Can I move out if I make $3100/month after taxes?

I have done my research and here are my earnings and expenses:

After tax monthly income: $3100

Rent: -$800 (includes all utilities and wifi)

Car loan payment: -$588

Car insurance: -$200

Gas for car: -$200

Cell phone bill: -$50

Food, entertainment and clothing: -$600

Health care: $0 (I live in Canada so Health care is free + I have extended health benefits from employer)

Savings/month: $662

I also have $20,000 in savings in my bank account and have no debt except for the car debt of ~$8500. I do realize that my car payments are very high but that is only because I wanted to pay it off faster. I already paid off more than half of the loan and it is very reliable car that I will keep for a very long time. And there is no point of paying it off faster since it was financed at 0%. My job is very stable and I expect my earnings to increase quite a bit in the next few years.

Do you think I can afford to move out? I'm 23 years old and I think it is time but I want to make sure I will be able to support myself.

Thanks for your input.

1 Answer

  • 6 years ago
    Favorite Answer

    Yeah. I did it on 2k/mo. But you gotta get a cheap place. And it'd be better if you didn't have that car payment. Your insurance would probably go down. Be on good terms with your family when you leave. Always better to leave a bridge than burn it out of spite. And man, if you can secure an FHA loan on a house, even if it is a dump, you would be in a much better spot.

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