How I Learned to Give up Luxury to Live in an Expensive City
When you’re struggling to survive in an expensive city, it can be very discouraging. When I moved to San Francisco, you had to make $ 62,046 a year to afford a one-bedroom apartment . I made less than $ 50,000. Luckily, I’ve found that you don’t need to make a high average income in your city to be happy – you just need to be creative and willing to put in some effort.
Of course, the first thing you should ask yourself in this situation is: “Do I really need to live here?” Unfortunately I couldn’t, as I moved to San Francisco for work and the surrounding area is just as expensive. Maybe you have a family nearby and you don’t want to leave. Whatever the reason, prosperity in an expensive city is not impossible – it only takes the right mood.
I learned that most of my “needs” are actually convenience
The first thing I did was take a look at my running expenses and lifestyle. I knew I would have to spend according to what I earned and not according to what I would like to earn, which made me accept some harsh truths about the things I considered necessary in life.
I expected to share an apartment with someone else, and luckily, I spoke with a close friend about living together. However, if you don’t already know someone to live with, you can find open housing (or people who will live with you) through Craigslist , Lovely, or Facebook groups (look for group names such as “[City] Housing ”or if you are part of a specific group such as artists try“ [Urban] Housing for [Group] ”). You may even need to share a room with someone , but the less you can get those costs, the more you will have to cover other costs or save.
One of the most important things I have learned when looking for an apartment in a highly competitive and expensive market is that you have to make a list of your needs and desires in terms of housing. Your needs will limit what is available to you (which helps to shorten your watch lists), and your wishes will help you decide which seat to choose. We had to give up some of our ideal opportunities – like living away from the more popular neighborhoods in the city center – because of our rent limit. This also means we had longer rides, but the extra 20 minutes on the bus saved us around $ 2,000 in rental fees. It won’t cost us more to stay just a few blocks from the main bus line, but in your city it is possible. At the end of the day, you must balance your housing needs with what you can pay reasonably.
Speaking of the bus, I chose not to have a car. I knew that insurance, car payments and parking would eat up a ton of my income. Public transport takes longer, which is inconvenient, but when you are low on cash, you have to give up some of the amenities, and a car is just a convenience. I use this time for other purposes, such as learning, listening to podcasts, reading more, or looking through work emails. I also cut down on food costs by joining a local co-op and scheduling meals within my budget . I actually enjoy cooking a lot, which saves me a lot of money as I end up eating out only two or three times a month.
Courtney Carver, in her article “Be More With Less,” notes that you should divide the number of items you own by seven (seven days a week) and dispose of (or sell) anything beyond the amount you need. a week. For example, you need enough clothes just to have clothes for seven days, and you can sell the rest at thrift or thrift stores. I think it is even more important to apply it before buying, which is why I always remember her formula. I estimate how many times a week I would use an item and multiply it by 52, then divide the price by how many times I would use it. I get the price I pay every time I use this item this year. Let’s say I’m considering buying a $ 40 blender (thanks Kinja Deals!). I use it about four times a week to make smoothies, sauces, or to cut vegetables. This means that I will be using it 208 times a year. $ 40/208 means that every time I use it I need about 19 cents. This makes it profitable for me. You can apply this method to almost everything from clothing to electronics.
You may feel like every time you browse Facebook or Instagram , you see people in apartments with breathtaking views, eating in the hottest restaurants, or taking front row seats at the best concerts. It can be discouraging when you just squeak. Instead of yearning for others’ lifestyles, think about how you can be happy within your budget. Also, remember: most people only show their highlights, not what their daily life is actually like. Many of these things have made my life less comfortable, but I constantly remind myself of this mantra: someday I will get better, but now I just need to live, even if it’s not perfect .
I focused on what I can afford
When basic things like rent, grocery, and transportation make up the majority of your income, you cannot imagine additional services that are important to your mental, emotional, and physical health. Think about what you personally need to be happy right now, and find inexpensive versions . Spend your energy on what you can afford, not what you cannot.
Rather than focusing on how far away I live from all the best restaurants and bars (which are not in my price range anyway), I am grateful for how close I live to beautiful (and free) hiking trails and parks. … I mean I have a stunning view of the Golden Gate Bridge less than a ten minute walk from my front door – hard to beat!
The other day I realized that if we spent $ 100 on a date, we would be just as happy to be at home, because it’s important to spend continuous time together. Do the same and think about what you enjoy most about your favorite activities. If your favorite meal is dining out and chatting with friends, try having lunch at home. If you enjoy going to the gym because it helps you stay in shape, see if your apartment building has a fitness center, and if not, there may be classes or groups in your city that work out together. Over time, you may find that you like these cheaper alternatives more because you save money and can still do what you like.
Be honest with yourself and others about the lifestyle you can afford. Money is often a taboo topic , so it can be difficult to tell your friends that you can’t afford to go out. People who care about you won’t stop being your friends because you act with your financial health in mind. In fact, they may find themselves in a similar situation and will be glad you brought this up. You may want to keep an eye out for offers for free or low-cost activities, such as a play night or a hike.
When it comes to money, I think it’s best to be transparent but also empathetic towards the other person. They may not want to discuss finance – and that’s okay. Just keep telling them about your situation so that they know you want to date them, but you just can’t afford it. If you are open with your friends, your social life will be less stressful because you do not have to try to keep up with everyone else .
I used the city to my advantage
I believe that since I pay for the high cost of living in the city, I need to take advantage of what it has to offer.
I have found so many entertainment options that are very affordable. For example, many cities host free street fairs and festivals during the warmer months (you can check your city’s website for a calendar of events, or simply do a quick Google search). I belong to a large art museum, and my annual membership card gives me and a guest unlimited access to two different places – and it paid off in a few visits. I used this pass as an inexpensive way to hang out with friends or go on great dates . If museums are not your style, there are tons of other places where you can meet people without spending money or hardly spending it (clubs, church, volunteering, etc.). Plus, most cities have some really awesome free entertainment – here are our readers’ suggestions for New York , San Francisco, and Los Angeles .
Probably the best thing I have done to reduce the cost of living in an expensive city is to provide a second source of income . While I don’t need money to cover basic things like rent or meals, it allows me to achieve my financial goals faster. Since you live in a city, chances are good that you will be able to earn extra money in a service or tourism industry, for example, in a restaurant, bar, hotel, or as a guide. Working in the food industry can help cut your food costs as you can usually eat one or two meals at a restaurant for free. If this standard part-time job doesn’t fit your schedule, look for more unusual opportunities. I once went on a rented sailboat and the skipper used it as a side job to supplement his income from his full-time employment in construction project management. For more flexibility, try task sites like TaskRabbit , Fancy Hands , Fivver , Postmates , Uber, or Lyft . Sometimes working in a second job is tiring and stressful – there are days when I hardly have a lunch break – but the added financial security is worth it (especially if you enjoy the job).
You can also use your city to your advantage and meet the demand for the things you already have. In addition to selling unnecessary items , you can also rent your items. Registering your home with Airbnb (or a similar site ), letting other people use your vehicle with services like RelayRides, FlightCar, and GetAround, or lending your sports equipment are all easy ways to boost your budget.
Finally, be humble enough to ask for help when you need it. Personally, I have an Amazon wishlist that I send to people (mostly family) when they ask me what I want for their birthday or Christmas. I filled it with items that improve my living situation – for example, a heater, since the heater in my apartment is not working very well. You can also let them know which store or service you are using so they can receive gift cards for you. That way, they feel good about giving you something to use and you get something to help make life a little easier.
Set financial goals for yourself as you improve. Even if you can hardly afford anything other than a basic lifestyle, you still have a goal to spend that extra money on. I have found it to be a great source of motivation when it comes to making decisions about how I spend my money. I save money to buy a house, so every time I have to choose between Lyft or the bus, I choose the bus as often as possible. Just think about what I could spend this money on, and it prevents me from spending it on what I can now afford.
By giving up some of the comforts, I was able to live within my means, while at the same time receiving a lot of appreciation for what I already have. Remember my previous mantra? This is already coming true, I will be able to achieve my two financial goals this year: create an emergency fund and allow myself to live alone. Realize that you, too, can take control and work on what you want.