Budget question

[liubot]

I'm starting this new job on May 16, and I'll be making $24K a year. I plan on getting a cosmetology job PT to supplement. It's coming to a point where I really need to move into a bigger place but everywhere I look it's around $800-$900 a month plus utilities for a 2 BR. That seems to be the going rate. I currently pay $325 plus electric (heat).

Can this be done? I have a car payment of $250 and insurance of $100, plus phone, cable, and some credit card debt I'm getting down. Also student loans will kick in in 6 months.

Any advice? I can give more information but not until later Bc my break is over at school.

[cuddlyevil]

I would ask over on MM, they typically give really great advice.

[hocus2]

What is your take home pay?

Assuming you take home 70% it looks like your monthly income would be about 1.4K which is not high enough to have an $800 rent. I think you need to stay where you're at until your income rises and your debts are paid down.

[bl]

Agreed with MM being a great resource. It would depend on what your take home pay is and how much and how reliable your supplemental income is. What cost of living type area do you live in? My rent is about 35% of my take home pay and that seems high to me, but I love my apartment and make it work.

[doriswe]

If I had the ability to re-do some of my living situation choices when my kiddos were little, I would have never moved into a pricier place. They really didn't need the space I thought they did and I could have made a better dent on my debt.

[Deleted]

I agree that $800 is too high especially with utilities. That will bring you closer to $900. That plus an additional $350 in fixed expenses brings you to $1250. That leaves $150 left over for food, gas, medical expenses, etc., etc. It's just not doable. When I made $45k I was in an $800 a month apartment plus expenses. That was comfortable, but I wouldn't have wanted to make much less.

Also I don't think you'll even get approved for an apartment at your salary. Around here you have to take home at least 2 times the rent, and usually 3 times.

[TR]

Even without specific numbers, I can pretty much tell you that you need to stay where you are.

You're probably taking home about $1500?

And your expenses are:

Rent $325
Car $250
Insurance $100
Phone $50
Cable $50
Food $200
Electric $50
CC Debt $100
SL $50
Leftover $325 for eeeeeeeverything else like anything fun, clothes, copays, child activities, savings, etc.

There's no WAY you can add $500/mo to your rental payment.

And I'm guessing for a lot of that stuff, but I think I was conservative in my estimates.

[TR]

Also, I make about twice what you do and pay $875 and that feels tight for me. And I don't have a kid.

[liubot]

Thanks ladies. I'm going to take my time to keep looking and paying down debt.

[alleinesein]

MM is going to tell you to cut cable and find a cheaper cell phone plan. It is just what they do!

Do you get any type of financial support for S?

[liubot]

I get $200 a month in child support

[dreamcrisp1]

Mar 29, 2016 12:12:56 GMT -5 TR said:

Also, I make about twice what you do and pay $875 and that feels tight for me. And I don't have a kid.

I need to move to where you live. You have a house too, right?

I would also stay put and save up.

[alleinesein]

Im jealous of that rent amount. The last time my rent was that low was in 1996 and I was sharing an apartment with 2 other people in Iowa.

Here is a list of steps to get started.

1. List out all of your debts and monthly expenses (rent, cc payments, insurance, etc)
2. Stop using your credit cards
3. Once you have your current financial obligations written down start looking at ways to save $
4. Create a debt pay off plan
5. Set up a saving account and have money transferred to it every time you get paid (it can be a small amount $20 or so but it does add up over time)

Once you get stuff together post it on MM. You might get ripped apart for some things but the board does have good advice and if you follow the advice given you will be successful and debt free.

I'd wait at least 6 months after you start your new job before moving someplace new. That gives you time to save up some $ for deposits and all the other costs associated with moving. Also consider moving into a larger 1 bedroom instead of a 2 bedroom. That can give you the needed extra space at a lower price than a 2 bedroom. Some apartments have a 1 bedroom that also has a small den area; that can be used as a bedroom for either one of you.

[TR]

Mar 29, 2016 21:05:59 GMT -5 dreamcrisp1 said:

Mar 29, 2016 12:12:56 GMT -5 TR said:

Also, I make about twice what you do and pay $875 and that feels tight for me. And I don't have a kid.

I need to move to where you live. You have a house too, right?

I would also stay put and save up.

Ha, no. It's a 2br/1ba crappy half of a duplex. It's in a good location for me though and has a fenced in yard for Stella.