Budget Help!!!!! (pay, rent, rates, credit)

[time4help]

I'm a recent graduate and I am starting my first real job in a few weeks.

I'm in the very early stages of trying to develop a budget, pay off debt, and plan for retirement. I'm completely clueless, despite majoring in economics, and I could really use some help!

Income: 45K

Debt:
Student loans (57k)
Car 1 (4k) - market value = 6K
Car 2 (5.5k) - market value = 8K
No Credit Card Debt

Monthly Expenses (actual):
Phone: 70
Car 1: 160
Car 2: 260
Insurance 1: 100
Insurance 2: 100
Food: $200
Gas: $200
Rent/Utilities/Parking: $200

My questions:
My employer will give a 2500 housing stipend if I move downtown (close to my work), which will allow me to reduce my gas bill significantly. How much should I look to spend on rent if I make this move?! The stipend will basically reduce rent by $208 a month.

FYI - I'm going to sell car #2, which will eliminate car and insurance payment.

Finally, pretty much all my information is out there, any input would be appreciated!

[PokerMunkee]

Under $7/day for food seems a bit low to me, especially after you figure in going out on most Fridays and Saturdays.

Where are you currently living for $200/month? If living with parents/roomates, I'd spend the bucks and get your own place. Depending on the city, rent will easilly be over a $1,000/month in a downtown location that is safe.

If your employer offers 401k match, make sure you take advantage of that.

How much are your student loans going to be a month? $57K is depressing, hopefully the interest is minimal.

[Billy_J]

In general...

The bills come first with my budget. What is left over is for optional things.

Look at monthly interest charges you have. Pay off the highest interest loans first.

And calculate how much per month you are paying in interest. That is money which is going out the window!

Then I try to think of ways to reduce my monthly expenses if possible. Maybe just heat/cool one room of the house instead of the entire house. Shop around for car insurance - as you get older, the rates go down - switching companies can reduce the rates.

I have things plugged into power strips. I turn them off when not in use. Many electronic things are always on and always use a bit of electricity. Like microwave, TV/stereo, computer stuff, etc.

Search for frugal recipes. And shop in a grocery store which has "price per ounce" on food. Get the lowest price per ounce food even though it may be in a larger package and the price is more. You are getting more for your money. Some of those little packages are outrageously expensive per ounce! Look at the price per ounce of flat package tuna for example.

I eat quite cheaply by making a big pot of something, then just heating up a plate in the microwave. Like macaroni, hamburger, tomato juice, diced tomatoes, and tomato sauce.

Anyway live "on the cheap" for a couple of years and those student loans will decrease with a quickness! Do set aside some money for fun. Reward yourself every now and then.

So far as rent, you need to calculate the cost in gas vs paying higher rent. Roommate situations can be cheap too. Other considerations are the time driving to work and personal safety. It may be worth it to live in a safer area and you don't have much of a life if you spend 4 hours driving each day! But rent costs are a local thing - do the best you can.