How much gross salary to save $1,200/mo.? (Phoenix, Mesa: apartment complex, rent)

[Returning2USA]

OK,

This may sound like a shallow question, but it's a sincere one.

What monthly gross earnings will allow me to save $1,200.

I've visited Phoenix to check out areas and have family nearby that will cause me to relocate to Phoenix.

$1,200 is the minimum amount I need to save to make this relocation worth it. (I currently save more than this per month but will resign from my job when I leave the place I'm living now.)

My obligations:

0 debt
FICO 811
No kids
No car payment (I'll pay cash for a vehicle).

Expenses will be:

I will live in a one-bedroom apt (small is ok). No cable, I don't watch TV. I use my laptop.
Car insurance, gasoline
Food: I cook at home and go out to eat good quality but affordable food a couple times per week
Enjoy happy hour occasionally
I live a fullfilling yet simple lifestyle.

What gross earning per month can get me at or near $1,200?


Many thanks to those who can chime in. If I need to provide more info, please tell me.

[Willamette City]

I see know one has responded up to now. I can understand why. That is a tough question. The best I can offer is if you live frugally, you should be able to keep your monthly expenses between $1500-2000. See how that works? It's almost impossible to give a meaningful answer. HOWEVER: I think you need at least $4K and maybe $5K to get to your $1200 savings.

[DetroitN8V]

Isn’t this just a math question?

[Returning2USA]

Originally Posted by Willamette City

I see know one has responded up to now. I can understand why. That is a tough question. The best I can offer is if you live frugally, you should be able to keep your monthly expenses between $1500-2000. See how that works? It's almost impossible to give a meaningful answer. HOWEVER: I think you need at least $4K and maybe $5K to get to your $1200 savings.

Thanks for the response.

$4K to $5K gross per month to only save $1,200.

That's painful.

Thanks again for your input.

[Returning2USA]

Originally Posted by DetroitN8V

Isn’t this just a math question?

DN8V,

Yes, you're correct, but I'm trying to realistically gauge the much gross will end up as net in the US as I'm single, have no tax credits or tax deduction. I've been living overseas for a few years where one can save 60-80% percent of net if one wants to.

I was reading a thread last week where a poster (original poster) stated he grossed $70K per year and you were correct in noting that at $70K per year gross it ended up being $3,500 net per month.

The taxes, fees, and cost of living seem to really eat up a lot of gross up earnings in the US.

[yukon]

Originally Posted by Returning2USA

OK,

Expenses will be:

I will live in a one-bedroom apt (small is ok). No cable, I don't watch TV. I use my laptop.
Car insurance, gasoline
Food: I cook at home and go out to eat good quality but affordable food a couple times per week
Enjoy happy hour occasionally
I live a fullfilling yet simple lifestyle.

What gross earning per month can get me at or near $1,200?

Estimated costs:

900.00 rent (for decent area, you may find cheaper)
100.00 water/sewer (varies by complex, this is what mine charges on average)
150.00 electric, on average monthly billing, some months higher or lower
300.00 grocery (75/wk, I budget $100/wk but I have 2 cats and buy a lot of fresh produce and meats, no processed stuff)
60.00 internet (I used my cox bill)
100.00 gas (25/wk, I used my average cost)
150.00 car insurance (will vary based on company/car/age, I used my cost)
300.00 incidentals - 75/wk, dining out, entertainment, etc, will vary by person
65.00 cell phone, I used my sprint plan
1200.00 savings

total $3,325

minimum income needed, 52,000 annual or $25/hr. Take home pay on a biweekly pay schedule (say every other Friday) for Single/0 plus social security/medicare deductions would be $1592 (I used the current 2018 tax tables and 7.65% med/ss tax rate). That would be $3449 net a month. I don't have a state tax table handy, but the difference between 3449 and 3325 per month would cover some of the state income tax.

You can find smaller apartments with utilities included. You'll have to decide if they'd be large enough and in neighborhoods that work for you. I based my estimate on pricing in my complex (Mesa).

[Returning2USA]

Originally Posted by yukon

Estimated costs:

900.00 rent (for decent area, you may find cheaper)
100.00 water/sewer (varies by complex, this is what mine charges on average)
150.00 electric, on average monthly billing, some months higher or lower
300.00 grocery (75/wk, I budget $100/wk but I have 2 cats and buy a lot of fresh produce and meats, no processed stuff)
60.00 internet (I used my cox bill)
100.00 gas (25/wk, I used my average cost)
150.00 car insurance (will vary based on company/car/age, I used my cost)
300.00 incidentals - 75/wk, dining out, entertainment, etc, will vary by person
65.00 cell phone, I used my sprint plan
1200.00 savings

total $3,325

minimum income needed, 52,000 annual or $25/hr. Take home pay on a biweekly pay schedule (say every other Friday) for Single/0 plus social security/medicare deductions would be $1592 (I used the current 2018 tax tables and 7.65% med/ss tax rate). That would be $3449 net a month. I don't have a state tax table handy, but the difference between 3449 and 3325 per month would cover some of the state income tax.

You can find smaller apartments with utilities included. You'll have to decide if they'd be large enough and in neighborhoods that work for you. I based my estimate on pricing in my complex (Mesa).

yukon,

Thank you!

Much appreciated.

[yukon]

I found some info on AZ withholding, it looks like the $124 difference between net takehome and expenses should be enough to cover the AZ withholding. Paycheck calculator I used reported $84 AZ WH per paycheck, using the above annual gross and biweekly payroll.

[man4857]

Originally Posted by yukon

Estimated costs:

900.00 rent (for decent area, you may find cheaper)
100.00 water/sewer (varies by complex, this is what mine charges on average)
150.00 electric, on average monthly billing, some months higher or lower
300.00 grocery (75/wk, I budget $100/wk but I have 2 cats and buy a lot of fresh produce and meats, no processed stuff)
60.00 internet (I used my cox bill)
100.00 gas (25/wk, I used my average cost)
150.00 car insurance (will vary based on company/car/age, I used my cost)
300.00 incidentals - 75/wk, dining out, entertainment, etc, will vary by person
65.00 cell phone, I used my sprint plan
1200.00 savings

total $3,325

minimum income needed, 52,000 annual or $25/hr. Take home pay on a biweekly pay schedule (say every other Friday) for Single/0 plus social security/medicare deductions would be $1592 (I used the current 2018 tax tables and 7.65% med/ss tax rate). That would be $3449 net a month. I don't have a state tax table handy, but the difference between 3449 and 3325 per month would cover some of the state income tax.

You can find smaller apartments with utilities included. You'll have to decide if they'd be large enough and in neighborhoods that work for you. I based my estimate on pricing in my complex (Mesa).

Piggybacking what Yukon said:

Here's my breakdown for my complex in Gilbert.

1050 rent (trash/water/sewer included)
65 electric (averaged over a 12 month period, SRP EZ-3 Plan + newer apartment complex drives down cooling costs in summer, run as far as you can from APS)
300 groceries/eating out
45 Internet (30 mbps Cox, buy the modem outright from Amazon for $30-40)
100 gas/maintenance (I drive a Camry Hybrid averaging 42mpg, your car choice will change this expense)
130 car/renters insurance (1 year policy combined car/renters, 1K deductible, 100/300K coverage, dividend policy, 10k coverage on renters)
200 incidentals
45 cell phone (AT&T prepaid 6GB for me, that's $40 + Tax, buy the phone outright)
1200 savings

Total 3135

Edit:
Also like to add 7.65% for FICA (15.3% if self-employed/contract/freelance)

Gross Income - Special Deductions (healthcare/HSA, etc..) = "Gross Income" (What'd you see on your W2) = Then - (401k deduction + Standard deduction + person exemption) = Taxable Income subject to tax tables below + Gross Income * 7.65% is the FICA portion
Federal/State Income tax does not deduct each other, they are calculated separately.

Federal Income Tax:
Bracket 1: 10% 0-9525
Bracket 2: 12% 9526-38700
Bracket 3: 22% 38701-82500
Standard Deduction for Single: 12000

AZ Income tax:
Bracket 1: 2.59% 0-10163
Bracket 2: 2.88% 10164-25406
Bracket 3: 3.36% 25407-50812
Bracket 4: 4.24% 50813-152434
Standard Deduction + Personal Exemption: 5183 + 2150 = 7333

Ex: If Gross Income was 40000, then federal income tax would be as follows:
Taxable Income = 40000 - 12000 Standard Deduction = 28000
Bracket 1: On the first 9525 - 952.50
Bracket 2: On the next 29175 (28000-9525) * 12% =2217
Total Fed Income tax: 3657 + 952.50 = 3169.50
Total FICA Tax = Gross Income * 7.65% = 3060

State tax would be as follows:
Taxable Income = 40000 - 7333 Standard Deduction/Personal Exemption = 32667
Bracket 1: On the first 10163 = 101.63
Bracket 2: On the next 22504 (32667-10163) * 2.88% = 648.12
Total AZ Income tax = 101.63 + 648.12 = 749.75

[DetroitN8V]

Originally Posted by Returning2USA

DN8V,

Yes, you're correct, but I'm trying to realistically gauge the much gross will end up as net in the US as I'm single, have no tax credits or tax deduction. I've been living overseas for a few years where one can save 60-80% percent of net if one wants to.

I was reading a thread last week where a poster (original poster) stated he grossed $70K per year and you were correct in noting that at $70K per year gross it ended up being $3,500 net per month.

The taxes, fees, and cost of living seem to really eat up a lot of gross up earnings in the US.

Makes sense. Without going overboard with calculations, you can conservatively figure that you'll net around 64% of your gross, if contributing to a 401k and having insurance deducted.