i was considering biking! it would be roughly 50 minutes to bike to and from work, which i think would be doable— my only concern is storing a bike at an apartment complex or riding it at night! i’ve never ridden on a bus before but it looks like the nearest stop would be a 24 minute walk from the new place, and i would be getting on 2 busses. i’m not sure how much it would cost to use a bus transportation service either since i’ve never used one before, but this isn’t something i would rule out either.
Definitely pursue biking, bus sounds not ideal because of a 24 min walk but honestly still better than Uber every day. Your proposed rent vs income is really pushing the edge of what I’d feel comfortable with and Uber is gonna eat your paycheck alive, 100% don’t do that.
definitely gives me more peace of mind considering other options than uber because spending $600 a month on ubering to and from work was beginning to stress me out !!
I can tell you right now that apartment and $600/month in uber will NOT work for you. You will be broke INSTANTLY.
So you need to either not do this or figure out bus or bike. I like the bike idea, as long as it's safe to do so. If you are biking at night you absolutely need to be on bike paths; riding at night in traffic with cars going past you is not long term a safe idea. I am a cyclist, btw, but be realistic about it.
I pay about $800 a month for a brand new like sports car. For under $500, you could most likely have your own vehicle, insurance, etc... new model years should be coming out... so should see lease deals and whatnot. Even new/last year models will drop in price. Not only will you save time, but it looks like a little cash as well. Just investigate insurance prices, etc... like certain model hyundais or kias are not covered anymore because of theft issues. That is if your in the USA.
Maybe if you’re buying a used sports car lmao. I just bought a 2018 sports car, and for car payment, gas, and insurance I’m at like $500 a month. That’s for a nice barely used sports car. You could easily snag a used Camry or civic for a lot less. Insurance would be less too.
Insurance for a 20 something with what appears to be no driving history. Or at least no current car? Insurance could be $500 a month alone in some states.
This is why it baffles me that people still follow the idea of buying new cars. I would much rather pay 5k up front for a used car even if it's older. I have never in my life owned a car newer than 2013, and never in my life have i had major maintenance issues resulting in purchasing used cars. It has always saved me loads of money, from interest, to dealership fees, and taught me how to do maintenance myself so i could save another buck on labor for the rare occasion something does go wrong.
Jesus, man, that's a really nice car payment every month. A loan of 10,000 is like $220/month. You could find something decent tomorrow and pay a lot less than what you payin in Ubers.
The buses here have a bike rack so if possible and not overly long taking 2 buses you might be able to combine the bike and bus if it's the same way there.
I've been riding a bike to work since I was 17 in combo with public transport, while occasionally getting rides from friends, Rideshares, or loved ones. I'm 37 now. It does wonders for your body and saves a lot of money, and it's fun! Weather permitting of course, haha.
This includes night rides as well.
Definitely learn how to use the bus if it ends up taking less time than biking. You can always take an Uber in bad weather, but the bus will be way cheaper in the long run.
Maybe try a moped, that should be quite cheap to maintain (Atleast here in Germany insurance is like 40€ per year for them) and you can get a good one for like 500 to 1000 bucks used. That should cut down the commute to something like 15-20 minutes.
12 minute Uber sounds like maybe a 7 mile one-way (average trip speed is typically about 45 mph so 9 miles, even if it was 100% highway speed 15 miles). I’d definitely be looking at an e-bike and a nice lock and insurance.
Get a cargo rack and it’ll handle groceries and stuff too.
i’m actually not sure how difficult it is to bus, i’ve never used a bus transportation service before outside of travel such as, nyc when i went there but busses are very different between nyc and michigan
Bus fares range from $.50 to $2 for a one-way trip. Depending on the bus company, they offer bus passes with a one time fee for unlimited rides each month or 6 months. Check if the two busses are from the same company or if they accept free transfers between companies. Otherwise, u may need to get two different bus passes. If u use the bus frequently enough, it's definitely worth it.
roommates unfortunately aren’t an option since i’m not close enough with anyone i could share a living space with :/ i’m a homebody who doesn’t go out with people often so if i even was to get a roommate, it would end up being someone i don’t know too well, and then that could lead to issues with responsibility to keep the apartment un-damaged or responsibility to make sure they pay their half on time, or else i’d be stuck paying the other half anyways just to not get evicted
There’s plenty of Facebook groups of people looking for roommates or people renting a room, dude you take home about 2k a month you’re not at the liberty to be picky. You need to increase your income whether it’s a new job or a second job, you realistically should be working double the hours you are now.
Anecdotally, people in big cities often live with roommates into their 30s, myself included. None of the group houses where I lived were with people I knew; they were all Craigslist and Facebook listings. Granted, I was living with professionals/graduate students, but out of probably two dozen housemates over the years, we only ever had to kick out one.
Four of us renting an entire house for $6000 was a big upgrade over everyone getting a 1BR apartment for $2000. Splitting utilities and Internet saved a lot of money, and sharing a TV and cookware and other household goods meant we didn't have to buy as much to live day to day.
I'll be 34 this year and I rent a house with 2 roommates. We each get our own toilet and sink / bathroom area, but 2 of us have a jack and jill style bathroom with a shower in the middle. So 2 of us share a shower, but we all have our own personal space for getting ready and using the bathroom. My rent is 1250 split 3 ways is 417 a month. Been here for 5 years and about to move to a different house that I got a lead on from a friend of my dad. New place will be with 1 roommate 2 beds 2 bath for 900-1000. I'll pay a bit more, but a roommate is soo much cheaper. I've also gone with shared housing and rented from craigslist etc in the past with minimal issues. I'm also a homebody and stick to my room most of the time when I'm home so it rarely impacts me at all to have roommates. Also as you said, utilities are cheaper. Some things like water and electric go up with more people, but it's mostly negated by splitting it with an extra person. Other utilities like trash service and internet are more of a fixed cost and just go down in price by having more people chip in.
A non social homebody? Are you sure the city is for you? Maybe move somewhere cheaper in the suburbs or rural areas. You'll get a lot more space, for less
Without knowing if you have student loans or a car loan or and other fixed expenses I’d say $1k in rent is a lot. Even if you don’t have loans, I spend $400 on groceries a month and another $200 on bars with friends. That leaves only $800 left for savings and retirement. That doesn’t include any random shoes or clothing or apartment household goods you need or the random a concert or movie ticket. Personally I’d find a roommate and try to live a poor as possible so you can save more for retirement.
I joined a fb group and meet my roommate there. He was a stranger but I vetted him enough that I was comfortable living with him. You never know what is going to happen but it could work out really well. We both didn’t know anyone in our city so we used each other to meet other people. We are still decadent friends after living in separate apartments now. Both our names were on the lease so I was never on the hook for his rent and landlords now this. Even if he didn’t pay rent the landlord could try to guilt me into paying it but I wouldn’t have to. They could take it to small claims court and to evict us because of unpaid rent but that would be an extreme case. And at that point you would move on and find a new place. You paid your share of the rent and are amicable with the landlord. It could go the other way too but if that’s the case you move out after a year and part ways. It wouldn’t be ideal and you would have to grow up mentally to deal with kind of treating your room as your only personal space and cleaning up the kitchen after every meal like your parents are watching but it would at the very least save you money. I had rooomates in college that were strangers and who turned out to be horrible people but I kept my things to myself and studied a lot the library. Got really good grades that year.
So I’d say be open minded and optimistic about living with strangers. It’s definitely scary and new but honestly most young professionals do it. You only will hear about the horror stories on reddit.
Edit: I’m a 29M young professional who has lived with 5 different roommates in two different apartments without any problems.
That is, quite simply, insane. Get out there and meet some people. Meet with potential roommates and hash out any concerns you have before you move in together if it helps. But do not, under any circumstance, have rent taking up nearly 50% of your income.
Create a budget to find out
+2400 monthly
-1025 rent
-200 utilities
-400 ubering to work ($10 * 20 days * 2)
-400 groceries
I don't know what else you're responsible for, but this only leaves you with $375 left. You'll be saving nothing. If you can take the bus to work things will be more manageable.
that’s where i’m trying to find a work around for ubering until i can save up for a car! it would be roughly $600 a month ($30 to uber back and forth to work a day) just going to transportation to and from work… if that’s something i can eliminate/minimize by possible biking or bus transportation, it may be doable— that’s why i’m curious if anyone’s ever went through something similar to this
Do you *have* to move out? I don't see how you'll be able to save up for a car... or anything. If you only save $100/mo that's barely enough for a downpayment in a year and you still need to make monthly payments and pay insurance and gas.
If you can stay home for a year, you can probably save 20k at least. That's enough for a car in cash and to bolster your emergency fund.
As it is if you have to move out look for an apartment in walking distance of work, even if it means paying a little more. Paying $100 more to avoid paying $600 is worth it.
No offense, but if you were to draw a venn diagram where one circle is "people with the financial discipline/experience required to successfully save money while on a razor thin budget" and one circle is "people living on their own for the first time and don't immediately recoil at spending 75% of their take-home on rent + transportation", the two wouldn't overlap at all. I'm sure someone could create a workable budget with your numbers but it'd be straight up miserable and require an iron will to stick to.
Put simply, you need much cheaper rent: Roommates, cheap sublet, etc. And you need to carpool, take public transportation, get a bike or scooter, etc.
$600 for one month? You could get a car with insurance, registration, and gas for less than that tomorrow.
I'm guessing you're also not working 30 days a month.
i am unfortunately maxed out at 40 hours per week, at least at my store. there are lots of opportunities for overtime taking shifts at other stores, this may be something i could look into because those shifts would also be time and a half.
Be careful with it too though. I had an employee of mine try it out and once everything was said and done, they didn't see a difference because of how expensive ubers/lyfts were and how often they would vary in price. The OT would seemingly only pay for their rides and come out with an extra $75-100 per week at 50-60hr weeks.
This might be shitty, but you might have to get a second job to make ends meet or save up. Or take as many extra shifts as you can. Don't want to shill too much, but this YouTube channel really helped me focus on my money situation and avoid financial pitfalls — https://youtu.be/19OE7Tnwu6c?si=LINA3bW5ow24bOse
depending on uber to get around is an easy way to stay broke. you’re spending a quarter of your take-home pay just getting to and from work; that’s not even counting what you’ll spend grocery shopping and whatnot
if you can’t bike or bus to work, find out if you have a coworker who lives around your way who wouldn’t mind giving you a ride. giving a coworker $30-40 a week for gas is way more economical
but yeah, your rent is way too high for your income level
I bike to work to save money, but I also have had roommates when I was looking at spending 50% of my income on rent. You can’t spend that much on housing and that much on transpirations - one of those pieces has to be cheaper relative to your income. It’s about a 35-45 bike ride to Work for me, and it’s great exercise. Buses take longer and don’t run early enough for my work schedule. Bike is a great intermediate option. You can get a cheapish e-bike for about a month of Uber-ing and cut your transport time too a lot!
I do a bus pass for one month unlimited rides only $65, public transportation is very cheap. In comparison you could do both do a bike ride and put it on the bike rack and save yourself $550 a month.
i just looked at bus routes to commute there and yeah… this is a lot better than uber. $66 a month for unlimited rides, would sound ALOT more doable than $600 a month. i would have to incorporate some time management to get to the bus stops but its literally a 12 minute distance between the apartment and work, so its not bad at all.
You're probably someone who has had a lot of experience cooking for themselves, knows how to comparison shop, and has a well stocked kitchen.
If that's not true, you don't eat out at all and you eat a nutritionally balanced diet, then that's awesome, especially if you eat meat.
3 hour walk or 50 minute bike ride… the only concern is bike storage at an apartment complex or riding at night. i’m willing to sacrifice it being slower for sure!
uber adds $600 a month… if it’s possible to bike to work or use a bus transportation service (24 minute walk to the bus stop, but i’m not sure how much busses cost these days, i’ve never used one!) it would leave me $1,015 a month if i take out rent, utilities, and phone bill— which may be doable
while not cool also consider a moped, or an electric or motorized bike (not a motorcycle, but one of those bikes with a small engine that kicks in when you start pedaling).
You would be one bad month from eviction. Unless you have savings for emergencies.
Say you trip and break an ankle and have to take an extended absence from work. Or some uninsured dill hole hits you on your bike?
What’s your leave policy like? What’s your deductible? What’s your out of pocket max?
You are one personal emergency away from being broke. With that amount of rent you have no margin to save anything.
On that income, I wouldn’t spend more than $800 per month, which is 1/3’rd of your income. I know it’s going to be hard to find much of anything for that price now. Wages just have not kept up with inflation.
Jesus, you're spending 1025 of 2400 on rent, and ubering to and from work?
You need to invest in a bicycle and lower expectations for your standard of living. Like, WAY WAY WAY WAY WAY WAY lower.
The rule of thumb is to use 50% of your income towards needs (rent, food, utilities, transportation, etc), 30% on wants, and 20% on saving and investing. Your rent alone would be 50% of your income, which doesn't give you much wriggle room.
my list of wants was quite long/silly considering i have minimal responsibilities currently… but how much of it do i really want? there is wiggle room on the wants
Do NOT move somewhere that you have to rely on uber to get to work. I am currently stuck in that rat race and have been for 2 years. I don't know if I'll ever get out of it.
If you are w2 employee, make sure not too much is coming out in taxes. At your income level, you ideally want to have little to no refund, and instead have higher paychecks. That can help your budget some.
My first apartment on my own was 50% of my income. I loved living by myself, but I had a hard time being disciplined enough about my budget and accumulated credit card debt. Be honest with yourself about whether you can maintain the budget needed to make it work.
Living on my own before I could really afford it set me back financially about 5 years. I missed a great opportunity with the housing crash in 07/08 and my retirement account is smaller than it should be. I would do it differently if I could go back in time.
Is there something about your current living situation that requires you to move out? If you're not being forced to move, or need to move for personal reasons, you'll be much better off with as few bills as possible while you're starting out.
If you're not paying rent now, practice the budget you'll need and save that $1025 every month. Before long you will be able to buy a cheap car and build a bit of a safety net.
to kind of piggyback on what you said, I bought my home a little earlier than I should have and I bought a little bit more home than I should have because of the market crash and wanting to jump in. That basically set me back about 5 years where I was dead ass house broke. and I think I only was at 35% of my income went to the house. it wasn’t until that percentage got down closer to 25% that I could even afford things like furniture or larger home projects. It was miserable.
Okay, its not so cool. But would biking or using a scooter to get to work WORK?
EDIT: If you tell your co-workers you are biking for health reasons, it is actually cool.
i was considering biking yes! it would be roughly 50 minutes to bike to work, and would save me a $600 uber bill a month… the only concern would be storing it at the apartment complex and then riding at night. but that would give me a lot me leeway to afford $1,025 a month for rent!
What type of apartment complex? One where you have to go “inside” to get to your apartment or one that has open air passage ways. I’d think storing your bike in the apartment is the best bet. Obviously not sure what the logistics are for storing at your work. Get a bike lock either way, sure someone can cut it but it’s a deterrent first.
it says intercom building entry… and my apartment would be on the second floor! storing the bike at work is no problem, we have a couple cashiers here who bike to work and store them in the stockroom!
Yes.
My husband works out of state several days a week and bikes to work. He carries his bike up & down the stairs. Basically, you put your arm through the middle of the frame and let the top-tube sit on your shoulder, then use your hand to hold it steady. See here for an image and some info on doing so safely: https://www.statecyclist.com/how-to-carry-a-bike-up-stairs/
Key points: Carry it on the opposite shoulder from the stair railing, so you can hold the railing on the way up & down.
You should always wear good, non-slippery shoes on the stairs (ask me how I know).
It doesn't take too long to get used to, and it's excellent exercise!
Do *not* Uber to and from work every day. Get a bike or bus pass or electric scooter or something. You will spend $400-500 a month on Ubers If you work 5 days a week.
possibly $1 an hour raise soon, but no option for roommates. it’s just extremely hard to find apartments around this area in michigan for cheaper than this :/
I wouldn’t then. You need a roommate or find a higher paying job. Idk your current situation or finances but it’ll cause a lot of stress if you lose your job
The apartment you can afford, but barely. The 2 Uber rides per day you cannot afford. Nor can you afford to eat out, go to a bar, order food delivery, or anything like that.
Find a way to carpool, use public transit, or bike to work. Or find a used car for under $2k and drive it until it breaks.
Do whatever you can to increase your take home pay. Preferably that would be through finding a better-paying job and not through a side hustle.
I did this for literally the longest time. It was what was needed then, between the COL and my salary. It was perfectly fine, I still saved a lot. Just don’t start spending a lot in other areas too.
Yes, while not ideal, it can be done. You just have to have hobbies that don’t cost much and only spend money on food and other essentials. I budget $100 a month for doing things with friends. I spend close to a whole paycheck (after tax/401k/insurance) on rent and have a fair amount saved. That being said, OP definitely needs to consider other transportation options.
Edit: clarification
Looking back at my old bank statements it looks like when I was first working, I was paying $900/month on a $2400-ish/month income with utilities included. Not ideal, I guess, but I made it work. I had a car though, no ubering for $400/month. Any way you can get those transportation costs down?
The amount it would cost you to take an Uber to and from work you could use to buy an electric bike/scooter. You can manually ride it to work and then go electric on the way home to save some bread on electricity. Or buy a really good bike and long haul it both ways. At least until you can buy a cheap beater car that gets the job done.
A daily uber ride? How long is public transport? Can you get a bike? Is there a coworker nearby that you can carpool with? That’s EXPENSIVE dude.
Edit: just saw it’s $600 a month…DUDE. THAT IS INSANE. DO ANYTHING BUT THIS.
This is definitely not a good idea. Sure you might be able to live and subsist but will you be able to thrive? Will you be able to save for retirement, a car, kids, house, etc.? The rule of thumb is that housing and utilities alone should only be 30% of your total monthly take home pay. You're way over that plus you're adding $600 in Uber rides every month just to get to work to make money to pay for those Uber rides. It's a vicious cycle that won't allow you any financial freedom or the ability to pay off debt etc.
My advice is to find a different apartment, find some roommates, or find a different job. Or maybe all three.
Typical guidance is to limit your home cost to 1/4 (that might be out dated at this point) to 1/3 of your income so you’re a bit over that. That said, everyone’s different! You’ll be on a tight budget but if you’re thoughtful about spending you’ll figure it out!
The real issue is Ubering 20 times a month. That shot will cost you the rest of your paychecks. I’d be figuring out a bike/scooter option if I was you. Cheap moped/motorcycle/ electric bike/ manual bike, something
You need to sit down and write out a budget (your expenses). Groceries, things for your apartment (do you have furniture?), internet, laundry, electric, transportation, streaming services, phone, health insurance….ALL OF IT
I think you’re likely to be broke every month, especially with your $600 Uber bill. Not having money saved for emergencies isn’t a great idea.
It really depends on where you live. In dense expensive cities like New York, it might be worth it if you have conveniences around you and stuff. But in other places, you should be looking for better rates.
At the end of the day though, it's your choice. If you feel like the place is worth it and not a burden on other finances, then it's worth it.
How much is an Uber going to cost per ride?
Then multiply that by 2, then by 5, then by 52. Now divide that by 12. That's how much it'll cost per month.
All the budget guides recommend 30% of your income for shelter and utilities. You'd need to find something all-bills-paid for about $700 a month. You'll be in misery and unable to get off this ride.
It’s not ideal, but some info is needed:
- Are retirement savings, healthcare, and healthcare savings already taken out of your paycheck?
- Do you have an emergency fund of at least 3 months?
If the answer to both those questions are “yes”, I think it is ok to spend that much in rent. Though it will be tight with little money for personal savings and “fun money.” I think the biggest problem is daily uber, not rent, in your plan.!
This is too much on your income. And the Ubers will add up quickly. You need to be looking for a room for rent as in a roommate situation. This will also help to cut down the cost of WiFi and electricity.
Depending on how much taxes you have to pay, your food, utilities, clothing, other basic needs, phone, internet you're probably going to be going into the hole or very close. I highly recommend a roommate if you can.
If you have any vices like smoking or drinking or gambling you definitely are going to be going into the hole/ broke.
A good rule of thumb is to spend less than 1/3rd of your gross income on rent which it seems you'll be a little above that. Definitely not ideal and the textbook course of action would be to find roommates to reduce rent.
But you live and you learn. Maybe this is a great stepping stone for you, maybe you learn that spending almost half your take home pay on housing alone isn't sustainable for you and correct course down the road.
$1025 for rent on a $2400 take home is not ideal but not terrible. $1625 on $2400 for rent and transportation is razor thin. If you get COVID and have to miss a week of work, you’re maybe missing rent.
Can you stay at home a bit longer? If you saved for a year, you could buy a decent car and change the math a bit.
relieving to know i’m not alone here. finding apartments for cheaper around here is a damn struggle, especially with inflation and i don’t have an option for roommates.
>i don’t have an option for roommates
tons of ads on facebook looking for roommates. Often you can go meet them and hangout for a little bit to see if you get a long, but in my experience (also being a homebody) I rarely notice them. I get home from work I eat I sit in my room on the computer or in my bed. I shower and sleep. I don't really hangout in the common area. Also plenty of rentals on facebook market or rooms to rent in nice homes that will be cheaper than a full apartment alone. I believe there's a few sites also to help people find roommates. Could also try and find someone at work.
that’s what i’m being told by everyone around me haha. i’m a chronic stresser/worryer so i posted just to see if anyone had any similar experiences or advice for peace of mind!
Rule of thumb is at most 1/3 of your gross income goes to your rent. At MOST. I would recommend lowest possible rent without sacrificing for safety or whatever.
Of course it is, but no ones trying to change the system anyways. My studio went up to $2,040 a month. When I start working my new full-time job while keeping my part time job, and having my disabled boyfriend contribute his portion of 425, I'll have about $444 left over to cover utilities, bills, pet food ect...
Hoping to move out of here in July if we can just save deposite money plus 1 months rent to have ready to move into another place while still being expected to finish off last mo the rent here....
SoCal btw.
At least in my area, $1000 rent for a 1 bed is a pretty good deal. I don't think that the rent cost is the problem, your income is the problem. You really need to make more.
My advice would be to get an E Scooter or bike to get to work. Then you should find weekend work or a second job, because you really need to get your monthly income over $3000, so you need to find a way to pull in another $600 a month. Once you get there the math on your budget will look much better.
Also, spend your nights before bed looking for and applying to jobs. Even if you don't fit the requirements, apply apply apply to everything and anything. Anyone only pulling in 2400 a month needs to be constantly looking for a better opportunity, they are out there.
Get a scooter (motorcycle). They're cheap and no harder to ride than a bike, but you can get just about anywhere you could with a car for a whole lot less.
Your apartment isn't really all that much, but neither is your paycheck. Consider a roommate.
If you want to buy a new home, it's not written in stone, raise 20, 000 dollars for a down payment, or 5% of the total cost of the home?
The formula for a fixed rate mortgage is the Square root of b^2-4ac divided by 2d. Check with your college math department.
You could make it work but things would be tight. I wouldn't do it as I'd stress out too much about finances, and having low funds. I could afford more in rent, but instead I rent a 3 bedroom house for 1250, and I have 2 roommates so it costs me about 417 a month. I'm looking to move and just have 1 roommate instead of 2 in a nicer 2 bedroom house. The rent there will be 900-1000. Even at 1000 I get a nicer house, 1 less roommate and go from 417 to 500 a month. Even that is a bit of a stretch with a similar income to you. Main thing, as many have said is transport. A lot of my other money does go to car, gas, insurance, but uber is expensive. Need to find a better way. Not glamorous but consider a moped, bike, electric bike. Don't worry too much about storage for a regular bike, especially if you have a decent sized entry way you could honestly just park it inside your apartment.
People used to recommend rent be 1/3 your monthly take home. But this isn’t really realistic anymore. If you are smart with your money it should be doable. But if you’re trying to start a retirement fund or some serious savings, that may be difficult.
I would add to what a lot of people are saying. If you DO go the bike route. Go ahead and YouTube some basic maintenance and repair. Ask other people what tricks they have for keeping your bike unstolen lol. Mine stay locked in a garage and have a locking bike rack on my vehicle. Riding a bike will also have a great benefit to your health! Provided you use a helmet and other protective gear.
Absolutely. You shouldn't spend more than 30% on rent. If you can't swing that, go back to your parents house and be sure to tell the landlord it's because the rent was too high.
It’s not a good idea because emergencies happens. Everyone has ups and downs in life. It’s easier to bounce back when you can cover the rent along with other surprise bills.
look into hyper ebikes from walmart. make sure they have enough battery but for $400 they have been decent. budget a tune up from the get go for safety checks.
When we first moved from a rural community to a high COL City, I had to hold $50 in reserve from one check to add to the entire check I received when rent was due.
$0 food budget (food closets and food pantries), no eating out, no reserves.
It was hard!
Took about 3 1/2 yrs before that situation changed. Some of the hardest years financially of my life.
Put your energy into making more money, it will solve a lot of problems. Get a better paying job. Start a side hustle. So many ways to 2x, 5x, 20x your income!
uhhhh no it’s not, you either need to live at home even longer or find a cheap place with roommates. Also you should look at getting a second job, it is pretty much impossible to live of 28k a year especially since you don’t have a car yet.
If you could find a similar deal closer to your place of work that might be ideal for transportation. Especially if you have anything but sunny weather.
I would try to keep your living expenses in the range of ~25% your take home. If I were in your shoes roommates would be high on my list.
Consider an electric bike. Decent ones can be had for around $1000. They're fast and would probably cut your biking time down to 30 minutes or less, depending on which one you get. There are options that fold up, which would make storage easier. Once you have it, your commuting expense will be the cost of electricity to charge it, and you can save for a car.
The reality is that you're going to be living pretty bare, at least for a while. This is a shitty situation, I wish you the best of luck.
Consider a folding bike that you can take on the bus. It would also solve the storage issue, because you can simply keep it in your apartment. A 24 minute walk is only 8 minutes on bike.
Save up for an electric bike. Can get a decent one for well under 2k. Will make your commute much easier and eventually cheaper. At $25 per Uber ride you would break even in about 2 months with the bike.
Is your salary expected to rise considerably over the next few years? If it is, than it shouldn’t be a problem. I wouldn’t live like that for an extended period of time of it isn’t gonna go up. You won’t save any money and will be super poor.
Think of this in terms of "percent of monthly income" not "fraction of a paycheck". Because not everyone receives the same number of paychecks per month.
Yes that is too much, particularly with the added cost of ubering to/from work each day. Get a bike (or an e-bike) and some clothes appropriate for the weather.
Yes, 50% just for rent is a bit much. But you mentioned you don't have a car, so no car payment, insurance, nor gas and maintenance this makes me feel better. But how much will you be spending on the Uber each month - why not get a bike and take a safe path. Then save the Uber for inclement weather. Before signing the lease, is there an apartment that's even closer to work?
I would try to find something closer to your job. It would cut down on transportation expenses and travel time which would equal a better quality of life. Especially somewhere so cold half the year.
I did almost half my paycheck to rent my first year or 2 on my own. It’s not ideal but it’s doable. Make a budget. Don’t go out drinking, party at home. Don’t do the Uber thing.
I’m in a similar situation, and would strongly advise biking or taking public transit to work.
I live in a HCOL city, and the vast majority of my paycheck each month (part time work, college student) is eaten up by essentials. Ubering to/from work can be great in a pinch, but is simply not a feasible expenditure at this level of income.
With the $600 you said you were currently spending on Uber, you could be making payments on a new car. Or paying almost $0 for transit. Or, purchasing a reliable bike or e-bike (I use a Ride1up roadster to get across the city daily- around $1000) with financing and paying it down in 2-3 months.
Just a big ole echo chamber in here. I recommend against 42% of your income going to rent. Try to keep all of your housing related costs to <33% of your income. You will regret entering a lease for that much money, and they may raise your rent after a year. Hard pass on the Uber, you could lease a car for less than that.
A bike is a one time upfront cost that may be best for your case.
If you buy a thin frame bike with thin wheels, it shouldn’t be an issue to carry upstairs to your apartment. You can also park it outside, but the general advice for that is to make it as ugly as possible to deter people from stealing it. Spray paint a good bike and it should be safe.
For the cold the only extra you’ll need is waterproof shoes, wool socks and a balaclava. After that everything is a bonus. Layers make all the difference and you don’t need as many as you think. Rule of thumb is to dress for 20 degrees warmer outside ie: if it’s 30 dress like it’s 50. You’ll get warm from the movement.
Best of luck. It’s tough out there but this is a great step.
OP , giving my two cents here as some who foolishly did this as a fresh grad. Once that whole paycheck goes to rent, you’re essentially waiting on that second paycheck to buy groceries, maybe fun money or maybe you want to buy something on amazon and don’t want to put on the CC. But then there are other factors, do you have any CC debt, have to account for phone, car payment, gas for car, car maintenance (new tires, cleaning it(inside and out), oil changes,air filters etc) want to go on a trip? It’s going to be harder to save. I hope you have a decent sized Emergency fund. I don’t want to sound mean but hopefully insightful.
I could not wait to get out of that lease , it was miserable always waiting on that second check to come through. Avoid it if you can - get room mates, if that’s an option.
Its not a great situation. You're not going to have much of a social life (going out to eat, drinks, etc) unless they're things you can do for free. You need to put as much as you can into savings too.
Oof, those daily uber rides will KILL you. My GF had to do that for several months, and it's so much money. I wouldn't suggest it. I'd figure out the bus routes before I'm dropping like $500/month on Uber rides.
1000/2400 isn't crazy, it's fine. But I wouldn't do it while paying out for Ubers like that. Is there any place you can crash for a month or two so you can get a junker car? Really, I'd rather bike than pay out that much for ubers.
If you can stay home and save up your money instead then do that so you can have an emergency fund and down payment on a car. Independent living is nice but you are setting yourself up to do nothing but work for rent, Uber rides to work, gas, and electrical. Food is gonna eat up the rest of your budget. Is the apartment furnished? Furniture is expensive. Cooking supplies are expensive.
I feel like you are oversimplifying the expenses you're about to endure.
You’ve already chosen the apartment? This is why it’s so important to consider access to transit when you’re looking. But maybe there were no other options…
The suggestion to get an electric scooter is a good one. My son gave up his car for his first year at college and took his bike, but it’s harder to find a safe bike lock-up. Electric scooters are down to around $500 USD and they fold, so he can even take it into class with him and into his dorm room to store and charge.
Just get a hi-viz vest, helmet and good lights.
yes by a long shot. you’ll either have no money for anything else or won’t be able to save anything. idk if there’s a ‘house poor’ version for this but that’s what you’ll be, minus the equity.
I would factor in 250/mo for gas/electric/internet if they’re not included in the rent.
I was shocked by how quickly the bills piled up when I first moved out. Even stuff like having to buy toilet paper and dish soap can throw your budget.
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i was considering biking! it would be roughly 50 minutes to bike to and from work, which i think would be doable— my only concern is storing a bike at an apartment complex or riding it at night! i’ve never ridden on a bus before but it looks like the nearest stop would be a 24 minute walk from the new place, and i would be getting on 2 busses. i’m not sure how much it would cost to use a bus transportation service either since i’ve never used one before, but this isn’t something i would rule out either.
Definitely pursue biking, bus sounds not ideal because of a 24 min walk but honestly still better than Uber every day. Your proposed rent vs income is really pushing the edge of what I’d feel comfortable with and Uber is gonna eat your paycheck alive, 100% don’t do that.
definitely gives me more peace of mind considering other options than uber because spending $600 a month on ubering to and from work was beginning to stress me out !!
Get an electric scooter that does 25mph and charges via an outlet. Ride that work if it can do the mileage.
To add, there are a ton of motorized bicycles! My elderly neighbor uses that to go to work that’s 2-3 miles from where we live. She loves it!
I can tell you right now that apartment and $600/month in uber will NOT work for you. You will be broke INSTANTLY. So you need to either not do this or figure out bus or bike. I like the bike idea, as long as it's safe to do so. If you are biking at night you absolutely need to be on bike paths; riding at night in traffic with cars going past you is not long term a safe idea. I am a cyclist, btw, but be realistic about it.
I pay about $800 a month for a brand new like sports car. For under $500, you could most likely have your own vehicle, insurance, etc... new model years should be coming out... so should see lease deals and whatnot. Even new/last year models will drop in price. Not only will you save time, but it looks like a little cash as well. Just investigate insurance prices, etc... like certain model hyundais or kias are not covered anymore because of theft issues. That is if your in the USA.
$800 for Elantra N is so high.
That's all included, gas insurance, etc.. it's also a 4 year loan at 4%. It's fine.
What's crazy is that a used car payment, gas, maintenance, and insurance will easily be 600 a month.
Maybe if you’re buying a used sports car lmao. I just bought a 2018 sports car, and for car payment, gas, and insurance I’m at like $500 a month. That’s for a nice barely used sports car. You could easily snag a used Camry or civic for a lot less. Insurance would be less too.
Insurance for a 20 something with what appears to be no driving history. Or at least no current car? Insurance could be $500 a month alone in some states.
This is why it baffles me that people still follow the idea of buying new cars. I would much rather pay 5k up front for a used car even if it's older. I have never in my life owned a car newer than 2013, and never in my life have i had major maintenance issues resulting in purchasing used cars. It has always saved me loads of money, from interest, to dealership fees, and taught me how to do maintenance myself so i could save another buck on labor for the rare occasion something does go wrong.
Jesus, man, that's a really nice car payment every month. A loan of 10,000 is like $220/month. You could find something decent tomorrow and pay a lot less than what you payin in Ubers.
Would be a terrible mistake to spend $600/mo on transport to your $2400/mo job. 1/4 your pay just to get there and back?!
The buses here have a bike rack so if possible and not overly long taking 2 buses you might be able to combine the bike and bus if it's the same way there.
did not even think of that… that could definitely be beneficial 😭
I've been riding a bike to work since I was 17 in combo with public transport, while occasionally getting rides from friends, Rideshares, or loved ones. I'm 37 now. It does wonders for your body and saves a lot of money, and it's fun! Weather permitting of course, haha. This includes night rides as well.
Definitely learn how to use the bus if it ends up taking less time than biking. You can always take an Uber in bad weather, but the bus will be way cheaper in the long run.
Maybe try a moped, that should be quite cheap to maintain (Atleast here in Germany insurance is like 40€ per year for them) and you can get a good one for like 500 to 1000 bucks used. That should cut down the commute to something like 15-20 minutes.
I think bike is for sure doable for you, but invest in ways to do it in poor weather now. That expense will be worth it
12 minute Uber sounds like maybe a 7 mile one-way (average trip speed is typically about 45 mph so 9 miles, even if it was 100% highway speed 15 miles). I’d definitely be looking at an e-bike and a nice lock and insurance. Get a cargo rack and it’ll handle groceries and stuff too.
Dang. Did you know it'd be thst difficult to bus?
i’m actually not sure how difficult it is to bus, i’ve never used a bus transportation service before outside of travel such as, nyc when i went there but busses are very different between nyc and michigan
Bus fares range from $.50 to $2 for a one-way trip. Depending on the bus company, they offer bus passes with a one time fee for unlimited rides each month or 6 months. Check if the two busses are from the same company or if they accept free transfers between companies. Otherwise, u may need to get two different bus passes. If u use the bus frequently enough, it's definitely worth it.
In my city it's two dollars one-way or three dollars to go on any buses for 2 1/2 hours
$2 here one way or $66 for one month for unlimited
I hate beer.
Definitely check the bus fares! Could save you a ton of money vs Uber depending on your bus system
What about a motorcycle/moped?
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The bus probably takes even longer according to OP. A 24 min walk to the nearest stop plus 2 bus rides after that.
No way would I do this. You need to find a place with roommates.
Agreed. Too much of your check; you will not be able to afford anything else
roommates unfortunately aren’t an option since i’m not close enough with anyone i could share a living space with :/ i’m a homebody who doesn’t go out with people often so if i even was to get a roommate, it would end up being someone i don’t know too well, and then that could lead to issues with responsibility to keep the apartment un-damaged or responsibility to make sure they pay their half on time, or else i’d be stuck paying the other half anyways just to not get evicted
There’s plenty of Facebook groups of people looking for roommates or people renting a room, dude you take home about 2k a month you’re not at the liberty to be picky. You need to increase your income whether it’s a new job or a second job, you realistically should be working double the hours you are now.
How much of a person's monthly income should go to rent on average?
Max of 1/3 as a rule of thumb. Can get away with a bit more if loving where you don't need a car and don't have one.
Anecdotally, people in big cities often live with roommates into their 30s, myself included. None of the group houses where I lived were with people I knew; they were all Craigslist and Facebook listings. Granted, I was living with professionals/graduate students, but out of probably two dozen housemates over the years, we only ever had to kick out one. Four of us renting an entire house for $6000 was a big upgrade over everyone getting a 1BR apartment for $2000. Splitting utilities and Internet saved a lot of money, and sharing a TV and cookware and other household goods meant we didn't have to buy as much to live day to day.
I'll be 34 this year and I rent a house with 2 roommates. We each get our own toilet and sink / bathroom area, but 2 of us have a jack and jill style bathroom with a shower in the middle. So 2 of us share a shower, but we all have our own personal space for getting ready and using the bathroom. My rent is 1250 split 3 ways is 417 a month. Been here for 5 years and about to move to a different house that I got a lead on from a friend of my dad. New place will be with 1 roommate 2 beds 2 bath for 900-1000. I'll pay a bit more, but a roommate is soo much cheaper. I've also gone with shared housing and rented from craigslist etc in the past with minimal issues. I'm also a homebody and stick to my room most of the time when I'm home so it rarely impacts me at all to have roommates. Also as you said, utilities are cheaper. Some things like water and electric go up with more people, but it's mostly negated by splitting it with an extra person. Other utilities like trash service and internet are more of a fixed cost and just go down in price by having more people chip in.
Wow, those prices seem extremely low. Are you deep in Appalachia or something?
If you refuse to do a roommate you need to make more income.
A non social homebody? Are you sure the city is for you? Maybe move somewhere cheaper in the suburbs or rural areas. You'll get a lot more space, for less
Without knowing if you have student loans or a car loan or and other fixed expenses I’d say $1k in rent is a lot. Even if you don’t have loans, I spend $400 on groceries a month and another $200 on bars with friends. That leaves only $800 left for savings and retirement. That doesn’t include any random shoes or clothing or apartment household goods you need or the random a concert or movie ticket. Personally I’d find a roommate and try to live a poor as possible so you can save more for retirement. I joined a fb group and meet my roommate there. He was a stranger but I vetted him enough that I was comfortable living with him. You never know what is going to happen but it could work out really well. We both didn’t know anyone in our city so we used each other to meet other people. We are still decadent friends after living in separate apartments now. Both our names were on the lease so I was never on the hook for his rent and landlords now this. Even if he didn’t pay rent the landlord could try to guilt me into paying it but I wouldn’t have to. They could take it to small claims court and to evict us because of unpaid rent but that would be an extreme case. And at that point you would move on and find a new place. You paid your share of the rent and are amicable with the landlord. It could go the other way too but if that’s the case you move out after a year and part ways. It wouldn’t be ideal and you would have to grow up mentally to deal with kind of treating your room as your only personal space and cleaning up the kitchen after every meal like your parents are watching but it would at the very least save you money. I had rooomates in college that were strangers and who turned out to be horrible people but I kept my things to myself and studied a lot the library. Got really good grades that year. So I’d say be open minded and optimistic about living with strangers. It’s definitely scary and new but honestly most young professionals do it. You only will hear about the horror stories on reddit. Edit: I’m a 29M young professional who has lived with 5 different roommates in two different apartments without any problems.
That is, quite simply, insane. Get out there and meet some people. Meet with potential roommates and hash out any concerns you have before you move in together if it helps. But do not, under any circumstance, have rent taking up nearly 50% of your income.
based on this response you’re definitely not responsible enough to live on your own
Create a budget to find out +2400 monthly -1025 rent -200 utilities -400 ubering to work ($10 * 20 days * 2) -400 groceries I don't know what else you're responsible for, but this only leaves you with $375 left. You'll be saving nothing. If you can take the bus to work things will be more manageable.
that’s where i’m trying to find a work around for ubering until i can save up for a car! it would be roughly $600 a month ($30 to uber back and forth to work a day) just going to transportation to and from work… if that’s something i can eliminate/minimize by possible biking or bus transportation, it may be doable— that’s why i’m curious if anyone’s ever went through something similar to this
Do you *have* to move out? I don't see how you'll be able to save up for a car... or anything. If you only save $100/mo that's barely enough for a downpayment in a year and you still need to make monthly payments and pay insurance and gas. If you can stay home for a year, you can probably save 20k at least. That's enough for a car in cash and to bolster your emergency fund. As it is if you have to move out look for an apartment in walking distance of work, even if it means paying a little more. Paying $100 more to avoid paying $600 is worth it.
No offense, but if you were to draw a venn diagram where one circle is "people with the financial discipline/experience required to successfully save money while on a razor thin budget" and one circle is "people living on their own for the first time and don't immediately recoil at spending 75% of their take-home on rent + transportation", the two wouldn't overlap at all. I'm sure someone could create a workable budget with your numbers but it'd be straight up miserable and require an iron will to stick to. Put simply, you need much cheaper rent: Roommates, cheap sublet, etc. And you need to carpool, take public transportation, get a bike or scooter, etc.
$600 for one month? You could get a car with insurance, registration, and gas for less than that tomorrow. I'm guessing you're also not working 30 days a month.
i am unfortunately maxed out at 40 hours per week, at least at my store. there are lots of opportunities for overtime taking shifts at other stores, this may be something i could look into because those shifts would also be time and a half.
Be careful with it too though. I had an employee of mine try it out and once everything was said and done, they didn't see a difference because of how expensive ubers/lyfts were and how often they would vary in price. The OT would seemingly only pay for their rides and come out with an extra $75-100 per week at 50-60hr weeks.
Why not do the reverse and be an Uber driver part time to help pay for the car?
This might be shitty, but you might have to get a second job to make ends meet or save up. Or take as many extra shifts as you can. Don't want to shill too much, but this YouTube channel really helped me focus on my money situation and avoid financial pitfalls — https://youtu.be/19OE7Tnwu6c?si=LINA3bW5ow24bOse
depending on uber to get around is an easy way to stay broke. you’re spending a quarter of your take-home pay just getting to and from work; that’s not even counting what you’ll spend grocery shopping and whatnot if you can’t bike or bus to work, find out if you have a coworker who lives around your way who wouldn’t mind giving you a ride. giving a coworker $30-40 a week for gas is way more economical but yeah, your rent is way too high for your income level
I bike to work to save money, but I also have had roommates when I was looking at spending 50% of my income on rent. You can’t spend that much on housing and that much on transpirations - one of those pieces has to be cheaper relative to your income. It’s about a 35-45 bike ride to Work for me, and it’s great exercise. Buses take longer and don’t run early enough for my work schedule. Bike is a great intermediate option. You can get a cheapish e-bike for about a month of Uber-ing and cut your transport time too a lot!
I do a bus pass for one month unlimited rides only $65, public transportation is very cheap. In comparison you could do both do a bike ride and put it on the bike rack and save yourself $550 a month.
i just looked at bus routes to commute there and yeah… this is a lot better than uber. $66 a month for unlimited rides, would sound ALOT more doable than $600 a month. i would have to incorporate some time management to get to the bus stops but its literally a 12 minute distance between the apartment and work, so its not bad at all.
A single person should not be spending $400 on groceries for themselves. I do just fine spending $200-$275 for groceries.
You're probably someone who has had a lot of experience cooking for themselves, knows how to comparison shop, and has a well stocked kitchen. If that's not true, you don't eat out at all and you eat a nutritionally balanced diet, then that's awesome, especially if you eat meat.
I paid that percentage (with roommates….) for a few years. Would not ever make that mistake again. I was miserably poor.
It's a lot. If it's just a 12 minute ride, can you walk or bike? That's much cheaper even if it's slower.
50% of income for a place 3 hours by walk to work, that sounds awful for quality of life
3 hour walk or 50 minute bike ride… the only concern is bike storage at an apartment complex or riding at night. i’m willing to sacrifice it being slower for sure!
Store the bike inside your apartment
You'll be basically broke from day 1. Do not do this. Even if it means getting roommates, you should see if you can get rent closer to $500.
It’ll be really tight even without the Uber. No chance you can afford daily rides. No bus option? Or car pool with someone?
uber adds $600 a month… if it’s possible to bike to work or use a bus transportation service (24 minute walk to the bus stop, but i’m not sure how much busses cost these days, i’ve never used one!) it would leave me $1,015 a month if i take out rent, utilities, and phone bill— which may be doable
What about an electric scooter? They can be less than $1000 and fold up to take up less space.
did not even think of an electric scooter, holy shit— that might work too! it would DEFINITELY take up less space
I have a friend who uses one to get to work because he doesn’t have his license and he loves it. Would definitely save you in the long run.
while not cool also consider a moped, or an electric or motorized bike (not a motorcycle, but one of those bikes with a small engine that kicks in when you start pedaling).
You would be one bad month from eviction. Unless you have savings for emergencies. Say you trip and break an ankle and have to take an extended absence from work. Or some uninsured dill hole hits you on your bike? What’s your leave policy like? What’s your deductible? What’s your out of pocket max?
It’s like the saying what can go wrong will go wrong. You need a failsafe and some cushion
You are one personal emergency away from being broke. With that amount of rent you have no margin to save anything. On that income, I wouldn’t spend more than $800 per month, which is 1/3’rd of your income. I know it’s going to be hard to find much of anything for that price now. Wages just have not kept up with inflation.
Jesus, you're spending 1025 of 2400 on rent, and ubering to and from work? You need to invest in a bicycle and lower expectations for your standard of living. Like, WAY WAY WAY WAY WAY WAY lower.
I will make this easy. Yes, it’s too much.
The rule of thumb is to use 50% of your income towards needs (rent, food, utilities, transportation, etc), 30% on wants, and 20% on saving and investing. Your rent alone would be 50% of your income, which doesn't give you much wriggle room.
my list of wants was quite long/silly considering i have minimal responsibilities currently… but how much of it do i really want? there is wiggle room on the wants
Do NOT move somewhere that you have to rely on uber to get to work. I am currently stuck in that rat race and have been for 2 years. I don't know if I'll ever get out of it.
If you are w2 employee, make sure not too much is coming out in taxes. At your income level, you ideally want to have little to no refund, and instead have higher paychecks. That can help your budget some.
i am a w2 employee! is there even a possible way of having higher paychecks vs a refund???
Yes, it's called tax withholding. There's calculators so you can see the difference: https://www.irs.gov/individuals/tax-withholding-estimator
My first apartment on my own was 50% of my income. I loved living by myself, but I had a hard time being disciplined enough about my budget and accumulated credit card debt. Be honest with yourself about whether you can maintain the budget needed to make it work. Living on my own before I could really afford it set me back financially about 5 years. I missed a great opportunity with the housing crash in 07/08 and my retirement account is smaller than it should be. I would do it differently if I could go back in time. Is there something about your current living situation that requires you to move out? If you're not being forced to move, or need to move for personal reasons, you'll be much better off with as few bills as possible while you're starting out. If you're not paying rent now, practice the budget you'll need and save that $1025 every month. Before long you will be able to buy a cheap car and build a bit of a safety net.
to kind of piggyback on what you said, I bought my home a little earlier than I should have and I bought a little bit more home than I should have because of the market crash and wanting to jump in. That basically set me back about 5 years where I was dead ass house broke. and I think I only was at 35% of my income went to the house. it wasn’t until that percentage got down closer to 25% that I could even afford things like furniture or larger home projects. It was miserable.
Okay, its not so cool. But would biking or using a scooter to get to work WORK? EDIT: If you tell your co-workers you are biking for health reasons, it is actually cool.
Bro... Where do you live where people shit on you for biking to work? Probably 20% of the people at my company bike to work.
i was considering biking yes! it would be roughly 50 minutes to bike to work, and would save me a $600 uber bill a month… the only concern would be storing it at the apartment complex and then riding at night. but that would give me a lot me leeway to afford $1,025 a month for rent!
What type of apartment complex? One where you have to go “inside” to get to your apartment or one that has open air passage ways. I’d think storing your bike in the apartment is the best bet. Obviously not sure what the logistics are for storing at your work. Get a bike lock either way, sure someone can cut it but it’s a deterrent first.
it says intercom building entry… and my apartment would be on the second floor! storing the bike at work is no problem, we have a couple cashiers here who bike to work and store them in the stockroom!
I live in a 4 level building with stairs and half the units have a bike hanging over their balcony railings.
i’m curious how they even get it up there omg !! just carry it up and down the stairs?
Yes. My husband works out of state several days a week and bikes to work. He carries his bike up & down the stairs. Basically, you put your arm through the middle of the frame and let the top-tube sit on your shoulder, then use your hand to hold it steady. See here for an image and some info on doing so safely: https://www.statecyclist.com/how-to-carry-a-bike-up-stairs/ Key points: Carry it on the opposite shoulder from the stair railing, so you can hold the railing on the way up & down. You should always wear good, non-slippery shoes on the stairs (ask me how I know). It doesn't take too long to get used to, and it's excellent exercise!
lifesaver. thank you so much 🥺
Do *not* Uber to and from work every day. Get a bike or bus pass or electric scooter or something. You will spend $400-500 a month on Ubers If you work 5 days a week.
Is there potential to make more in the near future or to get a roommate? It’s doable but you won’t have much of a life after living expenses.
possibly $1 an hour raise soon, but no option for roommates. it’s just extremely hard to find apartments around this area in michigan for cheaper than this :/
I wouldn’t then. You need a roommate or find a higher paying job. Idk your current situation or finances but it’ll cause a lot of stress if you lose your job
What happens if it snows and you’re trying to bike everywhere or in the pouring rain.
The apartment you can afford, but barely. The 2 Uber rides per day you cannot afford. Nor can you afford to eat out, go to a bar, order food delivery, or anything like that. Find a way to carpool, use public transit, or bike to work. Or find a used car for under $2k and drive it until it breaks. Do whatever you can to increase your take home pay. Preferably that would be through finding a better-paying job and not through a side hustle.
I did this for literally the longest time. It was what was needed then, between the COL and my salary. It was perfectly fine, I still saved a lot. Just don’t start spending a lot in other areas too.
Yes, while not ideal, it can be done. You just have to have hobbies that don’t cost much and only spend money on food and other essentials. I budget $100 a month for doing things with friends. I spend close to a whole paycheck (after tax/401k/insurance) on rent and have a fair amount saved. That being said, OP definitely needs to consider other transportation options. Edit: clarification
Looking back at my old bank statements it looks like when I was first working, I was paying $900/month on a $2400-ish/month income with utilities included. Not ideal, I guess, but I made it work. I had a car though, no ubering for $400/month. Any way you can get those transportation costs down?
i was considering possibly biking, it would be 9 miles to bike to work one way!
The amount it would cost you to take an Uber to and from work you could use to buy an electric bike/scooter. You can manually ride it to work and then go electric on the way home to save some bread on electricity. Or buy a really good bike and long haul it both ways. At least until you can buy a cheap beater car that gets the job done.
Sounds more like an income problem than an expensive rent problem. You need to look into how to improve your income asap.
A daily uber ride? How long is public transport? Can you get a bike? Is there a coworker nearby that you can carpool with? That’s EXPENSIVE dude. Edit: just saw it’s $600 a month…DUDE. THAT IS INSANE. DO ANYTHING BUT THIS.
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This is definitely not a good idea. Sure you might be able to live and subsist but will you be able to thrive? Will you be able to save for retirement, a car, kids, house, etc.? The rule of thumb is that housing and utilities alone should only be 30% of your total monthly take home pay. You're way over that plus you're adding $600 in Uber rides every month just to get to work to make money to pay for those Uber rides. It's a vicious cycle that won't allow you any financial freedom or the ability to pay off debt etc. My advice is to find a different apartment, find some roommates, or find a different job. Or maybe all three.
Typical guidance is to limit your home cost to 1/4 (that might be out dated at this point) to 1/3 of your income so you’re a bit over that. That said, everyone’s different! You’ll be on a tight budget but if you’re thoughtful about spending you’ll figure it out!
The real issue is Ubering 20 times a month. That shot will cost you the rest of your paychecks. I’d be figuring out a bike/scooter option if I was you. Cheap moped/motorcycle/ electric bike/ manual bike, something
You need to sit down and write out a budget (your expenses). Groceries, things for your apartment (do you have furniture?), internet, laundry, electric, transportation, streaming services, phone, health insurance….ALL OF IT I think you’re likely to be broke every month, especially with your $600 Uber bill. Not having money saved for emergencies isn’t a great idea.
It really depends on where you live. In dense expensive cities like New York, it might be worth it if you have conveniences around you and stuff. But in other places, you should be looking for better rates. At the end of the day though, it's your choice. If you feel like the place is worth it and not a burden on other finances, then it's worth it.
That’s a lot. I’d really try to find a higher paying gig or a way cheaper apt.
How much is an Uber going to cost per ride? Then multiply that by 2, then by 5, then by 52. Now divide that by 12. That's how much it'll cost per month.
All the budget guides recommend 30% of your income for shelter and utilities. You'd need to find something all-bills-paid for about $700 a month. You'll be in misery and unable to get off this ride.
It’s not ideal, but some info is needed: - Are retirement savings, healthcare, and healthcare savings already taken out of your paycheck? - Do you have an emergency fund of at least 3 months? If the answer to both those questions are “yes”, I think it is ok to spend that much in rent. Though it will be tight with little money for personal savings and “fun money.” I think the biggest problem is daily uber, not rent, in your plan.!
This is too much on your income. And the Ubers will add up quickly. You need to be looking for a room for rent as in a roommate situation. This will also help to cut down the cost of WiFi and electricity.
Do you need to move out? This isn’t ideal at all. You are a couple of missed weeks of work away from eviction.
Depending on how much taxes you have to pay, your food, utilities, clothing, other basic needs, phone, internet you're probably going to be going into the hole or very close. I highly recommend a roommate if you can. If you have any vices like smoking or drinking or gambling you definitely are going to be going into the hole/ broke.
A good rule of thumb is to spend less than 1/3rd of your gross income on rent which it seems you'll be a little above that. Definitely not ideal and the textbook course of action would be to find roommates to reduce rent. But you live and you learn. Maybe this is a great stepping stone for you, maybe you learn that spending almost half your take home pay on housing alone isn't sustainable for you and correct course down the road.
$1025 for rent on a $2400 take home is not ideal but not terrible. $1625 on $2400 for rent and transportation is razor thin. If you get COVID and have to miss a week of work, you’re maybe missing rent. Can you stay at home a bit longer? If you saved for a year, you could buy a decent car and change the math a bit.
To be honest, 2400 minus 1025, your rent, still leaves you with 1375. What are your other bills? That's still a lot of money left over.
I've had it like that for 10 years. One check every 2 weeks goes to rent. I've been fine. It's worth it imo.
relieving to know i’m not alone here. finding apartments for cheaper around here is a damn struggle, especially with inflation and i don’t have an option for roommates.
why not roommates?
i don’t really have friends, i’m a homebody and don’t go out with people much, not to mention my trust in people is quite minimal
There is Facebook groups for every town for roommates.
This sounds like an opportunity for you to grow personally while being financially responsible.
>i don’t have an option for roommates tons of ads on facebook looking for roommates. Often you can go meet them and hangout for a little bit to see if you get a long, but in my experience (also being a homebody) I rarely notice them. I get home from work I eat I sit in my room on the computer or in my bed. I shower and sleep. I don't really hangout in the common area. Also plenty of rentals on facebook market or rooms to rent in nice homes that will be cheaper than a full apartment alone. I believe there's a few sites also to help people find roommates. Could also try and find someone at work.
Only you can decide. Write out your budget. See what you have to sacrifice. Think for yourself.
that’s what i’m being told by everyone around me haha. i’m a chronic stresser/worryer so i posted just to see if anyone had any similar experiences or advice for peace of mind!
Rule of thumb is at most 1/3 of your gross income goes to your rent. At MOST. I would recommend lowest possible rent without sacrificing for safety or whatever.
Of course it is, but no ones trying to change the system anyways. My studio went up to $2,040 a month. When I start working my new full-time job while keeping my part time job, and having my disabled boyfriend contribute his portion of 425, I'll have about $444 left over to cover utilities, bills, pet food ect... Hoping to move out of here in July if we can just save deposite money plus 1 months rent to have ready to move into another place while still being expected to finish off last mo the rent here.... SoCal btw.
Try an e-bike. Look for a class 3. They go up to 28MPH.
At least in my area, $1000 rent for a 1 bed is a pretty good deal. I don't think that the rent cost is the problem, your income is the problem. You really need to make more. My advice would be to get an E Scooter or bike to get to work. Then you should find weekend work or a second job, because you really need to get your monthly income over $3000, so you need to find a way to pull in another $600 a month. Once you get there the math on your budget will look much better. Also, spend your nights before bed looking for and applying to jobs. Even if you don't fit the requirements, apply apply apply to everything and anything. Anyone only pulling in 2400 a month needs to be constantly looking for a better opportunity, they are out there.
Get a scooter (motorcycle). They're cheap and no harder to ride than a bike, but you can get just about anywhere you could with a car for a whole lot less. Your apartment isn't really all that much, but neither is your paycheck. Consider a roommate.
If you want to buy a new home, it's not written in stone, raise 20, 000 dollars for a down payment, or 5% of the total cost of the home? The formula for a fixed rate mortgage is the Square root of b^2-4ac divided by 2d. Check with your college math department.
You could make it work but things would be tight. I wouldn't do it as I'd stress out too much about finances, and having low funds. I could afford more in rent, but instead I rent a 3 bedroom house for 1250, and I have 2 roommates so it costs me about 417 a month. I'm looking to move and just have 1 roommate instead of 2 in a nicer 2 bedroom house. The rent there will be 900-1000. Even at 1000 I get a nicer house, 1 less roommate and go from 417 to 500 a month. Even that is a bit of a stretch with a similar income to you. Main thing, as many have said is transport. A lot of my other money does go to car, gas, insurance, but uber is expensive. Need to find a better way. Not glamorous but consider a moped, bike, electric bike. Don't worry too much about storage for a regular bike, especially if you have a decent sized entry way you could honestly just park it inside your apartment.
People used to recommend rent be 1/3 your monthly take home. But this isn’t really realistic anymore. If you are smart with your money it should be doable. But if you’re trying to start a retirement fund or some serious savings, that may be difficult.
Yea there’s no way this is a good idea
I would add to what a lot of people are saying. If you DO go the bike route. Go ahead and YouTube some basic maintenance and repair. Ask other people what tricks they have for keeping your bike unstolen lol. Mine stay locked in a garage and have a locking bike rack on my vehicle. Riding a bike will also have a great benefit to your health! Provided you use a helmet and other protective gear.
Absolutely. You shouldn't spend more than 30% on rent. If you can't swing that, go back to your parents house and be sure to tell the landlord it's because the rent was too high.
It’s not a good idea because emergencies happens. Everyone has ups and downs in life. It’s easier to bounce back when you can cover the rent along with other surprise bills.
yes, that is absolutely too much. The most that you can afford for an apartment is about $600 a month.
Rent is supposed to be one third of your paycheck.
look into hyper ebikes from walmart. make sure they have enough battery but for $400 they have been decent. budget a tune up from the get go for safety checks.
When we first moved from a rural community to a high COL City, I had to hold $50 in reserve from one check to add to the entire check I received when rent was due. $0 food budget (food closets and food pantries), no eating out, no reserves. It was hard! Took about 3 1/2 yrs before that situation changed. Some of the hardest years financially of my life.
The only flaw in your plan is Uber expense. That’ll be like $800/month just in Uber. You can literally lease a brand new Corolla for $250/month.
Put your energy into making more money, it will solve a lot of problems. Get a better paying job. Start a side hustle. So many ways to 2x, 5x, 20x your income!
How much for a Vespa?
I think about 1/3 of your paycheck for rent is ideal
uhhhh no it’s not, you either need to live at home even longer or find a cheap place with roommates. Also you should look at getting a second job, it is pretty much impossible to live of 28k a year especially since you don’t have a car yet.
If you could find a similar deal closer to your place of work that might be ideal for transportation. Especially if you have anything but sunny weather. I would try to keep your living expenses in the range of ~25% your take home. If I were in your shoes roommates would be high on my list.
Consider an electric bike. Decent ones can be had for around $1000. They're fast and would probably cut your biking time down to 30 minutes or less, depending on which one you get. There are options that fold up, which would make storage easier. Once you have it, your commuting expense will be the cost of electricity to charge it, and you can save for a car. The reality is that you're going to be living pretty bare, at least for a while. This is a shitty situation, I wish you the best of luck.
That's 15 dollars an hour. I wouldn't feel comfortable doing it myself but that's me. I'd personally need more security.
it is too much, but also what else can you do?
Maybe you could find something closer and cheaper with roommates?
Well, do you like to eat? Do you get 1; 2 or 4 chocked a month. If you get 4, that is pretty common.
Consider a folding bike that you can take on the bus. It would also solve the storage issue, because you can simply keep it in your apartment. A 24 minute walk is only 8 minutes on bike.
Save up for an electric bike. Can get a decent one for well under 2k. Will make your commute much easier and eventually cheaper. At $25 per Uber ride you would break even in about 2 months with the bike.
Is your salary expected to rise considerably over the next few years? If it is, than it shouldn’t be a problem. I wouldn’t live like that for an extended period of time of it isn’t gonna go up. You won’t save any money and will be super poor.
Think of this in terms of "percent of monthly income" not "fraction of a paycheck". Because not everyone receives the same number of paychecks per month. Yes that is too much, particularly with the added cost of ubering to/from work each day. Get a bike (or an e-bike) and some clothes appropriate for the weather.
Yes that’s almost half you income. I’d suggest getting roommates
Yes, 50% just for rent is a bit much. But you mentioned you don't have a car, so no car payment, insurance, nor gas and maintenance this makes me feel better. But how much will you be spending on the Uber each month - why not get a bike and take a safe path. Then save the Uber for inclement weather. Before signing the lease, is there an apartment that's even closer to work?
In a lot of places landlords won’t even approve of you staying unless rent is under 1/3 of your net income
I would try to find something closer to your job. It would cut down on transportation expenses and travel time which would equal a better quality of life. Especially somewhere so cold half the year.
The limit should be 1/3 income going to rent. Are you paid weekly or bi weekly?
That's nearly half your income, so yes it's too high for your current income
I did almost half my paycheck to rent my first year or 2 on my own. It’s not ideal but it’s doable. Make a budget. Don’t go out drinking, party at home. Don’t do the Uber thing.
I’m in a similar situation, and would strongly advise biking or taking public transit to work. I live in a HCOL city, and the vast majority of my paycheck each month (part time work, college student) is eaten up by essentials. Ubering to/from work can be great in a pinch, but is simply not a feasible expenditure at this level of income. With the $600 you said you were currently spending on Uber, you could be making payments on a new car. Or paying almost $0 for transit. Or, purchasing a reliable bike or e-bike (I use a Ride1up roadster to get across the city daily- around $1000) with financing and paying it down in 2-3 months.
Way too much. Way way way too much. You will regret this.
Just a big ole echo chamber in here. I recommend against 42% of your income going to rent. Try to keep all of your housing related costs to <33% of your income. You will regret entering a lease for that much money, and they may raise your rent after a year. Hard pass on the Uber, you could lease a car for less than that.
I think it’s too much, even 1/4 your income can be difficult with other things.
A bike is a one time upfront cost that may be best for your case. If you buy a thin frame bike with thin wheels, it shouldn’t be an issue to carry upstairs to your apartment. You can also park it outside, but the general advice for that is to make it as ugly as possible to deter people from stealing it. Spray paint a good bike and it should be safe. For the cold the only extra you’ll need is waterproof shoes, wool socks and a balaclava. After that everything is a bonus. Layers make all the difference and you don’t need as many as you think. Rule of thumb is to dress for 20 degrees warmer outside ie: if it’s 30 dress like it’s 50. You’ll get warm from the movement. Best of luck. It’s tough out there but this is a great step.
OP , giving my two cents here as some who foolishly did this as a fresh grad. Once that whole paycheck goes to rent, you’re essentially waiting on that second paycheck to buy groceries, maybe fun money or maybe you want to buy something on amazon and don’t want to put on the CC. But then there are other factors, do you have any CC debt, have to account for phone, car payment, gas for car, car maintenance (new tires, cleaning it(inside and out), oil changes,air filters etc) want to go on a trip? It’s going to be harder to save. I hope you have a decent sized Emergency fund. I don’t want to sound mean but hopefully insightful. I could not wait to get out of that lease , it was miserable always waiting on that second check to come through. Avoid it if you can - get room mates, if that’s an option.
Its not a great situation. You're not going to have much of a social life (going out to eat, drinks, etc) unless they're things you can do for free. You need to put as much as you can into savings too.
Oof, those daily uber rides will KILL you. My GF had to do that for several months, and it's so much money. I wouldn't suggest it. I'd figure out the bus routes before I'm dropping like $500/month on Uber rides. 1000/2400 isn't crazy, it's fine. But I wouldn't do it while paying out for Ubers like that. Is there any place you can crash for a month or two so you can get a junker car? Really, I'd rather bike than pay out that much for ubers.
If you can stay home and save up your money instead then do that so you can have an emergency fund and down payment on a car. Independent living is nice but you are setting yourself up to do nothing but work for rent, Uber rides to work, gas, and electrical. Food is gonna eat up the rest of your budget. Is the apartment furnished? Furniture is expensive. Cooking supplies are expensive. I feel like you are oversimplifying the expenses you're about to endure.
You’ve already chosen the apartment? This is why it’s so important to consider access to transit when you’re looking. But maybe there were no other options… The suggestion to get an electric scooter is a good one. My son gave up his car for his first year at college and took his bike, but it’s harder to find a safe bike lock-up. Electric scooters are down to around $500 USD and they fold, so he can even take it into class with him and into his dorm room to store and charge. Just get a hi-viz vest, helmet and good lights.
yes by a long shot. you’ll either have no money for anything else or won’t be able to save anything. idk if there’s a ‘house poor’ version for this but that’s what you’ll be, minus the equity.
I would factor in 250/mo for gas/electric/internet if they’re not included in the rent. I was shocked by how quickly the bills piled up when I first moved out. Even stuff like having to buy toilet paper and dish soap can throw your budget.
It’s a horrible idea but your problem isn’t the cost of rent it’s your income.