How much is safe to spend on rent? (to live, restaurants)

[eastontracks]

if i were you, id prob go for something in midtown, heights, or upper kirby up to 1500. if you wanted to room with someone and get an even better place, maybe get a 2br for 2500? i wouldnt do this forever though, maybe a year or two to really have fun and experience the city. especially being single, and no debts. why not? im guessing your income will be at least 4500 a month?

i think of it in terms of spending up to 1500 to have nice amenities, and living in a desirable area that youll enjoy.

[kfer]

Save, save, save...that should be your mantra. You're green out of school with zero experience, the company that hired you will quickly lay you off since they have little vested in you and there's little you can offer them. Your only line of defense is to build emergency savings as quick as you can. A layoff is always around the corner....keep that in mind.

After you pay SS, medicare, Federal Tax, health, dental, vision, 401k you'll be left with probably 70% of your gross pay. I would use an extended stay hotel for the first 3 to 6 months until I get familiar with the company (and they decide to keep me) and Houston. At work inquire about who's looking for a roommate. Living alone in a decent apartment is a luxury you can't afford right out of school...just my opinion.

[tc1209]

I was in your situation about 3 years ago. New to Houston, only a knew a handfull of people here. Renting in Houston three years ago was a lot different than what it is now. I looked at a whole lot of places and just three years ago those apts renting for 1300-1600 now, were renting for 1000-1300. I'm cheap and didnt even want to pay that, so I went with an older complex that is inside the loop near the galleria and, more importantly to me, was close to Memorial Park. I rented at Tree Tops at Post Oak for $830 a month. It was awesome, except teh crowd is older and I was new to Houston. Working at a small company with not that many people your age to meet and living in a smaller complex with not many people your age is not the ideal way to meet new friends. I'm assuming by accounting firm, you mean big four which would mean you will be meeting and working with tons of people your age and lots of after work company sponsored social events. So for you a smaller, older, secured complex that usually tends to be cheaper than the brand new apartments with all the amentities may be a viable option. After Tree Tops at Post Oak i rented a house with a couple of friends which was awesome, once that rental period was up though I went back apartment hunting and the same apartment I was in at Tree Tops was now renting fro $1,050. Thats two years after I signed my original lease at $830. For those keepong score thats 25% increase in two years. At this point I realized it was time to buy since I had saved up enough cash and could afford it and could get firends to rent a bedroom and therefore pay a majority of my mortgage.

by the way, Assuming you contribute 5% toward 401k, a biweekly paycheck @65k wil net you about $1,850. $1850*26paychecks=$48,100 net annual pay
$48100/12months=$4,008
$4,008*.33=$1,322 a month for rent. <- For me this is my max and I like to be closer to 28% of my take home pay. which on your salary is closer to $1,100. save that extra $222 a month and put it towards your next trip. All these posts about save, save, save for a rainy day fund are all good and important, but you're young, have fun. but be smart.

[lostboii]

Originally Posted by statisticsnerd

I spend $800/month on rent and live about 20 miles outside of Houston, in the Clear Lake area.

Brand new complex, gated, no problem neighbors. Is saving 20 miles of driving worth an additional $500-$800/month to live downtown?

yea if u like to drink even occasionally. extra money is worth for never ever having to worry about possible dui's

[wallawallahoohoo]

A lot of the newer complexes that are geared towards young professionals will be around $1500 give or take a couple hundred. What is your financial goal, e.g. how much do you want to save by when? Do you want to save for a big purchase (car, etc.)

[hellpaso]

Originally Posted by kfer

Save, save, save...that should be your mantra. You're green out of school with zero experience, the company that hired you will quickly lay you off since they have little vested in you and there's little you can offer them. Your only line of defense is to build emergency savings as quick as you can. A layoff is always around the corner....keep that in mind.

After you pay SS, medicare, Federal Tax, health, dental, vision, 401k you'll be left with probably 70% of your gross pay. I would use an extended stay hotel for the first 3 to 6 months until I get familiar with the company (and they decide to keep me) and Houston. At work inquire about who's looking for a roommate. Living alone in a decent apartment is a luxury you can't afford right out of school...just my opinion.

I agree. And please don't be insulted, but 65k is not a huge salary--especially in a big city.

[zeroka]

65K in texas taxed as single: $4,040.32 / month.
Account for health insurance which you will pay and deduct (based on option chosen from employer)

rough budget:
4040 net wage
(140) health+dental+vision insurance
(850) rent
(150) utilities
(1000) nice car + gasoline + insurance
(500) food + partying
1400 remains still to spend

[nilkn]

Originally Posted by statisticsnerd

I spend $800/month on rent and live about 20 miles outside of Houston, in the Clear Lake area.

Brand new complex, gated, no problem neighbors. Is saving 20 miles of driving worth an additional $500-$800/month to live downtown?

The market always speaks for itself. The rent wouldn't be higher downtown if it wasn't worth it to those paying the extra rent.

@OP:

http://www.adp.com/tools-and-resourc...alculator.aspx

That calculator will tell you exactly what your take-home pay will be. I can attest that it's accurate.

$1300/month on rent is probably fine on $65k provided you're not one of those people who blows a ton of money on their car, etc. Live a reasonable life, have some fun, but practice basic principles of personal finance and frugality and you should save at least $2k/month given that you have no loans. In zeroka's post, for instance, if you replaced that $1k/month on the car with $250, that's an extra $750 a month of savings, pushing your savings rate past $2100/month. It's well-known that Houstonians spend a significant portion of their income on their cars--don't do this if you care about good finances. It is not a wise way to spend money when you're just getting started and need to start building a nest egg. Save the fancy cars as a reward when you're older and have the money to spare.

Also, consider getting a place where you can walk/jog to work. Not only does this keep car expenses low, but it's a great lifestyle improvement IMHO. And it's a luxury you'll probably never again be able to enjoy if you settle down with a family in a few years with a house.

Finally, consider getting a roommate. I make a fair bit more than you and still have a roommate, so I currently pay only $975/month in rent at a very nice apartment and also split all utilities.

[Tcoma11]

Originally Posted by zeroka

65K in texas taxed as single: $4,040.32 / month.
Account for health insurance which you will pay and deduct (based on option chosen from employer)

rough budget:
4040 net wage
(140) health+dental+vision insurance
(850) rent
(150) utilities
(1000) nice car + gasoline + insurance
(500) food + partying
1400 remains still to spend

Wow, you're living it up... $500 for partying, ....damn!! baller.

[tc1209]

Originally Posted by Tcoma11

Wow, you're living it up... $500 for partying, ....damn!! baller.

I think partying is a smaller portion of that $500. Please note the word "food" preceding "partying". Food...essential for life. Youre comment should be more along the lines of.... "Wow, youre interested in continuing your life...$500 for food, ...probably the average for a single male!! human."