Is it worth paying $1,200 a month for rent, when I only make $2,800 a month?

[bibbysoka]

Simple question - I have been living with my parents for two years post graduation. I currently work in IT and I make approximately $2,800 a month. I have been saving a lot of my money for a mortgage for a house but I am still a really long way to go before I can actually buy a home, as I still have a girlfriend and I'm not committed to buying a house just yet.

The cheapest apartments in my area start at about $1,400 a month but I found a nice one for $1,200. It seems outrageous, because in college I used to only pay about $500 a month for rent. It is insane how my same college apartment has doubled in price in only a few years.

My question is do you guys think it is wise to spend $1,200 a month on rent when I make only $22 an hour/$2,800 a month? Or do I really not have any choice? I can't live at home with my family forever, especially my family is becoming extremely toxic. Thank you for any and all advice!

 

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[Kak]

Can you move to a different city, make more money, and or live for less? That would be ideal IMO.

I wouldn’t want to live dependent on someone else. Step one, know your nut. Then cover it. Don’t let your lifestyle eat your growth until you can afford to quit your job.

 

[bibbysoka]

Can you move to a different city, make more money, and or live for less? That would be ideal IMO.

I’ve been applying for higher paying jobs and trying to make money on the side somehow. This apartment is in the city where I work, and is close to my work but is also downtown. It seems that every apartment I can find is about the same exact price surprisingly, unless I move to a ghetto area which would only save me a couple hundred

 

[bibbysoka]

Can you move to a different city, make more money, and or live for less? That would be ideal IMO.

I wouldn’t want to live dependent on someone else. Step one, know your nut. Then cover it. Don’t let your lifestyle eat your growth until you can afford to quit your job.

I agree, I am getting sick of living with my family. They are very toxic now and even though rent is free I feel stuck - rent is expensive, but not sure if it’s worth it to keep living in my parents basement.

 

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[Kak]

I’ve been applying for higher paying jobs and trying to make money on the side somehow. This apartment is in the city where I work, and is close to my work but is also downtown. It seems that every apartment I can find is about the same exact price surprisingly, unless I move to a ghetto area which would only save me a couple hundred

We are in a “name your price” type of situation with regard to employment.

You say you’re in IT. Scour the country for a $40-50 per hour job. Perhaps even a hipster work from home situation. Then move to the suburbs and get twice as much for your money.

As far as renting vs owning… You aren’t wasting money by renting. That’s a common misconception. You get a place to live on terms you accept.

When you factor your burn rate on a mortgage, the principle pay off thing isn’t much. Insurance, interest, maintenance, and property taxes usually eat up 75% of your monthly payment.

 

[bibbysoka]

We are in a “name your price” type of situation with regard to employment.

You say you’re in IT. Scour the country for a $40-50 per hour job. Perhaps even a hipster work from home situation. Then move to the suburbs and get twice as much for your money.

The suburbs in my state are the same cost of living unfortunately. Apartments are insanely expensive right now. I think the cost of apartments will be about $1,200 no matter where I live in my state.

However you are right. I am applying for jobs every day that pay at least $30-$40 an hour remote. I currently work remote but am expected to be in office at least once a week. It would be a dream come true to make $40 an hour, working from home, and living in my own place. I am also trying to build websites for people on the side and hoping that I can find clients, this will help me pay my rent.

 

[Kak]

The suburbs in my state are the same cost of living unfortunately. Apartments are insanely expensive right now. I think the cost of apartments will be about $1,200 no matter where I live in my state.

However you are right. I am applying for jobs every day that pay at least $30-$40 an hour remote. I currently work remote but am expected to be in office at least once a week. It would be a dream come true to make $40 an hour, working from home, and living in my own place. I am also trying to build websites for people on the side and hoping that I can find clients, this will help me pay my rent.

Get going man. You can do it. Keep us posted when you land the job, but more importantly free your life, move the hell out and start a business.

 

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[SharpeningBlade]

Honestly that's not even that bad.

This gives you massive headroom to think, plan, and execute on your goals with no outside interference or family drama.

$1600/month extra is still pretty nice. Keep working on portfolio/applying and save as much as possible while taking care of yourself.

 

[Andreas Thiel]

What country is this ? Switzerland? Thought Germany was bad.

If I was in that situation I'd probably look into splitting costs and moving into a shared apartment. At first this seems like a really bad idea because you seemingly don't live on your own terms. I also kept hearing about fights over chores.

My view changed when I heard how well that worked for my current colleagues in the past.
Many of them played a big part in the pioneering days of the internet and they worked on some crazy and fun projects in that shared flat.
Of course that depends on doing some networking, connecting with likeminded people and finding an apartment that allows for focussed work. At some point going from independence to interdependence will be the only way to make more of an impact. I think the "Paypal mafia" shows the potential that forming an ambitious group can have.

 

[SharpeningBlade]

What country is this ? Switzerland? Thought Germany was bad.

If I was in that situation I'd probably look into splitting costs and moving into a shared apartment. At first this seems like a really bad idea because you seemingly don't live on your own terms. I also kept hearing about fights over chores.

My view changed when I heard how well that worked for my current colleagues in the past.
Many of them played a big part in the pioneering days of the internet and they worked on some crazy and fun projects in that shared flat.
Of course that depends on doing some networking, connecting with likeminded people and finding an apartment that allows for focussed work. At some point going from independence to interdependence will be the only way to make more of an impact. I think the "Paypal mafia" shows the potential that forming an ambitious group can have.

Yes the PayPal mafia is a great case study but keep in mind they all mostly met at or around Stanford / Silicon Valley - they weren't found at the bottom of the barrel on Craigslist.

If, and that's a big if, you have people that you gel with and can stand living with and collaborate with, splitting costs is not a bad idea.

In my experience having lived in shared arrangements for years, living in a place not shared by roommates has been an incredible upgrade and I never want to go back to sharing a place with randos ever again.

 

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[Sega Saph]

Yeah man! I think it's obviously works! And it was a good step of yours to got out from your parents home. Just keep working for your dreams and then you would live with your girlfriend together (600$ per person). So, if you think it's gonna be better to live with your parents again, try it. But i can say: I tried, it was so tough and conflicts with mom are so painful. Your psyhotic health in your hands, when you live on your own, but not with bulls***ers. Just keep going pal! Wish you a good luck.

 

[bibbysoka]

Yes the PayPal mafia is a great case study but keep in mind they all mostly met at or around Stanford / Silicon Valley - they weren't found at the bottom of the barrel on Craigslist.

If, and that's a big if, you have people that you gel with and can stand living with and collaborate with, splitting costs is not a bad idea.

In my experience having lived in shared arrangements for years, living in a place not shared by roommates has been an incredible upgrade and I never want to go back to sharing a place with randos ever again.

What are your thoughts then on living with my girlfriend? I have lived with various roommates, some best friends some randoms and even some people who ended up becoming criminals and getting evicted. I have never lived with my significant other but we are at the stage where I feel we are going to get married, just not yet.

 

[bibbysoka]

Yeah man! I think it's obviously works! And it was a good step of yours to got out from your parents home. Just keep working for your dreams and then you would live with your girlfriend together (600$ per person). So, if you think it's gonna be better to live with your parents again, try it. But i can say: I tried, it was so tough and conflicts with mom are so painful. Your psyhotic health in your hands, when you live on your own, but not with bulls***ers. Just keep going pal! Wish you a good luck.

You are totally right, thank you for this.

However I currently live with my family, and it’s becoming a struggle to keep my mental health at the highest level. The issues are more personal, but I know the solution is to move out as soon as I can. I do understand the advantage I have at the moment by not paying rent. But perhaps living with my girlfriend is an option I never considered until now.

 

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[SEBASTlAN]

Not imo

 

[gryfny]

Yes. A comfy home is so important. You can move away from the city (and your friends, family, new opportunities, etc) to save a few bucks. But you'll spend more on the commute and travel. Also by living on your own, you learn A LOT.

 

[Ing]

Solving a problem you concentrate your mind on sets you free for other problems to solve.
So I would take that apartment and go on working on your gigger projects.

 

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[SharpeningBlade]

What are your thoughts then on living with my girlfriend? I have lived with various roommates, some best friends some randoms and even some people who ended up becoming criminals and getting evicted. I have never lived with my significant other but we are at the stage where I feel we are going to get married, just not yet.

If it’s just you and the girlfriend, that’s all good. As long as you keep the circle close even sharing a place with friends works.

Yea stay away from randos unless they have a good track record. Sucks to say because I’ve been in that position of needing a place and having little track record, but I’ve also lived with convicted criminals several times and it’s just not worth the risk.

Fly above that drama. Get a decent place in a good area and focus on your craft!

 

[Kevin88660]

Simple question - I have been living with my parents for two years post graduation. I currently work in IT and I make approximately $2,800 a month. I have been saving a lot of my money for a mortgage for a house but I am still a really long way to go before I can actually buy a home, as I still have a girlfriend and I'm not committed to buying a house just yet.

The cheapest apartments in my area start at about $1,400 a month but I found a nice one for $1,200. It seems outrageous, because in college I used to only pay about $500 a month for rent. It is insane how my same college apartment has doubled in price in only a few years.

My question is do you guys think it is wise to spend $1,200 a month on rent when I make only $22 an hour/$2,800 a month? Or do I really not have any choice? I can't live at home with my family forever, especially my family is becoming extremely toxic. Thank you for any and all advice!

You can try various ways.

One way is to be out of your home and only back during sleeping time. Grab a laptop and pay for the coffee in Starbucks is a much cheaper option.

Since most of us are hustling during off work time it is a good option.

 

[biophase]

Is that $2800/mo before taxes or is that your take home pay?

And $1400/mo is that before utilities?

Also, you can move farther out since you only need to make that drive once a week.

 

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[Runum]

However you are right. I am applying for jobs every day that pay at least $30-$40 an hour remote.

That's a good first step to get a new position. I try to find out who the gate keepers, decision makers are and contact them directly, usually through email. I have mailed an auto play CD or DVD directly to the decision maker to introduce myself and set myself away from the pack. Or I create a set of youtube vids to introduce myself and show my talents, show some personality. Then put the link in the application and email the link to the decision makers.

You have to figure out how to market and sell your talents for what you are worth. Filling out apps and hoping for the best is a waste.

Good luck.

 

[SharpeningBlade]

You have to figure out how to market and sell your talents for what you are worth. Filling out apps and hoping for the best is a waste.

Interesting ideas. Have you ever kept track of the metrics on your search when you do that? I’m curious to know what your success ratio is with that

 

[Runum]

Interesting ideas. Have you ever kept track of the metrics on your search when you do that? I’m curious to know what your success ratio is with that

What are your metrics and success ratio of just sending out apps and hoping?

I have used these strategies with success to get jobs and to get business contacts.

My goal is to get past the HR screener and get a personal interview with a decision maker. I make my video stuff so good that they want to, have to talk to me. I make my personal presence and interview so compelling that they want me to work with them.

 

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[Johnny boy]

Your problem is you don’t make enough! You could go make 6k a month selling cars, or 8k a month brushing moss off roofs. Between rent and monthly payments for vehicles, I spend $5300 a month! (Much of that is business expenses)

 

[fridge]

I was in a very similar situation (except I had some family issues and had to leave my house). My best advice? Stay at your current house, but rent a small office or get a coworking space. Not only will you have a dedicated place to do your work, but all you'll need to do at home is eat, shower, and sleep. Unless your family is interfering with those 3 in a major way, just stay at home till you increase your income.

 

[Tony100]

You could create a 6 month plan - 1) Get a higher paying job 2) Set a monthly revenue goal for your side hustle 3) Move out by the end of the 6 months.

6 months is enough time to increase your income and the deadline will be motivating. Knowing that you only have 6 months left living with your parents will make you feel less stuck.

Saving $1200 p/m or $14,400 p/y is significant though. Right now you are in a great position where you can take some risks. 2 years from now you could be living pay cheque to pay cheque - cost of a wedding, mortgage to pay, car payments, home ownership costs etc. It would be more difficult to start a business. Whereas now you could literally quit your job today and give your everything to the web design business without any major risks. (I don't recommend doing that until you are confident that the business has good traction though).

 

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[MJ DeMarco]

The answer really depends on you, pretty personal like the "do I go to college?" question.

Questions to consider:

1) How much more effective and productive will you be living alone?
2) What is the opportunity cost for the additional costs for moving out? EX: Will the additional expenses stop you from making ascending moves? Or will moving out do so?
3) Basically, which choice will help you progress FASTER toward your 1/5/10 Planasy?

I'd also seek another job in your line of work, it seems you are underpaid.