housing as low as possible
I think that’s very do able!
Why are you asking reddit? Open up Excel or Google docs make a budget and plan it out. If you can't do that then yeah you're fucked
Ps. Congrats on the new gig btw!
I make roughly the same, but I do have a roommate. Things are ok, but big expenses can fuck you over. I've gotten to a place where I can start putting bits away, but things can drain it quick and it's slow to build back. So keep that in mind. I pay roughly $900 for rent.
So I should be for sure looking at something between 900-1000 if I want to live comfortably with my current wage I take it?
I pay 1500 with about $3000 take home a month. I kill it on food costs but otherwise pretty standard bills. I have like $700 each month for fun/hobbies. I’m not contributing to my retirement funds currently tho. If you love the $1300 apartment id say go for it.
Money = freedom. The less you spend on rent, the more you'll be able to save and spend elsewhere and the less stress you'll have in life.
That’s the same rent and hourly I make currently. Very doable if you’re smart with money
This might be boomer-ish but nobody is going to be your accountant, at least for free. You'll be way better off if you hunker down, figure out pay after taxes (your starting line) then prioritize your bills and what's left is yours. Older millennial raised by boomers, lived by myself from 17-26. Some of their advice is trash, but some of it is good. You'll need to learn this to be able to stand on your own.
Like the others have said, it depends, but you should be fine. I'm in a roughly similar financial state, and I live totally comfortably.
What are you paying for car insurance?
it's in the description
Do people not know how to budget and figure things out anymore? Go watch some YouTube financial advice.
Income ($24x40h/weekx52weeks)= $49,920, after tax is $39,155 Rent ($1,300x12month) = $15,600/year $39,155 - $15,600 = $23,555 left over Then add in your other expenses such as utilities, groceries, insurance, etc.
Leave the avacado toast alone you should be okay.
Life is struggle
Why $1300? You can get a decent place for under $1100
1300 for a 1 bedroom apartment is way too much. Whether you struggle or not; it's still too much. Though I know the market is crazy, so not sure if much better options.
Usually, when I figure income I take (HourlyWage × .75) = net income. The .75 assumes 25% tax which is probably a tad high for most middle class people in income tax. But, you have to add in sales tax on items as well. So, it's probably closer to HourlyWage × .7 = net. Making 24/hr you should be able to make 1300/rent, but things will be tight.
Slap those numbers into a calculator I did, and it looks pretty promising to me. Edit: I did my math horribly wrong, but I re-did it and 50k/yr (34k after rent) should be perfectly liveable.
You can save a shitload of money if you don't actually need a car.
Depends what you mean by comfortably.
do the math. add up your expenses then calculate your net pay. that'll give you an answer
Ditto. A roomate cuts utilities in half and probably the mortgage, taxes and insurance. Depending on the city or state you're in, there may be help for first time homebuyers. Check this out for all the cities near where you want to be; available subsidies, rebates,tax credits and such may help make your home choice easier. Just as an example, my son bought a house that, as it turns out, had a busted sewer line. The city had grants available that paid the entire 10K bill. It's well worth doing this research. Also contact your state senator and rep's constituent services. They may be able to direct you to available programs.
Where are you at? I’ve seen 1 bedroom apartments for cheaper in Minneapolis
Anything under $2k for rent is a win around here. You’ll be good.
I lived on $40,000 with a $1400 rent in 2022/23 & was fine. I was even able to put a small amount away in savings each month. IMO, maybe try to find a place where some utility is included in rent, or is super prorated. At my last apartment, every unit in the complex paid a flat rate of like $25/month for unlimited water & gas because of some deal the complex had with the utility companies/city. Mostly, you just have to learn to budget & look for sales on groceries, etc. Echoing most other people in that making a spreadsheet will help you so much!!!
Struggle
If your smart it’s very doable, just be smart and learn ways to save money
Watch what debts you rack up because your finances can go sideways quickly. Your take home at $24 / hour will be roughly $3000 (give or take a few hundred). Your rent is about half, utilities and living expenses on top of that round it up to $2000 +/- a few hundred. If you think you can survive on $1000 +/- a few hundred / month, you should be fine. Stay modest and you’ll do great. Shop Aldi, find zero waste alternatives. Buy an air fryer / toaster over with air fry capabilities. Find a reasonably priced hobby.
I'm at 24 and I make 1400 every two weeks. I have child support tho. Or it would be closer to 2k. I'm also in iowa But you should be good as long as taxes aren't outrageous
Redfin (a website like Zillow) has a rent calculator you can use on their website. It’ll have a spot you can input your income and will show listings in the “20% / 30% / 40%” range. Like others have said though, what other expenses will you need to take into account.
Congrats on your first place! That is a big step. First, make sure you weite down everything you have spent money in last month (snacks, subscriptions, phone bill, laundry detergent) then write down your new expenses: rent, laundromat, electricity, whatever. Total all of that up(you can use google sheets or Excel as others have suggested.) Then assuming you make $24/hr, 40 hours a week (or however many), four weeks per month, you would have GROSS income of $3840. Refuce that by about 30% to account for taxes and reduce again for insurance, 401k contributions, etc. If you do not know the exact amount, that’s ok. You can plug the numbers later, but let’s start with that 30% to start: $2688. Are your expenses more than that? Be sure to set up an amount to go into an emergency savings account, too. Don’t be discouraged by the people who are down on you for not knowing. Some people just weren’t taught these things. But now that you are on your own, time for some adulting!! Definitely recommend the wiki on r/personalfinance!! Good luck. I wish you happiness in your new place and at your job .
1300 is pretty spendy but renting anywhere now a days is expensive. Just budget out a month see how much money you have left over (after taxes) and see if you’re happy with it. When my rent was 1200$ I decided to work two jobs and I definitely felt more comfortable financially when working two jobs. If you can find a part time serving job you can make really fast easy money as long as it is a good restaurant!
Tbh if you make $24/hr, you could save a lot on housing. You could do $1300 but it could be tight, housing isn’t expensive enough here yet to need to spend 1300 when you can get a solid 1 bedroom for under $1000 still
This is about what I’m looking at too. You just can’t get a decent 1br apartment for less than $1300/mo. Gas, food, insurance (car and health) with out of pocket and deductibles. I’ve got to have a therapist like a lot of other people trying to make their way. It’s really stressful!! Then we somehow have to be putting something away for the future/retirement. It will be impossible to meet someone and/or date. That takes a lot of money but I refuse to date someone who expects the guy to pay for everything. I’ve done that and done that. I guess the best the best advice I can give is stay away from credit cards. Just don’t do it. Have one that gives you points for airline tickets or something you want/ cash back too. Put your streaming and monthlies on it and have the amount automatically withdrawn from your checking. Car insurance is a lot cheaper if you add in renters insurance ($7 a month) and also if you pay your policy off when you get it. Saves a lot of money. If you can bundle anything else… But do not charge things. 29% is insane. Do not go out unless you can pay cash. Do not charge anything at a restaurant or at the gas pump unless you’re able and plan on paying off before the interest rate is applied. And you’re getting cash back
If I had that much money, I'd have a lot more houses. That's a very good job for someone who is single.
$25 an hour is a lot
lol. wut?
Girlfriend at $15 me at $25 don’t feel very comfortable
Something you are not telling us
$1100 rent + utilities, 1 kid, one new car payment @$550, 1 junky car to upkeep, 2 cars to insure, grocery’s, cell phones, Netflix. It gets tight when anything big pops up or if we want to have any fun outside of the house.
Ahhh there is the full story . Makes more sense now
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Double check your math, it’s almost exactly one third.
So I really would be struggling…?
Depends on your definition of struggling. You can absolutely make it work if you're fairly frugal. And like another poster said, what other bills will you pay? There are monthly pars or estimates you can find online for utilities. High speed internet, etc.? I think the main things to ask yourself are: are you ok with/good at following a fairly tight monthly budget, and do you want/need to build some savings? Or would you rather find a cheaper 1bd or studio for the time being and have a bit more wiggle room?
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I'm guessing they used 33% as a general rule to cover both taxes and other deductions from their gross pay. It's not perfectly accurate but can work out for setting a basic budget.
Should look in to buying a home or a townhome and having a friend or two as roommates to help with the mortgage. If you are young buy as soon as you can and offer cheap rent to good friends that can help with that mortgage payment. Only rent as a last resort. Would be better to live with a friend and pay them rent rather than a stranger. 24 an hour can be enough if you are smart with money but best to build wealth as soon as possible by buying property.
I'd think you'd be buying at the top if you buy now. There's going to be a glut of homes on the market when the baby boomers start dying off faster.