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how much money should i save up for living costs in new york?

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money new-york
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Raquel’s Answer

New York City is one of the most expensive cities in the world to live in, there's much more to it than how much you should save up, because eventually savings will run out. You also need to look at how much you need to make to maintain living in NYC. Rent is definitely one of the most expensive parts of living but does vary depending on where in the city you live. The average rent in Manhattan is $4140, in Brooklyn $3080, in Queens $2638, Long Island $2000, and Bronx $1628. There is a lot of fluctuation based on location and number of rooms. Another thing to consider is that these apartments tend to be very small. Rent often doesn't include utilities like electricity or internet, some places include water/heat/garbage in the rent while others do not. On top of rent you also need transportation costs, most people don't have cars in NYC and instead take the subway. Currently the 30 day unlimited ride metro card is $127 but may soon go up to $139. Similarly you need to account for food which is more expensive, on average in NYC people spend around $450/month on groceries. These are all basic living expenses you need to account for to decide if you can afford to live in NYC. To live comfortably in the Bronx you need to make around $7000/month whereas to live in the cheapest areas of Manhattan you need $12000. New York is certainly a fun city, especially when you're young, and since 8 million people live there it is certainly possible to do, but you definitely need to carefully plan your budget.
Thank you comment icon thank you for the information! emma
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Skylar’s Answer

Hello Emma! Besides the ongoing expenses highlighted in previous responses to your query, there are a few more things to consider when planning to rent in New York. Firstly, a security deposit is necessary. Secondly, you must satisfy certain income criteria. Generally, your income should be 40 times the monthly rent. If this isn't feasible, a guarantor can be used. This person must prove their ability to cover the apartment's cost if the renters fail to pay. The standard income requirement for a guarantor in NYC is their earnings should be between 80 to 100 times the rent. Certain apartments may also ask for a broker's fee, which ranges from 5-15%. I've seen some friends pay around $8,000 upfront just for this fee.
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George’s Answer

There are many cost of living estimators on "The Google".
Bankrate.com has one of my favorites - comparing one area you may be familiar with to the new area you are considering. https://www.bankrate.com/real-estate/cost-of-living-calculator/

If it's New York City and you have to ask, you probably don't have enough savings.
Savings is not the real problem to be considered. What you need is a month-to-month income that is higher than your expenses.

IF: you don't have that extra money-----
To save (Emergency Fund)....
To save & invest in education ...
To save for long-term purchases (car, home, vacation, ...)
To invest... The earlier you start on retirement savings the easier it is - please start ASAP. Most all of us "olders" look back with regrets for not investing more earlier.
THEN: you will never get to "Financial Well-Being" - able to cover 1.) month to month, 2. ) emergencies, 3. ) short, 4.) intermediate , and 5.) long term goals. You will never get to the place of being able to comfortably make choices that will allow you to enjoy life.
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Gabriela’s Answer

Hi Emma,

New York City is a great place to be in, especially when you are younger. With that said rent is expensive and your savings will not go far overall. You would most likely need to have roommates to keep costs down or have your parents help you, and that is with a job. Unless you make a lot it will be difficult to have your own place. I used to live in Brooklyn and it was definitely cheaper so if you are striving for a cheaper place look into Brooklyn, Queens, Long Island City, Jersey City, and Hoboken. Even those places are seeing prices increase so be aware. Also don't expect a fancy place. You most likely will have a walk-up and may not have laundry in the building or apartment. Utilities depend on the place and what is covered, if anything. I know people who have sublet for a bit in NYC or have used Craigslist to find roommates and/or sublet . There are ways to be on the cheaper end but you have to really look into your options. If possible I would get a job before moving to NYC or sublet for a couple of months as you look for one.

Rent aside, the subway is not terribly priced if you get the unlimited monthly card. By no means should you own a car in NYC. Food can be expensive depending on how much you purchase. Most likely though you will have minimal food at home and eat out since it is so convenient and you have sooo many great options. With that said, lunch will cost you about $10-20 depending on the place.

I spent my 20s living and working in NYC and it was a lot of fun and a great experience but you definitely need a decent paying job (not talking 6 figure but ideally $50K min), be willing to sacrifice some comforts, and budget.
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Nick’s Answer

New York is more expensive than ever (post-pandemic). In general, if you want to live in Manhattan the median rent tends to be quite high (~$4-5K). That being said, you would be able to find a SMALL studio/1 bedroom apartment for $3-3.5K/mo, but don't expect anything fancy. On top of rent, you can add roughly $1.5-2K/mo for costs of living which would include a social life, but this will vary based on how frequently you're out in the city, how much you eat out, etc. Note that outside of Manhattan, rents are significantly lower, but still likely in the $2K/mo range.
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