Travis, the poster who suggested checking salary potential against what you are borrowing is very wise.

 

My husband and I both went through law school.  Our student loan payment is 1/4 of our income a month.  We will be paying for 20+ years.  It is very frustrating.

I graduated in May '04 and interned making $10 an hour for the summer until I was hired in Sept. '04. I got by using things from college but have been slowly accumulating household items (pots, pans, tupperware, etc.) as gifts. My parents felt guilty giving me that kind of stuff as gifts, but it's what I needed! 

 

I bought a couch and coffetable at a place that had '1 year no-interest' but paid it off before the interest came due. And I recently bought a new bed even though the one i had still was serviceable  - but i thought it would probably fall apart the next time I move...

 

It's huge to remember that moving is expensive too.  And if you're looking for a new place, you want to ask current TENANTS, not the landlord, about utility costs.  I lived in one tiny apartment in college that cost us $100 a month to heat with the thermostat turned to 60 so the pipes didn't freeze! 

I would definitely make do and then when a relative asks what you want for a gift (holiday, graduation, birthday, etc) I would mention things you need.  I have done this several times, and my relatives are thrilled to be able to get me something I need. 

 

The only thing is to be tasteful about it, wait until you are asked or have an opportunity to drop a hint! 

There's definitely been a lot of great posts--I've really enjoyed reading all the good suggestions.  I figured I'd add a few of my own that I figuring out as I go along.

 

1)  I definitely agree with the person who said to ask for stuff as gifts.  I did, and I've got some nice stuff that I need that didn't cost me anything. 

 

2)  If you're moving to some place unfamiliar, you might want to check if there's any military bases nearby.  All the bases have websites, and since military people move all the time, some of the websites have information that's useful to anyone moving to the area.

 

3)  Draw up a budget.  It's painful and you will forget to put stuff on there.  However, the more complete you try to make it the better.  Get a rough idea of how much you're going to have to pay for stuff by looking online at Target, Walmart, Ikea, etc.  Doing the math will force you to decide what you need the first night you are in an apartment and what can wait until later.  It also lets you decide what you want to get cheap and what you want to splurge on.

 

4)  If you're still in school, start saving now.  Either pay down your CC debt if you have it, or start an "apartment fund" if you don't.  Aim for $2-3K if you can, but anything is better than nothing.  It will do wonders for your peace of mind knowing that you can avoid starting your "adult life" without debt.  It may seem impossible to save that much, but if you think about it, you could save $30-50/night every time you volunteer to be the DD when your friends go bar-hopping. 

 

Also, to Travis, its near impossible to get a mortgage if your debt ratio (percentage of your income you use to pay off debts) is greater than 36%.  This includes student loans, CC debt, car payments, etc. plus the mortgage.  You generally can't get a mortgage where your payments are greater than 28% of your income (the payments include principal, interest, taxes, and insurance).  Therefore, by the time you are in the market for a house, you definitely don't want your other debt payments to be more than about 8-10% of your income.  Hope that helps some.

Travis,

You might look at the starting salaries of people in your field and the potential income you will realize. Try to make a rough repayment plan based on what your take home pay would be to see how many years it would involve. If you are borrowing too heavily, maybe you can attend a less expensive school instead. Also, if you can work extra hours or take on a part-time job, that's a way to accelerate payments.

Travis,

You might look at the starting salaries of people in your field and the potential income you will realize. Try to make a rough repayment plan based on what your take home pay would be to see how many years it would involve. If you are borrowing too heavily, maybe you can attend a less expensive school instead. Also, if you can work extra hours or take on a part-time job, that's a way to accelerate payments.

Hi all,

 

Sorry to kind of break the thread of the conversation, but I am a student paying for everythig myself and by the end of my school, which will probably go to my masters, I will have a accumulated a high student loan debt. Scholarship's help obviously, but atleast half will be student loans. How high is to high if you get my question? Also how long does it usually take to pay them off..I'm really nervous about accumulating to much debt because I don't want to fall into a hole that I can never pay my way out of. I saw Tara having 100k in Student loan debt. How far did you go in your schooling to have that much? How long have you been paying if you don't mind answering? (Please don't be offended by my nosy nature). I just don't want to go through school only to have to work my entire life to pay off student loans. Sorry this was long. Hope my questions can be answered.

Hello out there...

 

I remember moving into my first apt and realizing the first morning that I hadn't bought a shower curtain.  At the time I was making such a small amt that I was very fortunate to have $5 left in my checking acct at the end of the month.  I bought no new clothes for the first 6 mo of my job, and traveled only when I had to (tried to walk as much as I could) to save on gas. 

 

Now, I make a lot more money, but have to pay  back the 100K+ student loan debt from college and grad school.   I still try to live frugally, since I save 25% of my income and (hopefully) will be paying off the student loans within the next five years.  I guess my contribution to this comment is to suggest looking for some household linens at Ross or TJ Maxx... starting out, you can save a lot on the comparable 200-thd ct sheets from Target or JC Penney's, as well as simple blankets or towels.  At this point now (5 1/2 years out of grad school) I buy 500+ ct sheets, but buy them for slightly more than the cost of regular sheets.

 

Congrats to all of you graduates, and good luck!

I don't have much more to add compared to all the wonderful suggestions offered by others.. i wanted to share that when I read C's message, my initial reaction was utter panic--so much so that I closed the window!  Now when I've had a chance to re-read and reflect on my own reaction, i want to give her a big hug and say, thank you that very concise list of things to spend on, save for etc.etc.  Each of those is a template for what we're really stepping into with that first income, and what being adult means--beyond the independence "fun" and adventure stuff that we'd rather think about.  Obviously by closing the window the first time round, I was trying to avoid facing up to what I am or am supposed to be--an adult.  I realized today that at my age my mom had a 10-yr old and a 6 yr old.  yes, I know, procreation alone does not an adult make, but when I am barely taking care of myself, I cannot even imagine the responsibility of children to raise and support.

 

 It's been about 10 years since I graduated college, and now, as I reach the end of my graduate-school-life, I so value all of this advice too.  Anyway, I just wanted to say, thanks C and others, for that jolt reminding me that I am an (you know, the A-word).

cheers,

kala

I still remember calling up a friend the night DH and I had our new, but extremely basic, futon sofa delivered and saying "We have a sofa!  Come sit on it with us!"  Arrangement and tidiness matter a lot more than fashionability in how an apartment looks.

 

The best piece of advice I've had about furnishing a home, right after "Buy used," came from both my parents and my in-laws, who each told us, "Be careful what you buy 'just to make do for now.'  You may end up having it a LOT longer than you think." 

lots good to read here.  that first job out of school, armed with BS or MS degree, or for the rest of those just financially out on their own for the first time in their lives.  I remember my first job, freshly out of college - my Federal tax deducted was larger than any take-home check from my previous part-time jobs.  What a heady paradigm shift!

 

But with the pay came escalated living expenses, many I hadn't before been aware.  All the start-ups others have described here below.  How quickly we WIR act to accessorize our lives with THINGs & STUFF.  We're spun off from a living standard our parents aclimatized us to be, so to feel better about ourselves, that is exactly what we gravitate to emulate.  And this is the way we IMMEDIATELY set ourselves up tripping into consumer debt.

 

So while we're stocking a new home, what we REALLY should be making priorities are:

3. funding the EF, now.

4. pay off the credit card debt, if any.

5. start the House Fund, especially while renting.

6. planning on a child? open the Coverdell or 529.  You can always later change the named beneficiary.

7.  write down your Top 5 goals you want to next achieve, call it a mental compass about what in life is important to you.

These are the early saving habits to put into practice before growing into our newly discovered income bracket.  It will never be an easier time to get started, before getting swept into life's rat race.

 

Financial independence is earned, not an entitlement.  Embarking on a new career means new income, yet new responsibilities and obligations.  Let's buck the system to become WIB (Women In the Black) rather than Women In Red!

K2, just to get back at you, no I didn't think you sounded grouchy.  I think what I said didn't come out the best way - that I think today a bare bones setup WILL be $2k, and if you want the stuff I keep hearing some young adults (but not all!) obsess over, it will be oodles more than that.  That would be my budget, and if you can swing more, than go for it - but my caution was not to do it because you feel like you're an adult, you deserve it, etc., but because you actually have the money to pay for it.

 

Probably a completely moot point with this group, thank goodness.

 

Best of luck to everybody starting out, starting over.  I do remember the day I finally paid off my student loans, a couple of months early even, and taking that payment book and burning it in the bbq grill.  THAT'S when I felt like I was finally ready to be an adult, that the student days were finally behind me, such a huge weight lifted that I didn't even know was really there.  Emotionally one of my biggest milestones, maybe even more than signing the papers on my first house.

Since most probably think I'm a cheapskate/skinflint, guess I might as well admit I am.  I pick through the college students stuff in dumpsters and always have.  My husband does the same, most of our furniture is from stuff left out on the street.  He repainted the coat rack, two dressers, and a table.  We bought a couch about 4 years ago (on a closeout sale for $200) but for 3 years lived with a free sofa from the street I steam cleaned (by borrowing a nice friend's steamer).  In November I bought dishes I registered for from Crate and Barrel, but kept all my old walmart stuff I didn't pay a dime for, my old roomie from college gave it to me when she left.  I also just bought cookware because again it was from old roomies (back in 1999) and people throwing great stuff away.  I look at what people put out on the street even now and sometimes we take it home and repair and use it.

Freecycle is a great way for young people starting out, or craigslist.  I also got my bookshelves from students moving out.  One of these days I'm going to buy real furniture, but until then this is fine.  I wonder if I'll ever get out of this habit?  I also pick up cans and recycle them for spare change, which helps out.  And using the real dishes saves a lot of money instead of paper plates/plastic utensils.

 

I never bothered with renter's insurance till we bought a place because our stuff isn't worth very much.  To replace it, I'd go get more free stuff, but now if my house burned down, well I'd like it to be rebuilt.  If you have pretty nice stuff get insurance, if you have junk and free stuff less than $1k don't bother.  Also the IKEA as-is department is great, i got things in boxes for $5 like a wardrobe, which I sold for $50 when we moved. 

i think that most apartment set-up costs were covered very well, but i want to chime in with miss claire about all the 'adult' costs that you need to factor in to your monthly expenses and long term plans.

 

when i was looking for my first long term jobs it was less then a year after sept. 11 and as everyone knows the economy was rocked along with the emotions of the country.  so i had a really hard time finding a job.  and when i finally did i then i got laid off TWICE at two companies in less then one year in 2 different cities (due to them not having enough work to keep me on).  so i can't emphasize enough the need to have an emergency fund (and how much i love unemployment insurance for enabling me to pay for my health insurance!).  because crap happens and you still have to pay the bills and your health insurance!  and health insurace is unbelievably expensive (especially for me with prexisting conditions - so i really can't go without or i wouldn't be able to get coverage again).  i had done a pretty good job factoring monthly expenses but was only able to survive that much unemployment thanks to an extremely generous graduation gift from my father's boss/friend of the family.

 

also, i agree with mia on hillary's post... it is astounding how much gets thrown out at the end of a school year.  we always made an effort to leave things behind with friends who were staying for the summer or who lived nearby etc. 'here's enough rice and pasta for the next 6 months! and you'll be REALLY clean!' and the same with furniture that still had some life in it.  but the last year when we lived off campus i couldn't fit my nearly new, giant desk in my escort.  so we dragged it outside to the curb, stuck a sign on it that said 'free' and it was gone within the hour.

I am sorry to kidnap this article but it does lead into a segway that I have been itching to get some  help on.

I have student loans and such but I also have only two classes to go before I can graduate. I owe the school some money, I have been paying them back diligently, but it seems as though I am paying more interest than anything else. I qualify for financial-aid, more than enough to pay what I owe and for my last two classes. I have a small income, less than $20000 annually and I do not have sufficient credit for a private loan. I have tried to borrow with a co-signer but have been denied. I spoke to a counselor and she said that this situation to happens to only 5% of students. I have been applying for scholarships but have not had any luck.

 

Does anybody have any alternative suggestions that can help my search? I go to a private school and I have no cooperation there;The business office will not respond to calls and emails and my advisor blatently said that if I cannot pay, then she will not help me. I need help -  I am frustrated and have been waiting to graduate since 2003.

 

Thanks for listening.

Everyone has gone into amzing detail about starting up your first home, so I won't add to that, except to concur that insurance and bargain buys are a good call, and Hillary et al, if you reuse Ziploc bags, don't use any that raw meat have been in! :)

 

But there are other costs to starting out on your own.  Do you have a good suit, shoes and bag for job interviews?  Do you have enough saved for rent, security deposit, and broker's fee for your first apartment?  Do you know which utilities are included with the rent and which are not?  Do you know what appliances your landlord is required to provide? (My landlord had to provide a stove but I wound up shelling out for a fridge.)

 

Do you have a bank account and credit cards of your own, and do you know what the fees are?  If your job doesn't have health insurance, how can you get some and how much will it cost?  Ditto things like car insurance, renter's insurance.  Do you have an emergency fund that will hold you between jobs?

 

If you're freelancing, you'll want to learn a lot fo softwares so that you are employable, if you're working in an office, and if your agency won't train you, it will cost you.   And you'll need a way for people to reach you, so make sure you have a reliable cellphone and a low cost plan.  (Back in my day, it was beepers and answerphones! :)  Do you have a resume and cheap business cards that you can give agencies and a way to do cover letters?  Even if you own a computer and printer, the cost of toner, paper, etc. must be factored in.  Same with faxes and email.

 

Have you figured out your transportation costs, via public or car?  Can you share rides and split gas?  Is a monthly card a better investment than a single ride? 

 

If you have student loans, what is your grace period between the time you leave school and have to start payments?  What are the rules on consolidations?  Forbearances?

 

Have you researched the fields you want to work in so that you are informed about opportunities and salary ranges?

 

These are all under of the heading of things I wish I had known in 1986...:)

 

 

I just finished up my 2nd year of college.  The summer before my freshman year was a blast...planning out how I was going to decorate my new apartment, getting kitchen stuff, a new TV, computer, etc..  I loved it.

BUT, the one piece of advice I can give anybody is go to the DOLLAR STORE!  It's cheap.  Go to those dollar stores where everything is actually a dollar though.  I was home visiting for a weekend this fall and picked up a few things...laundry basket, pizza cutter, corkscrew and and ice cream scooper.  ALL for $4!  It was wonderful.  You can find cute dishes and things there too!  Just make sure you bargain shop.

Don't buy anything that you expect to use and keep for the rest of your life.  Things will break and get worn, especially when you have roommates.  When you're on your own after schoo,l you can commit to buying nice things for yourself and you will most likely be on a bigger budget! :)

You can even MAKE things too!  I made pillows for my living room as well as a beadspread.

Hey, I'm past 30 and we still have all hand me down furniture (and our TV). Our dining room table was dh's parents' when he was brought home from the hospital! As we NEED something (i.e. something falls apart, or when we bought our house and needed somewhere for guests to sleep and store clothing) or as dh's father has time to make things (he's a great carpenter) we replace. I do get twinges of envy when I go to a friend's more polished house - after all, shouldn't we be "adults" by 30? but I like knowing I'm not going into any debt furnishing the house ... and it is comfortable, it's a place our friends can bring their dogs and we don't freak when ours jumps on the couch ...