I found a small studio apartment that I fell in love with, $475/mo. I have been doing my finances and I have $1800 monthly income. I work two jobs: one full-time (40 hrs/wk) and one part-time (20 hrs/wk). With this studio apartment, the only utility I would pay for is electricity. I plan on getting cable/internet too and average price is $100/month. The other bill I pay for is my cellphone which is $60/month. I know times are tough, and most are struggling. I feel as if I can afford it. Anyone else agree?
Anonymous2009-10-30T18:33:08Z
Favorite Answer
Yes, I think if you spend your money wisely, you should be fine.
Monthly rent $475 x 12 = $5700.00 Monthly cable $100 x 12 = $1200.00 Monthly Cellphone $60 x 12 = $720.00
Total Expenses = $5700 + $1200 + $720=$7620
$21600-$7620=$13,980
You did not quote on electricity? If it runs you around $125 per two months then that would be around $125 x 6=$750 per year
$21,600 - ($5700+$1200+$720+$750)=$13,230.
What about food and perhaps if you have a car the insurance charge on the car and what about spending money. If these are added in you could end up with about (For food $300 x 12 = $3600, For Car Insurance $1080, Spending Money $2400 per year) then that's another $7080
$13,230-$7080=$6,150.
If you put gas and maintenance in the car that's another $40 x12 =$480 Oil Change Every three months =$35 x 3=$105 Car Maintenance/ Year = $800 $6150-($480+$105+$800)=$4765
If Car Insurance costs around $1800 then it would leave you with around $4,000 a year.
You could probably make it but you have to be very careful to budget all expenses so you are living on a shoe-string budget.
Anything looks good on paper. When I worked in apartment leasing we asked that a potential renter's income was at least three times the monthly rent and I think that's a good place to start. It looks like you could meet all of those bills but what if something unexpected happened? Always leave yourself a little room. Don't cut it too close. And when it comes to electricity it's really hard to guess what your bills will be. Just be careful. You can call your utility company and get the average bill amount for the apartment for the last year. At least that will help you make an educated guess.
I had a mortgage of $519 with an income close to what yours is and I didn't have a problem meeting expenses. If you work 60 hours a week though you might consider a cheaper package for cable. You aren't going to be home enough to justify the cost