Reply to Wells Fargo ad about millennials eating out

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Reply to "Wells Fargo ad about millennials eating out"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Nah. I am a millenial. A lot of my friends blow $400+ a month on eating out (8-10x of eating out). It's a huge budget buster. [/quote]

Okay, let's say that people can save $400/month not eating out. $400 x 12 months = $4,800. That's going to help someone buy a $500k-1m house... how, exactly? [/quote]

Why do they need to buy a $500k-$1m home?  Why not look for a cheaper place further out?[/quote]

Because that's all part of the "complaint" from millennials...  Let's say they move further out, and commute what, 90 mins - 2 hrs a day? And then what is [i]that [/i]life going to look like? You're gone from 6:30-7:30 (give or take) 4-5 days a week? And no one is gonna think that sucks either? [/quote]
The cost of commuting from farther out is real. If I lived on Capitol Hill, I could either walk or take the bus for $2 (or $4 round trip), but I live in Alexandria, and my commute costs me $7.50 if I take the Metro, or $23 + gas to drive and park (which is relatively rare). My DH also commutes, so double that. Even if we just take Metro, it’s a pretty big difference, and we don’t even live far out. [/quote]

Eh, from a pure cash flow perspective, living further out will be cheaper, if you discount the time spent.

So IRS reimburses mileage at $0.58/mile.  Let's say you live an exurb and commute 50 miles a day (but you get a nice big newish house for $400k, which would cost $800k in someplace close like Burke, and over $1M in Arlington).

That works out to a hefty commute cost of 0.58 * 50 miles * 2xday * 22 work days = $1276.  But $250 for parking -> $1500. Which is huge expense and would cover the mortgage increase from $400k to $800k.  But a lot of that cost is depreciation on a vehicle you already own, parking you would pay for anyways if you lived in Burke and even likely Arlington.

But you don't have to pay the higher property tax on this expense, nor qualify for the more expensive mortgage, so in the end it is definitely cheaper but a much worse value proposition.  But many people have to focus on the cash flow not the final value b/c of circumstance.[/quote]

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