Personal Finance

Weird pitch, would you guys be able to cook your own meals or eat out for a week?

As in, don't use anything you didn't buy yourself for a week just to get an idea. Obviously that is not going to help you save up for your place, but the research might be worth it.

Also if you still live at home use this time to consider what you use to cook (pots, pans, utensils, etc)

I had no idea what food costs were until I moved out, I learned the hard way that I had to learn to cook or my budget would be forever broken, but grocery costs and budgeting are a whole other skill so it isn't automatic that shopping and cooking will be cheaper if you don't shop carefully.

Good luck, the very fact that you are thinking about this ahead of time is a good sign!

Is $500/month a typical rate in your area? That is unheard of around me, but I think you're in decent shape if so. Make sure you have enough for the security deposit, it's usually one month's rent.

Other recurring expenses to budget for will be utilities (water, sewer, trash, electricity, maybe gas, internet, and phone - you can estimate from whoever pays these where you're staying now), auto fuel/maintenance/insurance unless you use public transport or bike, and food as others have covered (I think your idea of practicing grocery shopping and cooking is a good start).

Beyond that, have realistic expectations for more variable expenses like clothes, home goods, entertainment, eating out, etc. Be mindful, but don't be afraid to treat yourselves every now and then if you can afford to.

It's also wise to save up an emergency fund that can cover you both for six months. It sounds like a lot, and it is, but think of it more as a goal you can keep contributing to with the money you have leftover each month.

Moving can be expensive, especially the first time when you don't have many of the essentials. Keep an eye out in thrift stores and online marketplaces for things like cookware, dishes, vacuums, and furniture. These are often much cheaper second hand, and you can upgrade down the road when you know you're financially comfortable. Good luck!

Grocery costs are highly variable depending on your tastes and cooking skills.

Simple vegetarian meals cooked entirely from scratch might run $3/person/day. If you’re only buying prepared foods and shop at Whole Foods could easily spend $30/person/day.

Don’t either of you ever help with family grocery shopping?

Start buying your own groceries to get a sense of how much that costs while you're still living where you are now. Become self-sufficient for food and eat only what you buy yourself. Explain to everyone else in the household what the experiment is and gain agreement that they won't eat the things you label as yours. Start preparing meals so you have an idea of what you need in various instances. This will include things like spices that you otherwise might not have in mind. This will also help you budget travel expenses if you don't drive.

Rent is a pretty good measurement for cost of living for an area, and if you're only paying $500 a month while making $50k a year I don't think you have anything to worry about. Most people spend around a third of their pretax income on rent/mortgage and 10-15% on food. Transportation is going to vary a lot on your needs and what you have, but 20% would be on the high end. If you want to be sure, you could start tracking expenses and start an emergency fund to cover unexpected issues when things are most volatile. Most other things like entertainment can be pretty flexible.

in the olden days it was 1/3rd your income but that rule does not work in todays housing prices.

1. Track what you eat over a week.
2. Go pretend grocery shopping for those items and add up the costs.
3. If you want to save money, learn to cook and buy staples (rice, pasta, pinto beans) in bulk. Just ensure you have insect-proof containers for them.