A money situation? Important!!?

Question

Ok, so I'm planning on moving out in October with my boyfriend to California. We found an apartment for around $825 and we will both have jobs. He and I both turn 18 early Oct. and he gets $5,000 from a car accident when he was younger, and I will have some money of my own saved up. We already have some furniture as well, and we plan on going to school next year when its financially possible.

Do you think this is a good start? What other expenses will we need to take into account? Approximately how much is food for 2 people?

We are trying to put together a folder of our expenses and plans so we can show my mom how serious we are.

This is VERY important, so any help is great. Thank you!

Answer 1

First of all, I would never attempt a move like that without securing jobs here first.  California is one of the most expensive places to live in California, so in all seriousness you should be prepared and $5,000 isn't going to cut it.

Food is easily $400 a month without even going out to eat.  Keep in mind that insurance is very high in CA and you have to wonder what kind of place rents enough room for two people for only $825.

Answer 2

i know you probably are hella excited and think you have everything planned out but you dont im 22 and moved out over a month ago and had 3700 in saving its down to half you have to understand its not that easy you should really try to live at home and save save save . I looked at apt for 800 there dumps in bad neighborhoods and they dont include utilities, water, gas, and garbage so the rent is 800 but everything else is almost 350 buck so avg rent is 1250.0 apt always do that c**p ! plus do you both have good credit i looked at 41 apt and 32 of them require you to have a job for more than 3 years with proof, at least 5000. dollars in a saving or checking acct great credit and they usually dont rent to younger couples why i dont know but a lot of apt think drugs and party central email me and i will explain so much more that is if you want to know more. i got kicked out i didnt plan on it but thnkfully i had an emergeny stash always plan for the unexpected k ! but im really really really sorry to burst your bubble but ca is so expensive and its hard to do it my bf and i average in 3500.00 a month  and we live on a budget an we barely make it that covers: apt for a month , 2 cars and food and neccesity expenses. ive had 2 friends move out and have to move back home and mess there credit up. but i dont say this to be mean or put you down its just i would hate for you to have the feeling ive had about worrying about money and living arrangment and can you afford to eat this week ?  

Answer 3

You're never too young to think about money management and personal finance.  Get to your local library or bookstore, and pick up a few books to read so you can both get off to a good start and agree ho you will manage things going forward.

I strongly suggest starting with the Dummies or Idiots guide - there's one on "Money Management in Your 20s and 30s" that would be perfect for you.  Also pick up one on "Personal Finance."

Then read at least one book by Suze Orman, David Bach ("Smart Couples Finish Rich" would be perfect), or David Ramsey.  They all over practical, inspiring advice on how to handle your short-term and long-term finances.

If you both read just three books and compare notes, you'll feel brilliant and confident, and start your life together on the right foot.

Draw up a budget now. based on your incomes.  About 25-30% of your gross/total income is spent on housing/rent, and usually another 25% on taxes.  Then budget out the rest of your money - include categories like insurance, transportation, groceries, dining out, entertainment/recreation, clothing, charity, doctor visits, gifts, auto repair, and utilities.

And you should both start a habit of putting 10-15% into retirement savings - I know it seems like a lot of money to put aside for something you won't need for another fifty years, but the more you save now, the less you'll have to save overall, and the sooner you'll be able to quit (David Bach explains how).  Trust me, early savings is key.  You should also keep the $5,000 in a savings account for emergencies, and eventually build it up to about 3-6 months of average living expenses (for when one of you gets laid off or sick, and yes it will happen eventually).

Learning to use a simple finance program with Quicken or Microsoft Money will help you track your spending and budget.  You can use pen and paper too, but Quicken can help you add and track things quicker.

Good luck!

Answer 4

Why do you want to be a "shack up" honey?  I wouldn't suggest moving out unless you can support yourself.  You are so young and relationships change so quickly.  What are you going to do if he suddenly wants to move out?

Answer 5

You will need deposits for rent, phone, electric and any other utilities. basic necessities and clothing.  Ask your parents how much they spend on you for medical, housing, food and the such.  Go shopping with your mom or dad and add up all the groceries you need for a week along with items like tp and Kleenex etc.  

You can usually call the utility companies and ask for a monthly average for apartments in the complex you are looking at.  

You will need car insurance, or transportation costs also.  if you have a car gas and maintenance too.  

You will also need money for cold, illnesses, birth control if you use it, hospital bills for maternity if you don't. etc.