I’m in a unique situation and I’m looking for advice regarding my place of living. Some background about me and my current situation: I’ve been fortunate enough to work from home, under the roof of my parents’ house until my current age of 28. But now I’m moving out into a city (New York) with a high cost of living. My net worth is currently $80,000. My job will pay me $80K (roughly $55K after taxes) in 2018 with built-in increases (to $90K in 2019, then $95K in 2020). I am in good shape financially, and will be starting a Roth IRA by end of year.
My dilemma: I’m juggling whether to move into an apartment with a higher rent ($2.5K-$3K), which would mean I won’t be saving any money this year and may even need to dip slightly into my savings. Or, if I should move into a lower priced apartment ($1.5-$2K), and save closer to $10K over the full year, which I can invest or save. Since I already have a higher-than-average amount saved for my age range, I’m contemplating going a year without any savings. Is this short-sighted of me? Should I continue the status-quo and keep saving? Or, because of my increases in salary and existing net worth, should I take the hit this year?
My reason for considering a higher-cost apartment is purely due to work. Living in a higher cost apartment in a better location would drastically ease my life transition, give me more time to focus on work, and possibly help set me up for more future earnings as I enter my 30s. I worry that living in a worse apartment, further away from my work, would hinder the track I'm on. I've done a lot of research, and reviewed the common topics page but I haven't come across a situation like mine. I acknowledge that this is a good problem to have, but it's a problem nonetheless. Any advice would mean a great deal.
Submitted August 28, 2017 at 07:41PM by nbasr http://ift.tt/2xsPZRM
