![]() This might mean taking in a roommate or moving in with someone. If you are wrestling with mortgage or rent payments, you may need to return to that lifestyle. In other words, you may want to say goodbye to higher-cost Los Angeles and hello to lower-cost Las Vegas. But if you are struggling to pay the mortgage or rent, you might need to consider moving to a lower-cost geographic area. What do you do if $818 isn’t enough for a place to live? Here are four tips: So, depending on where you live, the $818 that would be available for monthly mortgage or rent payments might actually be enough to live on or might fall short. Housing: The biggest drain on your budgetĪs you can see, the biggest monthly expense for you and the majority of Americans is housing. In other words, this budget is barebones and does not set you up for future financial success. When coming up with our $30,000-a-year scenario, we assumed that this person carried no debt and wasn’t putting money into savings (for retirement or anything else). We didn’t include debt payments, savings and other common household budget items in our overall calculations. Using this formula, you would be left with $374 a month for other expenses. Monthly entertainment and recreation: $188.Now that we have calculated the dollar amount for each category, let’s look at the grand total. Again, affordability is based on where you live. Using the midpoint of 7.5%, the monthly entertainment and recreation budget would be $188. Some experts recommend spending anywhere from 5% to 10% of your take-home pay on entertainment and recreation. If you find yourself going over that number, raising the air conditioning or lowering the heat could help. Taking into account yearly net income of $30,000, utilities should make up $225 (using 9%) of your monthly household budget. UtilitiesĪs a rule of thumb, you should spend 8% to 10% of your take-home pay on utilities. Many companies offer discounted transit costs. If you use 12.5% as the midpoint, monthly transportation costs should total $313 when you are taking home $30,000 a year. ![]() TransportationĮxperts typically suggest spending 10% to 15% of your net income on transportation. But if you see doctors often, you would be hard-pressed to live within this limit. For a healthy person, that is a realistic number. So, if you multiply that percentage by the gross income figure of $35,250 a year, the monthly tab for health care would be $206. But health care spending makes up about 7% of a person’s income before taxes. Health care costs vary greatly from person to person. Inflation is sure to raise these numbers in the near future. But you would fall well short of the $375 target in New York City and San Francisco, where the average person spent about $433 a month on groceries in 2021. There, the typical adult spent a little over $202 a month on groceries as of mid-2022. This food budget would be more than adequate in the Brownsville, Texas, metro area. Keep in mind that this assumes there is only one person in your household. At $30,000, that would add up to $313 a month at the midpoint of the range (12.5%). Generally, you should limit your food budget to 10% to 15% of your take-home pay. The Buffalo apartment would break the budget, unless you are willing to live with a roommate. So, the Syracuse apartment would fall within the recommended budget. But just 150 miles to the west, the median rent for the same apartment in Buffalo, New York, was $1,130. Using that percentage, if your gross income is $35,250 a year, the amount you should spend each month on housing works out to $881.Īccording to rental platform Zumper, the median rent for a one-bedroom apartment in Syracuse, New York, stood at $880 in September 2022. Some experts recommend spending 30% of your gross income on housing. Housing, whether it is a rent payment or mortgage payment, normally eats up the biggest chunk of your household budget. Net income is the amount after taxes, medical insurance and other expenses are deducted. Here is a look at housing, food, health care, transportation and utility costs for somebody with a net income of $30,000, or $2,500 a month. A Typical budget for someone who takes home $30,000 How far the money goes depends on your location, expenses, and your discipline. A salary calculator from payroll-processing company ADP indicates an American worker typically took home $30,000 a year based on a gross salary of $35,250 as of October 2022. Still, it usually can be done no matter where you live. But you would probably live more comfortably on that money in Kansas than in New York City-given the much lower cost of living. You typically can get by on $30,000 in annual take-home pay.
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