Housing is a large item on any person’s budget. But folks about to enter or leave the workforce have to be especially thoughtful about how their living situation is going to impact their financial plan – especially if they’re contemplating a big move.
Could leaving behind the hustle and bustle of a big city improve your Return on Life? Before you start packing up, ask yourself these four important questions:
How will you fill your days?
Traffic, street noise, crowds, pricey restaurants and shopping – yes, city life can be exhausting.
But cities also provide tremendous opportunities to stay stimulated, connected with other people, and curious.
No matter how passionate the arts community is in that suburb you’re eying, it’s not going to compare with the museums and theatres you’re used to frequenting on the weekends.
Downtown, your meals might rotate between Italian, Thai, Middle Eastern, sushi, tapas, and all of the fascinating people those meals bring you in contact with. Some of that cultural variety might trickle out to the nearest suburbs … eventually.
Widely available public transportation means you can leave the car at home, especially if you’re getting older and driving is becoming more challenging.
Finally, what are the all-in costs of moving? Not just the difference in what a pizza costs, but the differences in taxes, insurance, health care? What about the cost of hiring a realtor and getting a lifetime of stuff from here to there?
Sure, the internet and cable TV mean that you don’t have to live in a major metropolis to stay connected to the wider world. Yes, suburban or small-town life might be more cost-effective. But make sure that unplugging from city life is going to be relaxing and not boring, cost-effective and not more costly.
What is wrong with home now?
Change can be good. Millennial newlyweds looking to buy a home in an excellent school district might be following a long-term dream for their family. So is the retired couple that’s always wanted to live on the beach prepping to relocate to Florida.
But there are certain things about your living situation that change can’t “fix.” If you’ve become too much of a homebody since retirement, you need to put more thought into creating a schedule that revolves around your passions, your skills, and the people you love. Is moving going to help you do that? Or will you feel even more isolated in a new place?
Moving to a home with nicer amenities sounds appealing. But why do you really want to trade your downtown condo for a house with a theatre in the basement and jacuzzi in the backyard? Because you love those things? Or because you need somewhere to collapse after another week of working too hard at a job you don’t like? Is your housing problem really a career problem?
Will it be difficult to visit loved ones?
Our friends and family round out our golf foursomes. They attend our weekly dinner parties. They show up at our kids’ concerts. They fill grandma and grandpa with pride. They meet us for lunch on short notice. And they are our first line of support during life’s major transitions.
Who is going to fill those roles for you if you move? Are you moving closer to your loved ones? Or so far away that you could be in danger of losing touch?
What makes you happy?
They say home is where your heart is. Ultimately, where you live should make your heart feel full. And as your life changes, your definition of fulfillment might change along with it. When you’re young, a studio apartment next to the subway might feel enormous. Maybe your life will fit in that apartment forever. Or maybe your family, your career goals, and your financial means will redefine happiness and lead you someplace new.
Do you anticipate a major move somewhere in your future? Let’s plot that transition on your $Lifeline and discuss how we can start planning ahead together.