Starting New Job, Should I Rent or Save?

Basically I'm starting my first full time graduate job soon in the North of England. I've been fortunate enough to be offered a starting salary above the national average at a relatively young age (22). This leaves me with two options, I can move out and flat share in main city where my job is leaving me with around £800 disposable income or I can stay at home and commute in, leaving me with closer to £1300 disposable income each month.

Part of me wants to stay home because I'd be able to accumulate a large amount of savings in the space of a year. The other part of me thinks it'll be more fun to move out and I'll still be able to save £300+ a month.

Do you guys have any advice on this? All advice is appreciated.

Reply 1

SerotoninAddict

15

Original post by TheSilentBang

Basically I'm starting my first full time graduate job soon in the North of England. I've been fortunate enough to be offered a starting salary above the national average at a relatively young age (22). This leaves me with two options, I can move out and flat share in main city where my job is leaving me with around £800 disposable income or I can stay at home and commute in, leaving me with closer to £1300 disposable income each month.

Part of me wants to stay home because I'd be able to accumulate a large amount of savings in the space of a year. The other part of me thinks it'll be more fun to move out and I'll still be able to save £300+ a month.

Do you guys have any advice on this? All advice is appreciated.

If you can live at home and the commute isn't bad then I would stay at home, you could save quite a bit relatively quickly.

That said, I personally couldn't do it, I would go insane living at home so would rather the added expense of moving out :p:

Reply 2

SophieSmall

21

I personally would move out, but that's because my mum and I can't occupy the same space for more than 2 weeks without biting each others heads off :tongue:

among other reasons.

If you like it at home though, have a good relationship with your family and the commute wouldn't be too much of a hassle. I'd say stay at home for a year or so if saving is a big priority for you.

Reply 3

TheSilentBang

OP

7

Original post by SophieSmall

I personally would move out, but that's because my mum and I can't occupy the same space for more than 2 weeks without biting each others heads off :tongue:

among other reasons.

If you like it at home though, have a good relationship with your family and the commute wouldn't be too much of a hassle. I'd say stay at home for a year or so if saving is a big priority for you.

I'm not even usually the saving type, I've just had a few people tell me I should otherwise I'll regret it later and that renting is just burning money.

Reply 4

SophieSmall

21

Original post by TheSilentBang

I'm not even usually the saving type, I've just had a few people tell me I should otherwise I'll regret it later and that renting is just burning money.

Renting is kind of burning money in the sense that you're paying a large sum of money and not getting anything in future, only the present. However if you plan to rent for the rest of your life and have no interest in buying a house there's not much you can do about it.

Saving is definitely a good idea though regardless of your life goals as financial troubles can hit anyone. You could lose your job or there could be an emergency where you need to fork out loads of money in the future such as needing a new car or your washing machine breaks. That is why it's a good idea to always have some money to fall back on.

I recommend saving enough money to be able to pay at least 3 or 4 months rent + food and bills in the event of you losing your job, it should give you enough to fall back on and lower stress whilst looking for a new job.

Reply 5

Tiger Rag

22

How far is the commute and how much will it cost you?

Reply 6

poohat

18

Definitely move out and rent - you will have a much better lifestyle and you can start to save as your salary increases. It doesnt make much sense to save during the low income periods of your life since the amount you will be able to save is fairly insignificant compared to how high your salary will be in 5-10 years time, and you risk missing out on a fun period of life which you wont get back in the future.

Noone who is 40 years old wishes they had spent more of their early 20s saving money, and less time having fun. Obviously you shoudnt be irresponsible and you want to make sure you will be able to buy a house by the time you are 30 or so, but your first year in full time work isnt really the time to be taking a massive quality of life hit just to save a few hundred pounds a month.

(edited 8 years ago)

Starting New Job, Should I Rent or Save?

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