Is moving cities/countries frequently detrimental to your personal finance down the road?

Submitted by cloudboy37 t3_1000qdv in personalfinance

Hi! I'm 29, m and currently work in tech. Up till now, I've sort of juggled my career with moving around the world. I've lived in 5 different cities in my 20's, in and out of the country, some where I had a job, some where I didn't.

I've been pretty thoughtful up till now with my finances--I constantly invest in my 401k, roth IRA, etc. when I'm employed (which is the majority of the time) and have also continued to build my career. Now that I'm almost 30, I'm thinking about this next decade. My parents have made it seem like your 30's are the time you need to "settle down somewhere long-term" for financial stability.

It saddens me a bit, because there are so many places I want to try living still. At this point, I feel like I'm financially solid--I'm well on my way to building out my retirement and foundation--but I'm definitely not as affluent as I could be if I just stayed in one place and worked constantly.

I think I want to continue with my lifestyle of trying different places, but just want to confirm that there's no incredibly important reason why I need to settle in one place in my 30's. I don't want to struggle later in life or be living paycheck to paycheck, so if there's something I need to do or focus on in my 30's to avoid that, I'll do it.

Thanks for the help!

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These-Rope4274 t1_j2erl5c wrote

I will regret, for the rest of my life, NOT trying other places. GO. The money will always be around.

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steamedfarts t1_j2f5mku wrote

Yeah I honestly didn’t even bother reading very far. Young folks absolutely should move around a few times in their lives.

Screw the money, having a decent life is a bit more important. Don’t be boring just to save a few bucks.

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GeneralCal t1_j2es3g6 wrote

There's a lot of "it depends" here. Are your jobs paying for the moves? Are you accumulating tons of stuff and then selling it every couple years? Does your job pay for your housing at all? I don't think I've lived in the same city for more than 3-4 years at a time my entire adult life, and I like to think I'm doing pretty OK.

A lot of people will tell you that you should buy a house or something, but if you're already investing, then you're already ahead of 95% of the population. Just manage your expenses of things you can't move with you and have to sell off inexpensively. If there's also international tax implications, keep ahead of that, too.

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cloudboy37 OP t1_j2etxpn wrote

Sadly, my job has never helped me move. I've always quit and moved to a new place. However, I always live super minimally--like to the extent that I can fit all of my stuff in two suitcases. It's reassuring to hear that you've been able to move around a lot and still do okay!

Yes, I think my parents are on the house train lol I really don't see that for myself (at least not for a lonnnng time). It sounds like if I'm thoughtful about my savings/investing and can work with the remaining money that I have outside of that, then it should be fine?

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GeneralCal t1_j2ewz9a wrote

I'm counting down to my 9th move since I turned 18, 5 of which were international moves. I feel you on this.

For most people, like my family still for some reason, moving constantly is either incredibly abstract as an idea, or a terribly traumatizing event. My dad moved a ton when he was a kid, and blames that for anything and everything. Meanwhile, I get sick of living somewhere too long.

Anyway, you do you. If you feel like you have things under control and enjoy what you're doing, then living minimally is also another advantage for you.

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SweetAlyssumm t1_j2fwreb wrote

As a parent, I understand the house train. But you seem to so enjoy moving around and you appear to be earning your living, so do what you like. It's your life, not theirs. Just be kind to your parents, they mean well.

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BostonDogMom t1_j2euq5o wrote

Just make sure that your income and investments keep growing faster than the cost of housing in the more expensive markets in the U.S. It sounds like you are living an amazing life right now but if it doesn't work for you (or a future partner) in 5 years you want to make sure that you can afford to rent a decent place or buy a place in one of your favorite cities in the U.S. with decent job prospects.

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ChiSquare1963 t1_j2f48np wrote

You probably need to invest more than typical for retirement. The general guideline is to invest at least 15% of income to retire in your 60s, but that assumes you will be eligible for Social Security. Working out of the country, it’s likely you aren’t paying SS taxes on much of your income, which will reduce that source of retirement money.

You aren’t building home equity, which is a form of forced savings. Living in a paid off home is typically less expensive than renting in retirement. That’s another reason to bump up your investment percentage.

Live the lifestyle you want, just be sure you invest at a higher rate so you can afford to retire one day.

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FinchRosemta t1_j2fqibs wrote

Im a frequent traveler as well.

I own an apartment in my home town. It's my "home". I didn't see it for 3 years. But I still owned it.

Its where I have stored all my stuff and it's fully furnished. When I'm not there, I get it rented long term.

I've traveled for 6 years fot work. Working playing for housing all that time and my life fits in 2 suitcases and a carry on. It's really fun. When I feel unsettled I remember I do actually own a house I can go back to at anytime.

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automator3000 t1_j2f8m8u wrote

Yeah, I suppose.

But if I were to have chosen a young adulthood of amazing financial responsibility ... I would sure have a nice bit of savings, but would always be wondering "What If?"

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MyOwnPathIn2021 t1_j2fiwbf wrote

No one can tell you what your life will be like. It's likely you'll have a lower salary if you don't go to college, but it's by no means guaranteed. Don't take "average person" advice. No one is average.

However, focusing on a career path and not switching back and forth will help employability as you approach 50. Aside from that: life is what happens while you're busy making other plans.

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BostonDogMom t1_j2ev5lw wrote

The only other tip I would have is to finance a car and keep in touch with prior landlords. These histories of paying big bills on time every month make it a lot easier to get a mortgage.

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