What’s up everyone! Thanks for checking out my blog. I’ve been living in large cities nearly all my life. My fiancee and I love to explore, eat at trendy restaurants, go to art galleries, and attend large concerts. Trouble is, city living is very expensive. Did you know that our generation is expected to have less wealth than our parents? Scary! Therefore, we cannot afford to make money mistakes.

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Money Mistakes #1

Renting

You are literally throwing money away. Yes, I get it, this is not a reality for everyone (or so it may seem like). I’m sensitive to this feeling, I get it. Sign up for my monthly newsletter where we explore real estate hacks, and ways to save for your first down payment. I challenge you to get serious about the concept of home ownership.

Take a step back, and re-evaluate. If you truly want to invest in yourself and your financial independence, buying a home (of any size) is your best step forward. Not only will you build equity through monthly mortgage payments, urban centers are predicted to grow rapidly, and with them, your property value. A friend of a friend, dubbed the ‘Millennial Millionaire”, runs an awesome money blog called Millennial Money. Check it out, he details the value of home ownership perfectly. 

I bought my first home when I was 24 years old. No, my parents did not help me. The decision to was made because I was going to be traveling for work 2 weeks out of the month. I did not want to throw money away on rent. This was back a number of years ago when banks were giving out loans with no down payment. For some, this did not turn out so well and lead to foreclosure. But not me, I had a plan. It was a two bedroom so I got a roommate to pay more than half of the mortgage. It was fare market rent, but still more than half the mortgage. Furthermore, when I was traveling for work, I rented my room out. 100% of my mortgage was (and still is) paid by others.

With 3% down, you too can own a home! Check it out!

So how much is that down payment going to be? First, think about what you really need. Not want, but need. Once you start building more wealth you can have what you want.

I bought my second home (now my primary residence) in a very expensive city. The San Francisco Bay area is up there as one of the most expensive places for real estate in the world. So, I decided to go with a small 700 sq ft condo. It’s cramped, but all we need (and can afford). I encourage you to take a look at Zillow and see what one bedroom condos cost around you. Let’s say the home you like is $400,000. A 3% down payment would be $12K. Time to get a city side hustle!

Money Mistakes #2

Owning a car

Did you know that the average vehicle is driven only 4% of the time and parked the other 96%? John Zimmer, the cofounder of Lyft, wrote an amazing article on Medium about the evolution of transportation. If you in a city, you do not need to own a car. There are so many transportation options out there from ride shares, to car shares, to public transit. Don’t under estimate the value of your own two feet either.


Consumer: Zipcar members save over $500/month versus car ownership. Become a member for $7/month

Cars are a huge cost. Even if you own them outright, you still have to pay monthly insurance and annual registration fees. The average cost of insurance varies by region. Taken as a whole, you are likely going to spend over $1000/year. Think about what you can do with this extra cash!

Additionally, the spot you park your car in for an average 23 hours per day is extremely valuable in urban centers where space is limited. Individual parking spots can go for as much as $375/month in San Francisco. Let’s say you live in a less expensive city, I bet you could still get $100/month, or $1,200/year! Draft up a contract and rent it out!

Money Mistakes #3

Going to the convenience store for everything, because it’s so convenient

Look, corner stores are important. I would hate to see them go out of business. But getting everything you need from them can be extremely costly. Go to your local coop, natural food store, or even Costco and buy bulk items. Take the time to plan out your week, one meal at a time. We get so caught up in the rush of the City that we sometimes forget to take a breath, and end up needing something late at night, ASAP, and the corner store is open. You can easily save over $100/month on effective and conscientious consumer planning.

As much as I like to support local businesses, Amazon sure is getting too convenient to ignore. One of my biggest pet peeves is waiting in the checkout lines Sunday afternoon. We recently tried Amazon Fresh. They still need to reduce the packaging, but it’s actually pretty great. For $14.99/month you can have all your groceries delivered to your door step with only a days notice. The time I spend at the market waiting in lines is much more valuable than $14.99. This way, I can work on my side hustles instead of pulling out my hair waiting to pay.

Blue Apron: 5 Meals Free With Your First 2 Orders! (April Only))

Money Mistakes #4

Not making better use of the 75 sq ft in your home (The Kitchen)

The average kitchen is around 75 sq ft. My home is only 700 sq ft, and runs me over $2,500/month. That means I am paying over $268/month for my kitchen. How often do you cook your kitchen? How often do you eat out? I challenge you to get more for your money and make dinner in your costly kitchen more often! Invite your friends over! The alternative is to repurpose this valuable space.

My fiancee and I are balancing our passion for eating out in the city with saving money by cooking a less expensive meals at home. We found that we can save $300/month if we are disciplined and cook every meal at home for one week a month.

Money Mistakes #5

Not getting out of the city enough

City living, while absolutely incredible and enchanting, is competitive and consuming. It is important to step back, analyze your lifestyle, and re-center yourself. A walk in the woods, a visit with the family, or a night under the stars can really help put things into focus. What you need, versus want. With finances, this is a very important distinction.

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