Is this a realistic budget?

[KiwiJo09]

Hubby and I are getting our own place in a few months and so I've been playing with the numbers, and I want to know what you think of my mock budget, if it's realistic.

Some of the details are that the apartment complex includes water, sewer, and trash. There is a laundry facility on site, not in the unit. We would like to pay more than our minimum for the car payment, but it is flexible if you remove $50.

Credit Card Payments: $0
Groceries: $200
Rent: $535
Electricity: $80
Garbage: $0
Water: $0
Phone & Internet: $160
Maintenance & Repairs (for the apartment): $0
Laundry: $50
Rental Insurance (not necessary): $0
Doctor: $10
Prescriptions: $10
Gifts: $26.06
Hair Cuts: $10
Clothes: $10
Entertainment (Hulu, no cable): $7.99
Date night (also flexible): $100
Car Payment (flexible): $310.95
Gas: $300
Car Insurance: $200
Repairs & Maintenance (on the cars): $50
SunPass (tolls): $40

Categories that imply savings: $116.06
Total: $2100

I've calculated that if I were to take away the things we were flexible about, we could save up to $261.09 per month. What do you think?

[mrpaseo]

Originally Posted by KiwiJo09

Hubby and I are getting our own place in a few months and so I've been playing with the numbers, and I want to know what you think of my mock budget, if it's realistic.

Some of the details are that the apartment complex includes water, sewer, and trash. There is a laundry facility on site, not in the unit. We would like to pay more than our minimum for the car payment, but it is flexible if you remove $50.

Credit Card Payments: $0
Groceries: $200
Rent: $535
Electricity: $80
Garbage: $0
Water: $0
Phone & Internet: $160
Maintenance & Repairs (for the apartment): $0
Laundry: $50
Rental Insurance (not necessary): $0
Doctor: $10
Prescriptions: $10
Gifts: $26.06
Hair Cuts: $10
Clothes: $10
Entertainment (Hulu, no cable): $7.99
Date night (also flexible): $100
Car Payment (flexible): $310.95
Gas: $300
Car Insurance: $200
Repairs & Maintenance (on the cars): $50
SunPass (tolls): $40

Categories that imply savings: $116.06
Total: $2100

I've calculated that if I were to take away the things we were flexible about, we could save up to $261.09 per month. What do you think?

I'm sure others will chime in but what caught my eye is only $200 a month for food for two? Not sure how you are going to do that.

$26.06 a month for gifts?

What about:
Holidays (Christmas)
Entertainment/Incidentals (Stopping for lunch with friends, Starbucks)
Dental
Emergency Fund

That said, it usually takes three months to solidify a budget. Be sure to have an Emergency set up, then activate your budget. Track every cent spent for three months. After three months, you will have a better idea of what your budget really looks like.

Best of luck,
Ray

[KiwiJo09]

Originally Posted by mrpaseo

I'm sure others will chime in but what caught my eye is only $200 a month for food for two? Not sure how you are going to do that.

$26.06 a month for gifts?

What about:
Holidays (Christmas)
Entertainment/Incidentals (Stopping for lunch with friends, Starbucks)
Dental
Emergency Fund

That said, it usually takes three months to solidify a budget. Be sure to have an Emergency set up, then activate your budget. Track every cent spent for three months. After three months, you will have a better idea of what your budget really looks like.

Best of luck,
Ray

The $200 for food concerns me a bit too. But, we are very good at bargain shopping and clipping coupons.

The $26.06 carries over from month-to-month. We don't give gifts every month. We are already working on our emergency fund.

Also, I know it isn't the perfect budget, but I think it can stand up. If we run into problems, we can always rearrange a few items. Living on $2100 a month is not easy, especially with the car payment. Hopefully, when income tax comes back, we can finish paying off our credit card (if it isn't done already), and pay some good amount on the car. Not to mention, put some money away for savings.

I'm just really nervous. I've never lived on my own.

[ActYourWage]

What is your vehicle worth?

I agree with mrpaseo about getting your EF established first (1-6 months), all the while tracking your expenses.

[snafu]

Why do you believe rental ins. is unnecessary? If there was a fire or water damage how would you replace your loss? Do you have funds for damage deposit, 1st & last month's rent? How would you cope with a large, unexpected, expense? Food budget is too tight.

[disneysteve]

I would not budget $0 for maintenance and repairs even though you will be renting. What if you accidentally break or damage something? Stuff happens. And I can tell you from experience that you may not bother calling the landlord for every little thing if you can fix it quickly and cheaply yourself. Also, rental insurance is a must. It isn't that costly and if anything happens you'll be glad you have it.

[NetSkyBlue]

Originally Posted by mrpaseo

I'm sure others will chime in but what caught my eye is only $200 a month for food for two? Not sure how you are going to do that.

$26.06 a month for gifts?

I budget $87.50/month for gifts. Are you saying $26.06 is low or high?

Also, my food budget until recently had been $200 (although it also encompassed food, cat food, cat litter, household products, eating out, etc) and I constantly found myself going over budget. Raised it to $300 for January.

Is your food budget STRICTLY for food, or more of a catch-all like mine? I think you can get by fine if it's only for groceries.

[Xtreme Thunder]

Rental insurance is a must IMO. When we rented it was a little over $100/yr w/ $250 deductible for $50,000 coverage, which was plenty for us.

Food, well, as others stated, may be a bit low especially if you buy red meat, or well, meat in general! We shop every two weeks for my wife and I and spend about $150-$180 which includes cat food, cat litter, household paper and cleaning products. We also bring our lunches to work. We eat out maybe twice a month for $20 a sitting which wraps up our $400 allowance for groceries/ dining out budget. We shop with coupons for items we need as well as the store savings club.

Extra cash (EF) on hand is a must. You always need stuff for the first year living on own, furniture, household appliances (blender, toaster oven etc.), believe me, that stuff adds up quick!

If you two get a lot of money back during tax time, adjust your withholding to get a small refund or pay a small amount. <$500 either way is my ideal limits I shoot for.

[BMEPhDinCO]

Originally Posted by KiwiJo09

Credit Card Payments: $0
Groceries: $200
Rent: $535
Electricity: $80
Garbage: $0
Water: $0
Phone & Internet: $160
Maintenance & Repairs (for the apartment): $0
Laundry: $50
Rental Insurance (not necessary): $0
Doctor: $10
Prescriptions: $10
Gifts: $26.06
Hair Cuts: $10
Clothes: $10
Entertainment (Hulu, no cable): $7.99
Date night (also flexible): $100
Car Payment (flexible): $310.95
Gas: $300
Car Insurance: $200
Repairs & Maintenance (on the cars): $50
SunPass (tolls): $40

First, congrats on no CC payment!

Here are my thoughts:
1. Laundry is expensive - how much is it per load? $1.00 to wash, $1.00 to dry? - $4 a week on laundry * 4 weeks = <$20! We don't do more than 2 loads a week for the two of us - make sure you are rewearing things like jeans more than once and do dedicates by hand and hang to dry (can also get a line and hang regular clothes to dry too) - you should be able to get away (easily) with $25 a month for laundry.

2. Electricity is high - but I'm guessing that's an average amount? We spend as low as $40 some months and as high as $100 in the summer (for A/C) and we live in an 1800 sqft house - it averages to around $55 a month for us (before taxes, fees, etc) - so you may be over or under.

3. Phone and Internet seems high as well - make sure you call and get the best deal on internet (we're paying $20 a month) and for phone that you are using all the things you have...like messenging.

4. Entertainment - that price is before taxes - I'd put down at least $10 for the budget with taxes (you should always budget on total cost, not "pre-tax" cost).

5. Car insurance also seems high - we pay $110 a month for two cars that are 2009 and 2010. Shop around and see if you can do better.

6. Groceries seem a bit low - we are paying closer to $500 a month for two (and that includes cat, household goods, nicer foods, etc). You should bump that to $250 if you can.

Finally, you NEED rental insurance. That isn't a want!!! I had a friend who refused to get it (at $5 a month too!) and lost EVERYTHING in a fire - her laptop, her clothes, her items from home (India, not easily replaceable)! This is cheap, less than $15 and can include a rider for computer, jewelry, and other stuff like that. GET IT!

[jpg7n16]

For anyone out there who (like me) likes percentages and budget drivers:

Total expenses: $2100

Total expenses related to the car: $901 (43% of total expenses)

If you're looking to cut expenses, start with car expenses. Cheaper car = cheaper payment + cheaper insurance. Carpool + bike around town = lower gas. Etc.

Originally Posted by KiwiJo09

Hopefully, when income tax comes back, we can finish paying off our credit card (if it isn't done already), and pay some good amount on the car. Not to mention, put some money away for savings.

You really should not have that much left over in your tax refund. Refund means "paid too much."

If you'd like more of your own money every month, change this next year to eliminate your refund.

IRS Withholding Calculator

[ecoadapt]

I don't think your budget is realistic,basic needs requires more than what's on your budget. But,I know you can save money without setting your needs for less!

[Shewillbemine]

Originally Posted by KiwiJo09

Hubby and I are getting our own place in a few months and so I've been playing with the numbers, and I want to know what you think of my mock budget, if it's realistic.

Some of the details are that the apartment complex includes water, sewer, and trash. There is a laundry facility on site, not in the unit. We would like to pay more than our minimum for the car payment, but it is flexible if you remove $50.

Credit Card Payments: $0 great job - keep it up
Groceries: $200
Rent: $535
Electricity: $80
Garbage: $0
Water: $0
Phone & Internet: $160
Maintenance & Repairs (for the apartment): $0
Laundry: $50
Rental Insurance (not necessary): $0 I managed just fine without this BUT that was during my college and post-college years; if my apartment burnt down, there was literally nothing in it that I would cry over; if you are living as a romantic couple, I'm sure you have valuables that mean a lot to you
Doctor: $10 unrealistic - you may not visit the doctor every month but just one visit per year will cost you more than this; and there are two of you
Prescriptions: $10 unrealistic - I don't remember that last time a prescription cost $10 to fill
Gifts: $26.06
Hair Cuts: $10
Clothes: $10
Entertainment (Hulu, no cable): $7.99
Date night (also flexible): $100
Car Payment (flexible): $310.95 This is where you are losing a lot of your money and it doesn't need to be that way
Gas: $300 Get a beater, high mpg car and this can get much lower
Car Insurance: $200 Way high - you can find better deals with great coverage
Repairs & Maintenance (on the cars): $50
SunPass (tolls): $40

Categories that imply savings: $116.06
Total: $2100

I've calculated that if I were to take away the things we were flexible about, we could save up to $261.09 per month. What do you think?

My thoughts.

[disneysteve]

Originally Posted by Shewillbemine

My thoughts.

Prescriptions: $10 unrealistic - I don't remember that last time a prescription cost $10 to fill

I don't think that is unrealistic at all. WalMart, Target and numerous other chains have $4 generic prescription plans that cover hundreds of meds for $4 for a 30-day supply or $10 for a 90-day supply. In addition to that, OP may have a $10 copay on his insurance plan for the med he gets. So $10 is probably quite accurate.

Car Insurance: $200 Way high - you can find better deals with great coverage

People often comment on auto insurance rates as being too high. As I've pointed out before, auto insurance rates vary dramatically depending on where you live. Here in NJ, we have the highest rates in the country as far as the state average. That said, when I lived 15 miles away in Philadelphia, my rate was double what I pay now. What sounds expensive to you may be quite the norm for someone else. Of course, we also don't know OP's driving record which can have a major influence on the premium paid.

[Bades]

my 0.02 cents

Utilities - 300 for gas seems like a lot and so does 80 for electricity. My gf and I always remember to turn heat down when we leave the place and turn all lights off.

Just moved into a 1300sq ft town home and we pay around $100 for both gas and electric (keep place at 65 when home, and 60 when at work). Grant it, haven't paid through an Ohio winter so I expect it to be maybe more like $120 a month for elec and gas.

How big is your apartment?

Phone and Internet - is that cell phone for both you and husband? Most broadband internet these days are somewhere around $40 - leaving $120 a month for cell phone seems a little high? (Not sure company pays mine )

Groceries - def not realistic - I like to eat well, and healthy so my grocery bills can be quite large. I couldn't nor would I want to live off $200 a month - though I suppose there are many people that do.

Washer & Dryer - just bought a nice washer/dryer set off Craigslist for $200. That means you could afford your own pair of machines in about 4 months of what you have budgeted.

Clothes - $10 a month ($120yr) seems very low. I love shopping at Kohls and even then a few nice dress shirts and a pair of nice slacks is stretching a $120 annual clothes budget.

Rental Insurance - MUST HAVE! I'm paying a mere $14 on month for renters insurance - do it!