need help creating a budget. never really had one before?

[xowinterbabyxo93]

Hi. I am new here and I am glad to find a forum like this

Last year, I took an exam to be a food service worker in New York City but this is a State Job. I am so close to getting the job because two weeks ago I got another letter in the mail for this job. I had to fill out when I can start the job, sign the letter and mail it back by a certain date, which I did.

This job is part time, and I would be making $26,799 a year if I get the job. I want to be able to get a 1 bedroom apartment by December if I get the job by the start of summer. I already know I am not going to get cable like Verizon or Time Warner. My dad has a tv but gets only the local channels because he uses an antenna and doesn't pay for his cable, which I already have, just need to buy the HDTV ( it won't work with the tv I have since it isn't HDTV). I have a lot of dvds to keep occupied. I also can use the internet at school and my parents house. I do not drive or have my license so I do not have to worry about expenses for a car. I would have to buy metro cards for the bus. Plus, I know coupons will be my best friend.

But how do I set a budget? How do I know when I can buy something fun, like a new movie, some makeup, or a comic book? I'm 21 years old and this would be my first real job, but I did volunteer plenty

[disneysteve]

But how do I set a budget?

Great question.

You need to start by knowing how much money you will be taking home each month after taxes. You may not know the exact amount to the penny until you actually start the job but you can get a reasonable estimate based on your gross and tax rate. Let's just assume (and I didn't do any formal calculation here) that you bring home $20,000/year or $1,667/month. From that figure, you need to deduct any fixed expenses like rent, utilities, insurance premiums, etc. Then you need to come up with a reasonable estimate of your variable/discretionary expenses like groceries, transportation, entertainment, out of pocket medical costs, etc. Don't forget to include some set minimum amount for savings as part of your fixed expenses. If you can, I'd say 10% of income is a good starting point, though you'll certainly want to increase that over time.

How long do you expect to only be working part-time? During that time, will you also be looking for a second job to fill your time and boost your income? I can't imagine making it in NYC on 27K.

As far as savings, you want to have an emergency fund (EF) of at least 3 months worth of expenses (not income) before you move out to your own place. That gives you a cushion for the unexpected. Then you want to add to that EF every paycheck until it is in the 6 month range. Beyond that, you also want to be saving for retirement either through a company sponsored plan like a 401k or 403b or a personal plan like a Roth IRA. Beyond that, you want to be setting some money aside for short term goals like vacation, gifts, new furniture, etc.

It will take a little while to fine tune your budget once you see your actual income and expenses so be sure to keep posting info here to let us help you crunch the numbers.

[Retired To Win]

Here is a link to a blog post on my present budget.

My $18K Annual Baseline Budget:

http://retired-to-win.savingadvice.com/2013/12/29/my-18k-annual-baseline-budget_106374/

And here is another link to a blog post on how/where I handle money for fun.

A Discretionary Fund, Not a Discretionary Budget:

http://retired-to-win.savingadvice.com/2014/03/29/a-discretionary-fund-not-a-discretionary_107992/

I hope that gives you some ideas.

[snafu]

NYC is such a high cost of living local, I wish you well. A newbie renting an apartment needs 1st and last month's rent + damage deposit. Utilities like electric and heat will likely ask for a deposit since you have no utility credit history. I dont know if you can cook but take this opportunity to learn basic cooking skills.

Here's a sample breakdown of where the money goes...
Housing 30%
Transportation 15%
Food 17%
Health & Insurance 5%
Entertainment 7%
Clothing 4%
Medical 6%
Debt Repayment 5%
Savings/Investment 5%
Misc. 6%

[Williamschmit]

You should begin by understanding how much money you will be getting home each 30 days after taxation. You may not know the actual quantity to the cent until you actually begin the job but you can get an affordable calculate depending on your total and tax quantity.

[LizfromtheBronx]

OP, I wish you luck in getting the job - state jobs, even those that start part-time, can be a very good career move. Great benefits, job security and opportunities for advancement.

Unfortunately, I don't of anywhere in NYC that you will be able to afford a 1 bedroom apartment on $27k. The only exceptions are special affordable housing programs, most of which are conducted via lottery. $27k puts you squarely into the income range for most of those places, many of which are brand new and very nice. The odds are against you, and the process takes a while, though. I'm not trying to discourage you, but perhaps plan on staying in your parents house, saving money, and attempting to get into one of these deals?

Do a little searching for NYC HPD Affordable Apartment Lotteries.

Good luck!

[Williamschmit]

You should begin by understanding how much money you will be getting home each 30 days after taxation. You may not know the actual quantity to the cent until you actually begin the job but you can get an affordable calculate depending on your total and tax quantity.

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