Urgh! My rent just went up to $1,600 for my two bedroom. I could stay here or buy a little one bedroom condo with a patio area on the other side of my town for about $210k. Input and thoughts on this would be appreciated.
More details? By little, I mean 700 sq ft. for me and my daughter. I think it is doable. There is also a two bedroom condo in the same community for $290k but no patio area. I plan to live in this little area for awhile. My daughter, now 3.5 years old, will attend the local public dual language school and I think it will be a great place for her. My current apartment is very close to a metro which would be good if I should change jobs (I hope!) and have to commute to the city each day. The potential place would be near my daughter's future school, close to my current work, not too bad by bike to the metro if I need it eventually and if they build a metro stop like they keep talking about doing the property value may go up more than average increase in a few years.
Assets
A 2005 Toyota Corolla no money owed
$4k my little savings account at Capital One
$32k at Vanguard
$43k Roth IRA at Vanguard
$78k in my old work’s pension soon to rollover to Vanguard
Liabilities
$4,240 owed in student loans with an awesome interest rate of 1.625%
Monthly breakdown
Pre-tax deductions: $150 into the 401k
Net Salary/Wages: 3,692
Current expenses
- Rent $1,600 for a 2 bedroom approx 920 sq ft. Before you say anything, I will “Holy crap that’s a lot!” Sadly, it is quite reasonable for my area. (No but seriously, I just looked at a basement level 1 bedroom plus den place for $1,100 a month not too far from me but not close to a metro like I am now – total Crap Hole! Plus the rent didn’t include even sewer so much of my savings would be eaten up by utilities)
- Groceries $425 I know, this is really bad, fortunately, I’m working on it and getting better each month (thanks budget bytes and MMM)!
- Bills & Utilities $138 the breakdown $35 electric, $70 cell (will be switching when contract is up in a few months and saving $$ here!), $33 shared internet.
- Student Loan $113 loan info is above. I should probably lower this given my very low interest rate.
- Auto & transport $90 most months it is just one tank of gas and insurance but I keep it higher in my budget to account for the other fees and repairs that come up. Is that how people manage their Mint? That’s my current thinking.
- Health & Fitness $95 this covers my yoga studio membership $80 (it is my sanity I swear and I use it all the time) plus any medicines, co-pays, deductibles etc.
- Personal Care $50 this should come down I know - it covers everything from shaving cream and acne wash to makeup and my super discount kitchen sink hair care.
- Home Supplies $25 detergents, soaps, TP etc. Last month I blew this budget on Brita water filters. Seems unnecessary but the water from the tap tastes nasty (no but really, this is the first place I’ve ever lived outside of developing countries where I can honestly say that the water from the tap tastes too gross to drink)
- Kid stuff $20 clothes & shoes, occasional babysitting, and other odds and ends specifically for the little one
- Entertainment $20 this is mostly for that once a week coffee with a friend any excess builds up and is used to go out with my sisters at some point.
- Gifts & Donations $15 UNICEF plus my niece and nephews school fund raising drive
- Misc $25