Live at home to save $100k+/yr - worth it?
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I would personally move somewhere new with lower rent and not back with my parents. But that’s just me, so why not try it out to see if the lower quality of social life is worth the trade-off for extra savings? You can always move back.
Career downside is a degradation in your potential network but you should have a working network already that you can continue nurturing remotely. And unless you are actively cultivating a network for a particular goal, you are only temporarily giving up the possibility of potentially valuable spontaneous interactions. Moreover, business school should provide an offset to any potential networking loss. Again, you can always move back if you feel you need to grow your network.
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I would prioritize staying in NYC then. If you are successful in recruiting, you will more than make up COL expenses with your new job plus avoid business school. Being in NY definitely gives you an edge in recruiting. Worst case is that you are not successful and you’ve burned through incremental savings of living at home for a year or two or for however long you try. In the grand scheme of things, that’s not too bad.
Hey there, it sounds like you're at a bit of a crossroads, and that's okay! It's a big decision to make.
Based on the WSO Dataset, living with roommates in NYC for the first 2-3 years is a great way to save money, especially since you're not home enough to get annoyed by them. It also provides a built-in social network. However, at your age, it might be getting tougher to justify.
On the other hand, if you're working from home, you might want to consider paying cheaper rent and setting up a comfortable home office. This could be a good transition, especially if you're not getting the full benefit of the city right now.
However, moving back to your hometown and living with your parents could allow you to save a significant amount of money. It might not be the most exciting option socially, but it could help you reach your financial goals faster.
Ultimately, it's a balance between lifestyle and financial goals. If financial independence is your main goal, then moving back home might be the best option. But if you value the social scene and networking opportunities in NYC, then staying might be worth it.
Remember, there's no one-size-fits-all answer here. It's about what works best for you. Good luck with your decision!
Sources: Millionaire by 30, 1st year analysts: stupid to move into NYC right now?
Personally I wouldn't. If you're recruiting buyside soon, you can risk coolilng off your existing network / missing out on opportunities to grow it. You said your end goal is financial independence, which sure, $100k seems like a good chunk of change now, but if you were to stay and land a good buyside role with staying vs. not being able to since you cooled off recruiting efforts (you can definitely still land buyside, but it wouldn't be as easy with actively living where you want to work), down the road you could easily make much more than $100k in bonus opportunities. Wost case scenario, you have to work one-two more years if you stayed in the city to make back the savings you would have had. But you said it yourself, many of your friends left your hometown, so your happiness would probably decrease as well
Think about his way, would you move back with your parents for 2.5k a month? I personally wouldn't. Social scene matters a lot, quality of dating options, friends etc. Worth the trade off imo.
Moving back in with the parents seems boring AF. You could be missing out on meeting your future wifey and networking. I lived in NYC for years doing WFH and still was able to meet lots of good connections.
Just live in a shoebox with roommates if you want to save money.
First off, awesome job and NW at that age, as well as long term vision of your goals. Also, a good amount of wisdom beyond your years to understand that some of that was luck and likely not replicable (low rent, covid, higher than expected bonus, etc), a lot of people during the good years are quick to lose that money making purchases on the assumption that every year will be as good or better
It also sounds like if you lived at home with the parents it wouldn't be quite the 'failure to launch' scenario, as you are obviously making good money and have good head on your shoulders. That said, high net worth and a good career does not a complete person make. Your 20s are a pretty unique opportunity for personal growth, exploring the world and yourself, developing skills on how to live on your own. it may not be as much of interest to you, but things like fun nights out with friends, an active dating life, learning to pay your own bills, cook your own meals, etc. are much more difficult if not impossible if you live at home with your parents. While the time with them is nice, there is something about mom making you your dinners, and you sleeping in your childhood bed that softens you up a bit and stunts your development even more. Frankly, the 'I want to live at home to save money for a down payment/pay off student loans' card is one that should be played from like age 22 to 25, not age 26 to 30.
yes you will be able to stack bills. But you will find with wealth building that whatever dollar amount truly isn't 'enough'. and that the enticement of 'one more year with mom & dad = another 100k' will always be there and only be easier to go along with the longer you are staying with them, and the less external obligations you have. There is also more to life than a bank account. All of my friends who lived at home and still worked good jobs while doing so in their 20s were depressed, had a weak social life, no dating life to speak of, and just lacked the confidence one develops when they know how to take care of themselves. You got a gig where you can open a computer , click around, and make 200K+. That doesnt make you more of an adult than someone surviving on their own with 1/3rd that salary.
Echo what others here are saying to get some roommates and get a place to rent that isnt dirt cheap but not top of the line either.
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Why not go live in Costa Rica or some other interesting & cheap place for a year? Maybe even go full nomad. It will cost far less than NYC and be a LOT more interesting than living with your parents. There's also the opportunity for unusual networking with expats and travelers etc...
How are you saving $2500 post 401k max on $125k annual salary in NYC? That's really impressive
Someone skipping the hookers and blow :/
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