Is making $400/week good to live off of for me ?
I'm 18yrs old I asked recent questions on here about other stuff like medical insurance and food stamps and got to thinking and this is what I'm gonna to do I'm gonna be paying a bit here and there for my mom while I live here and making my car payment and insurance and save money up in the bank until I get about $2500 saved up make a deposit on a apartment about $1000 and then go to second hand store for furniture I need and food to get me started and just go on about paying all my bills and getting food so I can eat while I'm saving extra money up in the bank that I don't use for bills so it can save up and be like my emergecy fund like say I get in a wreck my insuracne fires up and I don't have money to pay it cause I'm paying bils and all but then I'm have this money saving up till get me out of trouble so I don't go in debt you know .
I'm sorry this is so long but after you guys read this do you think ill be just fine doing this ??
$400 a week is about $20K a year. That is very low income. Most professional jobs start out around $30K to $35K. I'm guessing you do not have a college degree?
You CAN live on $20K, but you would need to live very frugally. You should save up some money for deposits and furniture. IN ADDITION you need to save up a cash emergency fund of 3 to 6 month's expenses. Since you take home about $1,200 a month, you would want between $4,000 and $7,000 in your emergency fund.
I'm really not sure how you could live off $20K without a roomate or some other way of sharing expenses. Let's assume you take home $1,200 a month. Let's assume you find a DIRT CHEAP apartment for $500 a month. This leaves you $700. Electricity, gas, water, etc. would run you a MINIMUM of $100 a month and that assumes you don't use any A/C. If you have cable, internet, or phone service, that can run you another $100 to $200 a month. Now you are down to $600 or $500 dollars. If you eat Ramen noodles and cereal for every single meal, it would still cost you $50 to $50 a week.
How would you pay for transportation? Clothing? Gifts and holidays? Will you ever date? Eat out? Go to a movie?
If I were you, I would go to school and try to improve myself to where I could get a job paying at least double what you make now.
There are many budgeting sites online.
Take a consumer economics course at local community college. Use a budgeting site.
You are clueless now, but the first step is asking the questions, so that's a good start.
Rule of Thumb: You can afford to spend 1/4 of monthly income on housing--that's $400, not more than 1/3 with ALL utilities thrown in. You are smart to plan for an emergency fund, and need one BEFORE you move out.
Source(s)by chatsplas - 3 years ago