Is Moving to a New City Worth the Financial Strain? Here’s My Story
I’ve always wanted to live in New York City. For years, I have fantasized about moving to a city that never sleeps and has endless possibilities. The breathtaking buildings, the energy, the rush, and even the traffic seemed so magical to me. But life had other plans for me. For more than two decades, me and my husband, Mark, lived in a small town, far away from the dazzling lights of New York.
Montclair, New Jersey is a beautiful place situated about 40 miles outside of Manhattan, but it never fulfilled my dreams. Even though we had everything we needed, I still used to dream about New York City’s magic. We had a peaceful life, but after years and years of saving and debating, Mark and I finally found our courage and made the change. We sold our home, packed our lives, and followed my dream.
Isn’t that crazy? I convinced my beloved husband to leave everything he knew behind and start a new chapter in our lives. It wasn’t easy to start over, and without him by my side, I couldn’t have done it.
I was so fascinated by the idea of living in the city of my dreams, that we ended up overlooking a lot of important details. We were quickly forced to discover that the transition from a small suburban town to one of the most expensive cities in the world wasn’t as seamless as I’d imagined. I dreamt about this moment my whole life, but I didn’t really realize how much work needed to be done in order to achieve my goal.
It wasn’t only about finding a new place to live. We needed to start over and manage a completely new financial strategy. All the unexpected expenses drained our savings. So, it was really challenging to find our balance without drowning in debt. But before we get to the financial problems, let’s start with the beginning.
The Decision to Move
I always talked openly with my family members and friends about my dream of living in New York City. So, my husband wasn’t surprised when I first proposed the idea of actually moving. He loved our life in Montclair, and it was hard for him to accept that I was serious when I said that I wanted to start over at 50 years old and embrace the life of retirement in a city that never sleeps and can fulfill my childhood dream.
Moving to a new city seemed like a massive and scary change, one that was full of uncertainty. However, I can proudly say that after months of discussion, I made Mark accept the challenge. He agreed to sell our home and live our lives to the fullest. We slowly but surely started the process of figuring out where we would live in the city.
The hardest part wasn’t about the actual moving, it was the financial aspect. Balancing our savings to survive the high cost of living wasn’t easy at all. We were used to living in a small city where our mortgage payments were affordable and groceries didn’t break the bank.
We spent hours and hours researching neighborhoods and understanding what kind of apartment we could afford and realized that achieving my dream was going to be a lot more expensive than we had imagined. But we had faith and were determined.
The Reality of New York Living
When we finally settled into our apartment in Brooklyn I felt like I was living inside a dream. I couldn’t believe that after years of hard work and saving, I was risking my financial freedom, just because I felt the need to achieve my biggest dream. The energy of the city was perfect and we easily got around. Mark was also excited and enjoyed the journey of rediscovering ourselves and our marriage.
The problem appeared when I looked at our monthly budget. It hit me hard when I realized that rent in the city was way higher than we expected it to be, and every single expense, such as groceries and utilities, started to feel like draining our savings. It was scary to feel that New York City was far more expensive than anticipated. But we didn’t have anything else to do. We pushed our limits and did our best to survive.
Mark and I were both working, but the income we had in Montclair was not enough in New York City. So, we decided to buckle down and focus on budgeting. We made some big adjustments and considering that one of our first challenges was transportation, we decided to sell our car.
In Montclair, our car was extremely useful, but in New York City, public transportation was more than enough to fulfill our needs. It was way cheaper and much more efficient. So, the subway system saved us a significant amount of money and made the process a little bit easier.
But even with those savings, we still needed to find a way to balance everything. Rent was extremely high, the utilities were unpredictable, and we had to cut some of our favorite activities to survive. We used to dine out at least twice a week in Montclair, an activity that became impossible to achieve in our new city. We limited our entertainment budget and became extremely conscious of how much we spent on shopping and travel. It wasn’t easy, but we didn’t have other available options.
The Rent vs. Buy Dilemma
A few months into living in New York, we didn’t have another option but to start to discuss whether it was better to rent or buy an apartment. We knew that buying an apartment in New York City was a huge investment, but we also took into consideration the high the property prices were. It wasn’t as simple as buying a place, it was mostly about the financial implications of doing so.
We got some assistance from financial advisors and explored every neighborhood we liked, just to understand if it would be a good idea to buy a home or if renting was better. In the end, we opted for a rented flat. Considering that we had no idea what we were doing with our lives, it was our best option.
Renting an apartment for a year gave us time to experience living in different neighborhoods and to understand what we truly want in our long-term home. Basically, renting an apartment gave us the flexibility to make more informed decisions about buying and I encourage anyone to do the same.
8 Financial Tips and Lessons Learned
Moving to New York City is something I dreamt of my entire life, but it was no small feat. We experienced the excitement of a fresh start, but also the challenges. It wasn’t easy, but it was worth it. Without our financial strategies, we wouldn’t have done it. So, I am ready to share everything we learned throughout our journey. Keep reading because you’ll find some key financial tips and lessons.
1. Start with a strict budget
When we decided to move, one of the first things we did was to establish a strict budget. A big city like New York doesn’t care at all about your financial comfort zone and you will find price tags on everything, starting from rent, utilities, and transportation. The budget must be realistic and to obtain a correct amount, we started to list our fixed expenses and allocate a specific amount for discretionary spending, such as dining out.
I already told you how much, I and Mark enjoyed going out for dinner. Well, some things needed to change. So, our list gave us a clear view of what we could afford each month. Making a habit of tracking every expense in detail using an app is a great way to keep things under control.
Oh, and don’t let yourself get tricked! If you don’t set a clear budget, it’s very easy to spend too much on impulse purchases.
2. Embrace public transportation
Owning a car in New York City seemed impossible for us. In a big city, it is not financially feasible to own a car. So, we were forced to sell our car from Montclair and adapt to a totally new lifestyle. From exorbitant parking fees to the ever-increasing costs of gas, not to mention the nightmare of finding parking, it just didn’t make sense. Instead, we embraced public transportation.
Mark adapted rapidly to the subway system and it became easy for us to get around the city. Believe it or not, a monthly metro pass became our best friend and saved us a lot of money. So, embracing the new transportation methods, was extremely important in maintaining a balance in our finances. Trust me when I tell you that it saved us hundreds of dollars a month in car expenses.
Living our best life without breaking the bank was not easy, but we can proudly say that we did it. All we needed to do was to adapt. Isn’t adaptation one of the best qualities one can have?
3. Rent before buy
Oh my God! Please rent before you buy! This piece of advice is something I can’t recommend enough. We first thought that once we arrived in New York City we would immediately purchase a property. It would have cost us too much and totally compromised our plan. The real estate market is far more complex than you can imagine. So, after doing a lot of research, we understood that renting, especially for the first year, was a necessity. Talking to friends already living in the city was also extremely helpful.
So, renting allowed us to adjust to the city’s vibe and style. In case we would have rushed into buying we would have probably been making a completely wrong decision and ended up in a bad neighborhood. Buying a property is not simple, and you should always take your time and make an informed decision, especially when it comes to big investments that can completely change your life.
4. Adjust to the high cost of living
We were used to a completely different cost of living in Montclair, so New York exceeded our expectations. In the city of my dreams, every penny counts, and the prices of everything are significantly higher, even for some of the most basic services. I was shocked to find out that dry cleaning services were three times more expensive than what we were accustomed to.
Once we moved, we couldn’t complain about it and the only thing left to do was to adjust our spending habits. It sounds simple, but it’s not. For example, it was very hard for me to stop my regular appointments at the nail salon and learn how to do my nails at home. Don’t get me wrong, I always went for simple manicures. But the simple fact that I needed to go out regularly to take care of myself and the way I look was a pleasant activity for me.
Another thing I did was to start shopping more at local markets and cook meals at home more frequently. These adjustments may seem small but they added up over time and helped us stretch our budget further.
5. Build an emergency fund
Is there anyone who doesn’t have an emergency fund nowadays? Considering everything happening in the world right now, it is completely normal to be concerned about what could be coming next. Since we live in New York, things go wrong in the blink of an eye. There are a lot of unexpected medical bills, home repairs, or even job changes that can have a huge impact on your financial stability.
It became one of our priorities to have a robust emergency fund. So, we made sure that no matter how tight our budget was, we were consistently contributing to our savings. It wasn’t simple, but we managed to build a cushion that allows us to handle any financial surprises without going into debt.
6. Avoid lifestyle inflation
In such a big city, you feel like you need to keep up with people who seem to have it all. For example, the latest gadgets are a huge temptation. And in our case, restaurants are also tempting. I already told you how much we enjoyed dining out regularly. It’s very easy to be attracted by this culture of “lifestyle inflation”, where every new experience or purchase feels like a necessity.
I learned how to focus on simplicity and it was the best way for me to avoid overspending and falling into this trap. Just because everyone else is doing something, it doesn’t mean I had to follow their steps. We are unique and our needs are different. I keep reminding myself that happiness doesn’t come from material things.
7. Find a new job
Admit it or not, nowadays it’s way easier to find a job compared to how it used to be. There are a lot of available options, including some remote ones. Moving to a new city can be challenging, but you need to find a way for career growth. Mark remained at his job and he is currently working from home, but I had to find a new job. I am not going to lie, it was harder than I expected, but exploring new opportunities made me see things differently.
I took advantage of the gig economy and I adjusted to the city’s style. Now, I am working as a kindergarten teacher. I am lucky because I found the same job I had for my entire life but, this time, in the one and only New York City.
I was surprised to find that even though I knew how to do my job, the city offered me the possibility to see things differently and learn a lot. So, I feel blessed and happy I had the chance to evolve.
8. Take advantage of discounts
Last but not least, always remember to take advantage of discounts! Every big city offers unlimited opportunities to save money. Mark and I quickly learned which are the museums, galleries, and even Broadway shows that offer discounts or have free entry days. It helped us remain socially active and spend quality time together.
New York has amazing parks, so we usually spend our weekends walking in Central Park. It’s extremely relaxing, and most importantly, it is completely free. Every big city can be expensive to explore, but with a little research, you’ll be surprised by the variety of advantages.
Moving into a big city taught us that discipline is key to smart financial planning. So, staying focused on our financial goals is what helped us thrive in one of the biggest and most loved cities in the world.
You might wonder if the risk of selling everything and starting a new life was worth it. Well, it really was! I never felt happier!
Never stop chasing your dreams!
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