Is $40,000/year good enough for living in Midtown? (Atlanta, Alpharetta: cheap apartment, rentals)

[halseyspartan2]

Hi,

I currently make $33,000 per year but my job gives every trainee an automatic bump to $40,000/year once we are out of training. For my cohort, that is April (the grant that pays us stipulates a mandatory 8 month training period before we are actually on the company's dime, and after that we are full-time employees and get a raise to $40,000). I currently live in Alpharetta, and I make enough to put back about $400 per month or so in savings. I try to budget my money carefully, and I'm working on paying down an $800 credit card debt.

What I want to know is if $40,000 a year is good enough to move to Midtown and get a 1br/1ba. I'll most likely be living with my girlfriend, and we would be splitting the bills. However, that is dependent on whether or not she can get a job in Atlanta after graduating from Tech in May, so let's plan for me having to pay it all by myself just to be safe.

I currently pay the following:

Rent: $780/month (includes rent, water, trash, etc)
Utilities: Gas (~$40), Power (~$80-$100 depending)
Internet: $35/month
Phone: $100/month
Credit card payment: $225/month, should have it paid off shortly (4 more payments)
Gasoline: $80-$100 per month
Food: $100-$150 per month depending on whether I'm cooking for me only or for me and my girlfriend
Netflix: $7.49/month
Personal items (snus, energy drinks, "fun stuff"): $200/month, but often less
Savings: I always try to put back about $400/month between both checks

I get paid bi-monthly, on every second Thursday.

My take-home each check is $983 per check, but will probably go down another $60 or so once my health insurance benefits kick in on January 1.

I am looking to cut spending once I move in the following areas:

Gasoline is the biggest personal expense I think. Or at least, the area where I can reliably cut costs. I will buy an unlimited MARTA pass for $95/month and that will allow me to get to work and back every day (take red line to North Springs, 143 bus to Windward Parkway) as well as avoid driving to the parts of the city that I like to frequent. This will also cut down on maintenance costs on my vehicle (2005 Toyota Corolla with 112,000 miles).

If living with my girlfriend, the costs will be effectively halved, but like I said, let's plan for me living alone just in case. It's always better to have planned for more expenses rather than less, and if we do end up living together then that means more money for savings and retirement.

Edit: I should mention that when I move, I will have just turned 24 and my girlfriend will have just turned 25. Age is an important factor, for things like car insurance/apartment deposits/all kinds of things that people get charged extra for due to how old they are.

[cqholt]

If you can use MARTA and rid yourself of car expense then yes. That commute on MARTA will be tough because buses get caught in the same traffic, when general traffic is allowed to use the shoulder. After not commuting by car, its amazing how much those things actually cost.

[halseyspartan2]

Originally Posted by cqholt

If you can use MARTA and rid yourself of car expense then yes. That commute on MARTA will be tough because buses get caught in the same traffic, when general traffic is allowed to use the shoulder. After not commuting by car, its amazing how much those things actually cost.

I would be commuting to Alpharetta once we hit North Springs. The buses up there can take the shoulder if needed, and I've already tested out how that route goes. I rode to work that way every day for a week to get the timings down for the train and bus both, and the relief of not having to drive in that traffic was palpable.

Additional information:

I need an area that will be extremely walkable, which is why I picked Midtown. I've looked at the Alexander on Ponce apartments due to their price, location, and nearness to the North Ave MARTA station. Midtown has three stations I believe, so anywhere that is walkably close to bars, restaurants, and MARTA will work. I don't want a walk to a train station that is longer than 10-15 minutes.

[gerrythesnake]

Fyi

Dont move in a chick with you unless she is your wife

[cqholt]

Originally Posted by halseyspartan2

I would be commuting to Alpharetta once we hit North Springs. The buses up there can take the shoulder if needed, and I've already tested out how that route goes. I rode to work that way every day for a week to get the timings down for the train and bus both, and the relief of not having to drive in that traffic was palpable.

Additional information:

I need an area that will be extremely walkable, which is why I picked Midtown. I've looked at the Alexander on Ponce apartments due to their price, location, and nearness to the North Ave MARTA station. Midtown has three stations I believe, so anywhere that is walkably close to bars, restaurants, and MARTA will work. I don't want a walk to a train station that is longer than 10-15 minutes.

Ponce, north, and 10th frequent buses that terminate at stations around midtown, so buses are an optional.

[testa50]

You can support yourself in Midtown as long as you find an appropriately cheap apartment. Look for private rentals east of Piedmont--they are a whole lot cheaper than developments in the commercial zone of Midtown.

However, you almost definitely won't be able to support yourself and your girlfriend on that income alone. But that's no big problem: you're planning for a situation that never will happen for more than a few months. You could support yourself alone on that income if need be. If your GF lives with you, surely she can find some sort of job to support her own marginal expenses (waiting tables, coffee shop, etc), which would also make your situation workable. The idea a fresh college grad would have absolutely zero income and just be a drain on your expenses for an extended amount of time is unrealistic: she'll try her hand at getting a "real job", and if she fails, she'll find something that pays enough to support her marginal expenses and only contribute slightly to rent and stuff while she looks for something better. This happens all the time. Welcome to being in your 20s.

Just get a cheap apartment that you can support yourself in and have her move in. Hopefully she gets a nice job making $50k right out of college and you can spend the fall thinking about what exactly you want to upgrade into. If not, she'll grab a service job and you'll continue living in cheap digs. The really stupid thing would be to live separately and pay 2x rent/utilities/etc.

lol "$800 credit card debt", by the way. Most people in your position would make an $800 credit card payment every month! It's called being a yuppie. If you're in tune with your finances enough to even be concerned about the $800 balance on your credit card, I have no doubt you can pull off living in Midtown from a money standpoint. Oh, and try to keep up those thrifty habits for a year or two once you guys become DINK...none of my friends have managed to do so any longer than that!

[Ant131531]

Not in any of the big highrises, no way. Maybe the single family homes, but I'm very skeptical. I wouldn't do it.

[RocNY]

You can find apartments in Lindbergh station for ~$800

[ATLTJL]

Yeah, I'd highly recommend against splitting a 1 bed/1 bath with a girlfriend. Been there, done that....never again.

And you have to consider the ins and outs. I don't know who your girlfriend is, or what her major is. If she's an engineer, chances are pretty good she'll get a decent paying job out of Tech. But I know there are other majors there where jobs are far from guaranteed. You could literally find yourself supporting you and your girlfriend. Even if she does what testa50 says and gets a service job to help pay the bills, you'd be pretty surprised how far down the list giving you money to help with the bills can fall down a woman's priority list once she realizes she doesn't absolutely have to. Mark my words, she'll go out to eat with friends and buy a new pair of shoes right before she hands you $100 for the month and says, "I'm sorry, baby, this is really all I have to give you right now." Hey, it happens all the time. Then you're in a bit of a situation: Do you basically support 2 people, or cut loose and support yourself?

I'm not saying any of this will happen, I'm just saying plan for the worst. That way, you don't find yourself in a bind! Of course, when you're renting, you're never in too much of a bind because you can get out of anything in less than a year's time.

Even though I think a decent place in midtown on $40,000 is a bit of a stretch, it's not like it's going to put you into $500 worth of debt every month. Worst case, I suppose, is you find out it's too expensive and next year you are looking for a cheaper place.

[noah]

Why not, unless you wait to play it conservative and wait til your GF has a job. $40k/yr is $3,333 a month, 1/3 of that will get you a $1,000 a month place which means Yes you could consider high rises if you want. Those that say none are available in that price range aren't looking hard enough, not plentiful but there are some. If your GF makes $30-40k herself it becomes very easy.