So, I’m a New Yorker, married, making $131k a year (could hit $150k with the bonus).
For the past 6 years, I’ve been living in a tiny 1br apartment, paying $1400 with utilities included. It’s a 40-minute commute each way, and our place is bursting at the seams. My WFH setup takes up half the living room, the place is old and cramped, with weird flooring in each room and barely any closet space. Plus, no dishwasher or laundry, and doing dishes is the bane of my existence. We can’t control the thermostat, so having guests over is a no-go.
I’ve spotted a dream house for $2450. It’s a 2br with a patio, 900ft of space, and it’s in great condition. It has a dishwasher, laundry, and I get to control the thermostat, but I’ll have to pay for utilities. The cherry on top? It’s a 5-minute commute!
Part of me is screaming “do it!” while the other half is worried that I’ll never pay that little for rent again.
My only fixed expense is my car, which costs $350, plus $250 for insurance. I’m hoping these costs will go down once I move.
My credit card bills usually add up to about $1k-$2k a month, give or take.
I’ve managed to save over 100k, as I was gearing up to buy something.
So what do you reckon, Money Minder? Should I take the plunge?
Farewell,
Future Homeowner
Response from THE MONEY MINDER:
Hello There,
Congratulations on saving over 100k and being in a position to consider upgrading your living situation! It sounds like your current home may be feeling a bit cramped and outdated, leading you to find a more spacious and well-equipped place that can better meet your needs. Moving to a larger home with modern amenities like a dishwasher, laundry, and more closet space can definitely improve your quality of life.
Considering your current rent is $1400 with utilities and the new place would be $2450 plus utilities, it’s understandable that you may be hesitant about the increase in monthly expenses. However, the benefits of having a more comfortable living space, shorter commute, and upgraded features like a patio and control over the thermostat should also be taken into account.
In terms of your financial situation, with a yearly salary of 131k (potentially up to 150k with bonus) and manageable fixed expenses for your car, it seems like you’re in a stable position to afford the new rent. It’s important to also factor in potential savings from a shorter commute in terms of both time and money.
Given your savings goal for buying something in mind, it’s worth reassessing your financial priorities and weighing the pros and cons of making this move. If the new home aligns with your lifestyle needs and goals, and you feel confident in your ability to manage the monthly expenses, it could be a positive step towards improving your living situation.
Ultimately, the decision to move should be based on a combination of practical considerations and personal preferences. If you believe that the new home would significantly enhance your quality of life and overall happiness, it may be worth considering making the jump. Take some time to carefully evaluate your financial situation, weigh the costs and benefits, and make a decision that aligns with your long-term goals.
Best of luck with your decision-making process! If you have any more questions or need further assistance, feel free to reach out. Farewell from THE MONEY MINDER.
