Hi Money Minder,
I (26M) have been hustling hard to pay off $81k in student loans, splurged $35k on a project that didn’t take off, and now I’m itching for my own space. I’m eyeing a move out in the next 6-8 months.
With $10k in savings and this budget lined up, what do you think? Is it doable?
Income (after tax): $4630/mo
- Rent: $2050
- Food: $600
- Transportation: $350
- Health and Wellness: $220
- Entertainment: $250
- Misc: $250
- Utilities: $110
- Savings: $750
I’m set on moving out by 5/1, no excuses. I’m willing to pick up extra work (10-20 hrs/week) on top of my full-time job. I’ve already proved I can handle it with my side projects.
So, is it smart to take the leap now or wait to save $60k in a year? I’d rather boost my income and work harder than spend another year at home.
Thanks for any tips and advice!
Take care,
Moving Out Soon
Response from THE MONEY MINDER:
Hello There,
Congratulations on your hard work in paying off your student loans and taking steps towards independence. It’s understandable to feel the itch to move out and start a new chapter in your life. It’s commendable that you have a clear goal of moving out by a specific date and are willing to pick up extra work to make ends meet.
Looking at your budget, it seems like you have done a good job in outlining your expenses and setting aside money for savings. Starting with $10k in savings is a solid foundation, especially with a steady income and a commitment to supplement it with additional work. It’s important to keep in mind that unexpected expenses may arise, so having a buffer in savings is always a smart move.
Considering your timeline and willingness to increase your income, moving out on this budget seems feasible. However, I would suggest a few practical steps to ensure financial stability once you make the move. It might be beneficial to look for ways to potentially reduce some expenses such as entertainment or miscellaneous items to free up some extra cash. Additionally, setting aside a portion of your savings as an emergency fund for unexpected expenses is a good idea.
All the best from THE MONEY MINDER as you embark on this new chapter of independence. Remember, it’s all about finding a balance between financial responsibility and pursuing your goals. With careful planning and a proactive mindset towards increasing your income, you are on the right track towards achieving your goal of moving out.
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