Moving on a budget (for rent, car insurance, mortgage)

[chrispl57]

I am looking to move out of my parents however I am having problems trying to figure out if I can afford it or not.


We make about 32k a year.
I need to live within 45 min of hackensack
My car insurance and car take up about $600 a month (300 for each =/)
Also I would like to own (would rather pay around the same a month to own something than spend the same for renting)



So far it seems almost impossible to move out on 32k however I have heard of people doing it in this area.

[boater1]

Instead of driving yourself nuts, thinking about it.

How much can you do without now a month?
Put that amount in a savings account , every month/paycheck.

Think of it as paying a mortgage or rent.
say $1000, put it away
If you can survive for awhile, you will know if you can pay the rent/mortgage.
and the bonus is you have that amount in the bank for a down payment or emergency fund.

If you survive with $1000 going in, increase to $1200. then $1400
increase until it hurts

then you will know

But the best time to fund a down payment is NOW!
while you do not have rent or a house.

Stepping into one of those and getting in over your head could be a problem for a long time getting out.

Your car expenses are 1/4 of your income.
I assume Ins. and loans, work on paying them off the loans
That will help a lot
reduce to 1 car, save half the ins cost (if you can)

[nj21]

I agree to paying off the car loan. My car loan and insurance are about that much as well, and it eats a lot of my income up. Then I am also paying back student loans which eat up about $600 as well. It doesn't leave me with much income at all. So I am living with my grandmother and since I can barely save, I have to stay until I can.

I think you should move out until you are comfortable and not questioning whether you can afford to move into a place on your income.

[RobRiguez]

kid at my office is only making 30k year (brings home like $2k/month) and he does well on his own. He is only paying 900/month for a 1 bedroom apt and is driving an 06 maxima that I think he bough used.

[chrispl57]

First off i forgot about this post i just remembered about it today lol

Originally Posted by boater1

Instead of driving yourself nuts, thinking about it.

How much can you do without now a month?
Put that amount in a savings account , every month/paycheck.

Think of it as paying a mortgage or rent.
say $1000, put it away
If you can survive for awhile, you will know if you can pay the rent/mortgage.
and the bonus is you have that amount in the bank for a down payment or emergency fund.

If you survive with $1000 going in, increase to $1200. then $1400
increase until it hurts

then you will know

But the best time to fund a down payment is NOW!
while you do not have rent or a house.

Stepping into one of those and getting in over your head could be a problem for a long time getting out.

Your car expenses are 1/4 of your income.
I assume Ins. and loans, work on paying them off the loans
That will help a lot
reduce to 1 car, save half the ins cost (if you can)

I will try this idea out and see how it works. Atm i am putting $200 extra to my car payment to pay it off as fast as I can. As for insurance my age dosent help with my insurance cost =/

[GiantRutgersfan]

Who is "we"?

Definitely doable for one person, but there will need to be some significant sacrifices. If there are two of you only making 32k, it will be really stretching it.

If possible, I would ditch the car and buy a beater. Then get the minimum insurance. The insurance on a car you don't outright own is killer if you are under 25.