Author Topic: Starting life after college  (Read 3920 times)

luke.guilday

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Starting life after college
« on: March 17, 2013, 03:33:47 PM »
I will be graduating from college in a couple of months and was curious for your advice on how to best start being a Mustachian. I accepted a very good job and have two options for living arrangements. First option would be to live at home (about 40 mile commute each way) and save almost all of my paycheck until I can afford a down payment on a home. With this option I would also need to get a more commuter friendly vehicle which would eat into those savings a bit.

The other option would be to rent something closer to work with two friends, but not be able to save quite as much. As well as just throwing good money away on a rental.

Thankfully I do not have much debt coming out of school, nothing I can't pay off after my first few paychecks.

Just curious for the opinion of a Senior Mustachian.

Kriegsspiel

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Re: Starting life after college
« Reply #1 on: March 17, 2013, 03:55:17 PM »
If you are considering a 40 mile commute, I can only assume it's because you haven't read the blog postings?  You should start by reading the blog, and do what it says, you'll be golden, I swear!

Dee18

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Re: Starting life after college
« Reply #2 on: March 17, 2013, 06:12:17 PM »
Go with your friends and help them find a place you can bicycle from to work.   Time to move on and start your own Mustachian life...

AnonymousCoward

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Re: Starting life after college
« Reply #3 on: March 17, 2013, 06:24:13 PM »
If you are considering a 40 mile commute, I can only assume it's because you haven't read the blog postings?  You should start by reading the blog, and do what it says, you'll be golden, I swear!
The True Cost of Commuting is the particular article you should see.

By the IRS's standard cost of driving estimate (includes gas, maintenance, insurance) of $0.51 cents/mile you'd be spending $816 a month on driving. Even ignoring the actual time that would take (roughly 10 hours a week) that's a colossal waste compared to living in town.

kudy

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Re: Starting life after college
« Reply #4 on: March 17, 2013, 06:43:45 PM »
Not only is living within biking distance of the new job & paying rent the better choice financially, I think it is all around a better choice to rent for a while, live with friends, and gain those life experiences. Buying a house is a big deal, especially in the first few years out of college - you don't know how your life might change, and a house can become a ball and chain. Living at home forever can also stunt your emotional and personal growth.

Jamesqf

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Re: Starting life after college
« Reply #5 on: March 17, 2013, 09:49:57 PM »
By the IRS's standard cost of driving estimate (includes gas, maintenance, insurance) of $0.51 cents/mile you'd be spending $816 a month on driving.

Of course any reasonably Mustachian car will cost only a fraction of the IRS mileage rate. 

You might want to consider how long that 40 miles will take to drive.  Is it open roads, or mostly city streets?

The other side of the equation is the possibly unforseen expenses that you might see from living with a couple of friends, as for instance partying every weekend...

Gerard

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Re: Starting life after college
« Reply #6 on: March 18, 2013, 08:24:46 AM »
I would go with the shared rental, and count those years as research/practice in the art of living your own life (e.g., when not to party, where in your workplace town you really want to live, etc.).

unpolloloco

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Re: Starting life after college
« Reply #7 on: March 18, 2013, 09:42:38 AM »
If you are considering a 40 mile commute, I can only assume it's because you haven't read the blog postings?  You should start by reading the blog, and do what it says, you'll be golden, I swear!
The True Cost of Commuting is the particular article you should see.

By the IRS's standard cost of driving estimate (includes gas, maintenance, insurance) of $0.51 cents/mile you'd be spending $816 a month on driving. Even ignoring the actual time that would take (roughly 10 hours a week) that's a colossal waste compared to living in town.

The IRS uses total cost accounting in their calculations, however.  Assuming OP would still have a car in both situations, marginal cost accounting would make more sense.  This would exclude any fixed costs (insurance, parking?, age-related maintenance, etc.) and only focus on the additional costs of additional mileage (gas, wear and tear, etc.).  Likely real cost is in the lower hundreds per month (plus a bunch of time and lost social interactions).  Weigh that cost against the rent cost and other incidentals.

COguy

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Re: Starting life after college
« Reply #8 on: March 18, 2013, 10:14:49 AM »
As well as just throwing good money away on a rental.

I would be careful with this statement.  Personally, I rent and I have a hard time getting the numbers to favor buying.  Generally buying only comes out slightly better.  Once I factor in the intangibles like having no debt and being able to seize any opportunity I want and having an almost worry free life, etc.  I just rent.  Now if I had kids and other people to take care of, I think a house is a great deal right now.  For single fresh out of college people, I think it is not so cut and dry.

Of course, the banks, mortgage brokers, house appraisers, home inspectors, realtors, home depot, etc...would love for you to buy a home.

matchewed

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Re: Starting life after college
« Reply #9 on: March 18, 2013, 10:28:22 AM »
IMO run the numbers. Find out the costs and go with what your values/goals are in line with.

If commuting is indeed cheaper but you have a particular value towards being environmentally friendly then commuting is a bad option (depending on your type of environmental friendliness).

Or if trying to experience different viewpoints and meet different people is your thing moving out may be a good thing.

Or if neither of these click with you and you want to view it as purely a numbers game go with the numbers.