I have a friend who begins working at GE in a month or so. She is in a Leadership Program that moves her around different departments in different locations, and luckily for her the first location is in Shelton, CT, only an hour from our hometown. But unfortunately, that hour turns into 2 or more in the morning rush hour traffic. So while she lives at home, she is checking out places to live close to her office. The problem is that Fairfield County is very expensive to live in, and while she has found some studios or one bedrooms in her price range, the ones she likes the best stretch her budget a bit. Like most of us, she's gotten used to the creature comforts supplied by parents. You know- central air, someone else cleaning the kitchen and the bathroom, granite countertops, and large bathrooms.
She asked me for advice on whether or not she should go with the nicer place. Here is my advice to all of you looking for a new place: don't live above your means. If you are making an I-banking salary, you probably can afford a pretty nice place. But if you're making anywhere around the average starting salary ($42,000) you have to think about it a little more. Sure, central air is nice. And someday, probably soon, you'll be able to afford it. But if you stretch your budget too much, to the point that every month you spend all that you make (you can't save) and you don't have enough cash to enjoy yourself once and awhile, is it worth it? I don't think so- if you can't save, the day your car breaks down and you need new brakes, you are going to be in trouble. Or when your car taxes are due. Or christmastime and you've saved no money for buying presents for your family. You get the drift. Don't live in a dangerous place, or in squalor, but don't allow yourself to ignore what your budget allows you pay for rent. Opt to live in a more conservatively price placed without an in-house gym, or without granite countertops or central air, until you get a pay increase and can really afford everything you want.




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