Hello. I am a 22-year-old that is planning to move out within a year for a graduate program. I will only be able to work part-time due to my healthcare program, and I have done some rough budget planning. I would like to know if this sounds reasonable as a plan. For some background info, I do have a long-term partner who earns more than I do and will be contributing more than I will. My parents will also be supporting me with a few things, and I feel very blessed for this, but I am still nervous. Additionally, this is a higher cost of living area in California, so expenses like rent are less adjustable. Thank you for any advice; all is appreciated.
Here is my preliminary budget:
Rent: $1,000
Car Insurance: $150
Groceries: $400
WiFi and a couple of subscriptions: $100
Fun Money (going out with friends, buying something I need, etc.): $250
Total Monthly Budget: $1,900
I have a strong savings fund for emergencies or life things that may come up.
Other factors include that my parents will continue to pay for my phone and cover my health insurance, which makes me feel lucky. They will also support me through emergencies. My partner makes more than I do and covers utilities and other going out expenses. He will also contribute more than I will for groceries.
Is this a livable budget for my scenario? Thank you.
Sounds like you have it planned out well. I’d say if you really want to budget, then you could cut down the ‘fun money’ category or your grocery limit. However, your fun money also includes stuff you need, so I think you are fine there. Does the grocery price just account for you or your partner too? If it’s just for you, you might be able to reduce that, depending on pricing in your city. Aside from that, ensure you have a solid amount going into savings each month. It doesn’t have to be much, just enough to cover extra car repairs or medical bills without digging into your savings. I think your budget is totally livable, but it depends on how much you’re earning as well. I’d recommend not letting more than 40-50% of your income go to rent. That chunk is still kind of high, but rent rates are tough right now.
Hi, thanks for responding. I am happy to hear that this sounds livable. Yes, I agree I did overestimate my grocery and fun money, just to be on the safe side. The grocery budget is just for me, so I could probably spend less than $400, especially considering my partner will be covering a portion of groceries for me too. Same with the fun/flexible spending; I probably won’t need that each month, but knowing it’s there mentally makes me feel more relaxed in a way. I am not a big spender, and I like to think I have good habits, but moving out is scary even though it is exciting. I have been working on building a large savings fund while I don’t have expenses at the moment. Thanks so much for your advice.
Your budget looks good. Rent is high in California, but it seems like you’ve accounted for everything. The fun money might need a small cut to be safe. Keep tracking your spending; using something like Fina Money will help you adjust as needed. It’s good that your partner and parents are helping, and having a savings fund for emergencies is a smart move. Just be prepared for any unexpected costs.
Thank you so much! I totally agree. I think I should call it ‘flexible spending’ rather than fun money, as I don’t plan on using all of it for fun things but also for little things that may come up. I appreciate it.