Author Topic: Rent on $50 K salary and Questions on Roommates  (Read 2268 times)

multi-vitamin

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Rent on $50 K salary and Questions on Roommates
« on: July 20, 2017, 06:27:30 AM »
Hey All,

I make $50 K a year and currently pay $735 on rent, add on another $140 for utilities and internet. My rent is going up to $745 if I re-sign my lease for another year. I also have the option of living with roommates -- something I haven't done since college( FYI, I'm 30 and single). I would imagine that my rent would be around $300-$400 with utilities included if I rent with roommates.

Do earn enough money to justify nearly $885 a month in living expenses? or should I go with roommates? Any suggestions on the roommate front when it comes to lease agreements or splitting the cost of living expenses?

Thank You

Lis

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Re: Rent on $50 K salary and Questions on Roommates
« Reply #1 on: July 20, 2017, 07:10:45 AM »
You're paying a premium to live alone, and only you can tell if it's worth it.

When I was renting, it absolutely was. I hated living with roommates in college, even when they were my friends. My former roommate and best friend can't fathom the idea of living alone. I'd say most people fall in the middle between us.

Mustachianism is about keeping or increasing your quality of life without needlessly spending. My quality of life would have tanked because I just don't like having roommates. You may be different, or you may not. Some might say that that saving 300-400 a month by getting a roommate is the obvious choice, because that money is worth having roommates.

I was making $45k-$50k and spending $1200-$1400 on a one bedroom, so it can be done. I'm not sure who you're trying to justify to other than yourself. Are your finances in order otherwise?

marielle

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Re: Rent on $50 K salary and Questions on Roommates
« Reply #2 on: July 20, 2017, 07:15:11 AM »
It really depends how much you value living alone. I make $60k but still live with roommates, it's not really about salary but whether the savings is worth it for you. I also like living in bigger places with more storage and such, but don't want to spend $1000+ to rent a large place by myself.

I've had roommates who are basically never home and it feels like living alone, but I've also had super gross or controlling roommates. Try to go for someone who is more mature, don't live with college students or people who only work part time.

Usually everything is split 50/50 but sometimes you can agree that the person with the master bedroom pays a bit more.

andy85

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Re: Rent on $50 K salary and Questions on Roommates
« Reply #3 on: July 20, 2017, 07:17:55 AM »
i will gross about $55k this year. Single, 32, live alone...had a roommate until a couple of months ago. So this is right up my alley.

my mortgage is $606 (PITI)
Electric/gas: $113
Internet: $60
Water: $55
Total: $834

I make it buy just fine. I contribute 20% to my 401(k) but can't really afford much savings beyond that...maybe a couple of hundred a month. I was only charging my roommate $300/month and it definitely helped me feel more comfortable with my finances. It is a personal choice...do you value your privacy/living alone or are you willing to trade some of that for a lower monthly expense? There is no right or wrong answer. You can afford it, but you won't be saving a ton of money...just keep that in mind.

aalferez

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Re: Rent on $50 K salary and Questions on Roommates
« Reply #4 on: July 20, 2017, 07:57:04 AM »
I make almost 100K and I rent.
Live with my GF in Chicago on a 2 BD with Garage. We pay $1200; I pay 700 and she pays $500.

I still think I pay a lot. when I compare with other areas. But within good neighborhoods I'm at a very good number.

Maybe you can justify that amount for rent by living right by where you work, so you dont spend money on car/insurance/transportation.
My 2 cents

MVal

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Re: Rent on $50 K salary and Questions on Roommates
« Reply #5 on: July 20, 2017, 08:15:37 AM »
You're paying a premium to live alone, and only you can tell if it's worth it.

When I was renting, it absolutely was. I hated living with roommates in college, even when they were my friends. My former roommate and best friend can't fathom the idea of living alone. I'd say most people fall in the middle between us.

Mustachianism is about keeping or increasing your quality of life without needlessly spending. My quality of life would have tanked because I just don't like having roommates. You may be different, or you may not. Some might say that that saving 300-400 a month by getting a roommate is the obvious choice, because that money is worth having roommates.

I was making $45k-$50k and spending $1200-$1400 on a one bedroom, so it can be done. I'm not sure who you're trying to justify to other than yourself. Are your finances in order otherwise?

+1. I lived with a roommate for the last eight years and just got my own place this year. I only make about $45K. My living expenses have pretty much doubled, but for me it is absolutely worth it. Although my long term roommate was great, living with someone else was really grating on me and my quality of life was not what I wanted. I'm glad I did the roommate thing because it really helped me get a firm foundation quickly on my 'stache when I discovered MMM, but I also kind of wish I'd moved out long before as the lack of privacy held me back in a lot of ways.

My old roommate is the opposite of me, she really likes having someone else in the house. After I moved out, she thought she would not get another roommate, but a few months later she changed her mind and now has someone else there again. I love my new rental house and can't fathom having anyone else move in with me. So I think the above post is right, it all depends on how important privacy is to you.

Heroes821

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Re: Rent on $50 K salary and Questions on Roommates
« Reply #6 on: July 20, 2017, 08:41:49 AM »
Like most of these questions on this forum it comes down to savings rate. 

if your savings rate is 50% of income or higher FIRE is really close.  If not it's further away. What are your goals? Do you want to FIRE at all? Do you just want FI?

$900 a month (10,800 a year) on just housing is like 1/5th of your income, that's below the consumerist idea of how much mortgage you can afford which is like 30-35% of income.

If you max a 401k at $18,000 and max an HSA at $3700, that's a 43% savings rate straight out of your paycheck that leaves you like $28,000 out of 50,000 for taxes and bills etc. That's a pretty low tax bill, but even after housing your still sitting on like 15k for food, other utilizes, car, entertainment, travel w/e.

surfhb

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Re: Rent on $50 K salary and Questions on Roommates
« Reply #7 on: July 20, 2017, 05:12:58 PM »
That's pretty cheap rent on 50K a year.    Id say your doing pretty well.