I’m trying to move from a LCOL to HCOL area (San Diego). I know my current job is not aligned with the HCOL, but my plan is to move & work remotely with my current job, while looking for a new job that better reflects the HCOL with pay.
Here’s my budget so far:
Pay: 25.42/hour gross: 4064/mo net: 2796/mo
Quarterly bonus averaging $7500-12000/Quarter, take home is $4000-6000/quarter.
With quarterly commission, my 401k contribution increases during that payroll, adding about an additional $250-350/quarter to my 401k.
Current budget: I know the misc category needs to be refined, just thinking of personal spending / toiletries etc.
Rent: 925
Gas: 30
Electric: 30
Wifi: 80
Car: 432
Car insurance: 140
Laundry: 40
Streaming: 25
Apple Care: 10
iCloud: 3
Grocery: 400
Rent insurance: 15
Phone: 25 (work reimburses 50/mo)
Eating out: 120
Coffee: 30
Car gas: 50
Hair: 150
Misc: 200
I would anticipate:
Rent doubling to $1900-2000
Car gas increasing to maybe 60-70/mo
Grocery increasing to maybe 500
Gas/electric inc. to maybe 80 total?
Thoughts? Would I be alright with the increases until I find another job with better pay? I already am not very happy in my role so okay moving on. Please be kind and nothing condescending.
Have you looked into costs of things like WiFi and car insurance increasing as well? I don’t see how you could possibly afford it unless you can get a fantastic deal on rent, maybe renting a room. Is there a reason why you chose San Diego? Also, what is your savings like? Have you budgeted for moving expenses, first and last month’s rent, and unexpected things? To qualify for a lease, you usually need to be making 3x the rent. If I were you, I’d stay where I am and save as much as possible while looking for a better paying job in San Diego.
Rent or mortgage is not supposed to be more than 30% of your income according to most budgeting recommendations. You are planning to spend $2k on rent when you only bring home $3k. That’s more than double the recommended amount. Moving will probably take $10k from your savings as well.
But that is not guaranteed. What happens if you don’t get it? Or it’s much lower than normal? You should plan your budget around $2800 a month take home. Renting for $2k a month on $2800 take home is basically impossible. You’re going to be bleeding from savings every month. If you can find a room rental for $1200-$1400, then you have a chance of making it work.