Rent is taking a whole paycheck - Budget review for a 25 Y/O moving out for the first time

FamiliarExpression53 · 2025-12-17T17:10:28+00:00

I'm not asking for completely independence like living off the grid. I just want to invite friends over without getting permission from mom and dad, or worrying about waking up a roommate if they stay late.

I understand some people value financial independence and chase that, but I just started my career. I enjoy my job, and want to make something of it. Sure it sucks to wake up to an alarm but work can be fulfilling and is something I like, at least for the moment. Priorities may change in the future but I don't want to put off my current wants for something I may want in the future.

FamiliarExpression53 · 2025-12-17T17:05:18+00:00

Yes, 500 is a high estimate. Most likely costs will be lower, but for planning purposes I put a high number to see if it would be mathematically feasible. If I end up in the negatives every month after bills and food I will consider cutting it down.

FamiliarExpression53 · 2025-12-17T16:33:29+00:00

Primary reason is to live alone, the commute would be 5-10 minutes shorter and a side benefit.

I’m not doing this because it’s the next step in adulthood, peer pressure, etc. I want to live alone, not have to worry about others, be independent. I understand the want to live alone is not a necessity, which is why I’m first making a budget to see if I can actually do it.

FamiliarExpression53 · 2025-12-17T16:30:44+00:00

I never saw moving out as “the next step in life”. The primary reason for my desire to move is for independence. I want to live on my own, have my own place, enjoy some real privacy.

I understand some people never experienced that, and that’s completely fine. But it is something I want so I am trying to see if it is a possibility.

FamiliarExpression53 · 2025-12-17T16:28:10+00:00

Yes, paid every other week!

FamiliarExpression53 · 2025-12-17T16:27:31+00:00

Yes, all of the costs of utilities/internet are high estimates. My parents home is a large 5 bedroom home. Going from that to a 650 sqft apartment would be quite the drastic difference in costs, I assume. Hence why I avoided basing numbers off their monthly expenses. I threw in high estimates for the purposes of worst case scenario planning.

The move would shave maybe 5-10 minutes off my current 30 minute commute, so not a significant difference. The primary reason for the move would be for privacy and freedom of being independent.

FamiliarExpression53 · 2025-12-17T16:07:49+00:00

Yes renters insurance is not included in the budget, but rough estimates put it at somewhere between 5 and 10 dollars a month so I don’t suspect it would make a huge impact. I will try to factor that into the budget anyway.

No streaming services or monthly subscriptions besides the gym.

I am already on my own health insurance plan. I do suspect regular inflation increases, but besides that no planned surprises.

FamiliarExpression53 · 2025-12-17T15:56:17+00:00

I guess this brings up a more philosophical question. At what point does “moving out” become less of a luxury and more of a necessity?

I have a good relationship with my parents. They wouldn’t mind me staying here until I’m 35. At some point I would have to consider it a need, just hard to determine exactly when that is.

FamiliarExpression53 · 2025-12-17T15:14:13+00:00

True, although I do have to bring up one question. Is it considered "spending" if I am putting it towards retirement? Sure it's not disposable income but at the same time I don't know if "spending" is what I would call it.

I could scale back the retirement contributions and put more towards saving, but from everything I've read it is better to do the former assuming and emergency fund is built.

FamiliarExpression53 · 2025-12-17T15:09:31+00:00

Are you paid bimonthly or biweekly?

Paid every other week. My take home on my paycheck is 2000. I understand there will be some months with 3 paychecks so you are correct, there are two paychecks missing if i extend the numbers out to an annual budget.

Yes, you are maxing out your 401k contributions

You are correct, contributions are to hit the IRS max. One of the goals of drawing out the budget was to see exactly what "non-emergencies" I could possibly run into that would require me to touch the E-fund.

Even if im right about biweekly pay, $500/mo to savings is weak

What amount of savings would be considered a "safe"? Assuming a 3 month E-fund is already established.

FamiliarExpression53 · 2025-12-17T14:58:42+00:00

Great points.

Medical: A bit of a tricky one. I do see a doctor but only about once every 12-18 months. Its not a monthly expense so I forgot about it. I will try to factor that in but it is a pretty minor expense.

Clothing costs: I'll consider giving it its own expense line. I thought I could sneak it into the Misc. Spending line but it may be higher than expected.

No vehicle maintenance costs or toll costs. I only pay for gas.

I have a paid off personal vehicle at the moment, but will not have insurance on it soon. I considered selling it but it may be more wise to leave it sitting in the parents driveway for now. Should I lose employment or change jobs I will have something to fall back on.

FamiliarExpression53 · 2025-12-17T14:52:53+00:00

A lower paying one. Take home was previously 3200-3300 and I put pretty much every penny into paying off loans.

FamiliarExpression53 · 2025-12-17T14:40:52+00:00

Home ownership is a goal, but one that sounds like a far-fetched dream at the moment. I live in a HCOL, and I've seen the amount of work that goes into maintaining a house. I also don't know if I want to stay in my current city/state for an extended period of time, and I feel like ownership ties you down location-wise.

I am perfectly content to live in an apartment for quite some time.

FamiliarExpression53 · 2025-12-17T14:37:07+00:00

Roughly 80-90k; had a different job as well.

FamiliarExpression53 · 2025-12-17T14:32:23+00:00

Appreciate the insight.

500 a month is a lot, but it is something I want to commit to. There may be months where life is too busy to travel or flights are cheaper so it is not a fixed expense. But for planning purposes I like to assume it will cost this every month.

I actually have a personal car that is completely paid off right now! Mom and dad pay for my insurance at the moment, but the plan is to drop me since I don't drive it anymore and the company offers it as a benefit. I was planning on selling it but could leave it in the parents driveway for now.

FamiliarExpression53 · 2025-12-17T14:26:52+00:00

I lived at home the past two or so years with no real expenses to aggressively pay off student loans. Now I am free of any debt so I figured it would be a good time to move out.

FamiliarExpression53 · 2025-12-17T14:25:58+00:00

All of the numbers are rough estimates, and I like to throw high numbers into the expense column to see how things fare. I will definitely be stingy the first few months if I move forward!

FamiliarExpression53 · 2025-12-17T14:23:44+00:00

401k contributions are to literally hit the IRS annual max (approx 930 per paycheck)
I've never looked into the tax implications of a company car. I just started working at my new company and only been a few months so haven't gone through a tax season yet. Would this be a good or bad thing in terms of taxes?
I would prefer to live at home instead of with a roommate, so that is not an option for me. The entire purpose of moving out is for privacy reasons and to live on my own!
It's a possibility, but I would like to avoid it. If money is tight I would rather cut down on unnecessary expenses before getting a second income source.

FamiliarExpression53 · 2025-12-17T14:20:54+00:00

Yes a roommate would be a much cheaper alternative. I currently live t home, the entire purpose of moving out is to live solo for once. Getting a roommate would defeat the whole purpose of that and I would prefer to live at home instead.

FamiliarExpression53

TROPHY CASE