TL;DR
A recent graduate asked Kathi how to save enough to buy a car and move out. List your financial goals with deadlines, add up what each one costs, and divide by the months in your plan to see how much to save each month. Then check whether your jobs pay enough, and adjust your timeline, hours, jobs or spending until the numbers work.
Dear Kathi,
I have just graduated from college and would like to organize my life and my finances. I still live at home but want to move out as soon as possible and also to buy a good used car. I have several odd jobs but none of them pay a lot of money. I also take dance classes and want to continue with them. How do I figure out how to make all of this work and save money towards getting out of the house?
Juliana, Encinitas
Juliana,
We all have the same amount of hours in the week. Decide how many hours you are available for work. Add up the hours that you currently work and how much revenue you produce. Break down the pay for each job. This will help you decide later in this process if each job matches your goals.
Make a list of what you wish to accomplish financially and note the time frame. For instance, maybe your goal is to purchase a used car in three months and spend approximately $2500. You want to move into your own apartment within six months. Factor in the average monthly rent for the area you wish to move to and your apartment deposit (usually 2 months rent). Consider moving in with a roommate to reduce your costs. Your moving startup costs will be the sum of these 3 factors. Take this number and divide it by the number of months built into your plan.
This exercise will provide a clear picture of how much money you need to save to reach your goals.
Determine if you will make the amount of money in your proposed timeline. Analyze each job’s weekly hourly commitment and the pay you receive. Does each job provide the hourly rate you need to meet your goals? If the numbers don’t add up, you have several options.
Reframe your timeline and extend the goal completion date. Switch your workload to jobs that will provide more income for the same amount of hours. Increase the amount of hours you will work every week. Save more money by cutting back on expenditures that aren’t part of your larger goal.
Once you have purchased your car and saved the deposit for your new apartment, you will need to set another plan into action. This plan will include a budget that covers all of your expenses once you are on your own. You need to factor food, gasoline, insurance, utilities and all other monthly expenses. Before you move, you will need a secured work schedule that can handle all of these monthly expenses.
You are well on your way to reaching your goals by simply going through with this process. A clearly defined goal is much more likely to be achieved than an unplanned daydream. Good luck Juliana. Write again when you are ready to organize your new apartment.
Kathi is a professional organizer, image consultant and event planner based in San Diego California.
Please submit your questions to: [email protected]
San Diego Professional Organize
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Frequently asked questions
How do I make a plan to save money for a big goal?
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Write down what you want to accomplish financially and by when, such as a used car in three months or an apartment in six. Add up the total cost, including deposits and startup costs, and divide it by the number of months in your plan. That shows exactly how much you need to save each month.
How do I know if my jobs pay enough to reach my goals?
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Decide how many hours you can work, then break down how many hours each job takes and what it pays. Compare each job’s hourly rate with the amount you need to save. Seeing the numbers side by side tells you whether each job matches your goals.
What can I do if the numbers don’t add up?
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You have several options. Extend your timeline, shift your hours to jobs that pay more for the same time, work more hours each week, or cut back on spending that isn’t part of your larger goal. Any one of these, or a mix, can bring your plan back within reach.
How can I lower the cost of moving into my first apartment?
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Factor in the average rent for the area you want and the deposit, which is often two months of rent. Consider moving in with a roommate to reduce those costs, then build the total into your monthly savings plan.
What should I plan for before moving out on my own?
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Once you have your car and your deposit, make a budget that covers every monthly expense, including food, gas, insurance and utilities. Before you move, make sure you have a secure work schedule that can cover all of those costs. A clearly defined goal is far more likely to happen than an unplanned daydream.
