Okay so I work about 25 hours a week and earn 10.50 per hour. My boyfriend works 40 hours a week and earns 18.00 per hour. Could we live on that, assuming our apartment costs 2,000 a month? The heat and water bill will be included as part of the rent, not an extra cost.
Eva
Not in a $2000 a month apartment.
loanmasterone
Formulas and things might be ok and would work for some individuals. If you do not have money left over at the end of the month after deducting all your debts, then you are not able or ready to move on your own.
Everyone does not live the same lifestyle. Some live a more frugal lifestyle and some live beyond their means.
You would be more successful if you know the cost of certain items and that you are able to afford to pay these debts or not and have to return to the home of your parents , for not planning properly.
In order to be successful in moving out for the first time you would need to make a budget to see if things financially balance itself.
Your budget should include transportation, savings, rent, utilities (gas, water and electric), clothing, food, insurance (rental, auto and health), any current debts you are required to pay such as credit cards and car notes.
You would need to do some research in order to find an estimate as the cost of some of these items.
Once you have determined an approximate monthly amount you would be required to pay. You would need to subtract this amount from you current income. Not a future income, but your current income.
This would give you an idea as to if you would be financially successful or not.
You are not required to live a life style based on percentages. You may select to rent an apartment at a lower monthly rent as oppose to one that is higher.
I hope this has been of some benefit to you, good luck.
“FIGHT ON”
curtisports2
You earn about $1,134 a month and he earns about $3,117 a month. Together, you earn about $4,250. You would NOT be approved for a rental @ $2,000, even with utilities included. You minimally earn enough for about $1,400 a month without utilities.
Judy
Your should make 3 times the rent. To qualify for a $2000 a month apartment, you'd need income around 6000/mo. You aren't even close.
BeeLiz19
Is the question could I live off of this income, or could WE live off this income? Because the answer is neither.
Let's do it as if it's the two of you sharing an income, because those numbers will be laughable without even considering just your income on its own. 25 hours x $10.50 = $262.50 before taxes, more like $230 after taxes. 40 hours x $18 = $720 before taxes, more like $580 after taxes... $810 a week averages to be $3510 a month. IF you both get consistent hours.
Here's a general budget you can alter to your current lifestyle, or use to get to the lifestyle you'd rather be at:
10% of your monthly income should be going to long-term (ie. retirement) savings: $351 a month.
15% goes to debt repayment/emergency fund: $526.50 a month. Debts come out of here, but if you have no debt it goes purely towards emergency funds. If you do have debts, instead split that 10% retirement between retirement and emergency and use this 15% towards purely debts. You want to build your emergency fund as fast as you can and as large as you can; more money means more time that you can recover from something horrible happening. Six months is ideal, which means saving until you have $21 060.
35% goes to housing (rent, mortgage, bills, utilities, insurance, etc.): $1228.50 a month for ALL of these things. Your $2000 is way over budget, which means that in order to afford it you have to pull money from somewhere else. NOT a smart idea. While living at home, you both should be "paying rent" by putting this money into your savings accounts; you'll learn to live without the money (or see if you even can), and you'll boost your savings much faster.
15% goes to transportation (gas, car payments, insurance, repairs, bus): $526.50 a month. Money not used here should be put towards debt, previous savings projects, or towards another savings project that's important to you (like a car or house).
25% goes to life (food, entertainment, clothing, gifts, travel, medical, wants, phone, internet, cable, etc.): $877.50 a month, or $202.50 a week. That is plenty to live off of. Do the groceries and household shopping for your family for a few months to see what the reality of the cost of living is for your area.
If you have to ask whether or not you can really afford a nice place to live, the reality is that you probably shouldn't go for it. The reason; it's a repeat consequence. When you make a poor, expensive decision once, you are at least assured that you can somewhat recover from it. If you make a poor, expensive decision once where financially you will be paying for it every month for at least a year, that's going to be a much bigger problem for both you, and your relationship.