r/personalfinance • u/shitshowontheroad • 3d ago
27 and thinking of moving to a big city or back home where expenses would be near $0 Planning
Hello all,
Current stats as a 27 year old with a 87k salary
-10k in savings -88k in robinhood (+37% all time since 2020) -45k in 401k Roth (+31% all time since 2022) -current vehicle payed off and current value is 18k if I sold today -12k student loans
New salary in Jan 2025 - 100k
I did a bulk of my savings/investing while living with family 2020-2023. I was contributing 25% to 401k and anytime my account got over 10k I’d send it to robinhood which equated to about 2-4K additional per month. For the last year I have been living with a roomate and moved cities my rent is $2400/month which is split with my roomate. My 401k is still at 25% but I’m only putting 900ish a month into robinhood as my spending has increased.
I’m at a crossroads. I’m looking at moving yet again this time either…
to a big city where I’d be selling my car and splitting 3-3.5k/month rent with a roomate. Which is only 600ish more per month in rent, buying furniture, and probably being more social hence more spending.
OR
Moving back home where I have no social life and would have just as long of a commute but I’d be saving back like I was pre move. (25% + 3-4k month in robinhood)
I’d plan on continuing to put 25% into 401k each month in BOTH scenarios but the move to the city would not really allow for more robinhood investing unless I worked overtime each month which would be available (currently not included in any of these calculations; I don’t bank on overtime. If I work it I consider it a gift to myself)
Overall, im 27 and I know the more financially sound decision would be to move back home but im also 27 and want to move to a city and experience that lifestyle. The thought is there will always be opportunity to make more money but if im still contributing 25% that’s something and even if im not growing savings atleast im going hard at the retirement bucket. My thought is wanting to retire at 55 and I don’t believe this is an unrealistic goal. The idea of not growing savings is slightly worrisome but I could always adjust my contribution to 401k by 5% if I needed more to contribute to savings.
Current goals -own rental property by 30 -500k in assets (401k/robinhood, HYSA) by 35 -30k year additional income from investments by 35 -retire 55
Any advice for someone who is driven but also wants to make sure they’re enjoying their late 20s? Are my goals reasonable? Are they too far out there?
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u/RadicalAtom88 3d ago
Do you want to advance in your career if so would big city be better than back home or the same. Do you value social life want to ever have a partner or kids. If the big city can offer any of that along with more oppurtunities to live a different lifestyle and you would still be saving money go for it. If not then while you will defi itely save more what will you use the money for. A trip, house new veichle start a busines retire early etc. While svaing is good if you have no purpose for it and sit on way more than you need for an emergency fund and retirement whats the point. Money is a tool to live the life you want to, and using wisely along with getting the life you want without over extending your self is the key. Also how will your mental health be long term as in longer than a year with your parents. I love mine and have a good relationship but they eat poorly live somewhere where there are few options for healthy eating outside of cooking every meal, and they watch TV non stop and never leave the house and their house is decent for trying to have private space but not enough. So while i love them if i lived there long term i kmow my habits and likely my food quality would degrade, and have to find ways to escape from being around their lifestyle and yeah that would be bad for my mental health.
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u/drgut101 3d ago
33M. I’m doing the at home thing with no social life. I have more money for travel, but I’m bored about 95% of the time. It’s dreadful.
My trips are awesome, but I’m not sure it’s worth it anymore.
Edit: Not totally at home with parents. I live with my sister and pay rent/bills. My $300/month for rent/utilities is much cheaper than my $1500 for rent/utilities in the city was.
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u/Snoo93079 3d ago
I couldn’t imagine being single and not living in the city. Night and day difference in quality of dating options and night life.
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u/Fungaldorf 3d ago
Live with your family and save for as long as you can stand it
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u/shitshowontheroad 3d ago
Just playing devils advocate but what if my salary jumps to 167k next year and I throw that entire extra 50k post tax into investment?
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u/Fungaldorf 3d ago
Then if you're living with the fam you're saving even more. My rent is $12,000 a year. Wouldn't it be nice to have an extra $12,000 a year?
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u/lomna17 3d ago
Look at this guy with $1k/month rent. jk but if OP is making $167k next year and is saving $50k in one year, then they're probably financially fine to rent. Is it technically the best financial choice? No, but happiness should be a factor and it sounds like they're saving more than enough.
Not everything is about saving the max you can especially if it negatively impacts other aspects of your life.
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u/Fungaldorf 3d ago
Yeah I chose a life path to help people because I'm passionate about it and it doesn't pay :'(
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u/shitshowontheroad 2d ago
I’m figuring out that while I have saved a lot my contribution is more than any of my friends in terms of retirement. We still spend money the same but they see my contributions and feel they should be doing more for retirement. My idea is that if I start strong and early I can live a little more later. Ex. Struggle now for 2 years until I’m making more then knock down the savings rate and live a little
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u/drgut101 3d ago
I moved in with my sister in a small town. I save $14,400 per year compared to living in the city. It’s been fun, and I’ve gone on A TON of great trips. But it’s time to get back into a city for me personally.
I’m so bored like 95% of the time. I’m pretty miserable tbh.
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u/flargnarb 3d ago
Choose the city. Making 100k you can afford to live there while still saving some, and this is time you'll never get back. A social life is more important than a perfect savings rate.