(Edit: Wasn't sure which flair to pick, so I'm going with Housing).
Background: I recently got an offer for a new job at 85k that will be double the commuting distance versus where I currently live. My current job pay is 75k and roughly a 16 mile (30-35 minute) commute, and the new job's pay will be 85k with a 32 mile (50 minutes - 1 hour 15 minute) commute. The commuting times and distances I've posted are for one way each.
My current living scenario is that I live at home with my parents and its rent free. While I don't pay a rent for my parents, though, I do help out with a lot of other things (i.e. groceries for the house, bringing in food when we don't want to cook, buying them clothes and other necessities, etc.) It's been nice that it has been rent free for so long and I've enjoyed this luxury, but being 33 years old I realize that it's time to leave the nest and forge a life for myself.
The potential living scenario at the apartments that I am looking at (one studio @ $1750/mo and one 1-bedroom @ $1900/mo) would cut my commuting time to 10 - 15 minutes each way (> 3 miles). The apartment in question is in a fairly affluent area (Long Island, NY towards Nassau/Queen county border), so I get the renting prices with respect to the local cost of living index.
The rent terms, based on what I know so far, is that it would be a yearly lease (12-month) with a $25 application fee. Water and heating are included, and there is an on site laundromat. Parking is on the street, which sucks, but you get stickers from the town so only those with stickers have permission to park there. The location of the apartment complex itself is by a fairly busy street, but the actual apartments themselves face towards the quieter back streets. It's also less than half a mile from the center of town which has a train station and a big shopping/restaurant district, so it's a nice area within a short distance.
I realize that this is a huge jump in going from no rent to those prices, so I've outlined a budget with some expenses being guesstimates (i.e. gas, food, etc.)
Current monthly budget:
- Income: $3665 (after taxes, 401k, and insurance)
- TV & Internet: $200 (for the entire house)
- Student Loan: $118 (I paid off a sizable chunk earlier this year)
- Car insurance: $88 (I got this reduced from $105 earlier this year)
- Phone: $86 (I may try to get this down)
- Gas: $120 (this is variable but I would say the most accurate per month)
- Food & supplies: $1000 (again, this is to support my parents and myself)
- Drug prescription: $5 (it's $15 for a 90-day prescription)
- Savings account: $400 (I put this aside as a mandatory "rainy day" fund just in case)
Total leftover: $1633
Proposed monthly budget for new job:
- Income: $4404 (after taxes, 401k, and insurance)
- Rent: $1900 (1 bedroom) / $1750 (studio) (I have not decided which I would choose to rent; I am going to a viewing this Saturday)
- Internet & utilities: $250 (this is a guess as water and heat are included; I imagine with the internet plan plus other utilities I plan on using it will come to this amount in the worst case scenario)
- Food & supplies: $600 (I'm budgeting $125 per week for myself just in case)
All other expenses -- loan, car ins, phone, gas, etc... -- I am keeping the same as budgeted in my current budget just for safe measures.
Total leftover: $822 - $972
In looking at both budgets it appears that I would be able to have leftover money for allocation to other things (i.e. more for my 401k, "fun money", etc.) I'm just anxious and nervous about moving out as this is my first real time going on my own, and I also want to make a financially sound decision without getting locked into a bad decision. So my question to the experienced renters, commuters, budgeters, and community of r/personalfinance: does it make sense for me to make this move to an apartment to cut down on commute time and increase my personal time at the cost of paying this much rent based on my budget? Am I crazy for wanting to spend this much money on rent to have some convenience in my life and cut on commuting costs?
If I'm leaving out any details then please let me know and I'll add them in.
Thank you very much for reading this and for your time and consideration in replying.
Submitted November 22, 2018 at 08:24AM by PlatinumKn1ght https://ift.tt/2FAsfTT
