Moving to Houston very soon! First job, $75,000k salary, budget. (Kirby: apartments, leasing agent)

[azsxdcfv1234567]

Hi everyone!

I am going to keep this simple, to the point, and I will genuinely consider everyone's suggestions. Also, please don't take this as another "college grad bragging about their salary" post. I can assure you that is not the case. I am simply asking for advice from people in the area.

I am a recent college grad and will be relocating to Houston within the next three months for a new job. My exact salary, based off 2080 hours in a year and $36.06/hr will be $75004.80 + any over time. Additionally, I will have two bonuses (relocation, signing, etc) paid out within my first two paychecks...$8000. So, I will be getting a $6000 loan to use for moving expenses and then pay it back with my bonuses. That will leave $2000 for savings right off the bat.

I am currently in the process of finding an apartment through a leasing agency and have had good luck finding apartments in my range < $1500/month....Heights, Upper Oaks, Kirby, Greenway Plaza but $1500 is the max that I am willing to spend.

Below, I did some calculations based upon the absolute maximum I am willing to spend for each category in my budget.

Gross: $3125.20 x 2 = $6250.40/month
Net : 1,958.86 x 2 = $3917.72/month (after 10% for 401(k) and < $200 for health insurance)
----------------------------
Rent: $1500/month max!!
Utilities: $400/month (electricity, water, garbage, internet/phone/tv)
Renters insurance: < $200/yr
Car insurance: $350/month (i have an at-fault accident on my record from Florida)
Student loans: $350/month (minimum is only $325)
Food: < $400/month (including going out)
Gas: < $150/month (I will not be driving that often)
Savings: $2000 + tbd/month

Question 1: Is it safe for me to assume that health insurance for a single person will be less than $200??
Question 2: What do you all pay for utilities and how could I make sure mine are less than $400?
Question 3: What do you think I could put into savings? What is good rule of thumb?
Question 4: Overall, does this seem feasible given my salary and COL in Houston?

Also, if anyone doesn't mind listing their income and budget. That would be much appreciated as well.

All suggestions and recommendations are appreciated! Thanks in advance!

[MaryleeII]

I would budget higher for gas than $150/month. Traffic is horrible in many parts of Houston and lots of stop-and-go traffic, which really eats gas

Did you include FICA and medicare tax in this calculation?

Gross: $3125.20 x 2 = $6250.40/month
Net : 1,958.86 x 2 = $3917.72/month (after 10% for 401(k) and < $200 for health insurance

[azsxdcfv1234567]

Originally Posted by MaryleeII

I would budget higher for gas than $150/month. Traffic is horrible in many parts of Houston and lots of stop-and-go traffic, which really eats gas

Thanks! That's good to know. Btw, how are the gas prices in Houston? I usually get midgrade or premium.

[Rip808]

First off congrats, and welcome to Houston! You are making decent money and must take full advantage while you are young.

First, I would try to bring your Apt budget down to no more than $1,250. A lot of apartments are having crazy specials (4-6 weeks free rent) because they can't fill up all the new apartments and charge premium rents. You will be surprised what you spend on food and going out...I would up that by at least $100.

I would only have an emergency safety net of 3 months expenses and then concentrate on paying off your student loans ASAP. Dump every extra you have and then some on that debt. I paid mine off three years out of school and the relief of not having them was huge. Plus, if your modified AGI exceeds a certain amount ($80k I think?) you are no longer eligible to deduct student loan interest.

Also, don't go out and buy a shiny new car. It appears that you don't have a car note and that is great. Other than that, your budget is pretty spot on.

[rednas]

I make around what you will be making and I would suggest getting a cheaper apartment and contributing the difference to retirement and to student loans.

[azsxdcfv1234567]

Originally Posted by Rip808

First off congrats, and welcome to Houston! You are making decent money and must take full advantage while you are young.

First, I would try to bring your Apt budget down to no more than $1,250. A lot of apartments are having crazy specials (4-6 weeks free rent) because they can't fill up all the new apartments and charge premium rents. You will be surprised what you spend on food and going out...I would up that by at least $100.

I would only have an emergency safety net of 3 months expenses and then concentrate on paying off your student loans ASAP. Dump every extra you have and then some on that debt. I paid mine off three years out of school and the relief of not having them was huge. Plus, if your modified AGI exceeds a certain amount ($80k I think?) you are no longer eligible to deduct student loan interest.

Also, don't go out and buy a shiny new car. It appears that you don't have a car note and that is great. Other than that, your budget is pretty spot on.

Thanks! I appreciate it!

Regarding my apartment budget, I really WOULD like to get it down to around $1200. My main concern is this. I have a couple of friends in the Houston area. They both recommended I check out a crime map as I initially wanted to look for housing in Downtown and Midtown due to the proximity to my office. However, upon looking at a current crime map, I soon realized that Midtown/Downtown had a noticeable increase in crime compared to other areas. I started searching outside of those areas. In addition, I was trying to have a < 30 minutes commute to and from my office...hence, why my leasing agent has selected Kirby/Upper Oaks, Greenway Plaza, and The Heights as recommend locations. Using her advice, I went ahead and found 10 listings that I am interesting in. They range from $1250 - $1495. When I visit in August, I'm hoping the cheaper apartments are nice as I would ultimately like to stay around $1200 without being too much further away from my office.

Student loans are my number one priority. Once I get settled, around 2-3 months, I should have a good grip on my finances and be able to know here I can add money (such as student loans) and take away money (such as eating out).

No new car here!! I told myself that my next car will be a Lexus. But as a 25 year old, I jumped for joy when I found out I got this job. Unfortunately, when I did ACTUAL calculations, a Lexus is definitely out of reach for now, lol. I will happily drive my 2001 Camry around Houston until the wheels fall off.

[azsxdcfv1234567]

Originally Posted by rednas

I make around what you will be making and I would suggest getting a cheaper apartment and contributing the difference to retirement and to student loans.

Ok, thanks! If you don't mind sharing. What area of Houston do you live in, which apartments, and how far are you from downtown?

[rednas]

Originally Posted by azsxdcfv1234567

Ok, thanks! If you don't mind sharing. What area of Houston do you live in, which apartments, and how far are you from downtown?

i'll message you.

[azsxdcfv1234567]

Originally Posted by MaryleeII

I would budget higher for gas than $150/month. Traffic is horrible in many parts of Houston and lots of stop-and-go traffic, which really eats gas

Did you include FICA and medicare tax in this calculation?

Gross: $3125.20 x 2 = $6250.40/month
Net : 1,958.86 x 2 = $3917.72/month (after 10% for 401(k) and < $200 for health insurance

Yes, I did. The net amount has been calculated to included taxes.

Semi-monthly Gross Pay $3,125.20
Federal Withholding $453.95
Social Security $161.99
Medicare $37.88
Texas $0.00
insurance $200.00
401(k) $312.53

I'm just hoping to to hell that the paycheck calculator I used online is accurate. Do my numbers seem off to you?

[westhou]

I currently pay $1300 a month for rent and I make about $10,000 less than you. I'm able to do that because I'm very careful about my expenses. My utilities hare half of what you pay. My car insurance is a fraction of what you pay. My student loans are slightly higher than you pay. I put away half of what you do in my savings each month. I rarely go out. Maybe once or twice a month. Before I buy anything I always ask myself if I really need it and most of the time it's no so I don't buy it.

With your budget you should easily find a nice place to live.

If I can live comfortably Uptown with my salary than you should be able to live in the areas you mentioned on your salary.