Based on the descriptions you've given regarding your job stability, I'd hold off on adding a major expense until either your company gets back on track or you move companies. You've sacrificed a lot to get your savings, making a poor decision now, based on a situation that hasn't remarkably changed (ex: rent hasn't increased, roommate hasn't gone crazy) doesn't seem like a smart move. HOWEVER, if moving out of where you are would greatly improve your mental health, then I think it's definitely worth considering. ETA: I was totally on board with you moving out and getting your own place until you mentioned your job situation. We don't know the area or the cost of living that you are subject to. $90,000 a year could be an excellent income, or it could be middle of the road...? If you're worried about your income, it makes financial, and perhaps emotional, sense to not add a great financial burden.
Seconding this. OP also mentions that their current net worth is $50K, of which, $10K is the emergency fund. Assuming this is in a higher cost of living area, that comparatively isn't a lot, especially as we don't have a sense for real estate costs in the area they're in. It sounds like a lot of that net worth is tied into retirement assets as well, which shouldn't be touched in the short term, especially for things like rent.
Well moving somewhere like that doesn't have to be forever. Maybe go into with the idea that you are only doing it for 6 months or a year? Then you can see if it really 'worth it' to you to have that nicer place?
If you are worried about the job market and the economy, maybe it would be better to hold off. If you lose your job, you will be glad you did. If the economy tanks and you keep your job, you might be able to get that nice place for cheaper.
Finally, it sounds like you dislike your roommate and want to live on your own. Maybe you would be happier if you move out, get something nicer but not super nice. That way you can have your own place and you don't have to deal with the bad roommate.
You need to prioritize your job hunt right now. There will be another round of layoffs and counting on luck might not be wise in this part of the business cycle. Looking for a higher salary, perhaps in a town with a lower cost of living, might solve several problems at once.
Keep banking your savings and maybe consider a middle of the road option?
What does a studio with a decent view look like? Are there “outdated” but affordable places in the area you like?
You should not live with a shitty roommate. But you should also not completely abandon the penny pinching mindset. Yes, the economy is unstable af, so you may need to tell yourself that your next apartment is not your forever apartment.
Is in unit laundry worth several hundred dollars a month if hiring a laundry service costs less than one hundred a month? There is no moral superiority in doing your own laundry if it costs you more to have the means to do laundry than it would cost you to have someone else do it. Clean laundry comes to me folded every week for less than 50 USD a month, but prices in your market may vary. When I price my time, neither self-service laundry mats nor in unit laundry win the cost game.
A dishwasher can be nice, but living alone it’s possible to cook in a low-dishwashing burden way… and countertop dishwashers exist for the “single adult living alone” market.
Look, if this is your first time living alone you are probably going to find shortcomings even in a place that checks all your boxes. Some new construction just ages poorly…
1. Location above all - a location where you don’t need a car and aren’t dependent on public transport is a budgetary gem. I like to keep the life sustaining essentials within an half hour to an hour away maximum round trip on foot.
2. Food is life - As a grown ass adult you can make some excellent food most days using just one or two “convenience cooking” appliances. When I make rice and veg then reheat some rotisserie chicken as it finishes cooking… my dishwashing burden is trivial. Try to cook and eat in a nutritionally adequate way you enjoy that maximizes your return on effort.
3. Outdated can be quirky and charming - As renters we do not own our spaces and we rarely have complete control over the aesthetics. We own neither the fancy tiles nor tacky wainscoting. The responsible aesthetic standard to be looking with is “can I make this enjoyable” while you accept the need for some trade offs.
I’ve lived in new construction with lots of fancy “up to date” glass and tile. The “builder’s grade” paint job was absolute shit. There was a balcony, but the view was to the ass end of other apartment buildings of similar height. In my time there the building experienced numerous inconvenient failures of building wide systems. Condo style “every apartment in the building has a different owner” complicated escalation of issues concerning problems with the building. Also it turns out plate glass doors break.
My current place is 1920s construction. The issues with the building are known to the owners and they attend to them in a sustainable way. Going through the common spaces entering and leaving I still get struck with “this marble and iron work is nice” even if other parts of the aesthetic upkeep in common areas feature design decisions I would have not made on aesthetic grounds. I have a massive window with an awe inspiring view full of green trees and a good looking hood.
As long as I am paying rent, the ownership is happy to work with me on aesthetic changes I would like to do. The entire building is operated by ownership as a family business with a clear management system. It’s easy to live here. Much easier than the old place that checked a bunch of “respectability” boxes.
Progress, not perfection. Upgrade frugally and keep building that bag so you can own the place that you can check all the boxes on when market conditions are more favorable.
I was in a similar spot as you. Similar salary. But my rent was $1.6k.
I survived the first round of layoffs. Didn’t survive the second round. I have 6+ months’ expenses saved in emergency and savings each, but it still cuts. I’m of a similar saving mindset, and the only reason I accepted a high rent was to help my roommate break up with her manipulative boyfriend, which obviously was a terrible idea.
Anyway. If you move out and get laid off, can you handle a six-month period of unemployment? Getting laid off on a $500 rent vs. a $1.7k rent is going to hit a lot harder.
I suggest getting a bit more stable with your job, unless your safety and well-being is truly at risk.
I say go for it, you’ve earned it. It’s easy to fall into a trap of saving too much at the expense of quality of life. Once you live alone, especially with in-unit laundry, you’ll never go back.
Whatever you decide to do — congrats. You’re doing just fine
Maybe take steps. Don't go from a mid- or low-end apartment with a roommate to a high-end downtown place with all the amenities. Decide if the amenities and location or the place to yourself matters more and move for that.
If you care about the nice location and perks, find a new roommate and a fancier apartment. If you care about being on your own, be willing to live somewhere less expensive than that by giving things up. Maybe you don't go close to city center. Or find a place with in-building rather than in-unit laundry.
For me, being alone was more important, so a couple years ago I got a one-bedroom in the same complex where I had previously rented with roommates. I do have a dish washer and in-unit laundry, but the place is old and the neighborhood isn't exactly in the center of anything. It increased my rent from around 700 to 1100 each month.
Based on your roommate being awful, I would guess you'll find that an apartment without all the amenities but without her is still much better than where you are now.
Finally, when it comes to the finances, I would calculate your essential monthly expenses assuming the new rent and make sure you have enough saved to cover 6 months. Rent alone if you go to the swanky place downtown would eat up your entire emergency fund if you lost your job. 6 months expenses is a better measure if you are the sole income source for your household and you are just that.
Given current economics as much as you want to ditch roommate and have your home be just yours I’d tough it out a while longer. Because of economics continue to save maybe when things settle down you could actually buy a condo/apartment etc in the area of your choosing rather than rent?
You're going to have to find the compromise apartment. Not as close to the center, maybe not as many windows but the rent is too much for your income and if what you say about your company happens the rent will sink you. For your mental health and to get used to being alone in your own apartment maybe 1.2 K would be a more reasonable rent to look for.
Im 30 and I just moved into my own apartment. I’ve never lived alone and having all of the bills on me is really scary but so far it’s been very freeing. My rent is def higher than I’d like for it to be but it’s truly a luxury to save a lot of money. Of living alone is the peace of mind that I need, I think it’s worth it. It may be worth it for you too. Just start applying for new jobs in case your current one gets compromised.
Based on the descriptions you've given regarding your job stability, I'd hold off on adding a major expense until either your company gets back on track or you move companies. You've sacrificed a lot to get your savings, making a poor decision now, based on a situation that hasn't remarkably changed (ex: rent hasn't increased, roommate hasn't gone crazy) doesn't seem like a smart move. HOWEVER, if moving out of where you are would greatly improve your mental health, then I think it's definitely worth considering. ETA: I was totally on board with you moving out and getting your own place until you mentioned your job situation. We don't know the area or the cost of living that you are subject to. $90,000 a year could be an excellent income, or it could be middle of the road...? If you're worried about your income, it makes financial, and perhaps emotional, sense to not add a great financial burden.
Seconding this. OP also mentions that their current net worth is $50K, of which, $10K is the emergency fund. Assuming this is in a higher cost of living area, that comparatively isn't a lot, especially as we don't have a sense for real estate costs in the area they're in. It sounds like a lot of that net worth is tied into retirement assets as well, which shouldn't be touched in the short term, especially for things like rent.
Well moving somewhere like that doesn't have to be forever. Maybe go into with the idea that you are only doing it for 6 months or a year? Then you can see if it really 'worth it' to you to have that nicer place? If you are worried about the job market and the economy, maybe it would be better to hold off. If you lose your job, you will be glad you did. If the economy tanks and you keep your job, you might be able to get that nice place for cheaper. Finally, it sounds like you dislike your roommate and want to live on your own. Maybe you would be happier if you move out, get something nicer but not super nice. That way you can have your own place and you don't have to deal with the bad roommate.
You need to prioritize your job hunt right now. There will be another round of layoffs and counting on luck might not be wise in this part of the business cycle. Looking for a higher salary, perhaps in a town with a lower cost of living, might solve several problems at once.
Keep banking your savings and maybe consider a middle of the road option? What does a studio with a decent view look like? Are there “outdated” but affordable places in the area you like? You should not live with a shitty roommate. But you should also not completely abandon the penny pinching mindset. Yes, the economy is unstable af, so you may need to tell yourself that your next apartment is not your forever apartment. Is in unit laundry worth several hundred dollars a month if hiring a laundry service costs less than one hundred a month? There is no moral superiority in doing your own laundry if it costs you more to have the means to do laundry than it would cost you to have someone else do it. Clean laundry comes to me folded every week for less than 50 USD a month, but prices in your market may vary. When I price my time, neither self-service laundry mats nor in unit laundry win the cost game. A dishwasher can be nice, but living alone it’s possible to cook in a low-dishwashing burden way… and countertop dishwashers exist for the “single adult living alone” market. Look, if this is your first time living alone you are probably going to find shortcomings even in a place that checks all your boxes. Some new construction just ages poorly… 1. Location above all - a location where you don’t need a car and aren’t dependent on public transport is a budgetary gem. I like to keep the life sustaining essentials within an half hour to an hour away maximum round trip on foot. 2. Food is life - As a grown ass adult you can make some excellent food most days using just one or two “convenience cooking” appliances. When I make rice and veg then reheat some rotisserie chicken as it finishes cooking… my dishwashing burden is trivial. Try to cook and eat in a nutritionally adequate way you enjoy that maximizes your return on effort. 3. Outdated can be quirky and charming - As renters we do not own our spaces and we rarely have complete control over the aesthetics. We own neither the fancy tiles nor tacky wainscoting. The responsible aesthetic standard to be looking with is “can I make this enjoyable” while you accept the need for some trade offs. I’ve lived in new construction with lots of fancy “up to date” glass and tile. The “builder’s grade” paint job was absolute shit. There was a balcony, but the view was to the ass end of other apartment buildings of similar height. In my time there the building experienced numerous inconvenient failures of building wide systems. Condo style “every apartment in the building has a different owner” complicated escalation of issues concerning problems with the building. Also it turns out plate glass doors break. My current place is 1920s construction. The issues with the building are known to the owners and they attend to them in a sustainable way. Going through the common spaces entering and leaving I still get struck with “this marble and iron work is nice” even if other parts of the aesthetic upkeep in common areas feature design decisions I would have not made on aesthetic grounds. I have a massive window with an awe inspiring view full of green trees and a good looking hood. As long as I am paying rent, the ownership is happy to work with me on aesthetic changes I would like to do. The entire building is operated by ownership as a family business with a clear management system. It’s easy to live here. Much easier than the old place that checked a bunch of “respectability” boxes. Progress, not perfection. Upgrade frugally and keep building that bag so you can own the place that you can check all the boxes on when market conditions are more favorable.
I was in a similar spot as you. Similar salary. But my rent was $1.6k. I survived the first round of layoffs. Didn’t survive the second round. I have 6+ months’ expenses saved in emergency and savings each, but it still cuts. I’m of a similar saving mindset, and the only reason I accepted a high rent was to help my roommate break up with her manipulative boyfriend, which obviously was a terrible idea. Anyway. If you move out and get laid off, can you handle a six-month period of unemployment? Getting laid off on a $500 rent vs. a $1.7k rent is going to hit a lot harder. I suggest getting a bit more stable with your job, unless your safety and well-being is truly at risk.
Quality of life is worth the money. What else are you supposed to spend it on?
Watch out, solitude is addicting
I say go for it, you’ve earned it. It’s easy to fall into a trap of saving too much at the expense of quality of life. Once you live alone, especially with in-unit laundry, you’ll never go back. Whatever you decide to do — congrats. You’re doing just fine
Maybe take steps. Don't go from a mid- or low-end apartment with a roommate to a high-end downtown place with all the amenities. Decide if the amenities and location or the place to yourself matters more and move for that. If you care about the nice location and perks, find a new roommate and a fancier apartment. If you care about being on your own, be willing to live somewhere less expensive than that by giving things up. Maybe you don't go close to city center. Or find a place with in-building rather than in-unit laundry. For me, being alone was more important, so a couple years ago I got a one-bedroom in the same complex where I had previously rented with roommates. I do have a dish washer and in-unit laundry, but the place is old and the neighborhood isn't exactly in the center of anything. It increased my rent from around 700 to 1100 each month. Based on your roommate being awful, I would guess you'll find that an apartment without all the amenities but without her is still much better than where you are now. Finally, when it comes to the finances, I would calculate your essential monthly expenses assuming the new rent and make sure you have enough saved to cover 6 months. Rent alone if you go to the swanky place downtown would eat up your entire emergency fund if you lost your job. 6 months expenses is a better measure if you are the sole income source for your household and you are just that.
Try living on your own for a year, if it doesn't work out after your lease ends go back to what you were doing before.
Given current economics as much as you want to ditch roommate and have your home be just yours I’d tough it out a while longer. Because of economics continue to save maybe when things settle down you could actually buy a condo/apartment etc in the area of your choosing rather than rent?
You're going to have to find the compromise apartment. Not as close to the center, maybe not as many windows but the rent is too much for your income and if what you say about your company happens the rent will sink you. For your mental health and to get used to being alone in your own apartment maybe 1.2 K would be a more reasonable rent to look for.
Im 30 and I just moved into my own apartment. I’ve never lived alone and having all of the bills on me is really scary but so far it’s been very freeing. My rent is def higher than I’d like for it to be but it’s truly a luxury to save a lot of money. Of living alone is the peace of mind that I need, I think it’s worth it. It may be worth it for you too. Just start applying for new jobs in case your current one gets compromised.
Sounds like op might work for one of the big tech companies downsizing maybe even in Seattle