Difference between 25k and 35k a year (Chicago, Lincoln: health insurance, condo)

[Chi-town Native]

I think the big problem at that salary is the unexpected - so if you don't have a car, that's a major problem averted right there. I remember living paycheck to paycheck, just getting ahead of my bills, and then WHAM, $300+ for a repair and back to Go.

Just start itemizing the numbers - rent, internet, CTA pass, etc. and see what you're left with for food and entertainment - can anyone advise what real take home is going to be at $25K?

Also - try and get an apartment with utilities included. That can be a fluctuation that can drive you crazy.

[grapico]

I think the lesson here is... don't over stretch yourself to begin with. If you find you are comfortable after 1 year, THEN upgrade to a single unit apartment. I would DEFINITELY start out at roommates though to get your rent under 500 a month. Also to remember is, how much of a cushion do you have? If you have a 5k dollar cushion and it is fluctuating around there... it is a lot less stressful than a 500 dollar cushion and scrounging up money for rent. Like I said, even at 35K I would still get a roommate... makes it easier to save and go have some fun instead of dumping that money into a rent payment.

[MannheimMadman]

Originally Posted by Chi-town Native

I think the big problem at that salary is the unexpected - so if you don't have a car, that's a major problem averted right there. I remember living paycheck to paycheck, just getting ahead of my bills, and then WHAM, $300+ for a repair and back to Go.

Just start itemizing the numbers - rent, internet, CTA pass, etc. and see what you're left with for food and entertainment - can anyone advise what real take home is going to be at $25K?

Also - try and get an apartment with utilities included. That can be a fluctuation that can drive you crazy.

Your Pay Check Results Bi-weekly
Gross Pay
$961.54
Federal Withholding
$100.91
Social Security
$59.62
Medicare
$13.94
Illinois
$28.85
Net Pay
$758.22

**And this is without any health insurance and ZERO deductions.

For reference, I make a wee bit more than this when all is said and done. It sucks because I make in the low 30's, but I have to pay for medical insurance on myself and my son. Not to mention I also have to give up 20% of my pay for child support.

But, alas; I still manage to make it with room to spare. I don't have cable or any other luxuries, and I make do with basic necesseties.

[Chi-town Native]

right, so call it $1600 a month - then subtract another $50 - $100 for the health care.

in Albany Park, doable. but the problem with Lake View and Wicker Park isn't the cost of rent, it's that you're going to pay a premium for almost everything (chain stores with fixed prices being a notable exception) because businesses have to pass on the higher property taxes/costs of doing business.

I know plenty of people who make around $100K, but who then spend just stupid amounts of money on things like dry cleaning, the ritzy neighborhood tavern that all of their friends go to where a martini is $12, etc.

[jdiddy]

Originally Posted by grapico

I think the lesson here is... don't over stretch yourself to begin with. If you find you are comfortable after 1 year, THEN upgrade to a single unit apartment. I would DEFINITELY start out at roommates though to get your rent under 500 a month. Also to remember is, how much of a cushion do you have? If you have a 5k dollar cushion and it is fluctuating around there... it is a lot less stressful than a 500 dollar cushion and scrounging up money for rent. Like I said, even at 35K I would still get a roommate... makes it easier to save and go have some fun instead of dumping that money into a rent payment.

This.

[aragx6]

It might not be pleasant, but you could also look at doing something part time to give you a bit more cushion. Just something retail-y.

Or you could deal drugs :P

[hxcobd]

Everyone who says it's not possible to live comfortably on 25k a year is just flat-out wrong. I'm so sick of you financially irresponsible people trying to give money advice. Go blow $100 on martinis or something.

I make $35k a year and I live in the goddamn Loop. I live alone, also; no roommates whatsoever.

I pull in around $2000-2200 per month after taxes. After ALL my bills and expenses, I still manage to bank roughly $500-600 per month. This month, for example, even after rent, electricity, cell phone, groceries, and school loan repayments, I made over $700 sheer profit.

There is absolutely no reason why any other given person can't do the same thing. Especially considering I live in THE MOST EXPENSIVE NEIGHBORHOOD in this city.

I feel like I'm the only person anymore that knows how to manage money properly and actually live cleverly. Do your research and stop spending on retarded crap and you will have absolutely no problem living comfortably on 25k-35k:

- Get smarter about finding an apartment. Do some footwork and study EXTENSIVELY on what's a "good price" on a place and what isn't. You're not going to find a great deal on an apartment in one day; it took me an entire month of searching DAILY, but I now have the sweetest place ever and it's totally affordable.
- Switch to a prepaid cell phone. Virgin and Boost both offer the exact same amenities as Verizon and cost literally HALF as much.
- Switch to a cheaper electricity provider, like Bluestar. No reason not to do this.
- Cut out cable/satellite. Stream/download every TV show/movie you could ever want on the internet.
- Share wifi with your neighbor. A broadband connection for every apartment in a building is so incredibly excessive.
- Stop shopping at Whole Foods.
- Take advantage of public transit. Owning a car is the single most ridiculous expense ever. Yes, NOT having a car can be obnoxious at times: you want to save money? Get used to walking. It's healthier anyway.
- Get trashed on 40s BEFORE you go to the bar.

Come on, people. You're embarrassments to thrifty people like myself everywhere.

[Chi-town Native]

so there's your difference between $35K and $25K. maybe - River North isn't the Loop.

Although it's possibly more expensive, so that doesn't mean anything.

shoot, I've never had cable - I just think it's a waste of time AND money.

btw, OP stated he/she doesn't drink, so your 40s concept sadly will not be helpful.

how often do you eat out on that budget? your rent must be a pretty sweet deal indeed.

[celim]

Can anyone else backup the reputation of an alternative electricity company like bluestar? Hopefully I can get utilities included but I wont count on it.

How much should I be spending on rent? I read under 30% gross pay, but 25% more reasonably. Is a 1 bedroom in a decent area, preferably lakeview/wicker park possible?

And as for research, I plan on using craigslist as a starting point, but what's your guys' preferred point of reference? Size, while nice, isnt as important as layout (well partitioned bedroom from kitchen, etc) state of repair, location from cheap groceries, and surrounding area. I would like to be near people my age, but not in the middle of the nightlife area.

I'm also alright walking up to a mile to get to a station, I walk that distance daily as it is.

And thanks for all your replies! Here's some rep!

[jamaicabound60565]

Originally Posted by celim

Can anyone else backup the reputation of an alternative electricity company like bluestar? Hopefully I can get utilities included but I wont count on it.

And as for research, I plan on using craigslist as a starting point, but what's your guys' preferred point of reference? Size, while nice, isnt as important as layout (well partitioned bedroom from kitchen, etc) state of repair, location from cheap groceries, and surrounding area. I would like to be near people my age, but not in the middle of the nightlife area.

I'm also alright walking up to a mile to get to a station, I walk that distance daily as it is.

And thanks for all your replies! Here's some rep!

I agree your giong to have a tough time without a roomate. Sure you can find an studio in lincoln park or some other neighborhood for under $700 but like someone else mentioned everything from coffee, to groceries to going out to eat even occasionally to anything else you need to buy is going to cost more

Why not rent a room from someone nad have roomates, usually no fixed lease time. Live with roomates for a few months if you realize your doing okay moneywise go get your own place. that will allow you to save a little nad have a bigger cushion for when you do move nto your own place