I narrowed down 2 places. One has a rent of $950 and the other has $1200. The cheaper one has a shared bathroom and the kitchen is shared with 4 or 5 people and the gym is 20 minutes a way by bus. The expensive one has a private bathroom, kitchen shared with 2 people at most and is in walking distance to the gym. All else is the same. I have student loans that total to $50k and I earn about $5.1k post taxes. I aim to put around $2.5k per month to pay it off. At this rate I should pay it off in 2 years but depending on the choose I will have to make sacrifices. I am not from this country though I would like to stay but realistically I will most likely be here for just 5 years. I’m confused about which one to choose. Financially the $950 is the best option, or really anything cheaper is. But I really like $1200 apartment. It’s in great neighbourhood with a private bathroom which would normally cost $1.6k usd :/. The more expensive one would push completely paying off the loan by 4 months roughly. But at the same time, if I take the more expensive one I can always break lease later if I don’t see any signs of promotion to pay it off quicker.
I guess what I’m looking for is an adult to help me with this. Normally my dad would help but he’s not there anymore :/ I’m having a hard time separating my wants from my needs. For me paying off the debt occupies a big part of my life but at the same time is 4 months that big of a deal? What if I get a raise and it balances out? Could someone help me? Making decisions is stressing me out a lot. Thank you =)
Choose cheaper apartment or more expensive one?
byu/throwaway-piggy inpersonalfinance
Posted by throwaway-piggy
2 Comments
Use this to make a budget with two different scenarios, one for each apartment: https://www.reddit.com/r/personalfinance/wiki/commontopics Remember to adjust the scenarios for any other costs that will change based on living in a different location (like utilities and transportation).
Once you see what the impact will be on your budget, you can decide whether you value the lower cost apartment which gives you more money to spend on other things, or the higher cost apartment for the potential convenience.
Sorry for you loss, that sucks.
How much is the bus fare both ways? How often do you go to the gym?