The Budget of a 31-year old Govt. Auditor Making $64,000 in DC
In 2014, I moved from Tallahassee, Florida to Washington, DC. An opportunity of a lifetime awaited and I did not hesitate. Similar to the ideas in “Think and Grow Rich”, a good choice should never linger for more than 30 seconds. Making no more than $32,000 annually (before Uncle Sam’s cut) at my last position; receiving a phone call for DOUBLE WAS A NO BRAINER, NO MATTER THE ODDS.
Cost of living increases added up quickly. Those first few months were rather rough. I was hit with setbacks: waiting on old paychecks and new paychecks, sleeping on the ground in the cold and dead of winter, without adequate heat since that had to be fixed. All with maxed out credit cards and spotty wifi internet, and loads of new job content to cram while actively code-switching and class switching.
Sometimes it’s like that. No glamor shots. No cool Brunch swag just poverty and a new job and trying to figure it all out.
What worked out in my favor was my love of architecture, history, and culture. I made good use of the DMV. Free museums, free events, military discounts, and tons of opportunities. The seasonal aspect meant that anything you saw in winter would be brand new in Spring, active in Summer, and cool in the Fall. Every location deserved a revisit. I even started to take quality pictures of it all as a hobby (check them out at unlabouredflawless.pixieset.com). Besides that, one time for God who prepared me because the journey is worth the price of admission.
Here’s how my budget broke down and I how I splurged like a poverty czar.
Monthly Take-Home: $3,825
One thing, adults don’t tell you is that when they say a salary of $64,000; that’s before taxes. And taxes, there be plenty. I figured I would be taking home at least $5,000 a month (worst even $4,500). I was living in a fantasy. In Virginia, they want state and local taxes on top of Federal.
Rent: $1,025/month
I moved into a one-bedroom apartment in Alexandria, Virginia. My core friends were not around and I didn’t have any family so chunking over the deposit and the first and last rent check was rough. I ended up maxing out my bank account. And the nerves of Foxchase asking for $15 for a non-guaranteed parking spot in front of my own apartment building. The total monthly rent for the place is $1,025.
I’m still sour on the $15/month for parking at my own crib. However, I can’t throw shade at Foxchase too much. It was a great apartment across from the express bus stop that went to the Pentagon Metro.
Food: $250/month
Food is where a ton of people mess up in this day and age. I’m a quick learner so spending upward to $25+ daily was not going to cut it for my meal plan and my waistline. I was best to meal prep heavy and focus on my health. Kale was my friend. That year, I learned to mitigate the cost and with the Bank of America Rewards program, I was earning at least $25 cashback monthly to offset it.
Back in my college years, I trended up to $375/month for food and drinks. I was likely wearing a top hat and partying with Publix models. Obviously.
I was still able to eat out and sample around town but I was way more intentional about where I ate vs “basic recommendations” from others. I also avoided the casual lackluster brunch in favor of cooking a better meal and making better drinks.
Student Loans: $500/month (as much as $750-$1000 at some points)
The dreaded Student Loans. I have a lot of them. At that time, I had about $95,000. But since I went on deferment, I earned an additional $10,000 for good measure. Wrote about that experience, “College Hack pt. 2: How I blew through $10k without knowing”
Credit Card PMTs: $675/month
I owed about $ 7,500 but I did manage to steadily bring it down to $1,500 for that year while incurring $740 worth of credit interest fees. Yippee.
When I see people balling with student loans at $80k+ and credit card debt of over $7k+, they sit on a throne of lies and Instagram make-believe.
Utilities and Phone Bill: $240/month
Water, Electricity, Gas wasn’t enough for me. I had a pretty cheap phone with a low monthly of $50/month and I added Comcast (introductory Internet over Basic Cable) for $55/month. The rest I mitigated by being out and about and reading more. I also tapped into internet nerd mode. You can find anything if you are looking for it.
Wink, Wink.
Savings: $725 (avg)/month
In the savings dept, most of it was bi-weekly contributions to the 401k for the matching 5% on top of my own 5% as well as maybe a loose $500 to survive any overdraft.
Health & Fitness, and Personal Care: $130/month
Haircuts up north for me are about $30 vs what I was used to paying for $20. I did find some Asian women who did my hair but they were rough. In my mind, the main one was “Merciless Ming”. I also needed some dry cleaning and laundromat money. To top that off, I paid at least $30 for a Gym membership. Barely used. It was too cold in the winter lol.
Everything else: About $300/month
The miscellaneous catch-all for travel, surviving and etc. If I had it at all. I was still using my credit cards for the shortcomings. I did buy two express suits, two overcoats, and some ties bars.
Conclusion: Avg. of $2,900 in expenses
Note: Transportation costs were random since my job paid for metro transportation (to and from work), and I didn’t drive much. I ended up bringing my second car to Miami via Train at some point.
People never realize how much work and struggle you have to put in to be successful. It is non-negotiable. But once set in motion, it’s on auto. I went from -$110,000 in debt to $150,000+ in wealth (that year, I closed the gap by $10k).
It’s DOABLE and it’s NOT EASY. I was eventually able to travel to Brazil x2, Canada x2, across the States, multiple concerts, operas, plays, sporting events, and etc. I’m fairly confident (with God’s grace), I can pull off the -$110k to $1 Million net worth in 10 years, all while sharing all the tips and breadcrumbs for you to do the same. I spent long and boring weekends figuring it out, just follow the Net/Max Financial plans. I made one for singles, single parents, and by the time you read this, the dual-parent household.
Part of life is making the choices that will benefit the greater purpose and actively choosing what you really love over the things you think you are obligated to do. These choices must be timely. You should also learn to really make use of your own creativity and where you are today. The city that you are trying to escape is a city that someone wants to visit.
Think about it and Live. If you want to follow my finances to fact check, see this link. Check out the follow-up, The Budget of a 33-year old Govt. Auditor Making $78,781.50 in DC, ←- click. If this impacts you; share, discuss, and inspire others. Sharing good information matters.
