In a few weeks I'll be moving to Chicago for my last summer internship before I graduate in December. I can't wait to get underway, as this will be my first work experience outside of my home town (Indianapolis). As this is my first opportunity to live entirely on my own, I want to make it one that will lead to an easier future by avoiding any sort of lifestyle inflation and creating the highest possible savings habit that I can. I'm aiming for 90% of my take-home pay, which would do a great job of paying for my wedding next year and helping my future wife with her transition to grad school in the fall.
In order to do this, I am trying to take advantage of every trick and perk I can get my hands on. This includes leaving my car behind and going bike-only for the full 3 months, avoiding public transportation like the $2.50 plague, and cooking at 'home' constantly. I have also been provided an absurdly good opportunity in the fact that my employer, in addition to an exorbitant salary, is providing me with housing and also provides free breakfast and lunch to their employees on workdays!
Details:
Gross pay: $5500 /month (I about fainted when they told me this)
Estimated post-Tax pay: $3900 (based off of an online calculator)
Total throughout summer: ~ $11700
So this gives me ~$1170 to use over the next 3 months and retain a 90% savings rate.
Monthly budget:
Food: $100 (very easy for me given the free food I get)
Transportation: $60 (bus fare to visit my fiance one weekend a month)
Bike repair: $50 (a buffer in case I pop tubes or my seat gets stolen)
Entertainment: $50 (only to be used to spend time with the other interns)
Discretionary: $50 (will probably go towards sheet music or rock climbing day passes. I'm not a monk :p)
Car insurance: $50 (sad, since I won't be driving it. My fiance will have it)
Total monthly budget: $360
Total over 3 months: $1080 (leaving $90 unaccounted for!)
So there's the gauntlet for myself: start out post-school life right and rack up a 90% savings rate at my first extramuros work experience.
For those who want a challenge of your own, I offer a subset of my personal challenge. Sometime over the next 3 months, try to organize events with less frugal friends that fit within a mustachian lifestyle. For example, convincing them to have parties in rather than going to bars, or to go out for a day in the park instead of a movie. For me, this may be one of the most challenging things about the summer, as I have a feeling that the rest of the suddenly highly paid tech interns that I will be living with will be drawn to all sorts of unnecessary spending as a group. In order to limit this some, I hope to organize a cooking group that will take turns making dinner throughout the week in order to save us all money without making each of us cook something every night. I also hope to get very well acquainted with the free local zoo within walking distance of my given apartment.
P.S. For anyone living in Chicago, I'd love tips on free/very cheap events in the area. I'll be living in the Gold Coast area, just a block East of the Hancock building.