How would you budget?

**GoodSteward** · 09-28-2016, 09:55 AM

Originally posted by ComponY View Post

Alright, so I'm looking for some advice on how to go about my budget and what to do in my situation. I'm only 21, so I'm very interested in seeing how you all do it!

My roommate just moved out so I'm living alone, and I'm a huge computer nerd, so I pretty much need internet (I'm going to be making some money on it too). I live alone, but my girlfriend does come over sometimes. My parents are willing to give me money and help me, but I want to make sure I can do this alone. So here are my expenses:

My paychecks are $919 every two weeks ($1,838).

Rent: $1,200/month
Internet: $65/month
Water & Electricity: Probably going to be around $120 (maybe less), haven't gotten the bills yet as my roommate just moved out.
Gas: Probably $15-30 per week. Around $60-120 a week.
Snap-On: I owe about $130 (was at 700), and it costs me $30 every week. So $120/month.
Food: I can buy things like spaghetti and other things that will last me the whole week for probably around $25-30.

I'm also going to try to rent the garage that I have to someone else for $100-150 a month. I'll be trying to drive less and things of that sort as well. Obviously trying to make money online and things too. What do you guys think?

I assume there is nothing you can do with that rent? That is brutal for your income! That is 65% of your bring home. You either need a new room mate or need to downsize if possible. Based on your numbers you are near break even if you include the high side of your expenses. As a rule, you need to plan for the worst on expenses(highest avg amount) and least on income(the most secure number you can count on) to make sure you have no surprises and live within your means. You might be able make this happen, but if you have no savings account you will likely either end up in debt or could possibly have to move back in with your parents if you don't have an emergency fund to protect you. My math shows 213 a month left, but your "budet" isn't really complete.

Best choices that I see are 1. Find a cheaper place to live as a single guy, or 2. Increase your income asap / decrease expenses with new room mate.

**disneysteve** · 09-28-2016, 10:33 AM

You need a new roommate ASAP or you need to move. Spending 60% of your income on housing is not sustainable.

Of course, the other option is getting a better job or a 2nd or even 3rd job. You're making a very low income. Do everything you can to get that up as quickly as you can. What type of work do you do? I'm thinking something mechanical due to the tools? Is there some way to branch out on your own to get extra work? You also mentioned internet-based work. What's the status of that and when will it start generating income for you?

**ComponY** · 09-28-2016, 11:40 AM

Thank you for the replies guys. I live in Colorado, and rent has sky rocketed due to the amount of people who have moved here. I can't change the amount of rent that is due, because I'm in a one year lease. I do home automation for a living (setting up smart homes). I can do web-design and am very efficient with computers. I even have a forum software license for IPB (this forum we're on now uses vBulletin. They're similar). I was thinking of making my own forum and generating some money through that via memberships and such.

I'm going to try and do some free-lancing and see how that goes. As well as paid jobs online that will be guaranteed money. That's where my skills and connections are.

**msomnipotent** · 09-30-2016, 05:21 AM

When I was young, my mortgage took up more than a whole paycheck, too. It is doable, but it really sucks. I would try to get another roommate ASAP. Start an emergency fund as soon as possible, too. When your margins are razor thin, every little problem turns into an emergency.

**GoodSteward** · 09-30-2016, 07:31 AM

Originally posted by msomnipotent View Post

When your margins are razor thin, every little problem turns into an emergency.

Aint that the truth...

**snafu** · 09-30-2016, 07:44 AM

Your finances will be far less stressful with a roommate. Suggest considering a foreign student as they prefer to hang out with other foreigners, take education seriously and are rarely home. Emphasis they must pay on due date...no excuses, no nonsense!

**ComponY** · 09-30-2016, 08:39 AM

Originally posted by msomnipotent View Post

When I was young, my mortgage took up more than a whole paycheck, too. It is doable, but it really sucks. I would try to get another roommate ASAP. Start an emergency fund as soon as possible, too. When your margins are razor thin, every little problem turns into an emergency.

Yeah, it sucks, but I do get by. I make it work; that's just the type of person I am.

I'm debating whether I should take a $1,000 loan from my mom. Basically, at the beginning of this year, I was in one of those 'emergencies.' Didn't have a car, so I took $1,000 and turned it into $4,500 flipping cars. Within about 28 days or so. I worked my butt off for it. I think I might try it again and give her money back after I have my own $1,000, then continue making profit.

**LivingAlmostLarge** · 09-30-2016, 08:51 AM

get a roommate.

**msomnipotent** · 10-01-2016, 11:27 AM

Originally posted by ComponY View Post

Yeah, it sucks, but I do get by. I make it work; that's just the type of person I am.

I'm debating whether I should take a $1,000 loan from my mom. Basically, at the beginning of this year, I was in one of those 'emergencies.' Didn't have a car, so I took $1,000 and turned it into $4,500 flipping cars. Within about 28 days or so. I worked my butt off for it. I think I might try it again and give her money back after I have my own $1,000, then continue making profit.

Side jobs are important. I used to buy things from auctions and flip them, among other things. As long as you are sure you could make a profit and she is willing to loan it, I would do it. Be prepared to set up a payment schedule with her if you wind up losing money, though. What is your plan for the extra $120 per month once you pay off Snap On?

**ComponY** · 10-06-2016, 10:27 AM

I have an old friend that asked if I wanted a roommate. This would basically save me about $700 a month.

**ComponY** · 10-06-2016, 10:30 AM

Originally posted by msomnipotent View Post

Side jobs are important. I used to buy things from auctions and flip them, among other things. As long as you are sure you could make a profit and she is willing to loan it, I would do it. Be prepared to set up a payment schedule with her if you wind up losing money, though. What is your plan for the extra $120 per month once you pay off Snap On?

Yes, she's very open to helping me. She saw what I did with the cars I've flipped before. I'm not trying to boast or brag, but I did something not a lot of people can do. I made over $3,000 in a month by doing very minimal work on these cars, selling them, and then buying a more expensive one. I started off with $1,000, and had $4,400 the next month.

I know I can lose money too. I know not 100% of the time will I be able to make things happen. I also know time is money and if I'm sitting on a car, it's no good.

I plan to just pocket that money and save up a bit.

**smartspiritualincome** · 10-06-2016, 11:57 AM

With your current situation, you are going to be living paycheck to paycheck as long as you are maintaining the status quo.

Tell me, do you currently have a savings account? If so, how much do you have saved? The reason I ask is because it doesn't appear that you have a plan in place in case of an emergency. Car repairs, medical bills, etc. have a tendency to spring up on us during times we don't need them to. I would recommend saving at least $1k ASAP so that you'll be prepared when "life happens".

My advice to you would be to start by designing a budget down to the penny. Go back and track your last 3-4 months of expenses. Look for irregular items and try to determine its likelihood of randomly rearing its ugly head again.

Boosting your income, in your case, will reap major benefits. A few things to try are 1. Making your employer's life easier at the office, then asking for a raise 2. Applying for a higher paying job or 2nd job 3. Earning income on the side doing something you already enjoy.

You can also cut back on costs, which will help. Try re-negotiating your rent with the landlord or moving to a cheaper apartment without sacrificing your safety.

The biggest takeaway here is to create a plan and use it to your benefit. Always keep in mind that decisions you make today can and will impact your future. Savings and staying debt free are crucial to your success. Focus on getting ahead early in the game and you will stay ahead later in life! Best of luck!

Let me know your thoughts and any feedback you would like to share.

**ComponY** · 10-07-2016, 09:42 AM

Think I have found a roomate. I'm going to take your advice. This will save me about $700 a month. I'm going to try and save most of it (still eating cheap and living cheap).

1. I can't move out. I'm on a 12 month lease.
2. I have like $400 in my savings, but that's not enough for an emergency.
3. Anything can go wrong with a car, but I can fix most of the problems. Unless the motor or tranny blows, then I'm obviously having to pay for the new part.

That $700 will free me up a lot.

**ComponY** · 10-10-2016, 06:46 PM

Little update:

Roommate moving in the 1st of the month. That saves me $600 of rent, and then half of utilities, internet, and trash. Overall saving me about $750 a month.

I've been making decent money online. Like $25 here and there doing random things. I'm also renting my garage out for $100 a month, and the guy is parting his car out. He's also giving me commission on things I help him sell. For example, I just made $40 tonight finding him a buyer for a $120 part.

How would you budget?