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I have a question about income. I understand Hawaii is very expensive, and I would like a reasonable assessment of my personal ability to have a comfortable lifestyle. I am single. I have an advanced degree, and I already have a job in Hawaii for a salary of slightly over six figures per year. My relocation (read shipping) costs will be covered along with the first few months of rent. I own my car, and I have no real debt. My plan is to live in a one bedroom in or very close to Honolulu.
I am asking this question to determine my level of comfort in regard to expenses. Will I have enough free money to dine out occasionally? Will I be able to enjoy entertainment (movies, shows, etc.)? Will I be able to afford new clothing and other comforts?
I know my income is enough to survive, but I want to be able to accomplish more than survival. I do not have expensive tastes; however, I am used to having a some disposable income after putting away for savings. I make the same amount on the mainland, and I realize my salary will not go as far. My concern is my ability to fulfill my wants and interests, not necessarily basic needs. I am able to budget, and I fully comprehend my expenses will determine my extras. I have visited Hawaii a few times, and I just returned from interviewing. I love the culture, people, and scenery. I am willing to make some trade-offs, but I don't want to sacrifice all of my interests to just get by.
After reading these threads, I am having second doubts about the lifestyle I can lead. I have researched some costs, but it is always the unexpected that derails the best plans. I would like to get some perspective on what type of lifestyle I can expect from people doing it, rather than, my spreadsheet budget estimations.
and I already have a job in Hawaii for a salary of slightly over six figures per year. My relocation (read shipping) costs will be covered along with the first few months of rent. I own my car, and I have no real debt. My plan is to live in a one bedroom in or very close to Honolulu.
Will I have enough free money to dine out occasionally? Will I be able to enjoy entertainment (movies, shows, etc.)? Will I be able to afford new clothing and other comforts?
You'll be fine - you'll probably net between $6,000 - $7,000 with that income.
Rent will be your biggest cost - start looking at craigslist and see if you can handle the rents in town for what you get. Rent continues to go up lately - if you want to be in town, figure $2,500+/month.
<SNIP>I am single. I have an advanced degree, and I already have a job in Hawaii for a salary of slightly over six figures per year. <SNIP>
Slightly over six figures would put it in the $100,000 or more per year. Yeah, you can live well on that amount. Especially as a single person. Hmm, what's the tax bracket at that level? 25%? Go for high, I guess, so that leaves $75K per year or $6K per month. Put away 25% of that for savings (most folks can't do that) leaves $4,500 per month. Deduct $2,500 for rent, another $500 for utilities and you still have money left over for food and clothes. Although, if you average $50 a day for food, you don't have any left for clothes.
There's a penthouse available at Nauru Tower (near Ala Moana) for $2,800 a month. Which is a bit more than your budget, but it would be impressive digs.
It is hard for me to imagine a situation where a single person with a 6 figure salary couldn't have a decent standard of living out there. I never made more than $40k and got by fine. You could blow it all on housing if you wanted an oceanfront penthouse but realistically you should have no less than a couple grand a month of disposable income given what you have said about yourself. If you like it there then go for it, doesn't seem like you have much to lose, most of the great things about Hawaii are free as long as you can afford the rent and food.
Absolutely you can make it work, and save a couple thousand a month too. The key thing is to live modestly and avoid extravagance. Keep things simple, and avoid the trap of thinking... oh, it's just a few dollars more for the "ultra deluxe", and then the few extra dolarses add up. Or the "Oh, I don't really need it, but it would be nice." Those add up quickly too. Or the biggest is the "Oh, I can afford it. Why not?" excuse when you see people making less than you living higher on the hog than you do.
If you save $20 or $30K a year by payroll deduction, and live on the rest, you'll never miss it, and your savings will accumulate rapidly.
Absolutely you can make it work, and save a couple thousand a month too. The key thing is to live modestly and avoid extravagance. Keep things simple, and avoid the trap of thinking... oh, it's just a few dollars more for the "ultra deluxe", and then the few extra dolarses add up.
If you save $20 or $30K a year by payroll deduction, and live on the rest, you'll never miss it, and your savings will accumulate rapidly.
Quote:
Originally Posted by dsb62574
I would like a reasonable assessment of my personal ability to have a comfortable lifestyle. I am single. I have an advanced degree, and I already have a job in Hawaii for a salary of slightly over six figures per year.
My plan is to live in a one bedroom in or very close to Honolulu.
I am asking this question to determine my level of comfort in regard to expenses. Will I have enough free money to dine out occasionally? Will I be able to enjoy entertainment (movies, shows, etc.)? Will I be able to afford new clothing and other comforts?
I know my income is enough to survive, but I want to be able to accomplish more than survival.
My concern is my ability to fulfill my wants and interests, not necessarily basic needs.
If the op wants to live in Honolulu close to town in a 1 bedroom - doesn't want to live "simply", saving $2,500 month ($30K per year) on a net income of potentially $6,000 isn't realistic. That leaves $3,500 net income and probably less than $1,000/month after rent/utilities.
Go for it. Six figures will be comfortable for a single person. That's not a survival salary.
Living in Hawaii can be cheaper in some ways because it is simpler. No seasonal clothing to buy. Shows are limited - less options = savings. Outdoor activities are free. Those savings you can divert to minor splurges (fine dining, weekends to neighbor islands, etc.)
IMO, for your own comforts and convenience, pick an apartment in a nabe that you enjoy even if it costs a little bit more. That'll make your transition period more enjoyable.
Quite a few Condo going up in the Kakaako Area, a lot under construction. That is the center of Honolulu. Most everything, as far as entertainment, and stores, and of course Ala Moana shopping center, is in the area. Most condos are for sale. You should be able to find a rental that would suit your needs.
Best of luck in your search.
If the op wants to live in Honolulu close to town in a 1 bedroom - doesn't want to live "simply", saving $2,500 month ($30K per year) on a net income of potentially $6,000 isn't realistic. That leaves $3,500 net income and probably less than $1,000/month after rent/utilities.
I guess it really depends what close to town means... is Makiki close to town? Is Moiliili close to town? Is a walk-up OK? $2500 a month seems a bit steep to me even though rents are high. My buddy pays $1200 for a 500 square foot walk-up in Makiki. He can ride a bike to downtown in 15 minutes. Something like this.
$6000 net monthly income
- $2000 rent
- $300 utilities (average if you run A/C occasionally)
- $50 cell phone
- $100 gas
- $1000 food (this is over $30 a day, most families can live on this should be cake for a single even with dining out)
- $75 car insurance (could be more or less depending on car and level of coverage)
- $100 internet/cable (cable not needed but most want)
- $25 renters insurance
- $50 random bus ticket, parking fee etc...
Am I missing anything obvious? Is there a 401k that needs to be contributed too? Is this a govt job with a retirement system built in? I don't know only the OP can say.
This still leaves about $2300 a month of disposable income to split between fun and savings. It is not unrealistic to cut some off of this by cooking more, getting rid of cable, getting the $1500 apartment, and sweating a bit. So it really depends how much money the OP wants to spend on movies, shows, and clothes... and how much traveling the OP wants to do. Trips to visit family or vacations out of the state add up quickly.
That said, this is a great salary. It is a fair bit more than the average household makes in Honolulu. There are tons of people that make half of that working two jobs. When i hear "too much sacrifice" in Honolulu I think of both parents picking up night shifts while grandma watches the children so that their kids can attend private schools, I don't think of a single person making 6 figures.
I guess it really depends what close to town means... is Makiki close to town? Is Moiliili close to town? Is a walk-up OK? $2500 a month seems a bit steep to me even though rents are high. My buddy pays $1200 for a 500 square foot walk-up in Makiki. He can ride a bike to downtown in 15 minutes. Something like this.
I don't believe most people who make 6-figures would find something about the size of a 2 car garage "comfortable" - maybe "simple" or "minimalistic" but the op didn't imply they wanted that kind of lifestyle.
What people tend to forget, is when someone make more money - they become accustomed to a certain lifestyle - sure, if you make $50,000/year - the 500 sq ft place is what you are accustomed to living in - I can only imagine the thoughts when a girlfriend comes over the first time or coworker comes by - not exactly 6-figure comfortable living for sure.
Quote:
Originally Posted by UHgrad
This still leaves about $2300 a month of disposable income to split between fun and savings. It is not unrealistic to cut some off of this by cooking more, getting rid of cable, getting the $1500 apartment, and sweating a bit. So it really depends how much money the OP wants to spend on movies, shows, and clothes... and how much traveling the OP wants to do. Trips to visit family or vacations out of the state add up quickly.
Again, sweating a bit? That doesn't sound comfortable at all.......
No cable?
Maybe minimalistic or simple - but doesn't sound comfortable.
I said in my second post it can be done - but no need to sugarcoat it - it won't be the same lifestyle as living somewhere like Phoenix or Dallas.....
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Outdoor activities are free. Those savings you can divert to minor splurges (fine dining, weekends to neighbor islands, etc.)
