I make 1,220 bi weekly (take home), my car is paid off, no loans, no kids, single, no pets, my expenses are groceries that are usually 75 bi weekly, phone+apple watch that is 100 monthly, car insurance 140 monthly, gas that is 60 monthly and that’s it. This apartment doesn’t include utilities, it would be my first time living by myself, at the moment I’m living with a cousin but we’re having light problems at home. I want peace over anything, and want to be able to receive family members without problems. I only pay him 700 for living with him (including utilities). What would be smarter financially speaking? I’ll love to take suggestions. Thanks!
Can I afford a 1,270 rent?
byu/egghamcroissant inpersonalfinance
Posted by egghamcroissant
20 Comments
No. You dont have an emergency fund or investments.
Depends what your goals are, you can definitely afford it but you probably won’t be as comfortable as you’d like. If your cousin doesn’t mind you staying there I’d save up as much money as you can and try to get a better position at your job or find something better. My advice, stay with your cousin until you’re in a better position.
Staying at $700 gives you financial flexibility but costs you peace. Moving out gives you emotional freedom but tightens your budget. If you’re craving independence, maybe look for a middle ground—a place around $1,000 with some utilities included, or a short-term lease that lets you test solo living without as high of high costs.
Financially speaking, it’s better to spend less. Your peace of mind may disagree.
Financially speaking it’s 100% smarter to stick with the 700. At 1270 you’re spending > 50% of your monthly net on rent. Then another 150+100+140+60=$450 for other monthly expenses. Which would cost even more because of utilities. That’s already only $720 left over, probably less. That doesn’t give you much (any?) headroom to save for emergencies, to invest in yourself (i.e, get an education to increase income), to have fun and live life. It’s not impossible, but it’s really tough to live on your own on 31k/yr income.
Now, you have to decide what the mental health benefit is worth to you and whether or not sacrificing some security/quality of life is worth it. I’d probably recommend finding a different roommate that you have fewer problems with but can still split rent before going off on your own.
That’s a massive rent for your salary. Do you have good savings? Eg, if your car neeeds a repair, can you afford it on top of rent, utilities and everything else?
I’d look at getting the smallest independent place I could find, like a small studio. I wouldn’t worry too much about having space for family to come visit.
Is the $1,220 before or after taxes?
Is there a deposit? If so, how much? It’s usually one month’s rent on top of what you would already be paying that first month.
How much do you already have set aside in an emergency fund?
Is there a mandated minimum coverage for renter’s insurance? Any parking permit fee?
Is the place furnished or will you need living room/bedroom furniture and kitchen supplies?
I don’t think you have provided enough information but I’m inclined to say, no, you can’t afford to live on your own just yet.
So in a month $2440 – $450 expenses = $1990 for yourself. Minus rent of $1270 you’re left with $720. Assuming $150 for utilities/trash/etc. costs – would a remainder of $570 be good enough for you?
You didn’t mention if you had an emergency fund, so if you don’t, save up 3 months of expenses first before attempting to move out. Better yet, make it 3 months of expenses as if you lived in the apartment, so about $5600. That way, if you ever lose your job, you could afford all your bills for 3 months.
You can, but the real question should be how motivated are you to build your financial future? What would be your ideal age to retire? Do you want vacations? Build a family? Pursue additional education, licenses, etc?
Right now, when your only commitment is to yourself, is the best time to double down. Even though you get 26 paychecks a year, I like to calculate using 24 because those two months with the third paycheck could easily go to building an emergency fund, car repairs, future down payment, Christmas gifts, etc. What will the extra $300-$400/mo look like in 5 years in an index fund vs. setting aside more by splitting rent?
Lots to think about!
Edit: fixed estimated extra monthly funds, forgot to add utilities to equation
Landlords will typically require you to make 3x the rent in gross income in order to be approved.
I would not commit 50% of my income to rent unless absolutely necessary under normal circumstances. And definitely not in this job market in case something were to happen at work.
from someone who lived alone since 21 (no roomates ever), you wouldnt make enough for you to be able to support that rent. i am 33 and ive been through it. of course you can make it work but wouldnt suggest it. its going to be a tough life ahead. $610/week aint going to cut it. i was making more than that at 21 and i was struggling like a mug. i would suggest living with your cousin for as long as you can. Definitely save in the meantime – that should be your primary goal before you move out.
I would try to stay for at least 6 months longer and just don’t have any visitors over right now. Try to alleviate the issues as much as you can and save, save, save! Don’t try to make your family feel comfortable right now, work on making yourself comfortable by saving money. There will be time in the future to entertain your family but right now it’s all work, no play. Discipline & Sacrifice pays off.
Try to work at target, home depot or whole foods or get into banking or insurance 9-5 jobs that pay decent w benefits , shid work 2 jobs and keep lookin for places
You’re asking a question regarding quality of life but framing it as a financial query. Financially, spending less is better.
That’s the final answer.
As for what your peace of mind is worth to you, none of us can tell you that.
I read the first seven words, the answer’s no. You cannot pay more than 50% of your income to rent.
Maybe try finding a slightly more private situation for less, like renting someone’s basement for 7-800, or even a room with kitchen privileges. Where the owner isnt a bother. Its tough having a roommate but being broke is no pic nic either. Good luck either way.
No, rent should not be over 50% of your income, rent needs to be closer to 30%-40%. I also recommend a higher paying job or a 2nd one if you really want to move out.
No, you cannot afford that much rent. Not even?
Move in to a different place with a different roommate or get more income and do the place with the 1270 rent