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Subject Expert
Smart move living with room-mates.
Yes, you are overspending a little, you could choose a more affordable neighborhood, but you are only young and moving to a big city once.
Enjoying life is important too.
Sort of where my head was at, thanks!
wow how are you at $315k saved already at 25?! that is insane congrats
Renting is wasting money. Puts it right into the landlords pocket instead of being investable in yours. In this instance, though, it does make sense since it’s temporary. You may also be able to get a higher paying job up there as there is a lot more opportunity in the city. Just don’t waste a bunch at restaurants. You’ll stay thin and healthier as restaurant food uses garbage ingredients. Finding a rich husband will be the ultimate 🔥 move. Plus you’re more appealing due to being debt free and bringing something to the table. Have fun!!!!
If OP is a lesbian she’s welcome to contact me. I’ll get her a nice car and she can come live in one of my homes. I’m over men anyway. 😁
Me a 30F (with a bit less in savings lol) also considering this exact move 😁✨ good luck 🥰🎉
$315k in cash is wild for your age unless it was an inheritance or gift. Kudos to the discipline and commitment to saving if you did it from scratch!
Not cash, it’s all stock, 60k was inheritance from grandparents the rest was tech stocks/sp500 and company matching retirement accounts
I was making a little less than this and paying about the same in rent in DC and was very comfortable. Could continue to travel and go out with friends while still aggressively saving.
Assuming you got to the 315k from being intentional with your spending and not an inheritance I think you have the habits to be fine. Just keep an eye on your budget, pack your lunch and don’t get caught up in keeping up with the Jones’.
Thanks!
Do it - lived in Manhattan for three years when in my 20s and no regrets. You’ll work hard and hustle and play hard and you don’t want to waste time commuting. Set a plan for auto investing a certain amount each month and enjoy the rest!
No seems very reasonable. Hopefully that 315k is invested and not sitting in a saving account.
It is :)
Honestly it’s a bit steep but especially if you don’t have student loans, you’re doing great for your age, and living in Manhattan in your 20s is an incredible opportunity you can afford.
I live in manhattan and think this is totally fine and reasonable. Lot of these comments clearly don’t know how expensive it is living in this city—wouldn’t put too much weight on their comments. You can make it work and still have plenty of fun! But also you won’t be saving near as much as you’re probably used to. Cost of living here is no joke, and if you’re coming from a state with lower taxes, the difference in take-home pay can be jarring. But if you’re moving here, it’s for the experience and not the savings—best to optimize those couple years by living in the neighborhood you want, especially if you feel like it’s a short term thing.
Have you thought about buying an apartment? Studio/small 1B Coop or condo isn’t too expensive now in Manhattan. You have enough savings for a decent downpayment. You can deduct the mortgage interest and real estate taxes. If you rent, can’t deduct anything and not building equity.
I can understand that. Since you will be in a new city, it would make sense to get a better feel for the different neighborhoods. You can think about buying down the road if you intend on staying longer.
and here i am complaining about my $1,050 rent lol. If youre happy, go for it.
Firstly, congrats on $315K saved at 25.
Secondly, do you mean $3K split 3 ways ($1K each) or $3K each ($9K total)? If it's split 3 ways, then I'm not sure how 3 people are going to fit in an average $3K apartment in Manhattan. If it's $3K each, then I don't know why anyone would choose to pay $3K to share an apartment with 2 other people.
If you just want the NYC experience and are willing to pay for it, then it doesn't matter whether you're overpaying for the apartment or not because you're paying for the experience. My experience is that NYC is overrated and living on past glory, but enough people believe the hype and what they see in movies to want to pay big money to live there, so the prices keep going up.
Depends which calculator you go off of. One is 30% of your pre-tax but that's better if you're thinking of owning. If renting is the ultimate goal- 25% of your post-tax income (I imagine somewhere around 105k after the city tax) is $21,000 or $1750 a month. Tough in NYC to do 25% of post-tax income but $3050/month is close to 35% of your take-home pay. With most budgeting models somewhere in the 50-60% going to your needs category, 35% is too big a chunk for rent as other cost of living items will stretch you and make investing hard.
More concerningly, I really hope you don't mean 315k in savings but rather 315k in accessible, fairly liquid, investments.
Disclaimer: While I do teach financial well-being, I am not an investment advisor and nothing in the above should be considered individual investment advice.
Subject Expert
This is 23% of gross. Probably fine.
What percentage of your income are you saving? If it's healthy I would say your rent is fine.
Subject Expert
I like Monarch. It is paid, but better than the free ones.
If you only have a small number of accounts then excel can work fine
There are huge amount of things to spend money on in NYC, so definitely a good idea to track.
that feels like too much for having 2 roommates.
Subject Expert
Manhattan is really expensive. Especially nice neighborhoods.