Don't worry, this is fun - budgeting

[kdm31091]

This is stupid, but financing and budgeting is fun for me, as long as it's in a simple format, not like accounting, just simple.

Anyways, I want to know how to calculate a budget for myself, as if I were 18 on my own. I've included (monthly expenses):

When I move to Florida I'll probably be in some entry level job while I do beauty school or whatever, so let's assume $7 an hour, which is probably a generous number. Working 40 hours a week will end up with = $1120 a month. How much do I subtract for taxes? In the example, I'll say $120 for taxes, leaving $1,000.

Food - $250
TV - I have no idea how much basic cable is - $100?
Cell - $50-80, I'm not a big user
Rent - $900 by the time I'm there
Utilities - $500
Car Ins. And Mait - $600, which is probably a small figure

Obviously this puts me way in the hole, but because of investments I should have an extra $1000+ a month, to hopefully cover those costs. Do I have to pay for insurance, or is it covered by my job (assuming they have health benefits of course)? Am I missing any costs?

Like I said - this is really just fun for me, not serious planning. So don't accuse me of wasting away my childhood. This is fun, I just wanna know what I'm missing, or what I can reduce, etc.

Of course it also scares me because in this model I wouldn't be able to afford to live. (But apartment rents are about the same here, so it would be the same case if I don't move to Orlando, just to clear it up before that argument begins!)

 

[bananiem]

Health insurance

 

[kdm31091]

So how much is that per month? Like $500?

God, I'm getting scared, lol

 

[1Prince2Princesses]

This is stupid, but financing and budgeting is fun for me, as long as it's in a simple format, not like accounting, just simple.

Anyways, I want to know how to calculate a budget for myself, as if I were 18 on my own. I've included (monthly expenses):

When I move to Florida I'll probably be in some entry level job while I do beauty school or whatever, so let's assume $7 an hour, which is probably a generous number. Working 40 hours a week will end up with = $1120 a month. How much do I subtract for taxes? In the example, I'll say $120 for taxes, leaving $1,000.

Food - $250
TV - I have no idea how much basic cable is - $100?
Cell - $50-80, I'm not a big user
Rent - $900 by the time I'm there
Utilities - $500
Car Ins. And Mait - $600, which is probably a small figure

Obviously this puts me way in the hole, but because of investments I should have an extra $1000+ a month, to hopefully cover those costs. Do I have to pay for insurance, or is it covered by my job (assuming they have health benefits of course)? Am I missing any costs?

Like I said - this is really just fun for me, not serious planning. So don't accuse me of wasting away my childhood. This is fun, I just wanna know what I'm missing, or what I can reduce, etc.

Of course it also scares me because in this model I wouldn't be able to afford to live. (But apartment rents are about the same here, so it would be the same case if I don't move to Orlando, just to clear it up before that argument begins!)

I know you're planning on finding a roommate, which will drastically reduce your expenses.

Here's my take on what you've budgeted:

You can probably safely assume that you will need to deduct about 20% of your paycheck for taxes.


Food - $250 (this is probably a good estimate if you ever eat out)
TV - I have no idea how much basic cable is - $100? (about $50!)
Cell - $50-80, I'm not a big user (you know your bill best on this one)
Rent - $900 by the time I'm there (average rent can be anywhere from $800 to $1200, with a roommate you can cut that in half)
Utilities - $500 (Probably more like $200 or less in an average size apartment)
Car Ins. And Mait - $600, which is probably a small figure (again, you know this figure best)

Don't forget money for extras like clothes,beauty supplies and so on.

In places where health insurance is provided by an employer (and at an entry level, low paying job in this area, they are few), you still have to pay. It just comes directly out of your check.

Budgeting can be fun, and you're smart to do it ahead of time, before you're trying to figure out how to pay your bills. Have fun with this!

 

[1Prince2Princesses]

So how much is that per month? Like $500?

God, I'm getting scared, lol

You can get health insurance for just you for less than $200 a month.

 

[nowellsl]

Food - $250
TV - I have no idea how much basic cable is - $100?
Cell - $50-80, I'm not a big user
Rent - $900 by the time I'm there
Utilities - $500
Car Ins. And Mait - $600, which is probably a small figure

Obviously this puts me way in the hole, but because of investments I should have an extra $1000+ a month, to hopefully cover those costs. Do I have to pay for insurance, or is it covered by my job (assuming they have health benefits of course)? Am I missing any costs?

basic cable is probably cheaper, my expanded basic is $50.00/month. Utilities probably will be cheaper than $500. Does car Ins. and Maint. include your car payment if not, that sounds high. What about school expenses? Internet service?

 

[Aidensmom]

I live in Florida and I think a few of your budgeted amounts are a little high, at least for my area. I'd say more like this:

Food - $175 (unless you eat more than my 200 lb husband)
TV - I have no idea how much basic cable is - $55 for digital cable and dvr
Cell - $50 with a lot of minutes, you can probably get for less
Rent - depends on the area, but you can get a decent 1 bedroom for about $750 here
Utilities - for an apartment, $100 at the most for electric, $53 for phone and DSL package. If renting, water and garbage should be included.
Car Ins. And Mait - $100 for insurance (it cost me less than $200 for full coverage on two vehicles), $100 for gas. If you need to spend $400 on maintenance, you need a new car.

 

[kdm31091]

Well that's a huge relef.

The car was just ballpark estimates. I don't have one yet, so I was guessing cars soak up more money then they actually do.

So if we take the new numbers and run them, then I'd end up with:

$1,200 pay - 20% = $960

$960 -
-Rent (cut in half, so $500 at the most)
-Cable ($50)
-Cell (let's say $60)
-Util. about $100
-Car $250
-Health Ins. $200

Those equal $1160. Good thing I'll have some extra money coming in.

Considering I have about $400k that I could invest, what should I invest, what sort of returns can I expect? Just wondering what "extra" cash I could add to my monthly budget, roughly.

 

[Toby'sFriend]

ok let's see


Rent, I don't know how much but a single person making $7 an hour cannot afford to live on their own. You will need at least one roommate, more likely 2 or 3.

Food - I think $8 a day is a good estimate. You can do it much cheaper, but most people don't have the will power.

Cell phone - you can't afford $50 a month. Start checking out the cheapie prepaid plans. If your parents have a family plan, ask if you can share their minutes for $9.99 a month.

Utilities - I've never lived in Florida so I can't even begin to guess

Car Insurance and Maintenance - Forget it buddy. You make $7 an hour. A car is a far away dream. You need to get an apartment somewhere close to a bus stop and buy a nice 2nd hand bicycle. You will be living in Florida after all. The weather is nice and leg power is free.

Now we need at least a catastrophic health insurance plan, an entertainment budget, savings for Emergencies, and personal hygiene items like toothpaste.

 

[kdm31091]

Well I'll be buying the car HERE, well before I move, so that's not really a dream. I have the money for it already. The car is not a problem. Just maitenance expenses and insurance.

 

[bananiem]

How much do you plan to put in savings each month?

 

[ZPT1022]

Don't forget internet. You'll need it for school and probably for keeping in touch with people from home.

My biggest advice to you would be to look at what you spend in a typical month on things like clothes, shoes, haircuts,going out, etc..... Now you can cut back on those things a bit but you don't want to never be able to go to a movie or anything, and you don't want to find yourself in a position where your __________ breaks and you can't afford to replace it. _____ can be anything- sneakers, whatever..... I think a lot of people (including my younger self) forget about these things and then turn to credit cards, which is a slippery slope. Also, when planning for groceries, does that figure include things like household cleaners, laundry soap, paper towels, tp, etc..... ??? I know in our house that is a separate trip, usually to Target or WalMart which at least in our area are way cheaper than the grocery store for those things. That would need to be budgeted in. Now if you have a roommate some things will seem more expensive on paper- rent and such, but remember that also means that things like cable, phone (landline), utilities and maybe even groceries and household supplies will be cut in half. Good luck!

 

[Toby'sFriend]

nah, you still don't want a car. Cars are expensive and they depreciate. You are going to be young and hip and environmentally friendly.

You want to save that money to pay for your school tuition. Maybe someday open up your own Spa and we can all come and visit you while we're on vacation in Florida.

 

[tw1nsmom]

Considering I have about $400k that I could invest,

You have $400,000.00 to invest?! If that's the case I don't think you have to worry too much about a strict budget while in college.

 

[kdm31091]

Well, I should still be able to get by and have food and shelter, the basics, etc without being in poverty?

 

[ZPT1022]

forgot to add, rental insurance so that if something should ever happen, you can get back something to go towards rebuilding. That should be under $200/year unless you have something really expensive in your apartment (large quanities of jewelry, etc...) Also, think about furnishings. If you have the space and don't mind driving a Uhaul when you go, you could start collecting stuff now. Put the word out that you plan to go away to school and if anyone is getting rid of anything you'd like to have it. It won't be the best most fantastic stuff ever, but if it's free, well that's good too. And you won't be upset if your roommate drops pizza on it either.

 

[Toby'sFriend]

$400k to invest....

Let me ask the Floridians this, what kind of Condo could you buy for a good $400k payment. Perhaps live in one bedroom, rent out a 2nd bedroom to cover the property taxes and utilities?

What kind of appreciation do you think he could expect?

 

[poohandwendy]

You also have to take in consideration that many minimum wage jobs don't guarantee 40 hours per week.

 

[kdm31091]

Well, I don't want a condo right away. If I hate Florida, and have an apartment, it's easier to leave. I was planning to go there in June 2009, rent for a year, see how much I love it, and if money permits, buy something.

I was planning to use the investment checks from the $400k to help me live a little better. I can invest almost all of it, and hopefully make over $2,000 a month from the investments.

Anyone wanna give me a realistic "what to expect monthly from investments" amount?

 

[tw1nsmom]

Please don't take this as a personal attack, but where is the $400,000 coming from? In previous posts about this topic you've said that you know how to live within a budget because your family isn't wealthy. You've said that you would need a roommate to get by. You've said that your family would pay for college, but then you didn't really respond to questions about whether your family would subsidize you living expenses.

I've always loved dreaming big, and at your age it's a wonderful thing to do. However, if you want people to help you budget (even just for fun), it would be helpful to be up front about your financial situation. And before you say it, no, it isn't anybody's business, but you want people to get involved in these threads when the information doesn't have any continuity or make sense.