Moving from Michigan to Boston for my first job out of college (23M, single) and I’m looking for advice on how to build my first budget. I have no debt, on a family phone plan and don’t have a car. My monthly take-home is $4800. I want to ensure I’m not living paycheck to paycheck and would appreciate advice on budgeting.
You’ve got $900 leftover per month; stick that in a high-yield savings account until you have 6 months of expenses saved. You can also increase retirement savings to 25% of your income. With your current budget, you should be fine.
Use the Rocket Money app to help track your spending.
What about phone, car insurance, gas, and any subscriptions?
Consider saving for a mortgage instead of renting. If you didn’t have the $500 obligation to family, you’d have a lot more to work with each month.
It’s great that you’re planning! List what you actually spent to track your budget. You can use a budgeting app or a simple spreadsheet. Aim to save 3 to 6 months of expenses for emergencies.
Consider a buffer fund for unexpected expenses. Using apps like Habit Money can help track your spending without feeling too restricted.
Always save for at least 3 months of expenses. You never know when a job might be at risk.