Based on my most popular posts, what brings many readers here to this site are people wanting to get a look at a real budget for someone that lives and works in New York City. While there is a wealth of information on this very topic, it tends to draw out the extremes; people who can live on very very little and those who live on means most of us can’t even dream of. I fall somewhere in the middle. I’ve covered the cost of living in NYC before, but this is the city that’s always on the move, and I move with it. So, as an update, as 2018 comes to a close, here is my current NYC budget.
For some context, as well as additional data points, here are my previous posts on the topic:
The Cost of Living in NYC – Written mid-2017, this was the first real breakdown of my budget on the blog, when my salary had just increased to $90K. It goes somewhat into my retirement and non-retirement savings, my debt payoff schedule, as well as how I first bucketed my various expense categories when I moved here.
Here’s the Cost of Living in NYC – For most readers, this is the interesting one. This post covers five, real-life NYC budgets. To clear out some of the complexity, this view looks only at expenses. Savings, debt, and retirement not included.
My Current Budget, as of December 2018
My work situation: I was let go from a $120K salary position in October when my company closed down their U.S. operations. I did receive a small severance package and I had a fully stocked emergency savings fund, so I was in no rush to find another job, especially with the holidays coming up. My sources of income are now the side hustle that I began in January with Ian, and a part-time contracting gig I recently picked up for a previous employer.
Jane’s NYC Budget
Rent: $600
Food & Dining: $400
Gym: $205
Transportation: $120
Everything Else: $400
Total: $1,725
Low Living Costs
Ian and I split rent of $1,200, making my share just $600 a month. We’re currently living in a 400 sq ft apartment in Manhattan. Yes, $1,200 is extremely below market price for an apartment in Manhattan, and yes, if you’re trying to find a reasonable comparison to make, don’t compare against this. If you want to live alone in Manhattan, I would budget $2K a month for a decent apartment. The farther north/into the outer boroughs you go, the cheaper it gets. If you have friends you know you want to live with, I would budget $1,500 a month. In both cases, it’s very easy to find places in the city below those budget amounts, but in this city, apartment hunting comes down to availability and timing. It’s a landlord’s market, y’all. Many of my friends with roommates living in NYC pay well below $1,500 a month for rent.
The Cost of Food in NYC
In this city, food is one of those things that is extremely variable. I’ve had months where my spending in this category reached $1,000 (yikes). Most months, however, I’m in the $400-$600 range. My goal is always to keep it as close to $400 as possible. This means a fair amount of meal prepping, eating dinner at home, taking as much advantage of free food at work as possible, and only the occasional meal out. Ian and I rarely go out for a sit-down dinner at a restaurant, and that’s what really keeps food spending low. It’s also worth mentioning that I do my drinking at home, not at bars.
Expensive Hobbies
When I was living in New Jersey with extremely low rent, I also had an expensive hobby. I did ballroom dancing, which cost me ~$500 a month. Since moving into the city, I haven’t been able to justify the expense; dancing is more expensive in Manhattan, and as exercise options go, it’s not a great one. Soooooooo, after some encouragement pressure from Ian, we signed up for Equinox. It’s been a few months since we signed up, and I know I’m not getting the value out of this membership that I should. More updates to come, after I’ve either guilted myself enough to do more or decided to cancel.
“Everything Else”, aka Miscellaneous Expense & Shopping
This is the category that makes or breaks my budget. As of late, holiday shopping has made this tough to stick to (who’s really expecting poor unemployed me to come up with gifts, anyway?). I also have a subscription to Moviepass and donate regularly to a few causes via Patreon & Kiva. The hardest part, though, is shopping. I’m usually good about not making purchases for myself. However, once I buy one thing, I tend to go overboard and get a lot more. Why does it tend to be all or nothing? With my income currently lacking stability, I’m cracking down (after Christmas is over).
Sharing Expenses with a Significant Other
Ian and I use the app Splitwise to keep track of our shared expenses. He’s in charge of buying household needs (toilet paper, toothpaste, etc.), while I typically get groceries. Utility bills are also under his name. We’ll input our various expenses over the course of the month, and settle whenever needed. Most of the time I’ll owe him at the end of a month, and that goes into my “Everything Else” category.
What Happened to Savings?
I’m not saving money at this time, and don’t expect to while I’m a contractor. Over the past year, I was able to save roughly ~$2K a month – not even including retirement. Now, I’m just happy if I can continue to avoid tapping into my emergency fund. Once I get another full-time job, I expect to be back up to maxing out retirement/IRA contributions and saving additional money on top of that.
What’s A “Good” Budget for NYC?
I’ve often asked myself this, and of course, the correct answer is “it depends”. I do want to point out, however, that NYC can be affordable if you have the patience to wait (and aren’t afraid of living in ugly apartments/away from the city).
How much do you need to live in New York City? Well, on a very tight budget, I’d estimate that it’s possible to live here on a minimum of rent + $700, which could cover food, transportation, and limited utilities. The cheaper the rent, the less you’ll need. If you’re in a position where you don’t have other basic needs like health insurance through an employer, then you’ll need more. Don’t forget to factor in things like debt repayment, if that applies. It’s also critical to have a buffer in your budget. An extra $100 or $200 that you can put towards savings in months you don’t need it, and pull back for emergencies does a lot for peace of mind.
If you’ve found a different magic number for the “bare minimum” in NYC, I’d love to hear it!