Determining threshold cost of moving closer to work

[sizzlinkola]

I'm contemplating moving closer to work. I commute 45 min each way. I drive a 2014 Prius C, 15k miles. Have two loans: $12.5k car loan, 2.62% interest; $17k student loan, 3.5% interest.

My rent is $650/mo, private bed and shared bath with close friends from college. Rent closer to work is ~$1000 for a private bed/bath with strangers and ~$1600-$2000 for my own 1 bed apartment.

What does everyone think? What should be my absolute maximum for rent? The 1 bed apartment seems pretty hefty, but it'd be really nice to have my own place. However, if I wasn't going for FIRE, I don't think I'd want it still.

[YoungGranny]

If it's city driving and you're averaging 30mph thats 22.5 miles each way - if it's city & highway averaging 60mph then that is 45 miles each way. So that's a range of $280-$560 that it's costing you each month to commute, which means a comparable rent price would be $930-$1210. There's also a factor of 1.5 hours each day being wasted since your time is worth money too. Personally, I wouldn't be happy commuting 1.5 hours a day so if I could rent a place and potentially save $200 a month it would be a very easy decision.

[CptCool]

You get more than just a monetary benefit by moving closer to work. You also get your time back, have a less stressful commute (if any), will likely never be worried about traffic making you late to work, etc.

[foghorn]

There are some other things you may want to consider as you think through this issue. 

Most importantly is the job you have and the company you work for.  Do you really like the job?  What is your confidence that the job is stable and solid - is the company stable and solid?  I bring these issues up so that you think about being in this new location and your job goes away.  Would you still want to live there?  Would the new location be a better - or worse - place to be if you needed find a new job?

As people do not stay in jobs very long anymore, moving to be closer to work and have a shorter commute may not make much sense if you find yourself in this same situation in 2 years with a new job. 

You know know your local area well and what makes the most sense.  Just think about the "next job" and if your new location might still make sense.

[sizzlinkola]

If it's city driving and you're averaging 30mph thats 22.5 miles each way - if it's city & highway averaging 60mph then that is 45 miles each way. So that's a range of $280-$560 that it's costing you each month to commute, which means a comparable rent price would be $930-$1210. There's also a factor of 1.5 hours each day being wasted since your time is worth money too. Personally, I wouldn't be happy commuting 1.5 hours a day so if I could rent a place and potentially save $200 a month it would be a very easy decision.

How did you come up with that range? I drive 20 miles each way. Mainly highway going to and half city/highway going back (more traffic going back home that city is faster). I probably average 45mph.

[YoungGranny]

To get the range I simply did (# of Miles per day x 21 days* x $.32**) so now that I know it's 20miles each way that would be (40 * 21 * $.32) = $268.8 per month in commuting costs.

 The 21 is the average number of potential workdays each month omitting vacation or other potential days off.
**The $.32 is your assumed cost per mile. It may be higher or lower depending on your exact number but I used a reasonable estimate for a Prius.



Keep in mind while the numbers check out that it's cheaper on paper you should really think about what else you could be doing with an extra 1.5 hours a day. Plus, how close is close to work? Walkable? Bikeable? Or would you still drive? Good luck making a decision.