I recently got a new job that I really like, but the only thing is that it is around a 50 minute, 33 mile drive one way. It uses up a lot of gas and the long drive does get hard after awhile. Also, I live in Wisconsin, and I don't want to do the current commute in the winter.
To avoid this, I just recently got an apartment I really liked. It is a 810sqft one bedroom apartment that is only a 20 minute drive from there to my job, and also comes with free underground parking. The total cost is $1150 a month plus whatever I use for electricity, which I researched and found that the average electricity use for the past tenant was around $80, which equals around $1230 a month total
There is an option for a short-term lease that ends in April which I am going to take so that I can find a cheaper place in the spring.
Earnings and Savings
At my new job, I make a gross of $2946 a month and a net of around $2268 a month, which means that after taxes I’ll be spending close to 50% of my paycheck on rent, which I know is a lot more than the 25%-30% of the recommended amount to spend on rent.
This new job I got is a government one, so I also get contributions made to the Wisconsin Retirement System. I am planning on a career in the public sector, so I am basically getting started on my retirement now.
I also have the option to pick up some occasional hours at my previous job as a mattress salesperson, as they are open on the weekends and most holidays, so I could some extra $ this way. If I worked there 10 hours a month, I would realistically make around an extra $180 a month after taxes.
Through a combination of earnings from last jobs and gifts from relatives over the years, I have acquired nearly $19,000 in savings.
At the Village where my new job is, they give raises every January. Since I just started, I don't know if I will get one, but there is a chance I could see a slight pay bump.
Expenses
I have no debt whatsoever, and I have a good car that I have no payments due on.
Aside from the occasional movie and new video game, I have no real pricey hobbies or expenses.
One thing I want to note is that this budget does not take into account any future tax refunds, as I don't know what that would be.
Monthly Earned Income Gross/Net-$2947/2269.19
Housing & Utilities-$1,230-49.31% of income
Transportation-$130-5.21% of income
Living Expenses-$222-8.90% of income
Food & Meals Out-$222-8.90% of income
Healthcare-$20-0.80% of income
Miscellaneous Expense-$46-1.84% of income
Net (Discretionary Income)-$847
Questions
If possible to answer, from what you can tell, did I do my budget correctly?
Assuming that my budget is correct, I am planning on putting $500 from my Net (Discretionary Income) into an IRA, and the rest into my general savings account. Do you agree with my plan? If not, why, and what would you recommend I do instead?
@destiny13 As with all budgets it’ll work if you’re able to stick to it. It’s likely you’ll have to adjust. Make sure you track each category to ensure you’re staying on target and become aware if changes are needed.
One thing I’d mention is making sure you’re using your time optimally since you’re paying a premium to save time. Would you really want to commute back to the mattress store on weekends for 180$ when you could use the commute time to meal plan/prep and save upwards of 132$ on food costs (and infinite returns on your health)?
Since you’re living pretty close to net zero with your budget I’d pretend the 19k doesn’t exist. Other options would be to sock away 6 months expenses and invest the rest. up to you but just don’t treat that like an endless budget overage fund.
@destiny13 Budget looks fine overall. So first and foremost kudos to you for being on top of it and thoughtful, you’re already ahead of a lot of people.
Just get in the habit of sitting down once a month to make sure you’re sticking to it and adjusting as needed.
If it were me I wouldn’t do the mattress sales. I like my free time, or the ability to have free time to decide what I do with it. The marginal dollars wouldn’t in exchange for giving up my weekends wouldn’t be worth it.
Don’t know about the rental market in Wisconsin but your other option in the spring would be fine roommates, that’s the easiest way to lower your rent expense
