I know the 30% rule and everything, but I recently got a job that pays $10k more than before. Now I’m making $50k a year. I’m thinking about moving out and made a budget, but I’m looking for advice on whether it’s a good idea.
Here’s my breakdown:
Minimum debt payments: $270.49 (car + credit card), but I want to pay off my credit card faster (balance is $2,900).
Monthly expenses:
Phone: $110 (planning on switching to Mint Mobile)
Gym: $30
Subscriptions (entertainment & work): $30
Apple: $30
Gas: $100
Food: $200
Toiletries: $50
The place I’m looking at is close to my job (about 7 minutes away), and the rent would be around $1,100, with utilities adding about $100.
Is this a good move? Also, I plan on going back to school soon, which would add around $300 a month in expenses.
This is how people end up stuck financially. That $10k raise is nice but isn’t a game-changer. It’s not enough to justify moving. You should focus on keeping your expenses as low as possible, save as much as you can, and invest for your future instead of letting lifestyle creep take over.
@Whit
I understand where you’re coming from. The reason I want to move out is because I’m in a toxic home environment with my mom, and it’s been affecting me mentally. This raise is the first time I feel like I might actually be able to do it. I also want to start investing but don’t know where to begin. Any advice on that? I thought maybe Acorns or Robinhood, but I’m unsure. I also wanted to pay off my credit card first before investing.
@SharonMartinez
You can definitely move out, but it has to be part of a bigger plan. Paying off your debt first is a good start, but you should also start learning about investing. Check out the info on the forum’s sidebar. It’s full of great resources. Becoming financially savvy is one of the best things you can do for yourself.
@Whit
After reading through the advice here, I realize I need to focus more on my future instead of rushing out of my current situation. I’m going to pay off my debt, build an emergency fund, and maybe get a roommate when I move out next year. I’ll start learning about investing and saving more for retirement. Thanks for the advice!
@SharonMartinez
That sounds like a solid plan. Financial security gives you freedom, and once you’re in a better place financially, you can move out and never have to worry about going back to a toxic environment again. Best of luck!
$1,100 per month is more than your raise for the year. You’ll end up with less disposable income than you had before the raise. Be careful about overextending yourself.
Tenny said:
$1,100 per month is more than your raise for the year. You’ll end up with less disposable income than you had before the raise. Be careful about overextending yourself.
That’s true. I was willing to pay that price to leave a toxic living situation, but after thinking it over, I’ll stay until I pay off my debt. I don’t pay rent right now, so I can use that to clear my credit card debt quickly.
Remember that the 30% rule for rent should include all your housing costs, not just rent. Make sure you check what’s included before signing anything, like utilities, trash, etc.
Zhen said:
Remember that the 30% rule for rent should include all your housing costs, not just rent. Make sure you check what’s included before signing anything, like utilities, trash, etc.
Thanks! I usually add an extra $100-$200 to the rent estimate to cover those costs just to be safe. I’ll definitely check what’s included before I sign.
I recently moved out and pay $1,000 a month, and I make around $21 an hour. It’s doable but saving money can be tough. I suggest paying off your debt first and saving up. A roommate would also help cut costs. If you’re in a toxic home environment, I get wanting to move, but planning ahead is key.
@Vince
Thanks! I agree, a roommate is definitely the way to go, and paying off my debt first will give me more peace of mind. I’m going to work on that and hopefully move out next year.