trying to move out and need help getting a timeline

[u/-maddy]

i am honestly absolutely terrible with money. i have bad impulse control and i have a ton of stuff planned throughout the whole year which is going to take pretty much all of my income.

i live with my parents after moving back in, and i am trying to get out as soon as possible. i know that i'm very fortunate that i have a family who will let me live at home, but for reasons i won't get into, i really need to get out.

i have a couple thousand invested (in what exactly, i dont know. i had my parents help me set it up and i am not very knowledgeable on stocks.)

my job does a 401k match and im contributing 8%. my job also covers schooling so i wont accrue any debt there. i am not in any debt otherwise.

i'm trying my best to save money and i think i just found a way that's going to work for me so i wont spend it, but i just started so that amount is pretty negligible.

i make $20/hr and work about 27 hours a week while being in school. i'm trying to get more hours but its currently the slow season.

i know that i'm very behind and i feel incredibly guilty and ashamed about it. i'm really scared i'm going to get people on here telling me that i'm stupid and irresponsible but i truly do not need that. i am just looking for help for figuring out what moving expenses and all that would be.

i've seen some figures for what people suggest to have when moving out, but i'm just not sure what i should really be aiming for.

how can i be better at saving? and how much should i be saving so that i can get out asap?

thank you in advance

[u/wolferiver]

I assume you are in your twenties, and if so, you are not "behind" in life. Lots of young adults take a while to get their feet under them. I think so far, you have a solid start on your plan for the future. You are studying for a degree, and you have an employer willing to pay for it, plus you are earning money at the same time. You are also putting aside money for retirement, and this is very smart, too. The longer you can put something aside for retirement, the more it can earn in interest.

At 27 hrs per week and $20 per hour, after after your 401k pre-tax contribution and after federal taxes, you would be making around $2,053 per month. (I don't know what your state taxes would be, so you would likely make less than this per month.) The usual recommendation is for your rent to cost 1/4 to 1/3 of your take-home pay, which in your case is around $513 to $630. That's not likely enough to pay rent on your own unless you get together with roommates or housemates. This is very common for people still in school or for young adults still starting out in their careers. I (a boomer) had housemates and apartment mates when I started out, and so did my millennial niece.

I did note that you wrote that there are some months that you might earn more, but you ought to plan for the worst months. Then, anything extra you earn is available for unforseen contingencies or for fun.

I still think your plan is viable, but look for a roommate or house sharing situation. That also would mean your share of utilities and internet would be shared. It could also mean you may not have to come up with first and last month's rent and deposit. Or those could be shared out, too.

So, I took a peek at your 401k savings, which I think you said was 8%, IIRC. Based on that 27 hours at $20/hour, you would be putting away $187 into your 401k every month. Using the David Ramsey Investment Calculator, and assuming a not unreasonable but slightly aggressive 8% return for the next 41 years, and sticking to the same monthly amount for the duration, you could get $709,000 for retirement. Not too shabby. Of course, once you begin working full time, that monthly investment amount would increase to something a little more substantial, so your retirement savings would grow to be even more. That is the magic and power of compound interest over time, and by you starting relatively at an early age, your investment earnings will grow further.

[u/-maddy → u/wolferiver]

thank you very much for your response. i genuinely really appreciate your help.

yes, i am planning to move with a roommate. i know a lot of people in the area i want to move to so i think i will be able to make that happen. ill keep that figure in mind as i look at apartments online.

fhank uou again 🧡

[u/AppState1981]

You want to move out but you also want to spend money which means you can't move out. The only way to move out is to quit spending money but you feel like you can't do that because you planned throughout the year to spend money. It sounds like you won't be moving out because you have designed a system that make it impossible.

Forget stocks for now. You can't afford them.

[u/-maddy → u/AppState1981]

i never said anything about moving out immediately, i'm looking for advice on making a timeline. clearly i won't be moving out right now as i have a ton of stuff planned.