Income: Your monthly income is the most significant factor. A general guideline is that housing costs (rent/mortgage) should not exceed 30% of your gross income. Location: The cost of living varies widely by location. Urban areas tend to have higher rents compared to rural areas.
To answer your question more generally, people do indeed make enough money to live alone, despite your beliefs about the economy. 18% of individual Americans make over 100k. That's 63 million people. Plus, people who live alone often don't have kids and partners to support, making supporting oneself very easy.
Allocate how each dollar will be spent before moving out. There's no one-size-fits-all rule for how much money to spend or save, but a common formula looks like this: Put 50% of take-home pay toward necessary living expenses, such as rent, utility bills, debt payments, car loans, and medical expenses.
A good rule of thumb is to have 3-6 months of living expenses saved before moving out, which typically ranges from $3,000 to $10,000 depending on your location and lifestyle. This amount should cover your security deposit, first month's rent, moving costs, basic furniture, and provide an emergency fund buffer.
To live "comfortably" as a single person in 99 of the largest U.S. metro areas, you'll need a median income of $93,933, according to a recent SmartAsset analysis.
Struggling to live alone can be caused by factors like a lack of experience with independence, the emotional impact of isolation, or the challenges of managing all household responsibilities on your own. Feeling overwhelmed is common, especially if you're used to living with others.
An individual needs $96,500, on average, to live comfortably in a major U.S. city. That figure is even higher for families, who need to earn an average combined income of about $235,000 to support two adults and two children.
But these helpful tips could see your money go further. The first step in managing finances for those who live solo is to create a comprehensive budget that accounts for all income and expenses. This budget should prioritise all your essentials like rent or mortgage payments, utility bills, groceries, and savings.
The typical age of a first-time homebuyer is 35, according to 2023 data from the National Association of Realtors. If you're well under that, you're ahead of the curve. Many reasons for waiting, according to NAR, are due to limited inventory and high prices.
In short, no. Having $20k saved up to move out is ideal, it gives you extra cash for deposits and whatever else you might need. However, you cannot intend to live on $20,000. To give you a different idea about how much that is, that averages about $9 an hour, which is hard to live on.
You've likely heard of the 30% rule for determining how much rent you can afford. This rule suggests that you should spend no more than 30% of your gross monthly income on rent. This rule is a good starting point, but it's not one-size-fits-all. You might need to adjust based on your financial situation and location.
For example, if you're making $20 an hour, assuming you work a standard 40-hour workweek, your monthly income is $3,200. Based on the 50% needs category, you should aim to spend no more than 30% of yours income on rent, which comes out to $960 per month.
Those will become part of your budget. The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.
In 2022, the national middle-income range was about $56,600 to $169,800 annually for a household of three. Lower-income households had incomes less than $56,600, and upper-income households had incomes greater than $169,800. (Incomes are calculated in 2022 dollars.)
As of Jan 6, 2025, the average hourly pay for a 40 Dollars An Hour in California is $23.82 an hour. While ZipRecruiter is seeing salaries as high as $49.20 and as low as $10.36, the majority of 40 Dollars An Hour salaries currently range between $15.54 (25th percentile) to $29.19 (75th percentile) in California.
“When living alone, you'll bear the full brunt of utility costs — research average utility costs in your area,” Salahi advised. For a one-bedroom apartment, he said to expect to pay at least $150-$250 monthly for electricity, water, gas and internet.
Depending on your individual circumstances, marriage may benefit you or your intended, or both. Your overall cost of living might well be reduced if you're sharing the expenses of a mortgage or rent, and insurance, You also have a better chance as a couple to put aside a substantial amount towards retirement.
In some California cities, like Bakersfield and Fresno, a single person would need to make at least $89,190 to “live comfortably,” the data shows. However, the salary requirement is higher in cities like Sacramento, Los Angeles, Irvine, and San Diego.
“Most of us can't do the math in our heads. If we could, we'd realize that $15 an hour amounts to only $31,200 a year, assuming full-time work—about half of the U.S. median income and a painfully small amount for living and raising children in most American cities.” It can be painfully small outside of cities, too.
Use the 50/30/20 rule. The benefit of this budget method is its simplicity. You take your after tax income and divide it into three categories—50% to needs 30% to wants, and 20% to long-term savings. Put an emphasis on achieving your independence and reaching your long-term goals by using the 50/30/20 rule.