I’ve always wanted to live in New York City. As a visitor throughout my teenage and young adult years, I was taken with its every aspect: the culture, the restaurants, the parks, the buildings, the energy—even the subway. And as someone who dreamt of one day building a life in the theatre, well, I couldn’t think of a more perfect place to call home. But whenever I would share this dream with those around me, their responses were often tempered, their encouragement diluted with a vague warning. “The Big Apple, huh?” they’d say. “That sure is an expensive place to live.”
Ignoring their cautions, I eventually made the move. I landed a job pretty soon after I arrived (yay!), although it didn’t provide the six-figure salary I’d been led to believe I’d need if I wanted to survive in Manhattan (boo!). But it was work that I was excited about, and that I felt I needed to be doing. And, unbeknownst to me at the time, it came with a surprising fringe benefit: the motivation to launch myself into a crash course on money management.
With the bills piling up and only my paltry income lining my pockets, I grew intimately familiar with my finances. I kept a ledger of every purchase I made, whether it be a $1 slice of pizza or a $100 ticket to a Broadway show. I took stock of the impact these purchases had on my life, and learned to adjust my spending accordingly. Eventually, I developed a pretty sturdy budget, limiting my spending to only the things that truly mattered, while funneling any surplus into savings and investments.
Over the past several years, my annual expenses have clocked in at around $25,000. I’ve successfully done what I once feared was impossible: I’ve survived—no, thrived!—in New York City on a shoestring budget.
If you’re interested in moving to New York City (or any other high cost-of-living area) but are worried about whether it would be possible on a smaller income, read on for my best tips about how to make the most of a big city on a small budget.
Get Used to Sharing
It’s not the most glamorous piece of advice, but it’s one of the most crucial: if you’re struggling to find your frugal footing in New York, learning how to share can be truly game-changing. And I’m not just talking about sharing belongings—although that can be a great way to keep costs down!—but also about sharing space. Sharing an apartment with a roommate or two is one of the most effective ways to keep your housing costs affordable, sharing a subway car with dozens of strangers is far more cost efficient than taking taxis everywhere, and sharing a laundromat with the people on your block prevents you from driving up your energy costs with endless loads of laundry. Sure, it takes some getting used to. But, in a strange way, it’s also part of New York’s charm.
Find the Free
Leading a frugal lifestyle in New York shouldn’t feel like a sacrifice! When people highlight the city’s high cost-of-living, they often ignore the plentiful amenities it offers for little to no cost. Every single borough is lush with beautiful parks, perfect for a lazy afternoon picnic with friends or relaxing morning stroll. The New York Public Library system offers access not only to books, movies, and music, but also to some of the city’s best museums and cultural attractions—entirely for free! Plus, there are often movie screenings and live music and dance performances happening all across the city, many of them open accessible to the public. It may require a bit of research and some advance planning, but this city has a lot to offer, regardless of your budget.
Run the Numbers
My next piece of advice should come as no surprise: have a budget. There’s absolutely no way I would be able to keep my expenses at $25K without my budget, without having a written record of where and how my money is begin spent. At its most basic, your budget should provide you with two pieces of information: how much money you’re earning, and how much you’re spending. It doesn’t have to be fancy or complicated, but, without knowing those two numbers, maintaining a frugal lifestyle in NYC is going to be infinitely more complicated. It’s difficult to live at or below your means when you’re uncertain as to what your means are, and it’s difficult to adjust your spending habits when you have no idea how your money is being used. Have a budget. It’ll make your life so much easier.
Say No
When it comes to personal finance, this piece of advice is often framed in the context of social situations: learn to find comfort in saying no to yet another round of drinks with friends, or in using the phrase “I wish I could, but, unfortunately, it’s not in my budget.” And, yes, getting used to declining these invitations can be financially beneficial. But something I’ve found even more beneficial has been learning how to say no to myself. In New York, there are opportunities to spend on every street corner; if I let myself indulge in every purchase that seems like a good idea at the time, well, I’d currently be in a much, much worse place. And as I’ve trained myself to (mostly) resist these impulse purchases, I’ve found the benefits are twofold: not only am I not throwing my money away on frivolities and ephemera, but I’m also allowing myself more leeway to say yes to those very social situations that other personal finance experts may encourage you to decline.
Big City, Small Budget 