Is $600 enough for a 23-year-old to live off of?

Seeking Advice Forum
1

Hi! I’m looking into apartments closer to my office. With the one I’m considering, after taking out $600 for 401k, $1000 for savings, and $2100 for rent and utilities, I’ll have around $600 left for extra spending. Is this enough for a single 23-year-old to live off of? Should I look for cheaper options? There are cheaper places available, but this one has the best location, size, and my own bathroom since it’s split with 2 roommates.

2

I’d stay if the distance isn’t a big deal. I used to commute 2.5 hours daily and enjoyed using that time to think and listen to podcasts. Driving wasn’t great without a self-driving car, so I took the bus. Not sure if you have that option.

3

@Cory
That’s a good point! I guess commuting can have its perks, huh?

4

What’s your take-home pay after taxes and 401k? How far is your current commute?

5

Blue said:
What’s your take-home pay after taxes and 401k? How far is your current commute?

It’s $2800 after $580 for 401k and $1000 for savings.

6

With $2100 in rent, it might be tight if you don’t want to budge on savings. After groceries and utilities, almost all of the $600 remaining could be gone. Plus, don’t forget about going out with friends or other expenses.

7

@Blue
Thanks for the insight! I won’t be bringing my car, so no car insurance. Rent with utilities will be $2080 total.

8

Not having car expenses will help! Just be mindful of eating out. Putting that much into 401k and savings at 23 is fantastic. You can definitely swing it, just budget carefully.

9

Blue said:
Not having car expenses will help! Just be mindful of eating out. Putting that much into 401k and savings at 23 is fantastic. You can definitely swing it, just budget carefully.

I appreciate the encouragement! I’ll keep an eye on my spending for sure.

10

And remember, rent usually goes up each year. If you’re not getting pay increases, that’s something to consider!

11

Cory said:
And remember, rent usually goes up each year. If you’re not getting pay increases, that’s something to consider!

Totally! That’s a good reminder. Thanks for looking out!