re: if you were a 23, what would you do with 30k in the bank?

Being this young and just starting a career, he has no idea where life might take him. I would hate to be tied down to a house if a good opportunity came up

I could buy house but have no plans on doing so any time soon.

A house means you lose mobility. I refuse to sacrifice that for quite a long time. I can live with cheap rent long enough to justify the flexibility that comes with it.

I also have to pay nothing in upkeep.

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There is no way in hell someone can be educated and say it is better to rent than buy a house (if you can afford it of course)

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Everyone knows that you are "throwing your money away" by renting. You aren't educating anyone on that. But renting is a good option if you don't want to live in an area forever, or you think you might move..not every 23 year old is ready to settle down. Also, the value of your house could fall. Just saying it isn't a black or white issue.

My advice would be to not worry about buying now. What if your company offered a promotion/significant raise if you moved to another city? You don't want to have to worry about having to sell a house, and any minuscule amount that you may have saved by "not throwing money away on rent" would be eaten up by the real estate fees when selling.

Now is the time to travel and have fun. I'm not advocating going into debt, but spend some money on yourself. You will not have the time to do this once you are married with kids. If I could go back in time, I'd give up 20k of money today to give myself 10k at age 23 to have fun/travel. With the amount you have, I would max out my 401k now (16k/year), max out Roth IRA (5k/year).

Buying a house could make sense if you either a) plan to live in it for the next 5-7 years, b) have a realistic plan for renting it at a decent return, or c) some combo of the two. I'm 25 and just bought a house that I live in. I plan to be here for at least 2 more years, probably more, so it made sense. However, you really need to hold a house for about 7 years or else the transaction costs will eat up your return from equity/appreciation. If I have to move out of the area I can easily rent to college or grad students. My mortgage is 900/month and rent in the neighborhood is 1500/month so the value made sense as well,

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Bought my first house at 22 y/o. Was the best investment I ever made. The property increased it's value by over 50% in 8 years. Sold it for a huge profit.

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Isn't that only like a 5-6% rate of return, to go up 50% in 8 years? Not to mention taxes paid, selling and repair costs.. I mean, I would be happy if my house went up that much, but I think as far as investments go you could do better.

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Now is the time to travel and have fun

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Exactly. The 23-28 yr old age range should be the best time in ANYONEs life. You will never have more money to throw away with less responsibilities. Go to work MON-FRI, and live life every weekend.

Seriously, who at 23 wants to deal with paying a mortgage and the responsibility that comes with owning a house?

At this age range, you should max out your 401k, throw money into an IRA, pay all your bills, and use the rest to have the best time of your life.

I literally cringe when I see kids who are 22-23 getting married and buying a house. That just seems like such a miserable life.

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Seriously, who at 23 wants to deal with paying a mortgage and the responsibility that comes with owning a house?

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Well, my mortgage on a 170K house is less than what I would be paying in rent here so I am saving money. I still contribute to my IRA, pay bills, and contribute 6% to my 401 since that is what my company will match. It isn't like owning a house drains your money. I guess if you live in a city where renting a nice apartment is cheap it may be something to look in to. However, BR, New Orleans, and where I live-Mandeville, rent for a 1BR apartment (that is nice and not in a bad area) is high as frick

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So I ask the question what would the MB do with 30K at 23 years old? Do you think my friend is making a smart financial move?

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If he plans to live in the house long enough, it makes sense. But he'll need to be there long enough so insurance costs, taxes, repairs, home acquisition costs, and selling costs are less than what he would've spent on rent. Owning a home makes sense if 1. you'll be there a long time so the cost per month over a long time is small 2.the house is very cheap and below market value so he'll easily more than cover those costs or 3. the preoperty is in an area where quick appreciation is probable and thus over a couple years his sales price will probably make a significant profit on it.

The decision should be based on what his goals with the house are; I think when young and single, 401k & IRAs are the best options since it'll be tougher when you have a family.

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Well at 23, I made a down payment on my house with 30K. He should save it for his down payment

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I did the same thing. But then I knew I was not going to be moving any time soon. If that's a possibility I'd hold off on the house.