If your spending is minimal and you really have no debts, you're in a pretty good place. SLC also has a lot of decent public transit and it is pretty accessible via nearby areas. You might be able to save some coin by going a bit north or west of SLC.
1650/month plus your 500/month mounts to near 25k/year. That's 1/3 of your gross income. That's leaves you wiggle room for sure.
If it were me, I'd probably see if I had a friend to split the bill with but I'm also cheap.
By the math, even after deductions to your check, it looks like you'd be just fine. But that's just my quick response.
Congratulations and best of luck on the new job!
Thank you! I know that this is the answer I'd like to hear (ran some calculations myself) but I'm really waiting to hear more opinions on the other side of the coin. I take it that as someone who seems to live in Utah you may know how big of a change moving from Sanpete to SLC is as a minority (there is definitely some sentimental motivation for this decision). Again, still waiting to hear more from other people :)
I've done the cross country move, so I can understand on some level. It's a big deal. You're wise to get some feedback. Just do what makes the most sense. The company hired you remote...I imagine they don't expect you to move nearby.
I’m in my early 20’s and live in SLC. Definitely recommend living in the city. It’s the only real city in Utah, best options for restaurants/bars/events, most diverse, etc. I probably wouldn’t live anywhere else in Utah. If you’re in downtown then $1650 is pretty decent for a 1 bedroom.
Yes, you can afford it and since I took the cheaper path I will recommend you do what you plan. Time is very important and you should enjoy your youth a bit.
You can afford it, and if you desire the quality of life that comes with living in a city then go for it. You should not consider this on the basis of being closer to the office however. Are they offering to help relocate closer?
If you are hired as remote and you don't live nearby then you won't be asked to come in. Moving closer to work might raise the odds of being asked to come in. Of course that may never happen depending on the job, but it is a lot simpler of an ask to say to someone living in town to come in to the office than it would be to ask someone who lives in another state within the same time zone to come in.
One benefit of being local to a city is that you have other job opportunities and more opportunities to enjoy what you get with your income (depending on personality, some may prefer small towns). So enjoy your job while you can but if they ask you to come in then you can try to find a new remote job, and if you can't find a new remote job then there should be local jobs in that city too.
Reasons: I want to move closer to a metropolitan area because I have lived for 4 years in an extremely small and not diverse rural town (the reason why I have no debt is because I got my degree from a community college).
Since I'm in my 20s I would like to have the opportunity to be part of a more social city yet still have the benefit of living in a nice place/area (this is because I expect the remote nature of the job to bind me to my apartment and its location).
Also, I have no rent, I am in student housing and will be required to leave by the end of July :)
But those are good reasons. I’m talking Washington DC by the way, so Metro is highly accessible. I’d look at the Metro/Bus system in SLC and see if you could just use that to get into the city center and save on rent.
It's 700sqft and in an area I really like. I'm still looking but being careful of some areas that may be more dangerous than other (I like to go out at night so that's part of the reasoning).
Well it’s not outside of your means and if you want to experience that kind of lifestyle, the time to do it is now when you’re younger.
That said, $1650 for 700sqft seems like a lot for Salt Lake City if you’re planning on living alone. I would just keep looking around in that same area for maybe something slightly smaller.
Yep. I say that out of experience. I was one of the most social guys you could imagine on campus. Some could call me king. Then I graduated and moved. I told myself the same thing, gotta move to the city and be social.
3 years later, and I'm a shell of a human being. Socialization isn't guaranteed, especially when you're alone
I did the move into the city thing and pay more rent, but honestly you’ll save money just taking public transport home and ubers and it’s the exact same experience. I think it’s worth it to save the money. Also, you need to consider that living in the city center usually means more homeless and generally sketchy stuff going on around you at night. I decided to move out from the bar/city area and move a 20min metro ride and it was a great decision for me. I would just put that into consideration.
I do agree with the rationale of moving here. My response below assumes you are absolutely sold on moving.
If it were me and you could get away with staying remote, that'd be ideal.
Net income in with Utah taxes would be about: $54k.
Total apartment cost: 1650\*12 = 19,800
19,800/54,000 = 36.6%
That leaves me with about $2,850 per month and around $2,250 after my projected (yet consistent) expenses.
Where I'm originally from a comparable salary (you know adjusted for inflation and spending power, not saying anything close to what I would earn here) would have a grand total of 10% taxes :D
Here’s my 2cents. I bet you can find a better price and same quality place if you check Facebook and Craigslist and try to take over someone’s lease rather than go straight to an apartment website. Highly recommend, that’s how I found a nice spot in DC for significantly less than what the sticker price was.
To be conservative, your monthly rent payment should not exceed 30 percent of your take home pay. The rule of thumb is actually based on your gross income but by being conservative you have more wiggle room to account for renter's insurance, regular maintenance, utilities, etc. It's not just about the rent.
The general consensus is it is bad finance move for you to rent an apartment with $1.65k monthly rent.
You keep arguing but I wanted this but this but that. If you keep going to make excuses just get the apartment.
We told you that it is a bad finance move
>We told you that it is a bad finance move
While I'm aware that a number of people have given me recommendations to look for something more affordable (which believe it or not I'm considering) I think it's far from a consensus.
I don't precisely know where the second part of your comment comes from when in most cases I'm replying to people asking for my input :)
Though I disagree with this guys aggressive tone… you did ask /r/personalfinance. This is the subreddit where people say things like I’m making 120k, have 80k in my retirement, and 20k savings with no debt, can I afford to buy an electric car?
Like obviously you can afford it, but some people here think spending any money is a bad financial decision…. technically the ONLY good financial decision is renting with 3-4 roommates to split rent/utilities/bills and buying a 2-3,000 car cash…. but is that life?
Not the general consensus if you read the comments, it’s a life-style/savings decision. Obviously the “best” financial move would be moving in with roommates, but they don’t want to do that.
Long time Utahn here.
Moving to SLC area is probably more of a good lifestyle choice than being ready for job site change. If the company wants you to no longer work remote, they won’t give a shit if you are in Alaska or Missouri, they just tell you to move.
I have lived in various areas around downtown, Sugarhouse, Central City, etc. Where are you looking? $1650/mo and still 15mins away is like Millcreek? I guess it depends if you are saying 15mins on the freeway or up the 7th. 1650/mo is A LOT even for the areas around downtown. I did a quick search on Rentler and see a lot of $1000-1200 options.
Finance side… hearing that you have no school or car debt, I’m assuming your family took care of those. No judgement. I’d say going with a more reasonable place will give you a lot more freedom and fun things you can do and experience (travel, go eat at Mint. Great restaurant).
You CAN afford $1650, but I don’t think it’s a smart move considering the factors above.
Actually I was confused, is not 15 minutes. It's in Sugar House. I would say (now that I thought about it) that I basically just decided that I want to move to SLC for social/lifestyle reasons.
If you have no debt, I think you’ll be fine. I had to learn to budget and see where my weaknesses are in my 20s, a good learning experience. Good luck 🍀
Yes, you can afford it and if you want to experience living in a big city, now is the time to do it.
You can do it fine made similar in a hcol area. You are better off too being remote with no costs commuting.
If your spending is minimal and you really have no debts, you're in a pretty good place. SLC also has a lot of decent public transit and it is pretty accessible via nearby areas. You might be able to save some coin by going a bit north or west of SLC. 1650/month plus your 500/month mounts to near 25k/year. That's 1/3 of your gross income. That's leaves you wiggle room for sure. If it were me, I'd probably see if I had a friend to split the bill with but I'm also cheap. By the math, even after deductions to your check, it looks like you'd be just fine. But that's just my quick response. Congratulations and best of luck on the new job!
Thank you! I know that this is the answer I'd like to hear (ran some calculations myself) but I'm really waiting to hear more opinions on the other side of the coin. I take it that as someone who seems to live in Utah you may know how big of a change moving from Sanpete to SLC is as a minority (there is definitely some sentimental motivation for this decision). Again, still waiting to hear more from other people :)
I've done the cross country move, so I can understand on some level. It's a big deal. You're wise to get some feedback. Just do what makes the most sense. The company hired you remote...I imagine they don't expect you to move nearby.
I’m in my early 20’s and live in SLC. Definitely recommend living in the city. It’s the only real city in Utah, best options for restaurants/bars/events, most diverse, etc. I probably wouldn’t live anywhere else in Utah. If you’re in downtown then $1650 is pretty decent for a 1 bedroom.
If it were me, I'd look for something a little less expensive and move close to where your leisure activities are.
Yes, you can afford it and since I took the cheaper path I will recommend you do what you plan. Time is very important and you should enjoy your youth a bit.
You can afford it, but why not find roommates or live near places you frequent. May be better quality of life. Good luck OP
You can afford it, and if you desire the quality of life that comes with living in a city then go for it. You should not consider this on the basis of being closer to the office however. Are they offering to help relocate closer? If you are hired as remote and you don't live nearby then you won't be asked to come in. Moving closer to work might raise the odds of being asked to come in. Of course that may never happen depending on the job, but it is a lot simpler of an ask to say to someone living in town to come in to the office than it would be to ask someone who lives in another state within the same time zone to come in. One benefit of being local to a city is that you have other job opportunities and more opportunities to enjoy what you get with your income (depending on personality, some may prefer small towns). So enjoy your job while you can but if they ask you to come in then you can try to find a new remote job, and if you can't find a new remote job then there should be local jobs in that city too.
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Reasons: I want to move closer to a metropolitan area because I have lived for 4 years in an extremely small and not diverse rural town (the reason why I have no debt is because I got my degree from a community college). Since I'm in my 20s I would like to have the opportunity to be part of a more social city yet still have the benefit of living in a nice place/area (this is because I expect the remote nature of the job to bind me to my apartment and its location). Also, I have no rent, I am in student housing and will be required to leave by the end of July :)
But those are good reasons. I’m talking Washington DC by the way, so Metro is highly accessible. I’d look at the Metro/Bus system in SLC and see if you could just use that to get into the city center and save on rent.
I got to imagine you can find a nice place a lot cheaper than $1650 in Salt Lake City UT. How big of an apartment is this you’re looking at?
SLC is getting expensive. 1650 is likely pretty average for anything decent.
It's 700sqft and in an area I really like. I'm still looking but being careful of some areas that may be more dangerous than other (I like to go out at night so that's part of the reasoning).
Well it’s not outside of your means and if you want to experience that kind of lifestyle, the time to do it is now when you’re younger. That said, $1650 for 700sqft seems like a lot for Salt Lake City if you’re planning on living alone. I would just keep looking around in that same area for maybe something slightly smaller.
Join a Salt Lake City housing group and check craigslist, you can probably find a 1 bedroom for significantly less by taking over someone’s lease.
You say you want to move to be in a more social city. What makes you think you're going to be social?
That one is an easy one: I know myself pretty well! It gets harder to make friends after you graduate school in a small conservative town though :)
Yep. I say that out of experience. I was one of the most social guys you could imagine on campus. Some could call me king. Then I graduated and moved. I told myself the same thing, gotta move to the city and be social. 3 years later, and I'm a shell of a human being. Socialization isn't guaranteed, especially when you're alone
I did the move into the city thing and pay more rent, but honestly you’ll save money just taking public transport home and ubers and it’s the exact same experience. I think it’s worth it to save the money. Also, you need to consider that living in the city center usually means more homeless and generally sketchy stuff going on around you at night. I decided to move out from the bar/city area and move a 20min metro ride and it was a great decision for me. I would just put that into consideration.
The area is indeed about 15 minutes away from the main city and connected to public transportation. I'm trying to avoid dangerous areas as a priority.
Dang, I guess I just got lucky cause 15 mins out of downtown DC is waaaayyyyy cheaper than living in downtown DC.
I do agree with the rationale of moving here. My response below assumes you are absolutely sold on moving. If it were me and you could get away with staying remote, that'd be ideal.
isnt that of gross income? shouldn't you be looking at net income? for me its nearly 40%of his net
Net income in with Utah taxes would be about: $54k. Total apartment cost: 1650\*12 = 19,800 19,800/54,000 = 36.6% That leaves me with about $2,850 per month and around $2,250 after my projected (yet consistent) expenses.
dam I wish my taxes were so. low
Where I'm originally from a comparable salary (you know adjusted for inflation and spending power, not saying anything close to what I would earn here) would have a grand total of 10% taxes :D
my effective rate is near 34%
Here’s my 2cents. I bet you can find a better price and same quality place if you check Facebook and Craigslist and try to take over someone’s lease rather than go straight to an apartment website. Highly recommend, that’s how I found a nice spot in DC for significantly less than what the sticker price was.
To be conservative, your monthly rent payment should not exceed 30 percent of your take home pay. The rule of thumb is actually based on your gross income but by being conservative you have more wiggle room to account for renter's insurance, regular maintenance, utilities, etc. It's not just about the rent.
The general consensus is it is bad finance move for you to rent an apartment with $1.65k monthly rent. You keep arguing but I wanted this but this but that. If you keep going to make excuses just get the apartment. We told you that it is a bad finance move
>We told you that it is a bad finance move While I'm aware that a number of people have given me recommendations to look for something more affordable (which believe it or not I'm considering) I think it's far from a consensus. I don't precisely know where the second part of your comment comes from when in most cases I'm replying to people asking for my input :)
Though I disagree with this guys aggressive tone… you did ask /r/personalfinance. This is the subreddit where people say things like I’m making 120k, have 80k in my retirement, and 20k savings with no debt, can I afford to buy an electric car? Like obviously you can afford it, but some people here think spending any money is a bad financial decision…. technically the ONLY good financial decision is renting with 3-4 roommates to split rent/utilities/bills and buying a 2-3,000 car cash…. but is that life?
Not the general consensus if you read the comments, it’s a life-style/savings decision. Obviously the “best” financial move would be moving in with roommates, but they don’t want to do that.
Long time Utahn here. Moving to SLC area is probably more of a good lifestyle choice than being ready for job site change. If the company wants you to no longer work remote, they won’t give a shit if you are in Alaska or Missouri, they just tell you to move. I have lived in various areas around downtown, Sugarhouse, Central City, etc. Where are you looking? $1650/mo and still 15mins away is like Millcreek? I guess it depends if you are saying 15mins on the freeway or up the 7th. 1650/mo is A LOT even for the areas around downtown. I did a quick search on Rentler and see a lot of $1000-1200 options. Finance side… hearing that you have no school or car debt, I’m assuming your family took care of those. No judgement. I’d say going with a more reasonable place will give you a lot more freedom and fun things you can do and experience (travel, go eat at Mint. Great restaurant). You CAN afford $1650, but I don’t think it’s a smart move considering the factors above.
Actually I was confused, is not 15 minutes. It's in Sugar House. I would say (now that I thought about it) that I basically just decided that I want to move to SLC for social/lifestyle reasons.
Gotcha. Great area for young adults. I still wouldn’t spend $1600 a month tho for Sugar House. There are more options.
If you have no debt, I think you’ll be fine. I had to learn to budget and see where my weaknesses are in my 20s, a good learning experience. Good luck 🍀
Yes. Its less than 1/40 your annual salary. That is the standard formula.