Affordability in New York City
New York City has gotten more expensive. No one can deny that. With rising inflation, the cost of living has increased. Food is more expensive. Gas prices are outrageous. Rent in the city continues to rise.
Many people are starting to leave New York due to the reasons lists above. For those who have stayed, one must ask; how can I afford to continue living in the city?
That is a tricky question. It depends on your situation.
Are you in a relationship and live with your significant other? Live alone? Do you have kids? Are you working multiple jobs? Do you live with your parents? Are you renting an apartment, or do you own a condo? All these details matter.
Calculating Your Budget
According to Renthop, there is an easy way to calculate what you can afford. The rent to income ratio is the amount to which your annual income is 40 times what you pay in rent. Simply divide your yearly income by 40. You will now be able to accurately answer the question, “How much rent can I afford?”.
If you can’t afford to live on your own, consider getting a roommate—or several. This will help split costs and help you save. Look at your best options before giving up.
Living in New York is said to require a person to be making $40K-$100K(Movingapt). Depending on someone’s situation (kids, job, bills), this number can vary.
Ways to Save Money
The best advice is to save as much money as possible. This can mean a number of things:
- Cook at home instead of eating out multiple times a week.
- Choose the cheapest travel methods to go to work.
- Downsize (get a smaller living space if you can)
- Changing your tv or phone service for a cheaper plan
Within a few months of changing the way you spend money; you will easily see a higher amount in your savings.
Everyone wants to live in their dream space, but if that dream is no longer reachable, it’s time to think of a new plan.