Poll

Move?

Yes
9 (90%)
No
1 (10%)

Total Members Voted: 10

Voting closed: September 14, 2013, 03:19:57 PM

Author Topic: To Move or Not to Move  (Read 981 times)

Researcher

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To Move or Not to Move
« on: September 04, 2013, 09:57:38 AM »
Hi Mustachians!

I have a dilemma and would like some advice. I recently received a full-time position from my internship. Before I was offered the position (as I was looking at other companies) I moved back home with my parents ~45 minutes away from the job. During the time between moving and getting hired, I got really into Mustachianism and optimizing my income/savings. My question to you is does it make sense to move back out of my parents' home and get my own place closer to work?

I'd be paying considerably less in gas & have no cable bill. I am looking to pay ~$500-600/mo on a place including utilities. The reasons for wanting to move are not purely financial though. I'd get to spend more time with friends and coworkers as they all live close by, none near where I currently live. I prefer not to travel all the way near work on weekends. I'd have more privacy and space to myself; my brother, and cousin both live here also. I'd cut the commute and get more rest. I'd dine out less and eat better, cutting the commute leaves more time/energy for cooking & eating better. I'd get to spend more time with my cat, who probably feels neglected. :(

Here are the numbers:
  • Salary - $41,400
  • Current 401K contribution - ~$100/mo (3%)
  • Maxing out Roth - $450/mo
  • Student loan minimums - $363/mo (~$45,000 total, varying interest rates, I pay extra at random times and have been making payments before they were officially due)
  • Car payment ~$400/mo - will be paid off in December
  • Gas - $200/mo (would only be ~$50 if I moved, less if I can find a place close enough & start biking to work)
  • TV & Internet - $100 (I only have cable because my mom wanted it. I treat it as my "rent" to her (not officially of course) -- I wouldn't have it if I lived on my own)
  • Phone - $37/mo (Airvoice Wireless)
  • Groceries - $50/mo (usually less as I live with my mom)
  • Lunch/After work activities - $60/mo
  • Other - $200/mo (includes: cat food/litter, car maintenance, and any entertainment)

Should I move, more so for the non-financial reasons, or punch myself in the face and stay put?

Silvie

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Re: To Move or Not to Move
« Reply #1 on: September 04, 2013, 11:25:24 AM »
Sounds to me like you've already made your choice but just need some confirmation. Obviously, your social life is important to you and you already embraced Mustachianism, so although getting your own place is more expensive, it gives you a lot more freedom and lower commuting costs. Get your own place! :)
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pattertall

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Re: To Move or Not to Move
« Reply #2 on: September 04, 2013, 11:35:56 AM »
Based on all of the information you have provided, I would definitely choose to move if I were  in your shoes.  It sounds like the quality of life will be significantly higher, and the incremental cost will not be all that high once accounting for the lower gas costs and savings from cutting cable.  If I did choose to stay with my parents after I had acquired a full-time job, I wouldn't feel comfortable living in their house without paying at least a modest rent, and that would further close the gap in costs.

Even after your move, it looks like you could have a 30%+ savings rate off the bat and a much higher savings rate after finishing off the car loan.  That sounds like a great start to me and will put you in a very good long-term position as long as you can focus on maintaining your lifestyle as you progress in your career.

Assuming that you do move, I think it would makes a lot of sense to try to find a place where you are able to either ditch the car entirely (which could be a huge benefit to your finances) or at least avoid having to use it daily for your commute.  It's possible that selling the car might not be feasible if you frequently drive back to visit your parents, for example.  But even so, quickly running the numbers for owning vs. renting a car when one is needed could provide more information to make a decision.

olivia

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Re: To Move or Not to Move
« Reply #3 on: September 04, 2013, 12:16:45 PM »
I'd definitely move if I were in your shoes, particularly if you can keep yourself disciplined and not spend a ton eating out with friends.  (My biggest weakness so I may be projecting here!  :P )
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Researcher

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Re: To Move or Not to Move
« Reply #4 on: September 04, 2013, 03:22:16 PM »
Thanks for the advice! You all are helping to confirm my decision. It's just hard to go from paying close to nothing to having a hefty monthly expense again.

Edit: Added a poll for the lurkers out there.

SunshineGirl

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Re: To Move or Not to Move
« Reply #5 on: September 04, 2013, 04:07:06 PM »
I didn't see how long you've been living at home. How long?

I'm all for you moving out, but I'd set a goal first, such as, "I'll move out when my savings rate can be 30%" or...once the car loan is paid off.

My guess is that once you move out, you're gone for good, so if you can hang in there a little longer and use the time to make a significant dent in your savings/debt, you will be doing yourself a huge lifelong favor.


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Re: To Move or Not to Move
« Reply #6 on: September 04, 2013, 09:05:02 PM »
I didn't see how long you've been living at home. How long?

I'm all for you moving out, but I'd set a goal first, such as, "I'll move out when my savings rate can be 30%" or...once the car loan is paid off.

My guess is that once you move out, you're gone for good, so if you can hang in there a little longer and use the time to make a significant dent in your savings/debt, you will be doing yourself a huge lifelong favor.

Not long actually. During my internship I had an apartment close by work and then moved back home in January. Before that I was back at school, living in an apartment with friends.

I was thinking I'd move once the car loan was paid off, but I'm itching to get out sooner, especially if I find a good place.