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Deciding the Affordability of a Living Situation

Page history last edited by Holly Swyers 6 years, 4 months ago

How do you know whether a living situation is affordable for you?

 

Budget:

The main advice collected from this group of interviewees correlates to the managing and planning of a budget. Be it weekly or monthly, you must take into account all of your expected expenditures combined with net income. From here, you can identify how much total income should be put towards various living costs further described in the below categories. The goal is to constantly be “conscious about your budget” (Dolly Nabokov) in order to ensure no debts or shortages will occur for any given month. You can learn how to spend and save and not worry about the next month bill or rent. You need to figure out the outing expenses, and figure out a cushion for unexpected expenses (Ike Donleavy).

 

Rent/Mortgage:

Advice suggests that 20%, 25%, and 50% of your total salary should be set aside for housing. Thus, somewhere between 20-40% of your income should be used for housing costs. Respondents also mentioned acquiring investor's insurance in case of an emergency. Be sure to carefully look over the lease, and make sure you understand the landlord’s role in emergency expenses (Kyle O’Brien). If you have enough money to pay the landlord, then stay there. If you can pay more, then own the place (Colin Miller).

 

Entertainment:

With a strict budget and smart spending, there should be extra money available for non-necessity expenditures such as entertainment. All advice suggests saving and adhering to the monthly budgets mentioned above. This should ensure there is leftover cash for selfish purchases.

 

Transportation:

When considering a budget, you should take into account car payments, gas prices, parking prices, and car insurance. Transportation is a necessity in most people’s lives, so be sure to account for its costs when budgeting. There are also other means of transportation, such as trains, buses, and biking. Although biking is not a preferred method for most business professionals, it can be a great way to save money, if you ever wanted to save on gas.

 

Location:

Consider location from work when selecting a place to live. It will be cheaper to live close to your workplace or school (lower cost of transportation). Additionally, living in the city will mean sacrificing space but will decrease the commute; therefore, you must carefully consider the pros and the cons when deciding on a place to live (Irene Lowry).

 

Basic Living Necessities:

Be sure to plan for basic expenditures, such as food and clothing, that are necessary for being an active member of the community. For your professional and personal life, you will have to purchase a variety of outerwear that might range in price. Additionally, always include food in your budget plan (groceries, dinner outings, etc.).

 

Utilities:

When renting, read the lease carefully and see what emergency expenses would be paid from the landlord. Another piece of advice is: you need to figure out the medical expenses and food costs in the neighborhood (Kyle O'Brien). There are things you should think about paying for like, water, garbage, gas, parking, new clothing, and even a book to read (Colin Miller).

 

Overall, if you combine all the above responses, and circle it back to the most prominent answer -- budget -- you can identify an appropriate living situation. Consider all these subcategories, beginning with appropriate shelter, and from there consider the side variables that influence your cost of living, and adjust your standards and expenditures from there. 

 

This page was developed from interviews with:

Ike Donleavy, Gordon Kennedy, Colin Miller, Kyle O'Brien, Dolly Nabokov, Irene Lowry

 

 

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