My Real $1,200/Month Student Budget

Before I moved to the US for my master's degree, my university sent me an I-20 form with an estimated cost of living of around $22,000 a year. To be honest, seeing that number made me panic. I didn't have a massive educational loan, and my family wasn't able to fund thousands of dollars every month. But after living here for two semesters in a college town in Illinois, I've realized that the official university estimates are often way higher than what you actually need to spend if you are smart about it. Today, I'm sharing my exact monthly budget of $1,200 and how I keep my costs low.

1. The Big One: Rent & Roommates ($500)

If you try to live alone in a studio apartment near campus, you're going to pay at least $900 to $1,400 a month depending on the city. That would instantly kill my budget. The easiest way to save money is to get roommates. I share a 4-bedroom, 2-bathroom apartment with three other international students. My share of the rent is exactly $500 a month.

We found our place by looking on Facebook Marketplace and student housing groups in May before school started. We opted for an apartment that is about a 15-minute walk from the main library instead of one right next to the campus quad, which saved us about $150 a month each. Yes, I have to walk a bit more, but it keeps my wallet happy.

2. Keeping the Lights On: Utilities ($60)

Our rent doesn't include electricity, gas, or internet. In the winter, the heating bill can get quite high. We split all these bills four ways, which helps a lot. Here's my typical share of the bills:

• Electricity & Gas (Power): Ranges from $35 in the spring to $70 in the cold winter months when the heater is running constantly.
• Internet: We got a basic 300 Mbps plan from Comcast for $40 a month. Split four ways, I pay exactly $10. It is fast enough for all of us to attend Zoom lectures and stream movies.
• Water and Trash: Covered by our landlord (make sure to check this before signing your lease!).

3. Food and Groceries: No Eating Out ($250)

Eating out in the US is incredibly expensive once you factor in tax and tips. A simple $12 burger can easily end up costing $18 at a sit-down restaurant. So, I cook almost all my meals. I cook a large batch of rice, curry, or pasta on Sundays, store it in containers in the fridge, and eat it throughout the week.

I buy my groceries at ALDI and Walmart. I avoid high-end organic supermarkets like Whole Foods because the same basics cost twice as much there. I spend about $50 to $60 a week on chicken, eggs, rice, vegetables, milk, and basic spices. If I want to treat myself, I get a $5 box of pizza or cook a special dinner at home with my roommates.

4. Phone and Staying Connected ($15)

When you arrive, major carriers like AT&T and Verizon will try to sell you postpaid plans for $60 or $70 a month. Don't fall for this. I use a prepaid service called Mint Mobile. I bought their yearly plan which gives me 5GB of 5G data per month, plus unlimited talk and text, for exactly $15 a month. The coverage is great, and I use my university's Wi-Fi when I'm on campus anyway, so I never run out of data.

5. Transportation: Bus passes and Bikes ($0)

Buying a car as an international student is a financial trap. Between car payments, registration, gas, maintenance, and insurance, you will easily spend $300 to $500 a month. Plus, parking on campus can cost a fortune.

Instead, I use the local transit system. Most universities partner with the city bus network, allowing students to ride for free just by showing their student ID card. For short trips, I bought a secondhand bicycle for $60 on Facebook Marketplace. It gets me to class in 5 minutes and keeps me fit.

6. Health Insurance Waiver ($0)

As I explained in my other guide, my university tried to charge me $1,800 a semester ($300 a month) for their mandatory student health plan. I bought a private international student plan from ISO that met all university criteria for just $45 a month, submitted a waiver, and got the fee removed from my tuition bill. This was a massive win for my budget!

7. Entertainment and Miscellaneous ($375)

The remaining $375 of my $1,200 budget goes toward textbooks, laundry, household supplies (dish soap, toilet paper), and social activities. I always ask for student discounts everywhere—movie theaters, museums, and clothing stores all offer 10% to 15% off if you show your school ID. Most weekend fun consists of free campus events, park outings, or board game nights with friends.

My Monthly Budget Summary

Living on a budget in the US takes a bit of discipline and planning, but it doesn't mean you have to live miserably. By sharing apartments, cooking your own food, and avoiding retail-price services, you can keep your monthly expenses under control and focus on your studies.