#NYCRent #RentingInNYC #NYCExpenses
Cost of Living in NYC
Living in New York City is known for being expensive, especially when it comes to rent. The cost of living in NYC is much higher than in many other cities, which can be a shock for those moving there for the first time. With a salary of $80,000 and a $2,500 rent, it’s important to carefully consider your budget and expenses.
Salary and Expenses Breakdown
With a salary of $80,000, it might seem like $2,500 rent is doable. However, it’s important to factor in other expenses such as taxes, utilities, student loans, food, and other miscellaneous expenses. In this case, with a salary actually at $75,000 after taxes, and a $5,000 relocation package, the budget gets tight.
Financial Situation Assessment
At 22 years old and fresh out of college, it’s important to consider the long-term implications of such a high rent. With only $27,000 left for all other expenses after rent, it might be challenging to save or invest for the future. It’s crucial to create a budget and stick to it to ensure financial stability.
Future Financial Planning
Considering that this is a growing startup and there might be opportunities for increased income in the future, it’s essential to plan ahead. It’s important to prioritize expenses, save where possible, and look for ways to increase income. It might be worth exploring roommates or more affordable housing options to free up funds for savings or investments.
In conclusion, while a $2,500 rent on an $80,000 salary in NYC might seem manageable, it’s important to carefully assess your financial situation and plan for the future. With some budgeting and adjustments, it is possible to make it work. However, it’s crucial to prioritize financial stability and plan for the long term.
I don’t live in NYC, but $2500/mo is 42% of your income before you take out taxes and deductions like 401k contributions, so it’ll probably be closer to 50% of your take-home pay. General rule of thumb is no more than 30% of your income to rent/mortgage.
That said I know NYC is crazy and it may be a “it is what it is” type of situation. Could you get any roommates to help split the cost?
In NYC you’ll be taking home ~$4,500 per month assuming some pretty normal (all 1’s) deductions. I’m assuming you’ll have 401k contributions too, so let’s call this $4,200 (for a 10% pretax rough guess). You’re 22, so if your parents have you on a family health plan stay on that and I’ll consider your health premiums $0.
$2500 knocks you down to $1,700. Now don’t get me wrong, open a spreadsheet and you will *find a way* to survive on $1,700 extra per month, but most people consider that as an amount that NYC will swallow whole. After utils, food, transit, and other necessities of life (and please please have *some* fun, you’re 22 in NYC..) you’ll barely be saving anything – let alone contributing to those student loans.
**TLDR** – find a roommate – if you have a roommate, find two roommates
Even if you can’t save much, don’t fret. The main type of “investment” to focus on right now is to build a resume – do well on the job, that’s it. This creates value, because your choice of employment expands later as you build your history of being employed.
Now that you’re at least settled with a roof over your head, and a way to get to work – you have the head space to then start searching for better living options later on, that will allow you save more. ( spend time at home, though, continuing to increasing your skill level at whatever thing you do as well )
Well, how much are your student loans? Do you have an emergency fund or parents who can bail you out in a tight spot?
It’s not great but it’s manageable. Be more cynical and conservative though, you’re more likely to be laid off than increase your salary next year.
I paid $2300 for a studio on E 92nd on that salary for one year, and I ended up moving because I couldn’t make it work. Rent isn’t the only thing that’s expensive in the city, so you’re really not going to have anything left after paying for utilities and food. Are you planning on having a part-time job or side hustle? If you can supplement your income you may be able to justify it, but it will be pretty tough on your salary alone.
To put things in perspective I pay $3100 on a $100k salary and I can still max out my 401k and Roth IRA. AND I still have leftover money to get drinks/dinner with friends about 1-2x per week. I just cook a lot, somehow it’s been a lot easier than I expected to manage all this.
I’d suggest looking for a room in a different neighborhood potentially in Queens or Brooklyn. You should be able to find a nice room for $1200-1500 and then you’ll have a lot more money play with, invest for retirement, and to pay off the debt.
I’ve lived in NYC for 17 years and I think it’s much better when you have the $$$ to actually experience it.
You can do it, but you will probably not be very happy. If this is a two bedroom situation you can absolutely find one for less than $5k and even a few hundred extra a month will make your quality of life significantly better.
That’s way too much to pay to live with a roommate. I was paying that much for a one bedroom in Jersey city.
you’ll need a side hustle to actually have some fun unless you change your living situation
2500 rent is crazy on your salary. Live in Brooklyn or rent something for 1700-1800/month. It’s doable but it’ll be tiny
I make about 85 and spend 2150 on rent. It’s doable but rough. I had to cut down all my spending and even skipped a friends bachelor party recently. I don’t know about 2500 on a slightly smaller salary.
Sometimes I’m glad I live in alabama….
I made 120k and paid 2200 and I still found that it was hard in NYC! Especially if you have loans to pay. Find a roommate or two.
Back in 2017 I made a $75K tech startup salary work…barely.
**Some tips:**
– Converting 1/2’s and 2/2’s into 3/2’s is pretty common in NYC. There’s companies that can build the wall within an hour or two to create the additional room. Majority of building owners allow this. Splitting $5k in rent 3-ways is a $834/month savings (before tax)
– Are you confident in this startup? I recently switched from start up companies to enterprise software after a decade+ because the startup job market is extremely volatile. You could get let go at a moments notice and you’ll still be on the hook for rent / rent debt.
– Something to keep in mind: Most buildings are first month, last month (sometimes + 1 month) security payment and will require a look at paystubs and/or offer letter. 3/3 may be your only option so start calling around.
– Your company *may* have a MetroCard benefit that allows you to purchase the Unlimited 30-day pass tax-free. Don’t be tempted by the “quick uber”. They add up. Fast.
Serious shit aside: Sometimes you just gotta fkn YOLO it man. You’re 22. Do it. The 4.5 years I spent in NYC 5x’ed my career and delivered me some of the most amazing moments in my entire life.
Good luck brother!
You can do it but you won’t be getting ahead. If this first job is something that will help you for the future I think you can do this for a couple years and move on
Trusting you’ll have a job at a start-up in a year is risky in its own right…
It’s a startup,the chances of making zero by this time next year because it failed or was bought and you are redundant are about the same as your plan that you’ll be making more.
NYC has a rule that you need to make 40x the monthly rent in order to qualify. Don’t think it’s a law, but many places require it.
1. Talk your brother into taking on more of the rent!
2. Do it and figure the rest out, even if that means moving to an apartment you can afford.
25 years ago, when I got out of college, I taught ethics in a high school in NYC making $28,000 and lived in a walk in closet in Queens for $550/month. My point is you can(could?) have a great time in NYC without making bank. Teachers have the city wired knowing every bar with food specials, how to get score desk seats to the opera (and at intermission taking the empty seats of the Goldman execs that didn’t show), who is speaking at the 92nd street Y, where the locals (not Wall St.) run basketball on which night.
Your friends will all be doing something else, too (stand up, off Broadway plays, in a band playing at bars), so you aren’t the only one in this boat.
I didn’t save a dime and it was one of the greatest times of my life.
I sold out and moved to a Wall St. job after a couple of years and they paid for dinner and had car service home if I stayed after 9. That was a win-win because I didn’t have money to go out anyway and I impressed the right people with my worth ethic.
Don’t be afraid to look at cheaper places though, and use that as leverage to get your brother to take on more of the rent.
Yeah that’s way too high, and trust me as someone who has worked for many start ups, definitely do not make plans based on thinking you’ll be making more money soon.
Can you even get an apartment for $2500 with that income? Normally your salary needs to be 30x the monthly rent or more to be approved.
Definitely getting a lot of feedback with the majority of it saying too expensive. Do you think it would be fine to do this for a year and then try to find a cheaper place. I don’t think that would jeopardize my future much but I guess I would be open to opinions.
Yes that’s crazy don’t do that. At $75k salary you should be looking at ~$1800 max if you’re trying to have a sensible budget and not scraping by dollar for dollar.
Yes, you literally wouldn’t qualify by the 40x standard. But beyond that it’s really a lot to spend; if you can save by living with roommates I’d recommend that instead.
Devils advocate. You’re young and this sounds like a good opportunity with a startup. That’s something you should try. You say you have a safety net of sorts with money your dad put aside for you – I’d confirm that’s available. You’re living with your brother and he makes a lot more – ask him if he can cover your rent in an emergency, like if you lost your job. At that point, with two emergency funds, I say go for it – hopefully the company will be successful, and if it isn’t you’ll try something else. Until then you get to live with your brother in what is probably a nice place.
As a forever salry raising a family? Very tough.
As a 22year old taking their first job with roommates and setting yourself up for up for an nyc career for a few decades, totally fine.
Will be tight. I did 2800 rent on $90k 10 years ago, and it was not fun. Maybe a $100 fun money a week if I always cooked at home and my lunch, which was hard to maintain.
Not crazy because there are no options if you want convenience and to live alone. Only other option is to get a cheap room with a couple roommates and tell yourself to spend nothing for two years and just save. Then buy something in a cheaper area in jersey and see if an accountant can tell you how you can write off your car note, mileage, and maintenance somehow (set up some kind of a “get me to work on time” llc as a pass through entity type of thing)
Find roommates until you make more. I was paying 1500 a month with 1 roommate when I was making 75k. I was living comfortably, made student loan payments, saved money, and still had spending money to travel/be social (although I was decently frugal with traveling and socializing). But never move into a more expensive place if you THINK you’ll probably make more. Live within your means now then reassess once you get to 100k+. You’ll thank yourself later I promise!
It’s doable, but tight. Find a cheaper apartment with a roommate. Startups are very risky. Update your resume frequently because you can be let go at a moment’s notice. Keep in touch with recruiters. You won’t be saving very much so have a 3 month emergency fund by the time you move here.
I would say no… unless you have a fat emergency fund. Or you get three free meals at work. Food for one can cost $500 a month. You already take a risk working at a startup, with rent that high you’re in a very precarious spot. 75k for NYC is a poverty salary (I know it’s not actually but you get my point). I made more than that in DC postgrad in 2020. I’m sure there’s a way to make it work, but it’s hardly a financially sound decision
I pay that now in NYC (solo) and make roughly 10k more than you. However, I save 20% of my salary every month, and therefore, my discretionary spending is tight. I still can have fun, but I can’t go out every night.
Idk how you would make that work given that you have debt to pay off and making 10k less. You will probably go into more debt given that you will want to have fun in NYC at your age—you won’t have much of anything left.
The most I would think is safe to spend on rent at your salary in $2200–this is not what is recommended by experts mind you (the max you can afford is really $2000). You will feel that extra $300 a month in a city as expensive as here. It adds up.
Not directly related to finance but…….
Be careful about the dream a startup will sell you. I work for one. One month we are on top of the world and are a unicorn company and next month we are almost bankrupt.
Do a lot of research into the company, their products, their investors (try to avoid a company with all VC funded, as VC’s wanted 100-300 % or more return fairly quickly, probably 2-3 years, maybe some 4 or 5). Try to do with companies that have partnerships with much larger companies, as the larger companies will be willing to support the startup if something goes wrong.
Lastly, work life balance can suck. It might last 1 year, 2, 3 or even 4.
It’s insane, yes. You’d be a second away from disaster if anything happened to you. Just get a cheaper room until you make more.
Just find a roommate for time being rent room for 7-900 till you can afford a studio or 1br
Startups are risky by definition. You could make a lot more next year. You could be jobless. Plan accordingly!
So here’s the thing – you can do it. You will be so broke. But also, being 22 and living in NYC is an experience unlike anything most people can relate to. You will have so much fun and get to do so many things.
So that being said, go for it. I did it and I have no regrets. But, you have to go into it absolutely knowing that you have got to make more money. Like, that’s got to be a priority. Climb the career ladder at your current job. Bounce around. Get a second job. All that fun has to get paid for, you cannot settle at $80k in NYC and expect to ever really be comfortable. It’s fine for like 22-25. But eventually, you’re going to want to save for retirement and go on vacation, be able to afford shoes that aren’t from the thrift store etc. and you won’t ever have a better opportunity to do it than in NYC.
This seems pretty normal from what I can find. You won’t have a car which helps your budget. I have friends who have found nice places closer to $1700 in crown heights and other places in brooklyn. I wouldn’t pay more than 2k.
First problem is you don’t meet the 40x salary qualifier. Meaning you need to make 100k yearly to
Get approved for a 2500 apartment. That’s not including broker fees, which can run up to 10% of your yearly rental costs.
If you live minimally, cut out the eating out and don’t drink, and you can stick to a strict budget…it’s possible. Would not recommended