My Finances... and my situation

papakron · #1 (**permalink**) 06-23-2007, 11:49 AM

I've made a few posts regarding this topic, but this will be the most thorough to date. For those who may not know, I'm 21 (22 this summer), I work full-time at a job I've been at for four years and am literally at my end when it comes to living at home. My mom does daycare (little kids all week) and is always home, and my dad is well... let's just say he drinks too much and they constantly fight. Jeez, I sound like I am 16.

I was out on my own with a roommate last spring, but I'm definitely the type of person who needs his own space. I've been looking at basement suites just to get on my feet, and crunching numbers all week. My girlfriend gets back on July 2nd from a 3-week trip in Europe, and I'd LOVE to be able to suprise her with my own pad. So without further ado, here are the numbers-

Wage- $20.00/hr
Hours- 32-40/wk

BILLS
$600- Rent (what I'm looking to spend, pay $200 at home while my younger brother pays 80... pft!)
$115- Bank Loan
$206- Car Insurance
$75- Cell Phone
$45- Gym (necessity!)
TOTAL= $1,041

PERSONAL
Car Maint/Gas- $300 (a tiny extra room)
Groceries- $250 (?)

SAVINGS
$200- Premium Savings Account (currently have 3k)
$100- RRSP (just started this, it's similar to a Roth IRA, have about 1400. Been putting in 200/mo, want to reduce it until my loan is paid off, then up it)
I also have a pension plan at work that the company matches dollar for dollar, pre-tax

Doing these calculations, I added up my monthly expenses to be $1,891. I've been tacking all my income, spending since January and my average take home over the six months has been around $2,400. My work fluctuates with overtime and such, but I make a decent living. My car is paid off, I paid off all my own orthodontic work which my folks never had the income for... all I have is my personal loan with about 3,100 on it. Credit card balances are all at 0... and I have an envelope with $300 cash in it for my damage deposit upon moving in.

For those still with me, thanks. One part of me says tough it out, save up some more until I have 5G's in my savings and my loan paid off... but another part of me would LOVE to suprise my girl (I've been with since we were 16) with my own place again... if you catch my drift

. I feel like I'm paralyzed and not maturing living at home. Heck, my dad even made a remark I overheard this morning before going grocery shopping saying 'to feed the babies'. Why the disrespect? If you guys were me, had a great girlfriend, decent financial sense, an okay job... would you take the plunge looking at those numbers? I'm looking at places this weekend... excited, but scared!

lgslgs · #2 (**permalink**) 06-23-2007, 12:06 PM

That's about $500 per month float in your budget, and your living costs don't factor in utilities and possibly other stuff.

If I were you, I'd shoot for moving out in two months while simulating the costs you expect to have when you move out. Draw up you list of bills, add to it as new items come to mind, and pay those amounts to your savings account as if you were actually paying the bills.

That will give you 60 days of practice living with your best guess budget and build up your savings as well.

Add a budget category for household goods as well if you don't already have pots, pans, sheets, etc. You want those kind of expenses to be things you plan for in a budget. Same with veterinarian and pet costs if you have a pet, birth control costs if you have a life

, clothing budget if you wear clothes, savings for dating expenses, etc.

Do things like actually make grocery list and go to the store check food prices and see if your estimates are on target.

I think you can do it, but I think you are going to have some surprises along the way. Doing a test run for two months while building an emergency fun will go a long way toward building you a bit of a safety net.

Lynda

One other thing - starting now, track every penny that you spend and every penny that you earn. Learn how a bottle of pop or a cup of coffee fits or doesn't fit into your freedom plan.

Ima saver · #3 (**permalink**) 06-23-2007, 12:37 PM

Good advise from the above poster. don't forget about utilities also. Write everything down for two months that you spend.

Fizgig · #4 (**permalink**) 06-23-2007, 03:14 PM

I normally wouldn't give "Jump in with both feet" advice, but here we go.

Move out. Like now. You're not happy at home, you're past old enough, and you make enough money. Find a simple apartment and live cheap. Stay away from debt and you'll be fine.

Oh, and shop around for cheaper car insurance.

Good luck!

TBH · #5 (**permalink**) 06-23-2007, 06:23 PM

I agree that you can do it and that you should do it. The only thing is, I think giving yourself a deadline to move out in time to surprise your girlfriend in just a couple weeks is being short-sighted. If you find a good place and it's affordable, go for it, but don't break the bank furnishing the place (you can sleep on the floor for a while, etc). If you don't find a good place before she gets back, keep looking. She'll be excited and happy that you're looking even if you don't get to surprise her with the actual place.

anonymous_saver · #6 (**permalink**) 06-23-2007, 10:12 PM

I agree, you should move out. It does sound like you have a fairly good handle on your money situation, but I think there are still a few questions.

So slightly more than 21% of your take home pay is for your car and you own it? That seems like the car may be too expensive for you. Do you live in a city with good public transit? I would at least consider getting rid of the car.

These are some things that I think you missed in your budget: utilities (I would hold off on getting things like cable or the internet until you at least pay off your debt, plus you can probably use the internet at work anyways?), personal necessities (shampoo, conditioner, paper towels, etc.), entertainment (dinner out with your girlfriend, movies, etc.), pet supplies in case you have a pet, clothes, apartment necessities (couch, pots/pans, etc.).

Have you thought about getting a roommate or a studio apartment instead. This could save you lots of money! I would at least consider it.

Also, I would try to put extra money each month towards your $3,100 loan so that will not be part of your budget any longer. I think that you should stop your savings in your Premium account temporarily to pay this off. You have over 1 months worth of an emergency fund already and it would be very good for you to get rid of this debt.

By the way, what are you savings goals? Down payment, how much of an emergency fund, vacation, wedding, etc. These are obviously just examples, but I think it could be good for you to set specific goals.

lieweheksie · #7 (**permalink**) 06-24-2007, 01:02 AM

you need to move out...but not for your girlfriend, for you
If home is making you unhapppy, and it sounds like it has for a while, then off you go...
Dont knock the idea of sharing a place, but allways make sure you have your own room-My best times sharing were in a commune, with 7 of us in a rather large old house- that's also where I met DH
Remember "People, money, stuff" in that order- ( to quote Suzie O)
Whenever I need to make financial decision I allways ask what is best for the people- in this case you- then the money and very lastly stuff
Good luck on you journey towards independence

disneysteve · #8 (**permalink**) 06-24-2007, 09:13 AM

Quote:

Originally Posted by TBH

don't break the bank furnishing the place (you can sleep on the floor for a while, etc).

Very good advice. Check out thrift stores, yard sales, Goodwill, craigslist, freecycle, etc. to buy what you need. Don't even think about setting foot in a regular furniture store. And don't get hung up on things matching. Also, ask around the family for hand-me-downs. In my first apartment, I had a sofabed and kitchen table set that I bought at a used furniture store, a desk that I trash-picked, a tv cart from my parent's house, a dresser from my brother's old apartment... you get the idea.

papakron · #9 (**permalink**) 06-24-2007, 10:23 AM

I'm looking at just basement suites at the moment, and the 600 includes utilities/cbl and in some cases, internet as well. I'd like to get an apartment eventually, but for now this will help me adjsut to the change I believe.

I have three appointments today, and the damage deposit in my hands. I will keep everyone posted...

papakron · #10 (**permalink**) 06-24-2007, 02:12 PM

Quote:

Originally Posted by anonymous_saver

So slightly more than 21% of your take home pay is for your car and you own it? That seems like the car may be too expensive for you. Do you live in a city with good public transit? I would at least consider getting rid of the car.

These are some things that I think you missed in your budget: utilities (I would hold off on getting things like cable or the internet until you at least pay off your debt, plus you can probably use the internet at work anyways?), personal necessities (shampoo, conditioner, paper towels, etc.), entertainment (dinner out with your girlfriend, movies, etc.), pet supplies in case you have a pet, clothes, apartment necessities (couch, pots/pans, etc.).

Have you thought about getting a roommate or a studio apartment instead. This could save you lots of money! I would at least consider it.

Also, I would try to put extra money each month towards your $3,100 loan so that will not be part of your budget any longer. I think that you should stop your savings in your Premium account temporarily to pay this off. You have over 1 months worth of an emergency fund already and it would be very good for you to get rid of this debt.

By the way, what are you savings goals? Down payment, how much of an emergency fund, vacation, wedding, etc. These are obviously just examples, but I think it could be good for you to set specific goals.

I never noticed my car was 21% of my income. It sucks... but I love my car and don't feel it holds me back. If anything, my social life is what holds me back (going out to eat, drinks, etc.)

As for my financial goals... well, I'd like to be independent (i.e. living on my own) and eventually save up enough for a down payment on a place when I get married or whatever. Me and my girlfriend are pretty serious, and she will be done university next summer so living arrangements in a year from now could be very different.

While it may make abit more sense to stay at home, I want to just tear it off like a Band-Aid... y'know?

zetta · #11 (**permalink**) 06-24-2007, 03:56 PM

You've made a really good start so far. At your age and current situation (not married, no kids), one thing I think you should do is step back and take a good look at your career prospects. You've been at your current job for 4 years -- what is the potential for advancement and higher pay in the years ahead? Is $20/hr near the top of what you see more experienced folks making there? If so, I would suggest you look around to see what you might earn in another trade or profession. At your stage of life it's easier to change career course to something with more upside than it will be after you are married and have kids. If there's plenty of growth potential in your current job, all the better.

In any case, I agree you're in a good position to move to a place of your own.

PrincessPerky · #12 (**permalink**) 06-25-2007, 08:04 AM

where you live is more than a financial question, living away from a situation that..depresses is better than saving up for a down payment...not to say you have to get a perfect pad but that on your own is a good idea from all you mentioned about your current situation.

As to money...it always costs more than you expect

, but you give yourself some float, and permission to eat ramen noodles (with a nuked veggie) and you can make it. Though do the places you are looking at have kitchenettes? if not you will blow your food budget.

Ini_g · #13 (**permalink**) 06-25-2007, 12:40 PM

All advices are good, just take a look to new chances of grow, to make more money for a more confortable situation.

Cut costs in things that ther are no so relevant.

disneysaver · #14 (**permalink**) 07-10-2007, 01:20 PM

I think you should go for it! Get the loan paid off ASAP and try to build up your savings more... I think you're doing great for your age!

papakron · #15 (**permalink**) 07-10-2007, 06:58 PM

I have an update...

After looking at a bunch of basement suites, I decided to broaden my search to apartments within my price range. It seemed for any basement suite, with SHARED laundry was still 600-650 dollars, minimum... and you're living in a basement.

I picked up the classifieds on Sunday and saw an ad for an apartment in this great area I've always really liked but figured out of my price range. I went and looked at the place... and LOVED it. Could actually see myself living there, for once. The rent is $710 which includes heat and hot water. The apartment manager said electricity would run around 25/month, but I'd try to be extra stingy. I figured for only $50-100 dollars more, why not get a place I'll like, right by the beach!!! (I'm on the West Coast)

Anyways, I'm pretty stoked, waiting to hear back. Hope I'm not in over my head... I know if I can get back on going to bars, out to eat, buying coffees... I think I can handle it!

disneysaver · #16 (**permalink**) 07-11-2007, 07:55 AM

Quote:

Originally Posted by papakron

I have an update...

After looking at a bunch of basement suites, I decided to broaden my search to apartments within my price range. It seemed for any basement suite, with SHARED laundry was still 600-650 dollars, minimum... and you're living in a basement.

I picked up the classifieds on Sunday and saw an ad for an apartment in this great area I've always really liked but figured out of my price range. I went and looked at the place... and LOVED it. Could actually see myself living there, for once. The rent is $710 which includes heat and hot water. The apartment manager said electricity would run around 25/month, but I'd try to be extra stingy. I figured for only $50-100 dollars more, why not get a place I'll like, right by the beach!!! (I'm on the West Coast)

Anyways, I'm pretty stoked, waiting to hear back. Hope I'm not in over my head... I know if I can get back on going to bars, out to eat, buying coffees... I think I can handle it!

Sounds great - but - you are really going to be cutting it close with your current budget. Don't go crazy with cable/internet/phone you don't seem to have that in your budget. Good luck!