I’m considering moving because I’ve had enough of my current place, but I’m trying to figure out if it’s a dumb financial move.
    I use my credit card for everything (insurance, food, everything) so I know exactly what I spend. Over the past 15 months
    ~$1,500/month in spending on average
    $1,500/month rent
    ~$3,000/month total expenses
    My take-home pay is $4,000/month on average, plus two extra biweekly paychecks per year. I currently invest $500 per paycheck ($1,000/month) into a Roth retirement account.
    I’m looking at apartments/condos in the $2,500–$2,700 range. That would basically put my total monthly expenses at my full take-home pay.
    Assets:
    $80k cash
    $130k in stocks (mostly ETFs)
    $140k in Roth retirement
    If I move, I’d essentially be living paycheck to paycheck and trying not to touch savings/investing would drastically slow down. I could reduce retirement contributions to create some breathing room if needed.
    I’m 40, live in a high-cost area (NY), and have a stable job. Ill be able to retire in 16 more years.

    So basically I'm looking at better living situation, savings/investing wont be able to grow much VS stick in a crappy spot but continue building growth.

    Thinking about moving but it might make me paycheck to paycheck, bad idea?
    byu/Smc55 inpersonalfinance



    Posted by Smc55

    3 Comments

    1. Spending 62%+ of your take home pay on *just* rent is madness.

      I don’t even know if a landlord would approve rent that high.

    2. ProfileSolider on

      If moving wipes out your margin that hard, I’d treat it as a quality-of-life decision, not a financially neutral one. That doesn’t make it automatically wrong, but it does mean you should be brutally honest that you’d be buying relief with slower wealth-building and a lot less room for error.

    3. BelowAverage355 on

      Yeah, no, not a good idea financially. Surprise expenses will immediately chip away at your savings, and way faster than you think.

      Surely you could find a nice enough place for cheaper than that?

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