Budgeting money?! Oh no!!

[LittleDarlings]

This week I talked with the financial advisor about school and my payment options. I found out that my fellowship is for tuition only like it goes directly to tuition which is still great and amazing and I'm so thankful for it! However this means I will still need to take out loans, the problem is I have no idea how much. I am 100% moving out. I need to, I need to get myself together and become a more independent and mature person. While I know it will be more economical to stay home and commute, I just don't think that is best for my mental state lol. I am looking at places about a half hour from campus maybe less. I don't know that I will have a roommate, my friend and I talked about it but she said she loves living alone and I really want to live alone I think. Anyways I really don't want to take out much in loans because I don't want to have to pay back millions lol! My financial advisor said that I will have to pay for books, health insurance (I have health insurance so why do I need theirs? On average how much is theirs?), I will still have a car note even though I am going to try to save up and pay my car off with my job money, I will need furnature for my place, food, gas, rent, and having free money would be nice. I do get a 650 dollar monthly stipend which is great, but how much should I take out? I mean I hoped 20,000 for both years would be good but I don't know. I am just looking for some hints, some ways to find things cheaper or budget or any advice to help me figure out how much to take out. I can live frugally I have done it and still do it but I also need to have money to cover all my expenses.

[dstock]

You need to make a list of all your expenses, and estimate how much they will cost per month.  It is really variable per person how much each expense costs.

 

Monthly Bills/pay every month:

Rent

Utilities (Electric, heat, etc)

Internet

Phone

Car Payment

Car Insurance

Gas (esp if you are commuting up to 30min twice per day- will add up)

Parking at school

Groceries/household items/toiletries

Laundry $

Restaurants/drinks

 

 

Not really monthly but need to budget for:

School supplies, books etc.

Clothing

Medical appointments/perscriptions

Dental costs

Haircuts etc

Any travel

Car maintenance

Have a little extra money for anything unexpected: broken computer, etc.

 

If you're moving out, you have some higher up front costs to furnish the apartment.  When I moved out I got a bunch of old kitchenware from family.  Furniture can be found on the side of the road haha. 

 

Health insurance at my school costs 3k per year.  Maybe you can stay on your parents insurance?

 

 

Taking out less loans now will make your life better later!!!!

[LittleDarlings]

You need to make a list of all your expenses, and estimate how much they will cost per month.  It is really variable per person how much each expense costs.

 

Monthly Bills/pay every month:

Rent

Utilities (Electric, heat, etc)

Internet

Phone

Car Payment

Car Insurance

Gas (esp if you are commuting up to 30min twice per day- will add up)

Parking at school

Groceries/household items/toiletries

Laundry $

Restaurants/drinks

 

 

Not really monthly but need to budget for:

School supplies, books etc.

Clothing

Medical appointments/perscriptions

Dental costs

Haircuts etc

Any travel

Car maintenance

Have a little extra money for anything unexpected: broken computer, etc.

 

If you're moving out, you have some higher up front costs to furnish the apartment.  When I moved out I got a bunch of old kitchenware from family.  Furniture can be found on the side of the road haha. 

 

Health insurance at my school costs 3k per year.  Maybe you can stay on your parents insurance?

 

 

Taking out less loans now will make your life better later!!!!

If I am on my parent insurance I don't have to take their insurance? That is good because I am still covered under my mom's until I'm 26.  I am definitely looking for cheap furniture on like CL and stuff lol I need to make a spread sheet to figure out how much I will be spending monthly

[Munashi]

If I am on my parent insurance I don't have to take their insurance? That is good because I am still covered under my mom's until I'm 26.

 

Check in with the school about this for sure.  I suppose it might vary by program, but you should be able to get a waiver if you can prove you already have health insurance coverage (I did this for part of my time in undergrad).  This would save you a few thousand bucks per year until you come off of your parents' insurance.

[dstock]

If I am on my parent insurance I don't have to take their insurance?

 

Call them and ask them this question. 

[TakeruK]

Many of my grad student friends who are under 26 and not married are still on their parents' health insurance! I think most schools will allow students to opt out of their coverage if they can show equivalent coverage with their parents' (or spouse's) plans!

[stella_ella]

dstock gave a good list. I've added my expenses breakdown:

 

Monthly Bills/pay every month:

Rent                                                                                                          $850 (I share a 2 bedroom apartment with one other roommate. She's awesome)

Utilities (Electric, heat, etc)                                                                        0 (included with my rent... yayy!)

Internet                                                                                                      45

Cell Phone (who uses landline these days?)                                             50

Car Payment                                                                                              0 (Don't have a car. Choose a place with better location instead)

Car Insurance                                                                                            0

Gas (esp if you are commuting up to 30min twice per day- will add up)     0 (see? this is why you can should go without a car!)

Parking at school                                                                                       0

Groceries/household items/toiletries                                                          300

Laundry $                                                                                                   4 (I wash my clothes once a month, but I have a lot of clothes, so I can afford to do this)

Restaurants/drinks                                                                                     200

Transportation (i.e., bus fare)                                                                    0    (already included in my grad tuition)       

                                                                                                                $1,449

 

Not really monthly but need to budget for:

School supplies, books etc.                                                                      $600/ 8 months =                                                                                  $75/month

Clothing                                                                                                    $300/4 months? =                                                                                 $75/month

Medical appointments/perscriptions                                                          $25 (mostly covered by my grad student health and dental plan)         $25/month

Dental costs                                                                                              $0 see above         

Haircuts etc                                                                                               $40 every 6 months=                                                                    approx $7/month

Any travel                                                                                                  $3,000/ year (go big or go home)=                                                         $250/month

Car maintenance                                                                                       $0

Have a little extra money for anything unexpected: broken computer, etc. $100/month                                                                                           $100/month

                                                                                                                                                                                                  Total incidental fees: $507/month

 

Grand total/month: $1,956/month

 

As you can see, it should be cheaper to go without a car for as long as possible, or until you get a raise! Also, you can be more environmentally friendly by walking/riding a bike!

[St Andrews Lynx]

A roommate will save you a lot of money. 

I bet there are plenty of individuals out there who are "would prefer to be alone" roommates (but are sharing apartments to save money). Those roommates are good about respecting privacy, minimising drama, keeping quiet and demonstrating a certain amount of maturity - I'd prefer one of those over the "Want to be BFFs with me" kind. 

[juilletmercredi]

So two things about your housing options:

I'm assuming that you are headed to an MA program.  It sounds like you have a $650 monthly stipend.  Unless you have a negative relationship with your parents and you have to move away for that, I would strongly recommend living at home for the two years.  If you get along with your parents just fine, they treat you like an adult, and you just want to move out because you want to move out...I really recommend that you try living at home at least for the first year.  You can "get yourself together," become an independent and mature person without moving out - paying rent doesn't make you independent and mature.  It's the life choices that you make and the kinds of things you do that create that change.  You can do it regardless of where you're living.  By living at home not only do you save on rent but all the furniture you'd have to buy for a new place.  If you live at home that $650/month stipend should be more than enough to get by without rent.

 

Two.  If you decide that you absolutely need to move out for whatever reason, please be practical and get a roommate.  Yes, sure, it's great to live alone - a lot of people would prefer to live alone.  But you're going to be in school.  The point is to be as frugal as possible while you finish your education, and sometimes that requires making sacrifices.  If you really don't want to take out that much in loans, the BEST way to do that is to live at home, but the second best way to do that is to share an apartment with a roommate or two.  I've had some great roommates over my years in college and grad school.  I'm still friends with all of them.  For the most part, your roommates leave you alone - they have their own lives to live, too.  And if you room with another grad student or young professional, they will be busy and studious and ambitious as well.  Me and my roommates hung out occasionally, but for the most part we just shared space and were friendly with each other.

 

If you plan to move out and you are getting $650/month for 9 months, then that's about $6,000.  This entirely depends on where you live, but I would say that $20,000 for both years probably won't be enough.  I go to school in NYC so my estimates are completely skewed, but I lived on $2200/month after taxes and I felt like money was tight, although I was pretty comfortable as long as I watched myself.  I'm from Atlanta, which is a more medium cost of living area - where you can rent an one-bedroom apartment in the suburbs for like $800/month - and I still think I'd want around $2000/month just to be safe and comfortable.  So that's about $24,000 a year.  If you subtract the almost $6,000 stipend you've been awarded (again, assuming 9 months) that means you should borrow about $18,000 per year, or about $36,000 total.  But again, that's largely dependent on where you live.

[the_sheath]

Regarding your parents' insurance:

 

Make sure you can actually use it wherever it is that you're going. Certain insurance companies aren't contracted in a lot of places out of state or in a different area of the state (unless on an emergency basis), so if you end up attempting to use it, you may find yourself with a bill of several thousand dollars. I work in healthcare, and know full well that there is a possibility that you can be seen and have procedures done with this sort of thing going unnoticed. Your program/school may not be the place to contact about this.

[LittleDarlings]

Regarding your parents' insurance:

 

Make sure you can actually use it wherever it is that you're going. Certain insurance companies aren't contracted in a lot of places out of state or in a different area of the state (unless on an emergency basis), so if you end up attempting to use it, you may find yourself with a bill of several thousand dollars. I work in healthcare, and know full well that there is a possibility that you can be seen and have procedures done with this sort of thing going unnoticed. Your program/school may not be the place to contact about this.

Didn't think about that. I am going to school about an hour from home so if I got sick I would likely go to my doctor at home (well not at home but near home). I could still call and find out.

[LittleDarlings]

So two things about your housing options:

I'm assuming that you are headed to an MA program.  It sounds like you have a $650 monthly stipend.  Unless you have a negative relationship with your parents and you have to move away for that, I would strongly recommend living at home for the two years.  If you get along with your parents just fine, they treat you like an adult, and you just want to move out because you want to move out...I really recommend that you try living at home at least for the first year.  You can "get yourself together," become an independent and mature person without moving out - paying rent doesn't make you independent and mature.  It's the life choices that you make and the kinds of things you do that create that change.  You can do it regardless of where you're living.  By living at home not only do you save on rent but all the furniture you'd have to buy for a new place.  If you live at home that $650/month stipend should be more than enough to get by without rent.

 

Two.  If you decide that you absolutely need to move out for whatever reason, please be practical and get a roommate.  Yes, sure, it's great to live alone - a lot of people would prefer to live alone.  But you're going to be in school.  The point is to be as frugal as possible while you finish your education, and sometimes that requires making sacrifices.  If you really don't want to take out that much in loans, the BEST way to do that is to live at home, but the second best way to do that is to share an apartment with a roommate or two.  I've had some great roommates over my years in college and grad school.  I'm still friends with all of them.  For the most part, your roommates leave you alone - they have their own lives to live, too.  And if you room with another grad student or young professional, they will be busy and studious and ambitious as well.  Me and my roommates hung out occasionally, but for the most part we just shared space and were friendly with each other.

 

If you plan to move out and you are getting $650/month for 9 months, then that's about $6,000.  This entirely depends on where you live, but I would say that $20,000 for both years probably won't be enough.  I go to school in NYC so my estimates are completely skewed, but I lived on $2200/month after taxes and I felt like money was tight, although I was pretty comfortable as long as I watched myself.  I'm from Atlanta, which is a more medium cost of living area - where you can rent an one-bedroom apartment in the suburbs for like $800/month - and I still think I'd want around $2000/month just to be safe and comfortable.  So that's about $24,000 a year.  If you subtract the almost $6,000 stipend you've been awarded (again, assuming 9 months) that means you should borrow about $18,000 per year, or about $36,000 total.  But again, that's largely dependent on where you live.

I live about an hour from the school I'm attending, I feel like that is kind of a far drive. See here is where I'm getting worried/confused. Classes are 2 days a week, field placement is 3 days. Some of the FP options are close to my house. One of the ones I am really interested in is about 30 mins south of my hometown where as the school is an hour north. So staying at home would be good because I would be between both places. I am just confused about what to do, I mean everyone said they feel they matured while living away from home and I never got that experience. I don't want to be like 26 still living at home, that poses problems with my social life and maturing. Also I would probably be spending a ton in gas. I really can't decide. Hopefully my school will be making a FB page and I can try to find a roommate it would save me money to live at home though. I would be taking out much less in loans probably just enough to cover books. Which would be maybe 2-3 for both years. I could also try to work part time like as a hostess or a receptionist part time! Even maybe on campus.

[nugget]

If your program is anything like mine, half of it is comprised of internships. During 60% of the program, we only need to be at school once a week and the rest of the time we are at our placements. 

 

I see where you're coming from, wanting to be on your own and wanting to become more independent, but there is a high financial cost to this decision. I wonder if there is some sort of compromise that you could make.... Here are a couple of ideas that come to mind...

 

- Could you work or volunteer overseas this upcoming summer and next summer and live at home the rest of the time? If you spend some time in a 3rd world country, for instance, I guarantee you that this experience will be eye-opening and will lead to personal growth in some sort of way.

 

- What about living on your own for part of the time and not the entire 2 years? ie: 2nd year only or during semesters you have class only and are not on placement

 

The good thing is that your program is only 2 years so you will be able to move out permanently after you're done school and get your first job in the field. 

 

 

I live about an hour from the school I'm attending, I feel like that is kind of a far drive. See here is where I'm getting worried/confused. Classes are 2 days a week, field placement is 3 days. Some of the FP options are close to my house. One of the ones I am really interested in is about 30 mins south of my hometown where as the school is an hour north. So staying at home would be good because I would be between both places. I am just confused about what to do, I mean everyone said they feel they matured while living away from home and I never got that experience. I don't want to be like 26 still living at home, that poses problems with my social life and maturing. Also I would probably be spending a ton in gas. I really can't decide. Hopefully my school will be making a FB page and I can try to find a roommate it would save me money to live at home though. I would be taking out much less in loans probably just enough to cover books. Which would be maybe 2-3 for both years. I could also try to work part time like as a hostess or a receptionist part time! Even maybe on campus.

Edited April 13, 2014 by jenste

[LittleDarlings]

If your program is anything like mine, half of it is comprised of internships. During 60% of the program, we only need to be at school once a week and the rest of the time we are at our placements. 

 

I see where you're coming from, wanting to be on your own and wanting to become more independent, but there is a high financial cost to this decision. I wonder if there is some sort of compromise that you could make.... Here are a couple of ideas that come to mind...

 

- Could you work or volunteer overseas this upcoming summer and next summer and live at home the rest of the time? If you spend some time in a 3rd world country, for instance, I guarantee you that this experience will be eye-opening and will lead to personal growth in some sort of way.

 

- What about living on your own for part of the time and not the entire 2 years? ie: 2nd year only or during semesters you have class only and are not on placement

 

The good thing is that your program is only 2 years so you will be able to move out permanently after you're done school and get your first job in the field. 

That is true, I could always try out the first year at home and then see how it goes then move out.  Hey once I finish the 2 year program I have been thinking a lot about moving a few hours away or out of state (if I find a job in one of the places I would like to live) and so I guess you're right, it isn't like I will be forever at home.

[nugget]

This might be helpful in giving you an idea of what sort of expenses are involved.

 

http://www.case.edu/newstudents/tuition.html

Edited April 13, 2014 by jenste

[themmases]

With regard to your insurance, your mom should also check the terms of her own policy. Many employer-provided health plans have three tiers of coverage: employee only, employee + spouse, and employee + family. If your mother's plan is like this and she's also paying to cover other family members, you may be covered on her plan even if you get your own through the school, because there would be no way to remove you. It's especially important to avoid the school health insurance if that's the case for your family, because you'd essentially be paying to get double covered. I know because I did this in my first job, mistakenly believing I could save my parents money by getting my own insurance.

 

I have never heard of a school that forced students to use their insurance if students had their own, unless perhaps it was considered part of the compensation for a fellowship or assistantship. Since you were told you'd need to budget to pay for it, it sounds like that's not the case here.

 

I can certainly relate to feeling you need to move out, and I think some things about managing your own household, like setting up and planning to pay rent/bills, are an important part of growing up. They also help you get a realistic idea of what you need to live when you are job searching. However, one big benefit of doing this stuff yourself is it helps you learn to avoid unneccesary debt. I wouldn't borrow to move out unless I had some reason to believe I could do it very cheaply-- a roommate could be that reason. And if you'll still need a car even if you move, I wouldn't do it at all.