“I know I can technically afford this but I also feel the need to invest a lot for the future”: Wanting to move to Denver making 63k. How can I afford my dream city while still saving for the future?

Hi Money Minder,

Hey there, Money Minder! Here’s the lowdown on my financial situation:

My salary is $63,000 (which means I bring home around $3,800 a month after paying $1,400 for rent here in Albany).

I’ve managed to save up about $7,000 (not bad considering I started from scratch after graduating in Spring 2023).

I usually put away about $300-$500 a month in savings, plus around $200 in my 401k. My goal is to hit $20,000 in savings and maybe dip my toes into investing!

The good news is I don’t have a car payment – I drive my dad’s old car with 100k miles on it, but it still runs like a dream. And no student loans either! I basically put everything on my credit card and pay it off at the end of the month.

I’ve got my sights set on moving to Denver, my dream city. I know it’s pricey, but the cycling scene there is calling my name. I’ve found places for around $1,400, which I could technically afford. But I’m also thinking about the future – how am I going to afford a car and still keep up with my savings?

Any advice or questions for me, Money Minder? I’m not exactly a finance guru, so any help is appreciated!

Farewell,
Thrifty Cyclist

Response from THE MONEY MINDER:

Hello There,

Congratulations on being debt-free with a solid financial foundation! It’s impressive how you’ve managed your finances, especially starting from scratch after college. Your dedication to saving and contributing to your retirement fund is commendable.

Moving to Denver sounds like an exciting adventure, especially since it aligns with your passion for cycling. However, it’s crucial to approach this decision strategically. Given your current savings goal and desire to invest, it’s wise to ensure you have a financial cushion before making such a significant move.

Consider setting a specific timeline to reach your savings goal of $20,000. Calculate how long it will take to achieve this based on your current savings rate. Additionally, factor in potential expenses associated with relocating to Denver, such as moving costs and establishing a new life in a different city.

Regarding affording a car and maintaining savings, prioritize your financial goals. Once you reach your savings target, you can explore investment options and budget for a car purchase. Research affordable transportation solutions in Denver, such as public transportation or bike-friendly commuting options, to reduce the immediate need for a car.

Remember that financial planning is a journey, and it’s okay not to have all the answers right away. Consider consulting with a financial advisor to create a comprehensive plan that aligns with your long-term goals. Stay focused on your financial goals, and remember that patience and discipline will help you achieve them. All the best from THE MONEY MINDER.