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Sample budget

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Joined: 30 May 2017
Location: Los Angeles
Sample budget  Reply with quote  

Is this a realistic budget for a single person living in a huge metro area such as Los Angeles and in their early-mid 30s?

Car payment 350.00
Auto insurance 100.00
Fuel 150.00
Dining 200.00
Cash misc 100.00
Electronics ($1000/yr) 90.00
Entertainment 75.00
Gifts given ($1000/yr) 90.00
Groceries 150.00
Household 100.00
Misc 50.00
Rent 1,500.00
Utilities (Cell/Cable/Internet/Electricity/Water/Trash) 275.00
Vacation (1 big trip, 2 short trips, $3000/yr) 250.00
Student loans 300.00
Clothing ($1000/yr) 90.00
Medical - medicines, doctor visit copays etc. 40.00

Total: $3,910
Break even income needed: $75,000/yr gross

There is no provision for saving here via a 401k or emergency fund.
Post Tue May 30, 2017 2:31 am
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Joined: 21 May 2006
Location: arizona
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That looks pretty close, but I doubt that you'll find a place for $1500/m - unless you have a roommate. A small (650 foot) 1 bdrm, 1 ba apt is $1700/m.

But, as you say, that is strictly a sustainability budget, no growth. And the 'growth' factor is a far more important metric than the others. 'Mid-30s' leaves you with about 30 years of growth time.
Eg, $500/m invested at the US longterm Market average (11%/yr) equals $1,300,000 in 30 yrs.
But if you put it off for 10 years and then try to catch up by doubling it to $1000/m it will be only $855,000.

Try a Pareto Listing. (It's not a budget, just an informational exercise). Put your list on excel, make a column for "annual" ( x12). Then do a descending sort. The exercise sorts the "significant few from the insignificant many" Eg, your top item is rent, $18,000 and your bottom item is Meds & copays $480.

So, cutting your $480 Meds bill has almost no effect on your $47,000 costs. But cutting your $18,000 rent bill in half significantly affects your $47,000. (Not a recommendation, just an illustration).
Post Tue May 30, 2017 6:28 pm
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