moving into an apartment!

[nsaadeh34]

Hey guys, im new here, but here's my situation since u guys seem like u know what your talking about! Okay well I'm determined to move out of my parent's house and into an apartment, I live in the outskirts of Chicago, right by OHare airport, and I'm hoping to stay around there. Okay well how long would I be need to necessarily save for an apartment? The area I'm looking at has an average apartment price of $700 for a one bedroom, now what things would I need to save for and lookout for? I'm currently doing full time work and full time school. I make about $600-800 per paycheck, and I get paid twice a month, I have about $400 saved up, but it would be easier for me to understand an approximate amount that i would need to save. I have a paid off car, and low car insurance, and its a Honda, so its easy on gas..but yeah I hope to move in by August, would this be possible? Thanks!!

[J.Apple902]

If I were you I would try and find a roommate. You will be dishing out almost 50% of your income to rent? That's a rule of thumb no-no I believe, should be at max 25%.

Budget everything. Make one and show us. Here is mine.

Net Pay 1528.13 2 2984.58

Expenses
Rent 550
Loans 454
Savings 250
Grocery 400
Cable 45
People's gas ?
ComEd ?
Utilities 100
Phone 82
Car Insurance 100
I Pass 20
Gym 30
Gas 100
Going out 0
Eating out 0


Remainder 853.58



And see what you'll be able to manage. If you can't save each month, or can't save enough to be comfortable, why not just live at home a little longer and save up money? You do not want to go out and live alone and then have an emergency happen. You need to have a fund for that, which should be at minimum $1000 (not $400).

Seriously though. Get a roommate. I live near downtown Chi and work in the NW burbs, passing O'hare daily. Life is much much easier when you have someone to split the expenses with.

[nsaadeh34]

Hmm thanks for the help man! Yeah I realized I should have more then $400 , I was thinkin to save about $3000 before moving in, which is goin to be pretty easy, but yeah, a roomate would be an awesome idea

[jpg7n16]

I don't think you should move out just yet. The figures you're working with won't make for a good budget on your own.

Potential $1200/month salary with $700/month rent = $500 for food, gas, insurance, tuition, utilities, phone, etc. Which is a recipe for disaster IMO.

What's prompting you to move out? How much more school do you have left?

How would you furnish the place? Do you have pots/pans to cook with? Where is that all going to come from?

[yuppie scum]

I'm not sure how the realty market works out in Chicago but I have moved 4 times in Boston and can offer the following.

A) Try and find a place you want to stay for as long as possible, preferably until you can buy. Because moving is expensive and you never get that back.
B) Most rentals here (might be different in Chi) require First Month, Last Month and Deposit. So that's 3X monthly rent that you need to save right there.
C) Honestly, moving costs money even if you move yourself. You should probably aim to save another month's worht of rent to furnish your apartment (you need at least a futon to crash on, not to mention bed, cooking utensils, etc)
D) Make sure you get a good idea of your utilities bill, your heating costs (which will go WAY up in the winter), etc.

So long story short.. I would try and save bare minimum 3X your target rent. Also, ask yourself if you can save that much and instead leverage that to buy a condo using a first time buyer's program, second-soft mortgage, etc.

[snafu]

It's not smart to pay more than 30% of income for housing, 15% for transportation and 17 % for food.
Yet another cost that hadn't yet been mentioned is the 'deposit' often demanded by utilities [heat/electric] from new customers. Before making arrangements to move, I suggest you make a list of basic 'must have' items to set-up your own digs. It's shocking how much the aggregate cost is for setting up bedrm, bthrm, kitchen, LvRm furnishings and supplies.

[FPipitone]

The other posters have already given you sound advice. This is a situation where you just can't afford to move out right now. My suggestion is if you can save while living at home, do it and invest it. Continue to invest your savings regularly and never stop.

35% is the absolute maximum I would recommend for housing and that percentage gets lowered for rent. Just hang in there for a bit until your earnings increase.

Honestly, if I could do it all over, I would have delayed "moving out" and invested more in my youth.

[Jon991]

Now is def not a time to be moving out. I can respect your desire to make it on your own esteam, but you are really going to make life VERY hard for yourself. You simply cannot afford to move out right now. Doing so would probably put you in heavy debt. Stay with your parents, there is nothing wrong with doing so. Many young people, especially in todays economy, are living with their parents while they finish school. In fact, many are staying with their parents AFTER they graduate while they look for steady employment. Since you are working and going to school fulltime, living with your parents would make life much easier for you.

Good Luck to you

[marvholly]

I live in metro Chicago.

You CANNOT afford to move out unless your life or sanity is at stake.

[Leishrac]

Before you finally move out in your place, first think about your budget besides of your savings do you have some work to support your daily living and expenses. Moving out in your place and living in your own is a good start hence you must ask yourself are you financially secured?