Hello,
I graduated last month and I'll start an entry-level job as a software engineer at a big company in Jersey City. I am very fortunate to start my career with a $110k salary a year (I think that is around $77k after taxes), and I have to make some important financial decisions.
My first decision is my living situation, I could get a 1 bedroom apartment/studio for $1100-1300 or a luxury apartment/studio including a gym for $1700-1800. My living costs, in general, are not very high, as I've learned to save money and I don't like to focus on material stuff. Right now I am focused on work and trying to increase my overall salary to >$200k in the next few years (although this could mean relocating to NYC). My regular expenses not including rent should not be higher than $1,200 (food, transportation, donations, traveling, entertainment, health insurance, etc.)
I try to save as much money as possible, but I do like the idea of living comfortably, given that in the past I've lived in some difficult situations and now that I could afford it, perhaps the extra cost of $600-700 on rent per month may allow me to feel happier and be more productive, but I also know that all of this is debatable, and I could feel as happy/comfortable in a cheaper apartment. The idea of spending extra money for a bit of luxury does make me feel a bit guilty, but I think long term it may be worth it, as I intend to increase my salary and try to remain with roughly the same living expenses.
With respect to debt, I have around $25k in student loans and $5k in credit cards (I'll pay the CC's as soon as I receive my signing bonus, also I got the credit cards last year so they have 0% interest until next month).
Finally, I don't really plan to retire early, and I'd like to start my own company eventually. The idea of FI attracts me because once I am FI I could pursue any ideas I want.
What do you guys think? Do you guys think it's a good idea to pay a few extra hundred for some extra comfort? Or should I try to save the extra $500 that this could provide me, and use that to pay my debt and start saving?