Here’s my monthly expenses as a 23M living with parents. I know I will get made fun of, but I just wanna learn how to budget to prepare me when it’s time to get my own place. My current expenses are:
WIFI: $65
Car note: $995 (low APR from credit union, but yes, it’s high because of the 36-month term)
Insurance: $150
Credit cards: $80
Rent: $345 (living with parents)
Phone bill: $100 (family plan, I help my parents)
Gas: $100-130
My weekly income is $1080 take home, which can vary if I work overtime; some months I make more than $1080.
You’re halfway through the first step. Listing out your expenses and making changes is the first step. Get an idea of how much you spend on food, going out, entertainment, etc. Start by taking the average of the last few months.
Your car payment is insane. You are ‘car poor.’ Use a budget based on your percentage of income. If 50% of your income is going to rent and your car loan, you won’t have enough for everything else.
You need to categorize your expenses. Consider separate categories for current expenses, fixed expenses, occasional expenses, and leisure expenses. Categorizing helps manage spending better.
You’re smart to think ahead about budgeting. The car payment takes up too much of your income. Consider alternatives to avoid becoming house poor or car poor.
You’re doing some things right. It’s good that you’re prioritizing savings. Stay with your parents as long as possible, pay down your car loan, and save for your move.