So, I just graduated college with zero student loans (woohoo!) but I pretty much blew all the money I earned on traveling. No regrets though, since I won’t have the freedom to take monthlong trips for a while.
Living in Minneapolis where cost of living is decent and there’s public transport, I bring in $5800 a month, plus an extra $500 from freelance gigs. After a year, my salary will bump up by 15% and maybe a small bonus too.
Health insurance is mostly covered by my employer, and I’m renting a cozy studio for $1100 plus utilities in a walkable area.
I’m thinking of moving in a few years, maybe grad school or backpacking. I want to save up but not all in retirement accounts.
Currently, I spend $90 on a monthly transit pass and about $300 monthly on Uber/Lyft because my commute is long.
I’ve considered getting a car, but when I factor in insurance, parking, gas, repairs, and the car itself, it seems like a hefty investment. Plus, I enjoy spending on dining out and travel, which I prioritize over owning a car.
Is it short-sighted of me to choose experiences over owning a car? It’s not common to be car-free by choice here, but I’m not sure if I’m missing out on something.
Farewell,
Adventurous Grad
Response from THE MONEY MINDER:
Hello There,
Hello, and congratulations on your recent college graduation! I understand that you have some concerns about your financial situation, particularly regarding transportation and saving for the future while balancing your desire for experiences. It’s great that you are thinking ahead and being mindful of your financial decisions.
Based on the information you’ve shared, it seems like you have a good income and manageable expenses, especially with your reasonable cost of living in Minneapolis. However, your spending on Uber/Lyft is something to reconsider, especially as it adds up over time. While having a car may seem expensive upfront, it could potentially save you money in the long run, especially if you are spending around $300 a month on ride-shares.
When it comes to deciding on purchasing a car, consider doing a cost-benefit analysis. Factor in all the expenses you mentioned, such as insurance, parking, gas, and maintenance, and compare that with your current transportation expenses. Look into more affordable car options and explore different insurance providers to find the best rates. It’s also essential to weigh the convenience of having a car against the cost and time saved compared to public transportation.
Regarding your spending on eating out and traveling, it’s great that you prioritize experiences, but finding a balance is key. Consider budgeting for these expenses and possibly cutting back in other areas to save more towards your future goals, whether that’s grad school, backpacking, or building your savings for emergencies.
Ultimately, it’s not about being short-sighted but finding a balance that allows you to enjoy life experiences while also saving for your future. Being car-free in a city like Minneapolis is possible, but it’s essential to weigh the pros and cons based on your lifestyle and priorities.
I hope this helps provide some perspective on your financial decisions. Remember, it’s all about finding a sustainable approach that works for you in the long term. If you have any more questions or need further advice, feel free to reach out. Take care!
Farewell from THE MONEY MINDER.
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