5 ms·

I am 26 and just graduated college 3 years behind my high school class. I have accepted a software engineering job, but will be living at home commuting 3 hour

by _RPM 10y ago

I am 26 and just graduated college 3 years behind my high school class. I have accepted a software engineering job, but will be living at home commuting 3 hours per day until I can save up enough for an emergency fund to be able to move out and afford a 12 month lease in case I get fired. I'm planning on getting my own place in the beginning of Q2, 2017. Unfortunately, I'm a little behind salary wise.

weisser 10y ago
No judgment either way but >50% of the people I know cannot afford a full year's lease out of their savings.
- _RPM 10y ago
  That's fine. I just think it's a good idea to have that fund in case I get fired, company closes (startup, series B), etc.
  - closeparen 10y ago
    If your parents are willing to let you live with them, why not just save the cost of exiting your lease (mine is 1 month's rent) and U-Hauling your stuff back home? Or would you not be able to go back once you left?
    - _RPM 10y ago
      My parents tell me I can stay at home forever. I'm not sure about this type of contract. Is it common to have a clause that allows you to "exit the lease"? If so, how would I go forward with asking the people about this without seeming high risk?
      - closeparen 10y ago
        The lease should specify a fee, large enough to deter you from walking away for a slightly better deal, but (generally) smaller than paying rent for the remaining months. Giving the required notice (mine is 30 days) and paying the fee lets you terminate the lease early while still fulfilling your legal obligations. It's there primarily for people who need to move because of work, and usually the employer who is relocating them would reimburse it. So, you could probably ask something like, "what if I get transferred to a different office before 12 months is up?" That will signal some risk that the landlord will have to find a new tenant. My landlord is a REIT, and I live in a large complex with 2 full-time leasing agents onsite, so finding new tenants is not a huge burden for them - they're fine with high turnover. A mom-and-pop landlord might be skittish about that possibility. But it is still better than "what if I can't pay rent because I am unemployed?" Definitely don't ask that :).
      - deleted 10y ago
        [deleted]
      - beachstartup 10y ago
        > If so, how would I go forward with asking the people about this without seeming high risk? to a business owner/landlord, asking how much it costs to exit the lease does not mark you as high risk. it just means you know what you're talking about, and they are free to set that value to whatever they want in the contract.
nicobn 10y ago
I think you're doing the right thing. The first step towards financial independence is building a reasonable emergency fund. The peace of mind is liberating.
rokhayakebe 10y ago
Keep this up as long as you can if it does not affect your social life (girlfriend/boyfriend). There is nothing like money in the bank.
- morgante 10y ago
  3 hours a day is a huge amount of time and commute time is one of the biggest, easily changeable factors of happiness. Nobody in a software engineering job should have to live with parents for financial reasons. I appreciate OP's dedication, but they should be able to save up an emergency fund pretty quickly and move into their own (small) apartment.
  - _RPM 10y ago
    3 hours per day is going to kill me. I did it over the summer for an internship, and just plan to save for 3 months until I have a solid base to add to my savings account. I'm targeting a solid 9-10 months of emergency fund. If I moved out right now, I could afford the first and last month of rent, but would not have that much left in my bank account. And for the record, a reason I want to move out is so I can start to build my own life with a woman in my life. I can't do this at my parents place. I love my parents, but at 26 it is time for me to be on my own.
    - morgante 10y ago
      It's a great plan and good luck. If you're interested in saving for the longer term, I recommend checking out r/financialindependence.
    - rokhayakebe 10y ago
      +1 if you move in with this woman and keep saving.
    - ryandrake 10y ago
      Don't worry. I commute 4 hours a day. You get used to it. You have to live where you can afford, man.

by _RPM 10y ago

weisser 10y ago

No judgment either way but >50% of the people I know cannot afford a full year's lease out of their savings.

_RPM 10y ago
That's fine. I just think it's a good idea to have that fund in case I get fired, company closes (startup, series B), etc.
- closeparen 10y ago
  If your parents are willing to let you live with them, why not just save the cost of exiting your lease (mine is 1 month's rent) and U-Hauling your stuff back home? Or would you not be able to go back once you left?
  - _RPM 10y ago
    My parents tell me I can stay at home forever. I'm not sure about this type of contract. Is it common to have a clause that allows you to "exit the lease"? If so, how would I go forward with asking the people about this without seeming high risk?
    - closeparen 10y ago
      The lease should specify a fee, large enough to deter you from walking away for a slightly better deal, but (generally) smaller than paying rent for the remaining months. Giving the required notice (mine is 30 days) and paying the fee lets you terminate the lease early while still fulfilling your legal obligations. It's there primarily for people who need to move because of work, and usually the employer who is relocating them would reimburse it. So, you could probably ask something like, "what if I get transferred to a different office before 12 months is up?" That will signal some risk that the landlord will have to find a new tenant. My landlord is a REIT, and I live in a large complex with 2 full-time leasing agents onsite, so finding new tenants is not a huge burden for them - they're fine with high turnover. A mom-and-pop landlord might be skittish about that possibility. But it is still better than "what if I can't pay rent because I am unemployed?" Definitely don't ask that :).
    - deleted 10y ago
      [deleted]
    - beachstartup 10y ago
      > If so, how would I go forward with asking the people about this without seeming high risk? to a business owner/landlord, asking how much it costs to exit the lease does not mark you as high risk. it just means you know what you're talking about, and they are free to set that value to whatever they want in the contract.

nicobn 10y ago

I think you're doing the right thing. The first step towards financial independence is building a reasonable emergency fund. The peace of mind is liberating.

rokhayakebe 10y ago

Keep this up as long as you can if it does not affect your social life (girlfriend/boyfriend). There is nothing like money in the bank.

morgante 10y ago
3 hours a day is a huge amount of time and commute time is one of the biggest, easily changeable factors of happiness. Nobody in a software engineering job should have to live with parents for financial reasons. I appreciate OP's dedication, but they should be able to save up an emergency fund pretty quickly and move into their own (small) apartment.
- _RPM 10y ago
  3 hours per day is going to kill me. I did it over the summer for an internship, and just plan to save for 3 months until I have a solid base to add to my savings account. I'm targeting a solid 9-10 months of emergency fund. If I moved out right now, I could afford the first and last month of rent, but would not have that much left in my bank account. And for the record, a reason I want to move out is so I can start to build my own life with a woman in my life. I can't do this at my parents place. I love my parents, but at 26 it is time for me to be on my own.
  - morgante 10y ago
    It's a great plan and good luck. If you're interested in saving for the longer term, I recommend checking out r/financialindependence.
  - rokhayakebe 10y ago
    +1 if you move in with this woman and keep saving.
  - ryandrake 10y ago
    Don't worry. I commute 4 hours a day. You get used to it. You have to live where you can afford, man.