I WANT TO BE COMPLETELY TRANSPARENT. THIS POST MAY CONTAIN AFFILIATE LINKS, MEANING I GET A COMMISSION IF YOU DECIDE TO MAKE A PURCHASE THROUGH MY LINKS (AT NO ADDITIONAL COST TO YOU). PLEASE READ MY DISCLOSURE FOR MORE INFORMATION.
Housing For Young Professionals in a New City
When it comes to housing for young professionals, I have a slightly contrarian stance compared to most personal finance or FIRE recommendations. My recommendation is most applicable to recent college grads, fresh out of school, a shiny new job lined up and wait for it… moving to a new city where you know a few people to no one. Do not optimize solely for cost or a short commute. You have to find that perfect balance for you in terms of cost, location, amenities, distance to things that are important to you. I’ll share my story to help illustrate my point on this.
Where I Went Wrong
As covered here in Part II of my FI journey, I graduated from college in 2012 and moved to Louisville, KY, where I knew exactly one person outside of work. And technically at first, I can’t even say I moved to Louisville, KY. Louisville was the closest nearby major city but technically my job was located in a very small town in southern Indiana, right across the Ohio River from Louisville, about a 10-20 minute drive depending on where you driving from in the city.
So what mistake did I make? I choose to live in that small town in Indiana, instead of living in a “cool” part of Louisville as most of the young professionals at work had chosen to do. I thought I was being practical, my commute to work was only 5-7 minutes as opposed to 15-20 minutes (longer if there was heavy traffic), I was able to live by myself and saved roughly $300-400 a month living in that less desirable area. Very practical indeed, I thought I was making a very smart adult decision, most of my time would be at work anyway and I was working long hours shouldn’t I make it as painless as possible to get to and from work and save some money in the process?
I saved some money alright, but at what cost? The combination of living by myself, in a less than desirable area for young professionals and not being within walking distance to anything I cared about (bars, restaurants, grocery store, gym, etc) was devastating. These things combined with long days at work left me exhausted and not wanting to socialize and living far away from these things made it even more difficult and felt even more isolating. The things I needed to do most were difficult. It’s much easier to meet up with friends when you can walk out your door and a few minutes away people are meeting up, its easier to go to the gym when it’s on your way home from work or the grocery store when you can walk to it, less tempted to order pizza again. Whatever the case may be. I also didn’t have a romantic relationship at the time, when I told girls where I lived they looked at me like I had 3 heads, not ideal for finding a potential girlfriend, to say the least.
Finding Balance
Things improved significantly over the next few years. First I moved to downtown Louisville, actually saved money in rent, had a roommate to hang out with and talk to and was within walking distance to high-quality bars and restaurants. A year later I moved to a house in the Highlands area of Louisville. This was even more ideal. I only paid $200 a month more in rent, the commute was only 15-20 minutes, I would prefer to walk to work, but that is probably the perfect distance for me if I do have to drive. I also was within walking distance to a strip of excellent bars and restaurants off of Bardstown road. I could easily walk or bike to the grocery store or the CrossFit gym I had joined with a great group of like-minded individuals with a passion for health and fitness.
Ok, so what is the point of all this. Balance. Balance is the most important thing I’ve learned in life, a lesson from my father. I’m by no means saying spend 50% of your take-home pay and get the sickest apartment you can find but don’t isolate yourself socially and live away from things you care about just to shorten your commute or save money on housing costs.
What’s important to you? Walkable distance to bars, restaurants, gym, your work? What kind of place do you want to live in? What amenities does it have that you care about- in-unit washer and dryer, gym, pool? Do you care about having your own space? A garage, a yard?
Moving to ATX
I applied this lesson moving to Austin. My work was actually 30 minutes or so outside of Austin, but I knew I didn’t want to live in that town. I had friends in Austin and wanted to experience everything the city had to offer firsthand. I found a great apartment, nearby to all the things I cared about just south of downtown. Being close to downtown but not right in the heart of it meant dealing with less traffic and was also significantly cheaper. I took on a roommate my brother, and even with a luxury apartment close to downtown only spent roughly 20% of my take-home pay on rent each month.
It’s ok, spend a little bit more on housing as long you’re responsible and it makes for a much better quality of life.
Share your thoughts below!
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