I'm 20 and have saved a large sum of money to move out of my parents house. However, I need to use most of my savings to contribute to my work, so I'll only have $60,000 to live off of annually. Could I live off of $60,000 as a single person if I bought a 1 bedroom, 1 bathroom apartment? Would I need a roommate?
You'll be ok if you don't go crazy.
You cannot live a lifetime off $60,000. If you use savings to "contribute to your work", your work has to produce an income or it is not work and instead is recreation.
Buying an apartment may be a good deal, but not when you need the money for other expenses. Owning an apartment still typically has association dues and property taxes, and standard utility bills, some of which are included in rent payments.
With no other money coming in, you need to understand all of the costs of living.
Food, clothing, housing, entertainment, transportation, medical, hygiene, communication
These costs vary by location and by your personal needs. Most young people who have been living at a parents home and had much of their expenses paid do not have a good idea of true total costs.
The question is how long it will take for income to be at least as high as expenses. The $60,000 is the temporary supplement.
A roommate or border is a source of income or a share of expenses depending on how you look at it.
An apartment in Manhattan, NYC is $3000 a month and higher typically.
An apartment in the middle of Iowa may be $450 a month.
San Diego, CA has a minimum expense in clothing and heating and cooling. In northern cities the winter gets expensive and in Las Vegas, where I live, is summer air conditioning about 5 months a year and even a bit of winter heating.
Owning an automobile takes insurance, fuel, maintenance. Public transportation is cheaper and a bicycle cheaper than that.
You need to figure out your own expected expenses and when you can expect income and how much.
$60,000 invested in low risk might get you $2000 a year in income and that is not enough to live on.
You could live quite comfortably renting an apartment with that money, depending on h cost of housing in your area you might be able to but a house which is a better investment of your money. (renting is a ripoff) People working for min wage would need room mates
If you watched your budget you might be able to save 1/2 of that money every year toward a down on a house.
One rents an apartment - one does not "buy" it.
