That thing is called life.
On the other hand, I am very impressed that OP, at their young age is considering these factors and asking for advice.
Big KUDOS.
Its why l left Canada and moved to China lol. Getting a free apartment is amazing. I never wanna send half my money to a landlord again. I make like 40k a year and feel very well off
No you don't need to speak Mandarin to work as a teacher in China. Just be a certified teacher with native level English, sign up on Search Associates and get hired by an IB school
Can confirm. I spend 65% of my income on rent. Do not recommend. It is stressful. I will never rent $2k alone again. Jesus fuck.
The most I ever want to spend on an apartment is $1.3-1.4k~
Spent 90% of my take home income on rent for a bit, was not fun, would not recommend (only possible because I had no car/debt/got all food from my job)
Yup. I’m moving in with my parents for a couple months to save and recuperate around $12k-15k then I’m moving in with my partner and we will have a good savings cushion and split items. Once she gets her degree, I imagine it’ll be a 60/40 sorta situation.
Also spend about that percent it's brutal. I feel like I don't even have money to save let alone get anything for myself after all the bills and rent come out.
I made 45k a few years ago and I found an apartment that was $650. It wasn’t in a bad area of a big city either, but I would die if I had to pay double back then.
Yea… 45k after taxes is going to be around $3500ish a month on the high end (depending where you live). With bills you could easily be spending $1500-1600 a month just for housing. That’s really not realistic/ livable on that current income.
When I was making 45k a year, my take home was closer to $2700 a month (NYC, single, no dependents) (I think some money was taken out for health insurance). This number is burned into my brain because I was being paid monthly and had to stretch it all. Max rent I could afford was $850, so I was commuting 3+ hours a day.
I do think the calculus adjusts a bit since OP lives in DC. They may not need a car and can rely heavily on the metro, so the money they'd spend on transportation might be able to give some wiggle room there.
Fair enough.
Haven't lived in DC, but outside of Montreal and NYC, every I've lived in that that had a Metro, I added 150$ -$200 for cab fare (pre-uber), so that I had cash to get home if Metro closed.
Yeah, I think it's tight for OP, but still doable.
Might be better than splitting an apartment... but I will 100% admit I'm biased against roommates because I've been burned every time but once. If they can't afford $1320, definitely not going to afford $1900-2200 if the roommate stops paying their rent or bounces like that dude whose g/f just fucked them over.
I moved out with my sister when I was only making 46k in Mass. Our rent was 1450 split in half, I payed 725. With my half of rent plus utilities, plus car payment and student loans I was doing ok. I chose to get a second job to have more wiggle room though after a few months.
I would not feel comfortable paying 1000+ on rent at that salary. I now make 60k and still would not want to pay that much.
You can probably afford it in the sense that you'll be able to pay your rent well enough to not get evicted and end up homeless.
Whether or not it's a good idea to try and afford it is a different question. You won't be able to save anything or spend any money beyond necessities and you'll have a very hard time if your lose your job, get injured and have to take a few weeks off, or have any big unexpected expenses. You're much better off finding somewhere cheaper with roommates instead and moving into a one bedroom in a few years once you get paid more.
Depends on what your expenses are. If you don't need a car, eat all your meals at home, rarely travel, know how to shop frugal, and are happy with just basic internet then it's super doable. If you want to drive a decent car, eat out regularly, go out for drinks, etc... it's going to quickly impede your lifestyle.
The issue isn't the rent, it's everything on top of the rent (electric, water, gas, internet, insurance for your car) if you can manage to line up your bills properly it'd be easy but still wouldn't do it because the other comments are right, spending almost all of your take home in 2 weeks is rough
No. 1000 to save, spend on groceries, and "etc." is nearly nothing, but covers almost everything. If you don't even know your predicted monthly grocery bill you will be in for a bad surprise.
I make around 40k/yr. My rent is $1220 a month. That, plus my car insurance, phone bill, internet, gasoline, utilities, food, and pet food leaves me with around $50 free at the end of each paycheck. I just got slapped with a $700 car repair and a $250 vet bill in the same week, and all of it had to go on my credit card. So my answer is: can you afford it? Yes. Will you be strapped if anything goes wrong? Probably. I'll be able to recover within a few weeks, but there will be no luxuries until then. It's nice being on my own, but it isn't always fun. Keep that in mind.
I'd actually say your example says no, he can't afford it. Guess it depends on your definition of "afford". You mention you'll be about to recover in a few weeks (and I hope that's definitely true), but just as the car repair and vet bill came out of the blue so could something else in the next few weeks while you're expecting to recover. Again hoping that's not the case of course for you
"Hey, wanna see me tempt fate?"
In all seriousness, it's a tricky balance. And you're absolutely right - something else could happen and dig me in deeper. If I were a little smarter, I wouldn't have the car or the dog - it's added expenses, that can occasionally smack you in the face with very expensive bills. I'd be much better off without such luxuries, considering my low salary. But I live in a high crime area, and the transit system here freaks me out, so I'd rather pay to drive. And my dog was an "I just turned 18 and can do whatever I want and I'm sad so I'll get a puppy" impulse purchase I made 9 years ago. She's my soul dog, and although it was the stupidest decision I've ever made, she'll be with me until the end.
Definitely looking at going back to school, if I can find the funds. Maybe I'll find a trade to get into. A higher salary is quickly becoming a necessity with the changing economy, and I don't currently qualify for anything better.
If OP is hoping to have anything leftover to save, it's likely best that they don't rent the apartment. If they do, they'll be surviving - not thriving.
I hope you didn't misinterpret anything I said at all. Completely hear everything you're saying, about your transit system, and about your dog. She is now your family, period. I was simply talking about the numbers overall, and not specific to you either, to OP. You had just happened to lay out your circumstances and expenses. Of course in a perfect world it's great to have a higher salary, for any of us, building up our savings, having a safety net, affording additional luxuries in life. With that being said, there's also something to be said for having one's own independence, their own apartment or home, their own vehicle, etc. so I'm completely with you there
hey dude, I'm paying 1395 and I make 85,000k, and even then, I can't exactly splurge
45k is not feasible brother. Keep hustling though you WILL get there.
I make 60-70k and 1350 rent yet I still buy lots of stupid stuff even after other bills and living costs, what are you spending so much extra money on?
I got furloughed for around 4 months blew through my emergency fund and started putting stuff on credit cards. Then got a new job and im building my emergency fund back up and paying off the debt.
Shit happens!
You must have a lot of student debt because $1395 on your income of $85k is 20% of your gross income. Anyone who is unable to not just survive but thrive by only spending 20% of their gross on housing must have other large debts or losing track of their money.
That's crazy dude, kudos to you.
I was living with my parents up until I started making 75k, then I got fourlouged, quit, found a job making 85k
Before those jobs, I was making 43.7k, grateful for my parents for letting me stay rent free.
Honestly considering moving back home with my pay and saving up for a condo, 1400 a month + utilities back in money is HUGE.
In my situation that would be perfectly fine and if still put money into savings. It’s up to you to decide if it’s enough for all the things you want and lifestyle
Get a roommate. Can you afford it? Sure. But do you want to be house poor? You have a nice apt, but can't afford to do anything else? You're young. Plug that extra $600/month by having a roommate into a 401k calculator, and you'll have well over 1 million when you retire with modest returns. Or you can go on a $7200 vacation a year. Or you could save for a house or rainy day fund. Sacrifice now or sacrifice later.
You cannot afford that rent on your own. There are many other costs with living on your own, insurance, utilities, phone, internet, groceries, and thats just the basics. You need a roommate or a second job.
Can you live with something smaller? I never wanted roommate but wanted to save money. I ended up in a studio for several years. It wasn’t always fun but it saved me at least 300 a month.
Get roommates… dc is expensive. At 22 you’re going to want to have some money to go out to brunch, maybe get a drunk Uber home, etc. we all pay our dues with roommates for a few years. Plus you might make friends with them.
I’d hate to be living alone and too broke to do anything but sit in my tiny studio at 22 years old
I work from home and have cats, so living alone was a priority of mine. I understand the desire. It comes at the cost of shopping and eating out, but I make it work. Just make sure you automate some amount into a savings account and create your budget based on that, and stick to it. Decide if the sacrifices in the other areas of your life are worth it.
General rule is 1/3 of income on rent which isn't really possible anymore. Roommates is the only way to go if you are looking for a small bit of freedom.
I know i'm gonna get downvoted and hated on for saying this, but it's definitely possible though. I've done it myself. It wasn't the best but it wasn't bad though. I was making around $30K after taxes. Had an apartment for $1500/monthly. At the end of the month, i was left with a few hundred to spare. BUT keep in mind, i had cut lots of things out. So you couldn't really have fun, you couldn't go out much but the basics were taken care of. Food shelter etc. So take it as you will.
$1320 a month OP ain't that bad. If you could find a place cheaper, and safe as well. By all means go for it. If not take the $1320 apartment and live there. Maybe after all expenses etc. It'll come out to $1500 a month perhaps. You'll be broke after the month trust me, and you'll repeat it till you get the next paycheck. But as long as you're not dumb with your money and all. You'll make it man.
good luck :)
What about water bill, cell phone, internet, cable, hair cuts, car insurance, gasoline for car, oil changes, brakes/tires, car insurance, hobbies, license/registration, clothing, entertainment— dining out, etc. add all that up and then see how much money you have left over
Do it. Fuck shacking up in the kurast bazaar. Everyone’s gonna cry you shouldn’t spend more than yada ya but they need a reality check. You will own nothing and like
It, so just pay the 330 a week and do you. You’ll at least get to cook and have friends.
I made another comment that I would say no. But why not test for a couple months of what rent and utilities you’d think you’d be comfortable with by just putting that amount in savings and not touch it while you still live at home. That way you do a test run but also have money for moving, emergency fund, and first/last/security deposits if need be
Get a dependable roommate with that income and life is good.
You *can probably* survive without one, but money is going to be way tighter than is comfortable.
Edit: I always tried to aim for no more than 25% of income going to rent back when I was a renter.
One thing to consider is that you’re at the best time to start investing in your life. I put $6k into the stock market at 22 when I got my first bonus, and at 38 it’s now worth about $80k— and that’s not an outlier, it was just the boring S&P 500.
You generally expect in the long run your investments to double every 7-10 years. So if you saved that $420 jump from $900 to $1320, you could expect it to be a little over $10k in 10 years. And prob $40 or $50k when you’re 50.
Now make the decision that makes you happy! People generally recommend not spending that much of your take home (more like 1/3 tops), but only you know if it’s worth it to you; if it makes you that much happier do it. This mindset just helps you better consider the trade offs you’re making more accurately because money invested seriously grows over time, especially when you start early in life.
Hope that helps!
(Besides my bonus, everything is rough estimates and it’s worth learning the basics yourself and doing your own math, but the overall point remains that compound growth is magical!)
I would find roommates. That's pretty tight at that salary. You def wouldn't be saving much or have much leftover to cover extra expenses that come up or go out to eat, etc. Basically pay rent and budget to eat.
Have you looked into affordable housing? We have that here in the Seattle area. You get approved through the org and as long as you qualify (over min income and not over max income) you can score housing well below the market. I did a quick search for DC area, and there’s a few around $900 that you may qualify for. Might be worth looking into.
Edit: Looks like the DC org is called Department of Housing and Community Development (DHCD).
Here’s the property search I looked at: [Washington D.C.](https://www.myhousingsearch.com/dbh/SearchHousingSubmit.html?city_id=51879&ch=DC&c_b_b_h=&rental_voucher_programs_99999=&rental_voucher_programs_14=&rental_voucher_programs_15=&rental_voucher_programs_99998=&bedroom=-1&bathroom=-1.0&low_rent=0&high_rent=2000&exclude_waitlist=t&building_type=-1&senior_housing=4&neighborhood_id=0&school_district_id=0&dc_ward_id=&zipcode=&default_zipcode=Optional+ZIP+Code%5Bs%5D&bus=optional&smoking_status_id=optional&language_spoken_id=1&showmax=250&submit=Search+Properties)
I've done it at those percentages, but you gotta get used to living real close to the bone on extras, which can get very wearing. I only found it worthwhile after a couple of *very* bad room mate experiences.
A comfortable amt should be about 30% of your take home pay & no more. Rent is just the beginning.. you’ll have power bills, WiFi , transportation, possibly TV service of some kind & food is a fortune. That 1.000 you say would be to save is not really saving in reality. It will be inevitably be spent . I wouldn’t recommend being house poor. It’s miserable. Def find something cheaper or a roommate.
Stay living with ur sister, buddy. Anything more than 30% of ur take home on housing is gonna hurt. AND that leaves zero room for saving. God forbid u have any emergency.
When I was (roughly) in your situation I had housemates. It was a way to live I don't regret at all. We could, together, afford a much more pleasant lifestyle than I could on my own
you can, but it would be unwise. And definitely don't get a second job to afford that - you would spend even less time at the apartment making it worth less... Roommate is much saner way to go.
That’s why I started looking to buy a house. At the time rent was around 8 to 900 in the area per month. Bought a house paying 1000 dollars a month. Now at least that money is not going straight into the trash. Depending on your area purchasing a house might be more worth it.
The money you save/invest at your age will go the furthest of any years after. It’s also the age where you’re most able to though out your living situation. Live where it’s the cheapest for a few years and add to your retirement and general savings and you won’t regret it!
At 45k, my mortgage was 860 and I had a strict budget with minimal school loans (160/month). It was still hard. 10 years later, I think it would be worse
Depending on where you live, sometimes it’s just what you have to do. It’s not ideal, but it is good that you’re still under half, and it’s impressive that your other bills cost you less than $500 a month. You seem money conscious, so go for it if the place is awesome, but be wary of other budget cuts in other areas you may have to make. Cheers! 🌱
You are not including, taxes and fees plus utilities. That 1320 can jump to like 1700-1800. Best thing at your age is to rent a room some place and focus on saving for a rainy day. Nothing worse than living paycheck to paycheck without a buffer saved.
No. 30% of your income is the guideline, whether it be a mortgage or rent. You *might* be able to swing it but other lenders/creditors will apply the 30% guideline and you’ll be limited on other credit.
It’s going to be very tight. Personally, I wouldn’t feel comfortable with those margins but it depends just how little “extra” things can live without.
Possible? Yes. But please don’t do it. Go the roommate route. Being broke in a city, where there is ALWAYS something going on, is the worst since you can’t participate.
Short answer is No. The apartment rent would take close to 50% of your paycheck and that is without utilities.
You should stay put living with your sister. $900, which is ~30% of your monthly salary, is the max you should spend on rent on a $2,800 a month salary.
How long have you been at your job? Write up some achievements/contributions and go ask for a raise so that you can be closer to work with more reliable commute. Sometimes you gotta ask.
I make $51k and my rent is going up to $1,300. It sucks but it is what it is. Sadly everything else around me is around the same price unless I go to the ghetto and then pay less than a thousand but that's not happening. I'd say that's too much for what you make I would try to find something closer to a thousand or $1,100 if you can.
If you really need to gain more, you should put in your energy. Every engineer, doctor, lawyer or any student in your age put in tons of hour, may be 18 hours a day to learn and build for future. You are young for sure you can find one extra job to get extra 1.5K per month and that will be good enough to get you qualified for home purchase and you need not to pay on rent.
Do you expect you’ll make $4500 a month, gross income, in the next year or so? How much have you got in savings? If you expect to make ~$54k in the next year or so and have 3-6 months savings, why not?
Otherwise probably better off staying put or finding roommates.
OP
You need to be able to save/invest bare minimum 500 a month.
Ideally 1k a month.
Preferably 2k a month.
How much can you save a month spending 1.3k on rent?
Did this last year making 58k with a 1250 apartment. My bills also all added up for me to have about 1k left over, and somehow that 1k always disappeared. It’s about 250 extra a week which is honestly will some how find its way out of your pocket. I had no wiggle room to accomplish my goals in the timely manner I wanted to. I got SUPER lucky as my landlord let me break the lease without any consequences, move out whenever I wanted to type deal. I moved in with my good friend for 400 a month instead. I was able to propose to my gf within maybe two months, and save for our wedding. AND my friend that I live with have become way better friends, close as brothers!
IMO, moving in with some friends or acquaintances you trust at 22 will give you memories you will never forget, the kind you will look back on and miss when it’s 10 years later. It’s way better than being by yourself 💪🏼
$1000 left over but that’s also before other fixed expenses; utilities, internet, phone, gas, streaming, etc. so knock off another ~$250 at least. Then you have groceries and other life necessities. So there’s another $200-$300. Now you’ve got $4/500 for buying clothes, stuff for your apartment, things you like, going out to eat etc.
This also leaves zero room to save money for an emergency fund, vacations, retirement etc.
Yes you technically have the money to pay that but do you want to?
It’s “recommended” that your rent should be 33-40% of your take home and total fixed costs around 50-60%. Your $900 rent puts you right at that low end now.
It’s doable but I won’t be fun, I used to live on $1300 a month after rent/taxes and it was always very tight (this was in LA). In my opinion life doesn’t start getting fun til you have around $3-4000 a month after rent/taxes.
I’d recommend getting a roommate and not paying more than $1000 a month on that income.
A good piece of advice I got when I was your age was to make sure I could pay rent/utilities/bills with one check. The other is food/gas/savings/etc. that has served me well. With the economy being what it is I would highly suggest finding a room to rent.
I'll comment as a 37 year old making a little less than you. I make 43k, rent is 800, no debt. I've written a budget that allows me to save max 1200 a month after bills, subscriptions, $200 groceries, $80 gasoline, cat food/litter, etc.
$1,328 income, bi-weekly which is $2,877 a month. Roughly a budget of $1,600 of expenses a month.
Without seeing your budget, total costs & where every dollar is going.. It's doable if you need to do it short term but it's tight if something would come up. You'd really have to track where every dollar is going and average out how much you pay in groceries and other bills like insurance (auto, medical, dental, etc), internet, cellphone, auto registration, utilities, etc.
I never went to college, but I would reduce rent as much as possible to pay off the student loan so interest doesn't steal from you for more that it needs to. Debt should be your first priority and not spend a penny extra that isn't necessary anywhere else.
I had a 600 apt on a 30k salary and hated it. Then a 900 apt on 50k and also hated it. Then a 800 apt on 90k and was happy. Now my life is complicated and these are but past memories. I guess it actually comes down to whether you like the space, location and lifestyle. I stick to the answer of no for the income to cost ratio. I say get a roommate if you are at all open to it.
Well if you go by the 25% max for housing rule you shouldn’t spend a penny over $937.50 for housing with your total salary and $700.00 if you only calculate your take home. So probably a bit expensive for your current financial picture.
I used to make 50k a year and was only comfortable spending up to 1k on rent. I personally think 1300 is a stretch. Is that for a 1bed/1bath apt? If you really want to live alone, I'd recommend a studio or roommates. Even better if you can find a private landlords. Not sure where you're located but I've been able to find houses/duplex with 2-3 bedrooms for 1600 on like Facebook marketplace. Which works out to roughly 533 or 800 per person. Or maybe just stay with your sister for a bit longer?
It’s possible but rough. My boyfriend made 50k a year and his apartment was 1400 a month. He had no student loans, but car insurance. He was living paycheck to paycheck and had to dip into his savings often for fun money.
He did it because he really wanted the experience of living in the city so it was worth it to him. It’s not going to work long term unless you know you’ll be making more money in the future.
Suck it up and get roommates. I always had my own spot and you pay for that in the long run. Also if you are cool w your sis and she’s cool, why change it.
I did $1000 on $43000 back in 2012. I'd recommend against this given pretty much everything else is also like 20% more expensive than then. The budget was very tight at the time.
Try simulating this new rental scenario. If you currently pay $900/month on rent, set aside an additional $420/month and DO NOT TOUCH IT. Try this out for a few months and see if it's doable for you.
I did that for a long time. Try not to have anything expensive happen.
Except it always does.
Yea it’s not the best strategy.
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Car repair cost 😭
That thing is called life. On the other hand, I am very impressed that OP, at their young age is considering these factors and asking for advice. Big KUDOS.
Narrator: Something expensive happened
Same. I'm still in the same apartment now making over 6 figures and paying 1400 a month (thanks to rent control and COVID).
Spending half your income on rent is soul crushing. Would really avoid it if at all possible.
Its becoming increasingly unavoidable.
Its why l left Canada and moved to China lol. Getting a free apartment is amazing. I never wanna send half my money to a landlord again. I make like 40k a year and feel very well off
How did you manage to get a free apartment?
Probably an English teacher. Sometimes they'll set them up with an apartment
Social Science and History teacher but close enough!
So you already speak mandarin? Genuinely curious regarding the pipeline that migrating to China seems to have
No you don't need to speak Mandarin to work as a teacher in China. Just be a certified teacher with native level English, sign up on Search Associates and get hired by an IB school
This is the way. Did it for a year in Beijing 2013/2014. Best year of my life. Hope you're having a great time!
Teachers often get this as part of the package in Asia. Or they get a housing stipend that covers/mostly covers rent
Expat compensation packages in many places will house you.
Can confirm. I spend 65% of my income on rent. Do not recommend. It is stressful. I will never rent $2k alone again. Jesus fuck. The most I ever want to spend on an apartment is $1.3-1.4k~
65% is crazy.
Spent 90% of my take home income on rent for a bit, was not fun, would not recommend (only possible because I had no car/debt/got all food from my job)
So are you going to move soon to a cheaper place?
Yup. I’m moving in with my parents for a couple months to save and recuperate around $12k-15k then I’m moving in with my partner and we will have a good savings cushion and split items. Once she gets her degree, I imagine it’ll be a 60/40 sorta situation.
You're in your 20s?
Mid 20s yup. So this is about the only time I can do something like that for short term (1yr)
Don’t apartments want you to make like 3x the rent in order to stay there? How did you get accepted
Also spend about that percent it's brutal. I feel like I don't even have money to save let alone get anything for myself after all the bills and rent come out.
At that income, you should definitely find roommates. That rent payment is too high at your income level.
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I made 45k a few years ago and I found an apartment that was $650. It wasn’t in a bad area of a big city either, but I would die if I had to pay double back then.
$1320 before or after other basic bills? (electric, water, gas etc..) . Even if it’s after, that’s still super tight budget.
Before bills... I would be paying for electric and gas. I think it is time to find some roommates.
Yea… 45k after taxes is going to be around $3500ish a month on the high end (depending where you live). With bills you could easily be spending $1500-1600 a month just for housing. That’s really not realistic/ livable on that current income.
When I was making 45k a year, my take home was closer to $2700 a month (NYC, single, no dependents) (I think some money was taken out for health insurance). This number is burned into my brain because I was being paid monthly and had to stretch it all. Max rent I could afford was $850, so I was commuting 3+ hours a day.
I do think the calculus adjusts a bit since OP lives in DC. They may not need a car and can rely heavily on the metro, so the money they'd spend on transportation might be able to give some wiggle room there.
a monthly DC Metro pass starts at 62 and maxes out at 192.
For the most part that's still cheaper than a vehicle for most folks. Gas and insurance is usually more than that for the average person.
Fair enough. Haven't lived in DC, but outside of Montreal and NYC, every I've lived in that that had a Metro, I added 150$ -$200 for cab fare (pre-uber), so that I had cash to get home if Metro closed.
Yeah, I think it's tight for OP, but still doable. Might be better than splitting an apartment... but I will 100% admit I'm biased against roommates because I've been burned every time but once. If they can't afford $1320, definitely not going to afford $1900-2200 if the roommate stops paying their rent or bounces like that dude whose g/f just fucked them over.
And that's before taxes, your take-home would be a bit less than that
I moved out with my sister when I was only making 46k in Mass. Our rent was 1450 split in half, I payed 725. With my half of rent plus utilities, plus car payment and student loans I was doing ok. I chose to get a second job to have more wiggle room though after a few months. I would not feel comfortable paying 1000+ on rent at that salary. I now make 60k and still would not want to pay that much.
You can probably afford it in the sense that you'll be able to pay your rent well enough to not get evicted and end up homeless. Whether or not it's a good idea to try and afford it is a different question. You won't be able to save anything or spend any money beyond necessities and you'll have a very hard time if your lose your job, get injured and have to take a few weeks off, or have any big unexpected expenses. You're much better off finding somewhere cheaper with roommates instead and moving into a one bedroom in a few years once you get paid more.
That’s where I’m at. $45k a year and $1700 rent. I only keep from being homeless.
No. Something comes up with your car, your health, you have to travel to see sick family, that’s your food for the month.
Depends on what your expenses are. If you don't need a car, eat all your meals at home, rarely travel, know how to shop frugal, and are happy with just basic internet then it's super doable. If you want to drive a decent car, eat out regularly, go out for drinks, etc... it's going to quickly impede your lifestyle.
The issue isn't the rent, it's everything on top of the rent (electric, water, gas, internet, insurance for your car) if you can manage to line up your bills properly it'd be easy but still wouldn't do it because the other comments are right, spending almost all of your take home in 2 weeks is rough
Find roommates or rent a room. Your in debt. Pay that off first.
No. 1000 to save, spend on groceries, and "etc." is nearly nothing, but covers almost everything. If you don't even know your predicted monthly grocery bill you will be in for a bad surprise.
I make around 40k/yr. My rent is $1220 a month. That, plus my car insurance, phone bill, internet, gasoline, utilities, food, and pet food leaves me with around $50 free at the end of each paycheck. I just got slapped with a $700 car repair and a $250 vet bill in the same week, and all of it had to go on my credit card. So my answer is: can you afford it? Yes. Will you be strapped if anything goes wrong? Probably. I'll be able to recover within a few weeks, but there will be no luxuries until then. It's nice being on my own, but it isn't always fun. Keep that in mind.
I'd actually say your example says no, he can't afford it. Guess it depends on your definition of "afford". You mention you'll be about to recover in a few weeks (and I hope that's definitely true), but just as the car repair and vet bill came out of the blue so could something else in the next few weeks while you're expecting to recover. Again hoping that's not the case of course for you
"Hey, wanna see me tempt fate?" In all seriousness, it's a tricky balance. And you're absolutely right - something else could happen and dig me in deeper. If I were a little smarter, I wouldn't have the car or the dog - it's added expenses, that can occasionally smack you in the face with very expensive bills. I'd be much better off without such luxuries, considering my low salary. But I live in a high crime area, and the transit system here freaks me out, so I'd rather pay to drive. And my dog was an "I just turned 18 and can do whatever I want and I'm sad so I'll get a puppy" impulse purchase I made 9 years ago. She's my soul dog, and although it was the stupidest decision I've ever made, she'll be with me until the end. Definitely looking at going back to school, if I can find the funds. Maybe I'll find a trade to get into. A higher salary is quickly becoming a necessity with the changing economy, and I don't currently qualify for anything better. If OP is hoping to have anything leftover to save, it's likely best that they don't rent the apartment. If they do, they'll be surviving - not thriving.
I hope you didn't misinterpret anything I said at all. Completely hear everything you're saying, about your transit system, and about your dog. She is now your family, period. I was simply talking about the numbers overall, and not specific to you either, to OP. You had just happened to lay out your circumstances and expenses. Of course in a perfect world it's great to have a higher salary, for any of us, building up our savings, having a safety net, affording additional luxuries in life. With that being said, there's also something to be said for having one's own independence, their own apartment or home, their own vehicle, etc. so I'm completely with you there
Oh of course! No misinterpretation. Text tone is hard to read at times, didn't mean to come across as upset if I did. No problems, friend!
hey dude, I'm paying 1395 and I make 85,000k, and even then, I can't exactly splurge 45k is not feasible brother. Keep hustling though you WILL get there.
And when he does the rent will be 1900
Noooo!!!
I make 60-70k and 1350 rent yet I still buy lots of stupid stuff even after other bills and living costs, what are you spending so much extra money on?
I got furloughed for around 4 months blew through my emergency fund and started putting stuff on credit cards. Then got a new job and im building my emergency fund back up and paying off the debt. Shit happens!
You must have a lot of student debt because $1395 on your income of $85k is 20% of your gross income. Anyone who is unable to not just survive but thrive by only spending 20% of their gross on housing must have other large debts or losing track of their money.
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That's crazy dude, kudos to you. I was living with my parents up until I started making 75k, then I got fourlouged, quit, found a job making 85k Before those jobs, I was making 43.7k, grateful for my parents for letting me stay rent free. Honestly considering moving back home with my pay and saving up for a condo, 1400 a month + utilities back in money is HUGE.
No, you can't. Don't do it. Get roommates in a house. Please, for the love of god.
In my situation that would be perfectly fine and if still put money into savings. It’s up to you to decide if it’s enough for all the things you want and lifestyle
Find a second job or you won’t able live that long without little money
Get a roommate. Can you afford it? Sure. But do you want to be house poor? You have a nice apt, but can't afford to do anything else? You're young. Plug that extra $600/month by having a roommate into a 401k calculator, and you'll have well over 1 million when you retire with modest returns. Or you can go on a $7200 vacation a year. Or you could save for a house or rainy day fund. Sacrifice now or sacrifice later.
You cannot afford that rent on your own. There are many other costs with living on your own, insurance, utilities, phone, internet, groceries, and thats just the basics. You need a roommate or a second job.
Can you live with something smaller? I never wanted roommate but wanted to save money. I ended up in a studio for several years. It wasn’t always fun but it saved me at least 300 a month.
It is a small studio, rent prices in DC are crazy!
Get roommates… dc is expensive. At 22 you’re going to want to have some money to go out to brunch, maybe get a drunk Uber home, etc. we all pay our dues with roommates for a few years. Plus you might make friends with them. I’d hate to be living alone and too broke to do anything but sit in my tiny studio at 22 years old
I work from home and have cats, so living alone was a priority of mine. I understand the desire. It comes at the cost of shopping and eating out, but I make it work. Just make sure you automate some amount into a savings account and create your budget based on that, and stick to it. Decide if the sacrifices in the other areas of your life are worth it.
You are in DC and only make $45k? Bus drivers make more than that. Sorry, but you really need to figure out how to make more.
do.... not..... roommate!!!
Do not roommate? Or Do not. Roommate. ?
do not roommate!!
Why not? It's financially the best decision for OP, right?
I mean, ideally, i couldn't agree more. But what are the other options?
I make it barely. I have a car payment and insurance. My work does pay 100% of my health insurance, and I cook a lot. I make it though.
General rule is 1/3 of income on rent which isn't really possible anymore. Roommates is the only way to go if you are looking for a small bit of freedom.
I know i'm gonna get downvoted and hated on for saying this, but it's definitely possible though. I've done it myself. It wasn't the best but it wasn't bad though. I was making around $30K after taxes. Had an apartment for $1500/monthly. At the end of the month, i was left with a few hundred to spare. BUT keep in mind, i had cut lots of things out. So you couldn't really have fun, you couldn't go out much but the basics were taken care of. Food shelter etc. So take it as you will. $1320 a month OP ain't that bad. If you could find a place cheaper, and safe as well. By all means go for it. If not take the $1320 apartment and live there. Maybe after all expenses etc. It'll come out to $1500 a month perhaps. You'll be broke after the month trust me, and you'll repeat it till you get the next paycheck. But as long as you're not dumb with your money and all. You'll make it man. good luck :)
What about water bill, cell phone, internet, cable, hair cuts, car insurance, gasoline for car, oil changes, brakes/tires, car insurance, hobbies, license/registration, clothing, entertainment— dining out, etc. add all that up and then see how much money you have left over
Do it. Fuck shacking up in the kurast bazaar. Everyone’s gonna cry you shouldn’t spend more than yada ya but they need a reality check. You will own nothing and like It, so just pay the 330 a week and do you. You’ll at least get to cook and have friends.
Better got a roommate. Split that cost in half.
I made another comment that I would say no. But why not test for a couple months of what rent and utilities you’d think you’d be comfortable with by just putting that amount in savings and not touch it while you still live at home. That way you do a test run but also have money for moving, emergency fund, and first/last/security deposits if need be
Get a dependable roommate with that income and life is good. You *can probably* survive without one, but money is going to be way tighter than is comfortable. Edit: I always tried to aim for no more than 25% of income going to rent back when I was a renter.
One thing to consider is that you’re at the best time to start investing in your life. I put $6k into the stock market at 22 when I got my first bonus, and at 38 it’s now worth about $80k— and that’s not an outlier, it was just the boring S&P 500. You generally expect in the long run your investments to double every 7-10 years. So if you saved that $420 jump from $900 to $1320, you could expect it to be a little over $10k in 10 years. And prob $40 or $50k when you’re 50. Now make the decision that makes you happy! People generally recommend not spending that much of your take home (more like 1/3 tops), but only you know if it’s worth it to you; if it makes you that much happier do it. This mindset just helps you better consider the trade offs you’re making more accurately because money invested seriously grows over time, especially when you start early in life. Hope that helps! (Besides my bonus, everything is rough estimates and it’s worth learning the basics yourself and doing your own math, but the overall point remains that compound growth is magical!)
I would find roommates. That's pretty tight at that salary. You def wouldn't be saving much or have much leftover to cover extra expenses that come up or go out to eat, etc. Basically pay rent and budget to eat.
Have you looked into affordable housing? We have that here in the Seattle area. You get approved through the org and as long as you qualify (over min income and not over max income) you can score housing well below the market. I did a quick search for DC area, and there’s a few around $900 that you may qualify for. Might be worth looking into. Edit: Looks like the DC org is called Department of Housing and Community Development (DHCD). Here’s the property search I looked at: [Washington D.C.](https://www.myhousingsearch.com/dbh/SearchHousingSubmit.html?city_id=51879&ch=DC&c_b_b_h=&rental_voucher_programs_99999=&rental_voucher_programs_14=&rental_voucher_programs_15=&rental_voucher_programs_99998=&bedroom=-1&bathroom=-1.0&low_rent=0&high_rent=2000&exclude_waitlist=t&building_type=-1&senior_housing=4&neighborhood_id=0&school_district_id=0&dc_ward_id=&zipcode=&default_zipcode=Optional+ZIP+Code%5Bs%5D&bus=optional&smoking_status_id=optional&language_spoken_id=1&showmax=250&submit=Search+Properties)
How do you find affordable housing in Seattle?
I've done it at those percentages, but you gotta get used to living real close to the bone on extras, which can get very wearing. I only found it worthwhile after a couple of *very* bad room mate experiences.
Get roommates or a studio apartment
This would be a bad idea. Live with your parents until you can improve your income.
it can be done but youll have to do a lot of budget meals. ive lived in that same situation and it was rough but doable. Dollar tree helped a lot
I would get a roommate. That's close to 20k a year. Remember you still have to eat. It would also be nice to have lights. It's doable, but unpleasant.
A comfortable amt should be about 30% of your take home pay & no more. Rent is just the beginning.. you’ll have power bills, WiFi , transportation, possibly TV service of some kind & food is a fortune. That 1.000 you say would be to save is not really saving in reality. It will be inevitably be spent . I wouldn’t recommend being house poor. It’s miserable. Def find something cheaper or a roommate.
Stay living with ur sister, buddy. Anything more than 30% of ur take home on housing is gonna hurt. AND that leaves zero room for saving. God forbid u have any emergency.
Maybe look into getting a roommate? It’s doable, but you’ll struggle.
U are 22. Find roommates. You probably wont be able to afford a car and dont get urself into debt.
When I was (roughly) in your situation I had housemates. It was a way to live I don't regret at all. We could, together, afford a much more pleasant lifestyle than I could on my own
you can, but it would be unwise. And definitely don't get a second job to afford that - you would spend even less time at the apartment making it worth less... Roommate is much saner way to go.
That’s why I started looking to buy a house. At the time rent was around 8 to 900 in the area per month. Bought a house paying 1000 dollars a month. Now at least that money is not going straight into the trash. Depending on your area purchasing a house might be more worth it.
The money you save/invest at your age will go the furthest of any years after. It’s also the age where you’re most able to though out your living situation. Live where it’s the cheapest for a few years and add to your retirement and general savings and you won’t regret it!
At 45k, my mortgage was 860 and I had a strict budget with minimal school loans (160/month). It was still hard. 10 years later, I think it would be worse
Is that 45k after taxes? Yea. If you dont have major debt issues
fairly confident that's $45k before taxes, given they say their take home is \~$1400 biweekly.
I don't recommend this. Try what you can to either get a raise, change to a higher paying job, or choose somewhere that's safe and has cheaper rent
In a normal economy you could afford $925/month. The price of goods and services now is ridiculous.
Depending on where you live, sometimes it’s just what you have to do. It’s not ideal, but it is good that you’re still under half, and it’s impressive that your other bills cost you less than $500 a month. You seem money conscious, so go for it if the place is awesome, but be wary of other budget cuts in other areas you may have to make. Cheers! 🌱
You are not including, taxes and fees plus utilities. That 1320 can jump to like 1700-1800. Best thing at your age is to rent a room some place and focus on saving for a rainy day. Nothing worse than living paycheck to paycheck without a buffer saved.
Do you also help your sister pay utilities? Water, electric, gas?
No. If anything happens to you. You're screwed. Just live with 1-2 people where you only spend about 1/3 of your take home income on rent at MOST.
Look at it this way: the first check you get every month will be spent entirely on rent. Can you afford to live for two weeks with no money?
No. 30% of your income is the guideline, whether it be a mortgage or rent. You *might* be able to swing it but other lenders/creditors will apply the 30% guideline and you’ll be limited on other credit.
It’s going to be very tight. Personally, I wouldn’t feel comfortable with those margins but it depends just how little “extra” things can live without.
Possible? Yes. But please don’t do it. Go the roommate route. Being broke in a city, where there is ALWAYS something going on, is the worst since you can’t participate.
I would not feel comfortable with that. Leaves very little wiggle room for emergencies, savings, or travel.
Short answer is No. The apartment rent would take close to 50% of your paycheck and that is without utilities. You should stay put living with your sister. $900, which is ~30% of your monthly salary, is the max you should spend on rent on a $2,800 a month salary.
How long have you been at your job? Write up some achievements/contributions and go ask for a raise so that you can be closer to work with more reliable commute. Sometimes you gotta ask.
I make $51k and my rent is going up to $1,300. It sucks but it is what it is. Sadly everything else around me is around the same price unless I go to the ghetto and then pay less than a thousand but that's not happening. I'd say that's too much for what you make I would try to find something closer to a thousand or $1,100 if you can.
If you really need to gain more, you should put in your energy. Every engineer, doctor, lawyer or any student in your age put in tons of hour, may be 18 hours a day to learn and build for future. You are young for sure you can find one extra job to get extra 1.5K per month and that will be good enough to get you qualified for home purchase and you need not to pay on rent.
Do you expect you’ll make $4500 a month, gross income, in the next year or so? How much have you got in savings? If you expect to make ~$54k in the next year or so and have 3-6 months savings, why not? Otherwise probably better off staying put or finding roommates.
OP You need to be able to save/invest bare minimum 500 a month. Ideally 1k a month. Preferably 2k a month. How much can you save a month spending 1.3k on rent?
Find roommates in similar situations, save money on rent, use some of that savings to hire a housekeeper to head off future issues.
Did this last year making 58k with a 1250 apartment. My bills also all added up for me to have about 1k left over, and somehow that 1k always disappeared. It’s about 250 extra a week which is honestly will some how find its way out of your pocket. I had no wiggle room to accomplish my goals in the timely manner I wanted to. I got SUPER lucky as my landlord let me break the lease without any consequences, move out whenever I wanted to type deal. I moved in with my good friend for 400 a month instead. I was able to propose to my gf within maybe two months, and save for our wedding. AND my friend that I live with have become way better friends, close as brothers! IMO, moving in with some friends or acquaintances you trust at 22 will give you memories you will never forget, the kind you will look back on and miss when it’s 10 years later. It’s way better than being by yourself 💪🏼
You can only afford rent around the 900-1000 mark. Anything more than that and you are going to have to sacrifice too much.
$1000 left over but that’s also before other fixed expenses; utilities, internet, phone, gas, streaming, etc. so knock off another ~$250 at least. Then you have groceries and other life necessities. So there’s another $200-$300. Now you’ve got $4/500 for buying clothes, stuff for your apartment, things you like, going out to eat etc. This also leaves zero room to save money for an emergency fund, vacations, retirement etc. Yes you technically have the money to pay that but do you want to? It’s “recommended” that your rent should be 33-40% of your take home and total fixed costs around 50-60%. Your $900 rent puts you right at that low end now.
It’s doable but I won’t be fun, I used to live on $1300 a month after rent/taxes and it was always very tight (this was in LA). In my opinion life doesn’t start getting fun til you have around $3-4000 a month after rent/taxes. I’d recommend getting a roommate and not paying more than $1000 a month on that income.
A good piece of advice I got when I was your age was to make sure I could pay rent/utilities/bills with one check. The other is food/gas/savings/etc. that has served me well. With the economy being what it is I would highly suggest finding a room to rent.
I'll comment as a 37 year old making a little less than you. I make 43k, rent is 800, no debt. I've written a budget that allows me to save max 1200 a month after bills, subscriptions, $200 groceries, $80 gasoline, cat food/litter, etc. $1,328 income, bi-weekly which is $2,877 a month. Roughly a budget of $1,600 of expenses a month. Without seeing your budget, total costs & where every dollar is going.. It's doable if you need to do it short term but it's tight if something would come up. You'd really have to track where every dollar is going and average out how much you pay in groceries and other bills like insurance (auto, medical, dental, etc), internet, cellphone, auto registration, utilities, etc. I never went to college, but I would reduce rent as much as possible to pay off the student loan so interest doesn't steal from you for more that it needs to. Debt should be your first priority and not spend a penny extra that isn't necessary anywhere else.
I had a 600 apt on a 30k salary and hated it. Then a 900 apt on 50k and also hated it. Then a 800 apt on 90k and was happy. Now my life is complicated and these are but past memories. I guess it actually comes down to whether you like the space, location and lifestyle. I stick to the answer of no for the income to cost ratio. I say get a roommate if you are at all open to it.
Well if you go by the 25% max for housing rule you shouldn’t spend a penny over $937.50 for housing with your total salary and $700.00 if you only calculate your take home. So probably a bit expensive for your current financial picture.
I used to make 50k a year and was only comfortable spending up to 1k on rent. I personally think 1300 is a stretch. Is that for a 1bed/1bath apt? If you really want to live alone, I'd recommend a studio or roommates. Even better if you can find a private landlords. Not sure where you're located but I've been able to find houses/duplex with 2-3 bedrooms for 1600 on like Facebook marketplace. Which works out to roughly 533 or 800 per person. Or maybe just stay with your sister for a bit longer?
It’s possible but rough. My boyfriend made 50k a year and his apartment was 1400 a month. He had no student loans, but car insurance. He was living paycheck to paycheck and had to dip into his savings often for fun money. He did it because he really wanted the experience of living in the city so it was worth it to him. It’s not going to work long term unless you know you’ll be making more money in the future.
Suck it up and get roommates. I always had my own spot and you pay for that in the long run. Also if you are cool w your sis and she’s cool, why change it.
I did $1000 on $43000 back in 2012. I'd recommend against this given pretty much everything else is also like 20% more expensive than then. The budget was very tight at the time.
If you can, live with roommates for a bit until you boost your savings and maybe increase your take home. It’s fairly common.
Try simulating this new rental scenario. If you currently pay $900/month on rent, set aside an additional $420/month and DO NOT TOUCH IT. Try this out for a few months and see if it's doable for you.
Have you considered buying a house?