Live Within Your Means

While being interviewed for a television news feature about frugal living and saving money, I realized that despite being fully aware of ways to save, I'm just not doing enough when it comes to saving money. With gas prices rising, and my rent being what it was, I was breaking even at best most months, or covering the prior month's expenditures with my next month's savings.

While that's better than going into debt, it won't get me the things I want to save for - getting my teeth fixed ($10k), laser hair removal ($6k?), a condo/house (an $80k downpayment?), and grad school ($120k?). That's a lot of money I have to save above and beyond the basic emergency fund and other living costs.

As many of you know, my rent was skyrocking up to $1300 this year and while I could pay that with my current income, it would basically cost me my savings plan.

So I left my apartment, without knowing where my next home would be. This month I'm staying with a friend for a measly $350, as she's being so kind to let me crash in her spare bedroom. That's helping me make up a little of what I spent on my vacation in Israel... I spent way too much there, figuring I could make it up when I returned and found a cheaper place to rent. That, indeed, is what I'm going to do.

I found a place that I like, and it has a lot of the features I was looking for. And my rent is going from $1050 to about $670 per month, after utilities (except internet/cable). I'll be splitting the internet & cable bill 3 ways, so instead of it costing me $100 per month, it will be just $30. Total savings, based on last years rent, is about $350 per month, or $3750 per year. Based on the rent I was supposed to pay this year, I'm saving $600 per month, or $7200 per year.

While that's not the $80k I need for the downpayment on a house, or even the $10k to get my teeth fixed, it's a lot better than wasting that money on rent.

My new room is small. I'll be sharing a bathroom. I'll be paying a bit more in gas to actually get places since it's close to a freeway but not that close to work. Biking to work is no longer an option. But the place, for the price, is rather nice. It has a washer and dryer in unit, plus a dishwasher, and a nice community pool. The complex is a mix of owners and renters, so the property is well maintained. The owners of the specific condo that I'm renting are supposedly nice (I haven't met them yet) and haven't even raised the rent in a while - much better than the money-hungry apartment management company that took over my last complex and those $250 a year rent increases!

So... while my savings has depleted itself a bit during the last few months, I'm confident I can make back most of that money within 12 months. Or at least I hope I can. And then the real saving will begin.

An Update on the Little Big Move

I'm moving out of my apartment. This weekend. I'm kind of unhappy about it. But deep down, and not-so deep down, I know it's for the best. Spending about $1300 a month on rent, even with utilities included, even with a job that pays me enough where it's possible, makes no sense at all.

What I need to do is save up for a house. Saving up for a house in this area requires a lot of sacrifice. It might even be logistically impossible. But I want to try.

Next month I'm cutting my "room" costs by staying with a friend. It's just a temporary thing en route to my new, yet-to-be-determined place. I offered to pay her rent, but the most she'll accept is $350. She prob should take more, but I said I'd buy her lots of meals so hopefully at some point I won't feel like I'm jipping her. Add to that about $200 in storage fees, and my monthly rent, at least for July, has been cut in half.

The big question is - how much will I spend on my next real place. There are so many options and - as I'm a bit picky when it comes to (everything) where I live, I find that most of the places I like are going to be pricey. Maybe not the full $1300 my current studio would cost me to stay in, but not far from it.

I've seen a few places so far. The only one I liked at all was a small garage-turned-studio in the back of someone's house, but it was missing one very important thing - a closet. I've got too many clothes to live sans closet. Oh, and it didn't have a stove either. Just a hot plate. But it's not like I really cook all that often (though I plan to) so I guess I could deal without the stove.

Other than one place I tried to check out yesterday (the guy stood me up, hmmph), I've put off looking at places until after I get settled into my friend's house. I'm looking prob for an Aug 1 move-in now, so most of the places haven't been posted yet.

I really wish I had enough money for a down payment right now. There are so many houses on the market around here, it's ridiculous. I went down one street today and within a single block, three houses were for sale. It's nuts!

But instead I'm going to waste more money on rent for the indeterminate future. It's not the end of the world. I just feel like now I should be living in some shit hole and spending very little in order to save my pennies. And by shit-hole I mean "nice shit-hole in the good part of town." Heck, the place I lived in for my first few months here was only $580 a month, utilities included. Of course, I had 3 roommates - 4 if you count the roommates' boyfriend that lived there practically, and for a while there the gal who was supposed to be providing me with "utilities included" wifi decided she didn't want to deal with getting it fixed (uh, and I needed it for my job). But that place was in a really nice area. So these things are possible to find. Maybe not at $580 in the renter's market right now, but maybe something around $800...

I saw one 2br/2ba that was right around the corner from my worth that was going for $850, utilities included. Pretty good deal. The apartment complex had a pool too. But it was kind of run down. And the smell was getting to me.

See, I'm picky.

I can move further south and get something nicer for the same price. If I get a place near the train that'd be ideal. I don't know if I'd sell my car (what would it be worth now that I've banged it up so much driving into inanimate objects?) but I think I'd still save money not paying for gas. It's at $4.70 a gallon around here. Not driving sounds like a really good plan if I want to save any money at all.

It's Official - I'm Moving!

Looking at the lease renewal letter with the $250 rent increase one more time, I decided I really have to move. So I wrote up my 30-days notice letter, turned it into the apartment office, and clenched my teeth knowing that means I'll have one week to move out when I get back after my trip next month.

I think this is for the best. I hope this is for the best. I'll be saving money, anyway. And given that the only way to ever be able to afford property is to live super cheaply now and save, save, save, well, that's what I'm going to have to do. I just hope I can find some place decent to move.

Moving: The Latest On My Decision

I've decided to move.*

(*"decided" in the dictionary of me = decided for today. That could change tomorrow.)

I don't want to live in a super-cheap living space, per say, but there are a lot of big-ticket items I want to buy within the next few years (including cosmetic teeth work and a condo), and spending $1300 a month just means that my dream purchases will not be possible.

I looked at a place for about $960 that I like, but it's a bit out of the way and I feel like if I'm going to move, I might as well try to get something even cheaper than that. I'm not sure how cheap I can go... The $960 place at least has its own bathroom (just a shower, no bath), and anything less than that will undoubtedly be a shared bathroom situation.

There are plenty of random roomshares on Craigslist for about $500-$700, and some of them even include utilities, but the majority of them do not have kitchen "privileges." I don't really understand how using a kitchen can be a privilege, it's not like you're at college with a cafeteria to eat at. Not that I use my kitchen all that much other than to microwave something, but I still think I ought to get a place with a kitchen.

It's looking like I'll just move out at the end of June and look for a place in July. If I do manage to find a place for "cheap" I'm going to really be careful not to overspend throughout the year and instead to really focus on saving. That way I can save up to get my teeth fixed, maybe get some laser hair removal for my face, and finally one day buy a condo.

Ridiculous to Stay, A Pain in the Ass to Go

Ah, it's a beautiful Saturday morning in my lovely studio apartment. The spring air is keeping the room cool - in a few weeks it will be piping hot outside, with the heat somehow collecting in between the walls of my studio.

In the background of my waking state is TLC's "My First Home." A couple is looking for a home in the Bay Area, and they've found one they loved.

Meanwhile, I search Craigslist ads vigorously. It's not that I'll find a place to move today, as my move-in date is July 1 at earliest, but I'm still trying to decide whether to leave my complex for a more affordable option or stay here and deal with a tight budget and less savings.

When I moved in and the studio cost $905 including utilities, it wasn't that much of a jump from the $700 + utilities room share options available on the market. For $100 extra dollars, approx, I could have a place of my own. That was a no brainer.

Then rents went up to $1050 and I decided to stay. It was a shock, surely, but it still seemed like a pretty good deal given my options.

$1300 - is about double what I could be paying for a room share situation. I could even compromise and get a room and bathroom in a 2br/2ba condo apartment for less than the $1300.

Moving is such a pain in the ass, though. I could hypothetically "move" for little cost, if I can get some friends to help. As far as furniture goes, I don't have much. The only large thing I'm sold on keeping is my bed, since I bought that new for a whopping $800 two years ago (I decided after 6 months on a used futon with poor support, I deserved a good night sleep). I have a large bookshelf I got at Target a few months ago and it's really heavy - but it would be a shame to toss that! Other than the bed, bookshelf, and some small tables, I have a piece of crap IKEA coffee table that started to fall apart before I put it together (though it's functional) and a large horizontal dresser that I could part with - I'm not sure anyone would want to buy it, but I'd consider trying to sell it on Craiglist. I have plenty of room in my closet now for my clothes, and I'd hope that wherever I move would have at least this much closet space. Then there's a TV, a printer, a microwave, and other odds and ends. I really don't have that much stuff. It's still a bitch to move, but it's not like I'm moving a house worth of life. It's just whatever I could fit in a studio for the past two years.

Also, having less space might be good for me. It would keep me organized as there wouldn't be places to hide things. Heh.

The downside of getting a roommate is - well - obviously enough to have me living in a studio currently. Noise. Roommate drama. Not being able to cook naked in the kitchen. These things are hard to compromise on. :)

My biggest fear is that I won't find anything I like. I have some cushion. If I decide to move - I'd come back to California around June 20-something, and I'd have that time to finish getting out of my apartment. I'd put my things into storage and move in with my good friend who has offered up her second bedroom. I'll pay her rent, but it will be way less than what it would cost to stay in my studio in August. $1300 versus, maybe $500 or something (plus whatever it costs to put my things in storage for a month.) That will cover the 2 weeks in June that I can't work because I'm going to be in Israel on vacation. Then I can really take some time to find a good living situation.

The real question is, how picky am I? I get anxious in so many living situations. Finally, in this light and airy studio I feel, well, at the very least calm and comfortable. The greenery outside (beyond the parking area) makes me happy. It almost reminds me of home, back east. I love waking up here.

But is it the stupidest thing in the world not to move? If I did move, I'd look for a place ideally that costs less than what I'm paying now, so I could pay under $1000, and I'd put any extra money between that and the $1300 I would be paying for my studio into a special down payment fund. I'm tired of renting, and dealing with yearly rent increases.

I just wish I felt more settled. All of my friends are getting engaged and married. Buying homes. Me? Well, I've been in a relationship for two years. We joke about moving in together one day but we're talking more apartment than house. He's going to grad school in fall 2009, and who knows where I'll be. That's why it really doesn't make sense for me to buy anything right now. Even though the prices for condos in the area are coming down while rents are going up, up, up.

The more I think about it, the more I realize the only logical option is to move. I could be saving $500 a month if I find a place for $800, or $6000 a year. $6000 a year is nothing to shake a stick at. That's a huge chunk of change to go to my downpayment fund. Even if it's $4000 and I get a slightly nicer place, it's still a lot of money.

*sigh* - I just... wish there was an obvious option hitting me on the head. But life is never so black and white.

Is Moving Worth It?

As many of you know, my rent has gone up $400 in the past two years. That, alone, should be enough to get me out of this $1300 a month studio apartment.

But looking at the apartment rental listings on Craigslist, there really isn't much for anything less. And at least this is utilities included for $1300 a month.

Going from $1050 a month to $1300 a month is definitely going to mess up my budget. I finally was making enough to do some serious saving (so that one day I could buy a house, god forbid) and this price increase basically makes that impossible - unless I manage to get a job that pays even better than my current job, which is probably possible, but I love my current job, and it pays pretty well, and I'm so happy working for this company, and I don't want my rent price to control my career.

It's possible I can find a place cheaper. There are studios occasionally on the market for anywhere from $900 to $1200 in the area. By area I mean anywhere from South San Francisco to Sunnyvale. The "SF Peninsula." Silicon Valley. Where the majority of people who live here are engineers making bank, and the rest of us are, well, half-wishing we were engineers.

Getting a roommate seems like the only logical thing to do right now. I don't do well with roommates. Living alone has taken my depression and thrown it out the window. For the most part.

Lucky for me, my friend volunteered her second bedroom as a place for me to live in July. That's very nice of her. I'll pay her rent, of course, and I'll save some money because I won't be paying $1050 or $1300 - what I would be paying if I stay in my current place. I can't stay there forever, but a month will probably be ok. She has a big dog and I don't get along that well with most dogs. But maybe I'll make friends with the dog in July.

So if I decide to move out, I'll pack up most of my stuff before I leave for my trip, and then put all my furniture into storage when I get back at the end of June. In July I'd do my apartment shopping and, fingers crossed, I'd find something decent that's a good amount less than $1300 a month so the entire moving situation was worth it.

Given, I'm somewhat picky about my living space. I like light in my apartment. I work from home most of the time, so I need a place where I can be comfortable working. A place that isn't too small. I get really claustrophobic in teeny tiny studios. My current studio is nice and large. It would be nice to have a balcony or patio. It would be nice to have a second room to make my office, so I could deduct that portion of the rent on my taxes. I'd probably turn the bedroom of a 1br into an office and keep the living room set up as a "studio." I hope the IRS wouldn't mind that I store my clothes in my office closet.

How We Gonna Pay This Year's Rent? - a $250 a month increase!

I knew it was coming. But I didn't know how fast or how hard.

My rent increase letter arrived in my mailbox today. In its perfect off-white envelope adorned with the elegant and harmless-looking apartment complex logo, the contents inside were more like an offer of a boxing match where the mailer was allowed to bring guns and a knife. I would, of course, have to fight bare handed.

When I moved into my quaint Silicon Valley studio apartment two years ago, it cost me $905 a month, utilities included.

Last year, when they bumped the rent up to $1050 a month (still, with utilities included) I was tempted to leave. But around here, I had few options anywhere near as nice. I wanted to live alone - that's part of the problem. Still, other options for studio apartments that are cheaper than $1050 are, maybe, $900, and look more like a closet than an apartment.

Today's letter, I knew, held the answer to my question - will I have to move out this year or can I stay for one more year? The answer... I'm moving out.

The utilities are no longer "included" although they're offering $50 a month extra for them to be "included." That brings the total rent up to $1300 a month to get what I'm getting now for $1050. A $250 increase? Are they out of their minds???

No, they're just raking in the dough while plenty of people are losing their homes and the rental market is getting increasingly more squeezed. When my rent was $905 another company owned the apartment complex, in fact, I think it was family owned, so the rents were always reasonable. Then this big shot property management company came in, decreased the quality of life around here, and upped the rents. Gotta love capitalism and free markets, eh??

So... now I have to figure out what to do. To complicate matters, I'm leaving town for about a month at the end of May into June, which leaves me with about a week when I get back to find a new place.

The good news is that my friend has offered to let me stay with her while I look. So it sounds like I'll be storing my stuff in storage for the summer, living with my friend, and trying to find a decent rental in this painful renters market. I'm almost tempted to look into buying. It seems like a really good time to buy. I'm not sure I'm in the right part of my life right now to buy property, but gosh, if I'm going to really be spending that much of my income on housing, I might as well be putting it into something I'll own in the long run.

So right now I have about $25k for a down payment if I cash out my Roth IRA and all of my savings accounts. Of course that would leave me with no emergency fund - probably not the best idea. Perhaps I could convince my parents to give me a loan for a more enticing down payment, but I'm not sure they even have the money. Well, my dad will have the money in a couple of years when he can access his 401k, but he retired early and the money is apparently somewhat tight right now.

Do any of you think I should look into purchasing property? I'd probably want to buy a 1br condo - it seems to be in poor judgement to buy a studio (as I doubt it's easy to resell a studio.)

There's a lot I have to think about. I didn't expect such a huge rent increase. I thought maybe they'd bring it up to $1200 and I was going to deal with that. But $1300 a month? For a studio? For a fucking studio?

Seriously.

Should I Splurge on an Air Conditioner?

The past two summers in my Silicon Valley studio sans air conditioning have been painful. I can't sleep when it's hot in my room, and boy did it get hot in my room. But, being frugal as I am, I sucked it up and dealt with the heat, only to be consoled by two fans that just blew more hot air in my face.

Every summer I put off buying an air conditioner until it's too late -- all the stores have sold out of the ones that I'd want.

Reasons I Should Buy An Air Conditioner

- It gets so hot in my apartment that I have trouble sleeping in the spring/summertime.
- In my current apartment, my electricity bill is included in my rent, and I don't think there is any rule against using an air conditioner (though they can bill you for "excess electricity usage" whatever that means).
- I work from home 2-3 days a week, and it's difficult to focus when it's so hot.
- Every summer by the time August rolls around I am desperate for an air conditioner, but all the good ones are sold out.

Reasons I Shouldn't Buy An Air Conditioner

- Air conditioners are expensive
- In my current apartment I'd have to get a portable air conditioner since I don't have the right kind of windows for a window air conditioner, and those are even more expensive
- Next year I might move out of this apartment, and likely the next place I get will not be "utilities included" so my electricity bill will go up greatly in the summer, if I move.
- So many people live without air conditioners, even in hotter climates. Do I really need an air conditioner?
- I have no idea what air conditioner I should get, as there are many options and they all seem to be imperfect. The window air conditioners would be nice as they're cheaper, but my windows won't hold them. The portable air conditioners are gigantic and ugly, AND expensive. Like $500 for the cheaper ones.

So... tell me my readers, should I buy an air conditioner for this summer?

Saving for a House... or a Condo?

I've always wanted to save up enough money to buy a house outright, without dealing with paying double for the house because of mortgage rates. I don't like the idea of buying anything piece by piece and paying more for it.

How hard would it be to save up for a condo on my own? Well, pretty hard given the cost of living in the Bay Area, but is it entirely impossible?

I probably should get my rent down quite a bit if this is my goal, for wasting $1050 a month on rent that could be put towards monthly house payments seems to be just as ridiculous as paying interest on a mortgage.

This is the first time in my life (as soon as my raise kicks in) that I feel like I'm making more money than I need. I've always spent too much as it is, but yesterday when I was re-doing my budget I found that I had the luxury of liberally deciding where to place my hundreds of dollars of savings per month.

I feel guilty for making so much, but when it comes down to it $60k after freelancing and working 40 hours a week is not *that huge* of a paycheck. It's certainly more than I ever expected to make, and yet I know people my age making much more. What do they do with all that money? I guess the only thing to do... other than living frivolously... is saving for a house and retirement.

Of course, I'm making $62,400 a year between my 40-hour-a-week gig and my stable 10 hours a month marketing writing job, plus any extra freelance pay I take in over the year... but all that's without any benefits. Last gig I was making $50k plus the $400 a month for the freelance gig, but I had great health benefits at no cost to me. So in the end I think now I'm making just a little more. Plus, I've chosen a crappier health insurance so I'm not spending as much on that as I would had I chosen to stay on COBRA.

In any case, if I keep doing a good job at my current gig, and gee I hope I will, I'll only be looking at raises down the road. Who knows how much... and I'm not sure the marketing writing gig will last forever... but it seems fairly stable (I work for my uncle and write for four different newsletters he designs and sends out each month for his marketing company and the only reason I'd stop writing them is if he loses a client).

I feel overwhelmed with the money I'm making. It's not that much, yet it's way more than I know what to do with. Except I certainly could spend it all at the mall in one day, given a slip into depression and a pick-me-up shopping spree.

Instead, I really want to focus on saving. It's tough seeing my Roth IRA, stocks and mutual funds slipping, but it's nice to have some extra cash to play with. The major question is, where do I put the money? I know they say to max out your Roth first, but that seems kind of silly if you want to go to grad school or buy a house. This year, for instance, I've put $4000 in my Roth, so I have $1000 left to contribute. Next year, though, I'll have less savings up front to dump in my Roth. I've put $7000 in there total for the last two years, I think. It's down to $6800 or something right now.

Meanwhile my CDs, even those with crappy interest rates, are obviously up a few hundred dollars after being locked away for a year.

To buy a house, and to make money off my money, it seems the Roth might be the wrong place to put my money. Of course I want my savings to multiply towards my retirement, and it's nice to think of what the money would do over the years if I max out my account every year... and I don't have a 401k at work or anything, so it's up to me to save my money for retirement.

It's funny, because my boyfriend isn't thinking about any of that yet. Every time I try to tell him to start saving his money in a Roth he gets all defensive and doesn't want to talk about money matters. He thinks I'm being preachy. Meanwhile, I'm just trying to educate. Oh well, he usually isn't so stubborn about things, but when it comes to money he wants to figure it out on his own. Fair enough. I just consider him the man I will one day marry, and if I'm going to have money in retirement and he won't, that will make for one lousy retirement.

Of course, I might die well before retirement (hopefully not) or he might (no!) or maybe we won't get married at all. Life has too many uncertainties to put all my eggs into one tax-free basket. Right?

But still, the question remains... how do I save $500k for a house so I can pay off the house (or at least most of the house) up front?

I really wish I could save $500k and my boyfriend could save $500k and then we'd both buy a $1 million house. How long would it take to save $500k?

If I save $2000 a month, that's $24,000 a year.

So it will take some time. It will take 21 years.

So I could buy a house in 2029 when I'm 45. That seems in poor rational.

But... what if somehow I get a raise and I start saving $3000 a month somehow? That's only 13 years. So I could buy a house in 2021 when I'm 36.

The sad part is that house prices will likely go up by then. Now, and in the next few years during this recession, is the best time to buy. The money I'll end up paying on inflation and such might end up matching what I'd pay on a mortgage.

I don't understand how I could save for a house.

Don't Let Me in a Grocery Store Again, Ever.

Aisles upon aisles of tantalizing packaging torment me until I can't help but spend on edibles that I may or may not need.

How is it that I go into a grocery store planning on picking up eggs, milk, perhaps a few apples and a sweet potato, and leave with a $70 bill?

I'll tell you how...

$2.69: Milk, 1/2 gallon
$4.79: Flaxseed Meal (to try putting in a shake. Or to bake with. If i ever learn how to bake.)
$2.13: two red garnet yams (yum)
$5.99: String cheese (a good snack. i ran out of string cheese a while back. i needed more)
$2.99: bath salts (yea, I know, I don't need these, but... they smell so pretty, and they were only 2.99!)
$14.99: vanilla whey protein powder (i'm experimenting with protein powders. i got a small sample of this brand the other day and liked it. so i decided to buy more.)
$2.91: two pink lady apples (who can resist a pink lady?)
$3.99: figs (they were on sale. They have fiber. They called to me.)
$1.19: one sweet potato (well, my third one, counting the red garnet yams)
$19.99: a strainer. (I needed a new one since I keep burning myself trying to pour hot water when I cook pasta. This one is special. You can boil things in it.)
$2.69: yeast... in case I ever want to use the bread tin I bought the other day.
$2.99: frozen peaches (for a shake?)
$2.89: liquid egg
$2.24: four kiwis (i say a kiwi a day keeps the doctor away.)

________

$72.47
+ CA sales tax of $3.13

Grand Total: $75.60

Gah! I've spent so much money on groceries this month. I'm trying to be good and not go out to lunch and dinner always, but I think I'm actually spending more now that I'm going to the grocery store on a weekly basis. Even though I am eating healthier...

In other quasi food-related news... I bought three shares of McDonald's stock today. My gold ETF is up and my small cap risk is way down. I decided to put $3000 in my Roth IRA for 2008, so when I'm ready for retirement, at least I can say that I tried to be smart and I put in $7000 before I turned 25. I'll see if I can get the other $2000 in sometime over the year. More on that later.

Why Living Alone is Worth Half My Paycheck: Part Two

Over lunch today, I plan to drive to my apartment complex’s office and fill out a form to renew my lease for another year. I’m hesitant to do this, as I know I could be saving upwards of $300 a month if I were to live in a smaller “cozy” studio or perhaps even $500 a month if I could put up with a roommate situation. I might put off signing the lease until tomorrow, but tomorrow is the day my lease officially expires – and, as far as I know, I have until June 8 to agree to sign a new lease under the new terms.

Those terms include a rent-raise of $145 per month. My rent, for my studio, was $905 per month, utilities included (sans cable TV, internet and phone.) Now the price is being bumped up to $1050.

Realistically, I could find another studio for $850 somewhere else on the Peninsula, saving me $200 per month, or $2400 per year. But avoiding having to deal with moving again seems to be worth at least $2400. Besides, I’m still hopeful that at some point in the next year I’ll either get a raise or find a job that pays a little bit more. Most likely it will be the later, since I’m pretty sure my company is going to go under sometime fairly soon.

My rent costs have varied drastically ever since moving into an apartment in college. In Chicago, I shared a 2 bedroom with two other people. I opted for the large, door less living room and used a curtain for privacy. At the time, my parents were paying my rent (thanks mom and dad) but because I was so stingy I’d rather spend less on rent than have a place of my own and spend more. When I moved out to Burlingame, CA, I didn’t have a job – so I knew I needed to find an extremely cheap place. I ended up moving into one small room in a 4br apartment (in a nice location) for $480 a month. It was a pretty good deal, considering rents in the area. But my roommates and I didn’t get along. I was (and am) messy and they were party animals. It was a six month lease under someone else’s name. She also paid for all the utilities and charged the boarders rent. What missed me off most was the month she decided not to pay for the wireless internet (although it was supposedly included in my rent and I needed it for my freelance work and my internship). After the six months, I moved out. I was supposed to move in with one of the girls I had been living with and her friend. We found a 3br in Belmont, CA, that I think was going to be about $500 each per month. We paid our deposit of $500 each. Then, a week later, they all backed out on me. I lost $500. I was not a happy camper. At that point I figured it was worth my sanity to move into a pricey studio.

I’m not sure it’s worth it to pay $1050 a month for a studio when after taxes I take in about $2100 a month. It is, however, worth it to live alone.

I like being around people. Sometimes. But when I come home I just want to kick off my shoes, rip off my clothes, and be naked for the rest of the evening. Seriously. I need that kind of freedom. While I make my own amount of noise (the most noise I make is when I’m singing), I can’t stand other people making noise. And while I’m a bit of a slob, I cannot put up with other people’s mess. I like having ownership of my space. It’s not just about being able to go into a tiny room, close a door and shut myself off from the world. Maybe it would be better if I had a room with my own bathroom. But I like the idea of a studio. I’m even more comfortable in a studio compared to a 1br. My studio is very spacious.



What I like about my apartment:

- the high ceilings and openness
- my neighborhood, even though I don’t take advantage of it.
- Location – I’m really smack dab in the middle of anywhere I’d want to be by about a 40 minutes drive either way. I’m a six minute drive from work.
- a nice pool in my apartment complex… that I used maybe twice last year. I’m
- the utilities are included, so I don’t have to worry about forgetting to pay my monthly bills
- the dressing room hallway/closet. Lets me keep my mess contained if visitors come over.
- The size – there’s room in my place for a futon and a full size bed.
- Privacy. No one knows my name. I come home, I disappear into my apartment. I like being anonymous sometimes. I mean, I’d like to get to know my neighbors, but I also like it that no one there knows who I am
- Onsite maintenance workers that are fairly responsive. No annoying landlord to deal with.
- Carport parking (no worries about finding a spot in the middle of the night)
- Decent street parking availability for guests
- Light-hued carpeting and off-white walls make apartment look even more spacious

What I don’t like about my apartment

- The cost
- That it’s a studio, so if I have a friend stay over there is absolutely no privacy
- It’s not rent controlled. I worry how much the rent will go up next year.
- The building is old. Weird things happen. The paint on my wall seems to have melted off in stripes due to the suns rays coming in through the blinds
- Most of the people who live in the complex are older families. It would be kind of nice to know a few people my age in the gigantic complex, in case I were to have an emergency.
- I’m not close to any “downtown” area. I’m a few blocks from a large shopping mall, but that’s really dangerous when it comes to my spending habits, so I avoid going there as much as possible.
- there’s no outdoor trails to rollerblade on locally, I’d have to drive to a trail to rollerblade, and I’m too lazy to do it.

But, I’ve come to conclusion that I have to live alone. At least until I’m living with someone I’m dating or married to. I think I could deal with that. I might even like it. But I just hate living with strangers. Or even friends. Well, mostly I hate living with strangers. I’ve had the worst experiences in roommate situations. And many of them were my fault. I just can’t deal with sharing my space. Sometimes the awkward situations were not my fault. In college, the second year I lived in my 3br apartment a crazy girl moved in. She was extremely overweight and had a lot of mental issues. I could put up with her, but her boyfriend just drove me crazy. He has some sort of social disorder, which is fine and all, but I felt threatened by him on occasion. Once I was watching TV in the common area and this girl got a phone call so he walked over and turned off the TV without asking me, even though it was obvious I was watching it. So I said “excuse me, I was watching that” and he says (in a very creepy, evil way) “fuck you.” I was so pissed off I walked up to him and said “excuse me, you do not talk to me that way. Do you live here?” I was very proud of myself for my defense, but ultimately the whole occurrence sent me into depression for a few weeks.

It’s just I have such anxiety when it comes to dealing with other people. I honestly feel like there has been this huge weight lifted off my chest ever since moving into my own place and getting my car for transportation freedom. All of that costs a fortune, but I think it’s worth my sanity.

Besides, I save money on not needing therapy.

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RENT $ HISTORY

$450 (utilities not included): Chicago (Lincoln Park) “living room” in 2br apartment.
$800 (all utilities included): Washington, D.C. (SW) room sublet in a house.
$? (internship paid for housing): Berkeley, CA (room in 3br apartment)
$480 (all utilities included): Burlingame, CA (room in 4br apartment)
$905 (most utilities included): San Mateo, CA (studio)
$1050 (most utilities included): San Mateo, CA (same studio after rent increase)

Why Living Alone is Worth 50 Percent of My Paycheck: Part One

According to the recommended budget split, I hear you’re supposed to spend 20 to 30 percent of your income on housing. After my rent increase next month, I’ll have hit 50 percent. As I’ve pointed out before, my rent is now $1050 a month for a studio apartment. Before you gasp in horror, take note that the hefty fee also includes PG&E, water, and garbage, and access to a swimming pool.

Still, living in The Bay Area is painfully expensive. Out of curiosity, I went on Craigslist to see what $1050 would get me in various locations of the country…

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SAN FRANCISCO

$1025 Quiet Studio with Beautiful Floors and Remodeled Bathroom (downtown / civic / van ness)
This gorgeous apartment has hardwood floors throughout, fresh paint, a lovely remodeled bathroom, and a walk-in closet. Located at the back of the building, this apartment is perfect for someone who enjoys peace and quiet.

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$1050 Bright, Spacious Studio *Completely Remodeled* OPEN HOUSE. (downtown / civic / van ness)
High ceilings and large windows make this a bright, beautiful, spacious studio. Completely remodeled with fresh paint throughout and has refinished hardwood floors. There is a walk-in closet, too. A separate large eat-in kitchen has plenty of room for a table. The building is centrally located, with great public transportation options, just a block from the Van Ness corridor. There is an elevator and a large laundry room in the basement with coin operated washers/dryers. Sorry, we do not allow pets. There is a resident manager on site and the building is professionally managed. The required deposit is $1150.00


NEW YORK

$1050 HUGE 2 ROOM STUDIO BY A/D EXPRESS BIG KIT-FRENCH DOORS + PARK VIEWS!! (Harlem / Morningside)

RENOVATED PRE-WAR 2 ROOM STUDIO - BIGGER THAN MANY HARLEM 1 BEDS
GLASS FRENCH DOORS! EAT-IN-KITCHEN!
THIS GREAT APARTMENT IS A FEW SHORT BLOCKS TO THE EXPRESS SUBWAY A/C/D AND CONVENIENT TO ALL
THIS APARTMENT FEATURES -
GLEAMING OAK HARDWOOD FLOORS
CERAMIC TILED EAT IN KITCHEN - BIG ENOUGH FOR A TABLE AND CHAIRS OR OFFICE SET UP
MODERN RENOVATED WINDOWED EAT-IN-KITCHEN WITH COUNTERSPACE!!!
A HUGE DOUBLE CLOSET AND STORAGE ABOVE
A WINDOWED BATHROOM WITH A ENAMELED PORCELIAN TUB
AND LIGHT!! IT'S SUNNY AND BRIGHT WITH PARK VIEWS!!

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CHICAGO

$1000 / 1br - Gr8 Price & Location☺Rehabbed☺FREE Heat, Gas, Water☺No Dep Super location! Super price with lots of savings with free heat, gas & water!!! Plus everything has been rehabbed.. Check out the stats: • It’s a new rehab. • It’s a great price!! Heat, water AND gas is included in rent, and there is NO security deposit!! • It’s a bright unit located in a courtyard building w/ fruits trees!! • It’s in a great location… Lakeview… walking distance to Wrigleyville, Lake front, gyms, restaurants and Lake!!! • VERY EZ access to CTA (bus and el)!! • It’s a REHABBED 1 bedroom about 500-600 sq ft. That means everything has been recently rehabbed!! New kitchen, new appliances including dishwasher, new hardwood floors throughout, new electric service, new dry-wall, new bathroom, new vanity. • Also, there is laundry & bike storage in building. • Cats and small dogs (30 lbs or less) allowed • Cable and internet ready. • 24/7 maintenance.


$1045 / 1br - GET A JUMP START...............for August. Make sure you have a look at our building as part of your search. You will find a gorgeous vintage high rise across the street from the park, several blocks to the lake & Zoo, by boutiques, restaurants, bus stops, grocery. 24 Hour doorman, hardwood floors, fitness room, laundry facility, heat included, no security deposit. Call 773.477.7000 for an appointment. 401 W. Fullerton.

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What can you get for $1000-$1050 a month's rent in your neck of the woods? I'm planning on following up with a post tomorrow to explain why I spend 50 percent of my rent on living alone, and why I'm damned happy I do it.

PF Jitters

My $6000 was officially transferred from the safety of my Maximizer checking account into my IRA and Mutual Fund investment accounts. I’m excited about taking the investment leap myself, but nervous as all hell that the leap might be futile, or worse. I’m pretty comfortable with the $3000 I put to my Roth IRA. It’s in a nice Retirement 2050 plan that’s already diversified with my retirement date in mind. And since Vanguard seems to be a pretty reputable company, I’m not too worried. However, the $3000 I put towards that Mid-Cap Growth Index Fund is probably a bad idea.

As of 10:25am, my $3000 in my mutual fund is down 5 cents, and my $3000 in my IRA is up 3 cents. Why is a 2-cent loss making me so god-damn nervous? And furthermore, why is my Mutual Fund down 5 cents when looking at the day’s activity in the fund, it should be up a bit? I’m rather confused right now. Maybe it dropped down the second I put my money in. I know I’m going to be anal about checking how the fund is doing, despite that I’m going to try to force myself to keep my money in there for a few years (until grad school) unless someone more knowledgeable than me advises me otherwise.

I’m kind of glad I’m prohibited from getting involved in the nitty gritty of stock trading (due to covering technology companies that I’d like want to invest in), so I’ll likely avoid making any major investment mistakes. Still, putting $3000 in an account that could drop down to $2000 in a few days makes me rather nervous. I mean, the largest investment I’ve ever made with my money thus far was that godawful CD with a 3.1 % interest rate. I put $7000 into that a few months after I got out of college. It seemed like the wise thing to do at the time. It was an 18-month CD, and I figured since I had upwards of $30k in savings somehow, I could spare $7000 for such a “risky” investment. Well, it felt risky at the time.

Sadly enough, I didn’t bother to call my bank when the CD matured, thinking that it would just automatically transfer to my checking or savings account and I could deal with it then. Of course, now I know that CD’s automatically reinvest themselves at the same rate, for the same amount of time. So now I have my $7000 (which is at about $7400 after gaining the 18 months of Interest, which I guess is better than nothing) tied up in this low-interest CD. Meanwhile I recently saw an ad on Bank of America for an 8-month 5.01 % CD and I threw $5000 at that. For some reason they haven’t processed my CD investment yet, though. I guess I have to call them and confirm some things before they can pull my money from my checking account and put it in the CD.

In more exciting news, since last weekend I’ve made $1.57 since enrolling in BankofAmerica’s “Keep the Change” program. It’s kind of neat – every time you use your debit card, they roll your spending cost up to the nearest dollar and deposit the difference in your bank account. So, for instance, if you spend $1.01, they’ll toss in 99 cents. Of course, most purchases end up being, like, $2.92, so in that case you only get 8 cents. But over the course of one week and eight transactions, I’ve afforded myself a small coffee. I also apparently racked up $2.46 in my AdSense account somehow. I guess that means people are actually reading my page. That’s exciting! Extra income, even $4 a week, is certainly helpful. I’m nervous about this AdSense account thing, though. I’ve read some horror stories about how Google has shut down accounts if you click on your own links. And it’s not like I’m going to do it on purpose, but sometimes I’m not thinking and I’m actually interested in an advertisement shown on my page. I’ve never had to restrict myself from clicking something. So hopefully I can restrain myself.

On another note, I’m saving some money this month because I’ve offered a friend who’s recently moved to the area a place to crash until she finds a place. I wasn’t going to make her pay anything, but since she offered I figured I’d split my rent and pro-rate it. So that comes out to $15 a day. And I’m also possibly designing some websites for my friends for a rather small fee (compared to my normal rate.) But I never count my freelance money as income. It’s always “extra,” although in actually due to my poor spending habits and inability to keep a budget, I’m lucky if my freelance wages cover all the cash I’ve spent in a month.

So salary-wise, make about $2200 a month after taxes. (Though this year I ended up owing a lot in taxes and I haven’t done anything with the W4, so I’m figuring I make about $2100 a month, really. $905 of that goes to rent & utilities (PG&E, water, trash, etc are “included” in my rent). Oh, what the hell, here’s a list of my basic fixed monthly costs:

$905 -- Rent (includes utilities) – Going up to $1050 per month in July, plus requiring renter’s insurance.
$60 – Verizon Cell Phone Bill, if I remember to pay it on time and don’t use 411, etc.
$64 – RCN TV & Internet
$8 – the converter box from RCN that I’ve yet to find time to return, that I’m apparently “renting” on a monthly basis
$5 – RCN “Home networking” – on my RCN bill, but I have no idea what this is. WTF?
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$1038 total for now
$1188 + whatever rent’s insurance costs in July.

Now, time for some depressing figures…

My spending on rent currently is 45 percent of my income (you’re only supposed to spend 20-30 percent of your income on rent, I hear.) In July, sans a raise (and I doubt I’m getting a raise anytime soon) I’ll be spending 50 percent (or more) of my income on rent.

It doesn’t take a personal finance blogger to tell me that’s a terrible idea.

I’ve been thinking about writing a post about why on earth I live alone in the SF Bay Area on $35k a year, so I think I’ll write that up over my lunch break later this afternoon.

In any case, with $1050 left for all the other things in life outside of basic housing, TV, Internet and phone, I just keep overspending. It doesn’t help matters that I’m spending upwards of $350 a month in gas to get to my various rehearsals that are 40 or so miles from my home (my “hobby” is doing community theater – which is free, outside of gas mileage and makeup for shows and the like.)

But hey, at least I made $1.57 in “keep the cents” change. Then again, Bank of America, for some reason, has that $1.57 noted as a “spend” in my checking account. So I’m down $1.57 for the time being. What’s up with that? Grr.