Nearly one in ten Americans moved out (or had someone move in with them) because of the pandemic. Some feared coughing or couldn't afford rent; Jane, a 28-year-old bank employee, couldn't justify the $1,100 rent on her apartment in Manhattan's Seaport District. So last June she became one of many young people living with their parents. But living with her parents has ...... problems. Now Jane is back in the bloodthirsty New York market, looking for a rental place to call her own. Here, Ellevest financial planner Rachel Rabinovich (opens in new tab) and New York real estate broker and YouTuber Niacia Casey (opens in new tab) share their budgeting tips for living alone.

Pre-tax annual income: $120,000 as a senior banking consultant Monthly take-home pay: $5,200 after taxes, 9% 401(k) contribution Savings: $7,000, $3,000 apartment prepayment Estimated net worth: $33,000 Current rent: $100. Jane sublets a room in her $1,100 apartment and pays the $100 difference. Debt: $5,500. Over the past two years, Jane has paid off $15,000 in credit card debt. Most of this was incurred when she moved from Hawaii (where she is from) to New York City in 2018. Price limit: $2,000 or less per month for a studio or one-bedroom apartment on Manhattan's Lower East Side. I can live without elevator, dishwasher, doorman, and central air conditioning, but have laundry in the building and do not need a roommate. Willing to move this summer, but flexible.

Assume rent is $1,800 per month: Jane would pay $3,625 for first month's rent, security deposit, and application fee. A broker's fee may also be required, but this is essentially a realtor's commission, and she would spend up to 15% of her annual rent on the broker's fee (or find one of the few apartments in New York City that does not have a broker's fee). Not including furniture and movers, Jane would need $7,000 for initial expenses. -N.C.

Divide the remaining savings by the number of months until the move and set aside that amount each month. -R.R.

That may save you money: June, July, and August are the busiest months for moving in most cities. Competition is fierce as many rental contracts end and new graduates move in. If you want to get the most bang for your buck, late fall or winter is the best time to move - N.C.

Look for ways to cut costs, such as buying used or discount furniture. Focus on the essentials (beds, couches) and add "wants" (kitschy cool lampshades) when you can afford them. Avoid buying new furniture with a credit card unless you can pay it off within the month. -R.R.

Maybe so. On the Lower East Side, buildings can be over 100 years old, so laundry machines are generally hard to find. If the apartment you like does not have a laundry, consider using some of your savings to purchase a unit with an integrated washer and dryer. Of course, ask your landlord for permission first. -N.C.

The goal for an emergency fund is three to six times your take-home monthly income ($15,000 to $31,000 for Jane). This may seem unreasonable, so focus first on having one month's worth of monthly take-home income and build up from there. Since Jane is the only one responsible for rent, we suggest that she save this amount before moving in. We want to be able to cover any unexpected expenses or financial emergencies. -R.R.

Manage your spending in what Ellevest calls the "one number approach." The idea is to have a set amount of spending at your disposal each week. If you adhere to this, you can go shopping or to restaurants freely each week without feeling guilty. This number is obtained by subtracting the monthly savings and fixed/non-monthly expenses (gifts, haircuts, etc.) from the take-home pay. The result is divided by 4.3 to get the amount available on a weekly basis. -R.R.

This article appeared in the April 2021 issue of Marie Claire.

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