I’m 25, will be graduating in May and starting a new job in Atlanta, and here is my budgeting plan:
Annual salary ~67k —– Take-home pay ~ 50k = 4100/month
Rent+utilities: no more than $1250
Transportation (lives within 10 miles to work): <$100
$1000/month loan payment (for a 19k loan)
$1000 actual saving
Does this plan seem feasible. I know it highly depends on my spending habit but I’m not a huge spender so I think I could do it. Is $1000/month saving a good start?
That’s an 18% savings rate of your gross income. And not even counting any employer match you will hopefully have access to. That’s great for someone in their mid 20’s just starting out adulthood.
If you can pull that off, that’s a great start. It does come down to your spending habits, unexpected bills might make it hard to hit that every month. But even if you only do half of it, that’s still better than most.
Depending on how low your loan interest rate is, you can consider putting more into savings and less into the loan. If it’s under 4%, especially with the market down, now’s a good time to put as much as you can into savings (assuming you’re investing it).
These items should have their own lines in the budget and not be lumped into Misc so that you can accurately asses if you’re going over or staying under budget.
You may find this article informative:
[Cost of Living in Atlanta, GA 2022](https://www.apartmentratings.com/renters-library/typical-utility-costs-in-atlanta.html)
Are you including health insurance premiums and retirement contributions in your calculation of take home pay?
You’ll almost certainly spend more than $100/ month on transportation if you own a vehicle and will be paying for auto insurance, gas, maintenance, and repairs. $250/ month might be more realistic, depending on how much you pay for auto insurance.
$250/ month for miscellaneous spending also seems low. If this budget category includes your spending on cell service, entertainment, restaurant meals, healthcare, clothes and shoes, glasses and/ or contacts, furniture, stuff for your apartment, gifts for others, and travel, then I think you’re likely to spend more than $250/ month.
Have you considered entertainment funds or is that included in the savings?
Just know, car insurance in Atlanta is outrageous. Not sure we’re you are coming from but when i moved to Atlanta many years ago, I was shocked at how expensive it was for insurance. If driving to work, will you have to pay for parking or are you planning on taking MARTA?
My guess is you will have more expenses than your plan but you still should have some to save. I lived in Atlanta after graduation and stayed for 13 years. Still have family there but absolutely hate going back. The commute is what finally drove me away. Wasted too much of my life sitting on either 285 or 85.
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