How To Budget (From Someone Who's Actually Budgeted)

Updated 7/3/2024 for inflation (HOLY CRAP!)

While I've never moved out and am relying on secondhand information, one aspect about living on your own that I've practiced for years is nearly constant, and is applicable to lots of money issues: Budgeting.  Your resources are finite.  So, you need to figure out where each part of those resources are going to go.  You also need to prioritize some items over another.  This in a nutshell...is budgeting.  So how do you do it for living on your own?  Here's how you do it:

1. Take the last three months worth of pay stubs. Add the total of your net pay, then divide by 3. That's how you much you have to work with in your monthly budget. Either write that figure down on paper, or put it in a spreadsheet.

2. Below that number, we're going to write down our expenses. First of all is figuring out rent. Take your monthly income figure, and divide that by 3. Write that number below as rent. Remember this number: This is your target rent for finding an apartment or rented house. Whenever you look for a place, find one that rents for that amount or lower.

3. Next, write down all your current debts, such as student loans, credit cards, etc. Write down the minimum payments for each one.

4. Next, write down all your other expenses, such as cell phone bill, car insurance, etc.

5. Next, go to this website (https://www.fns.usda.gov/cnpp/usda-food-plans-cost-food-monthly-reports) to get an estimate of your groceries. Here are some figures for May 2024:
   
   For a single male 20-50 years old, a monthly Thrifty plan would cost $303.90 (in 2021, it was $194). A low-cost plan costs $301.90 (in 2021, it was $251.80). A moderate-cost plan would cost $378.20 (in 2021, it was $314.80). A liberal plan would cost $461.10 (in 2021, it was $385.40). For females, it's $242.40, $261.60, $319.90, and $407.90 (in 2021, it was $172.20, $218.60, $267.20, and $342.50), respectively.
   
   These figures are presuming that all meals and snacks will be prepared at home.

6. Next, you'll want to know how much utility costs are. Look up utility rates for your target city. For example, according to AreaVibes (https://www.areavibes.com/ottawa-ks/cost-of-living/), estimted monthly utility costs are $217.10 (in 2021, it was $151.66). Remember, this is just an estimate. Also, add in about $30 (In 2021, I used to suggest $20) for water.

7. Now, take your monthly pay, and subtract all your expenses. If it's at zero or above, congratulations, you have a balanced budget. If it's less than zero, then you can't afford to move out.

Honestly, it's that easy.  (2024 me is calling that sus)