She Strengthens

Living in NYC on a Shoestring Budget: My Story

New York City, the city that never sleeps, is notorious for being one of the most expensive places to live in the United States. With the term “rent poor” coined specifically for those who spend over 50% of their salary on rent alone, it’s no wonder that living in NYC on a limited budget seems like an impossible feat. Yet, I managed to do just that, surviving on a mere $32,000 salary.

The Reality of a Low Salary

Before diving into the details of how I made it work, I must emphasize that living on $32,000 a year is barely scraping by. You won’t be saving much, and it’s essential to consider the implications of debt, especially student loans, when calculating your budget. I was fortunate to have graduated debt-free, which made a significant difference in my financial situation.

My Monthly Budget Breakdown

To give you an idea of how I allocated my income, here’s a quick overview of my typical monthly budget:

• Total Income: $2,168
• Rent: $1,000
• Bills: $120
• Rental Insurance: $5
• Transportation: $121
• Food: $300
• Shopping: $150
• Skincare: $60
• Savings: $100
• Total Spend: $1,856
• Cushion: $312

The Nitty-Gritty of Budgeting

Rent was my largest expense, taking up about 50% of my take-home pay. I shared a renovated apartment in Brooklyn with one roommate, which helped keep costs relatively low. Bills were split with my roommate, and I kept a conservative estimate to account for fluctuations. Rental insurance was a no-brainer, providing peace of mind for just a few dollars a month.

Transportation costs were manageable with the monthly unlimited metro card, which I used extensively. Food was categorized into groceries and restaurants, with a focus on staple recipes and local, affordable spots for lunch. Shopping was minimal, thanks to my thrifty habits developed in college. Skincare was my one indulgence, but I kept it within a reasonable budget.

My Budgeting Philosophy

The key to successful budgeting lies in flexibility and regular check-ins. I didn’t stress about staying within exact categories, as long as my overall spend remained within my income. This approach allowed me to make adjustments as needed and save more than planned by the end of the month. Building in a cushion also helped me absorb any unexpected expenses.

The Outcome

Living in NYC on a tight budget required discipline and creativity, but it was worth it. By the end of the year, I had saved around $2,000 more than planned, and a well-deserved raise made the city feel even more livable. My experience taught me that with careful planning and flexibility, even the most challenging financial situations can be navigated.