So background: early 20s, graduating college in May, starting new job that pays well and moving to a new city. No debt, decent amount of regular savings and some in a Roth IRA.
I am coming from a small town and a really shit apartment, so with my new income I am looking at higher end places. I mapped out a 50/30/20 budget and with a little wiggle room (more of a 55/25/20 budget now) I can afford a great place right down town and 15 minutes from work. However, I am feeling a little guilty about spending so much money on rent after spending so little the last 4 years in college. The amenities it offers, like a great 24 hour gym and close proximity to downtown, cause me to justify that I wouldn’t be driving much, so the gas savings are beneficial, and I wouldn’t need to pay 30-40 bucks a month for a gym membership. I am also going to be pursuing a masters starting in July, so having a nice place to work without any roommates that is close to coffee shops and the park is important. However, even after a 401(k) contribution, it’s still within the 33% rule.
So I guess my question is this: is it financially unwise to spend ~39% of my income on rent + utilities (31% rent, 8% utilities) to live close to downtown when I’m straight out of college, or should I spend less on rent and work more on stockpiling cash for my savings + retirement investments?
Thanks!
Submitted April 12, 2019 at 08:09AM by AManWithHalfAPlan http://bit.ly/2IrPZJW
