Moving to NYC was always THE plan for me. But it’s notoriously expensive.
I worked a full time job, snagged overtime, and tutored in college. Before our move, we sold our cars and furniture. We scrimped every last possible cent together. I even skipped my college graduation to save money.
As soon as my classes were done, we booked 2 plane tickets, packed our suitcases and moved to Manhattan.
It was romantic. And terrifying.
And I still can’t decide if it was a smart or idiotic thing to do financially. So I wanted to share my experience for anyone considering a move to NYC.
The best kickstart to a career
Set our salaries at New York levels
As recent grads, we both had abysmal salaries when we first relocated. Kevin was able to quickly double his pay by aggressively job hopping. When I went freelance, I was able to establish a day rate in one of the best paid markets for animation.
Built a network for my business
Even though my address later changed, my clients stayed the same. After 6 years in Austin, I still only have a handful of local clients. Remote work is even more common now, which gives me a lot of security going forward.
Fulfilled a dream
How many people dream of moving to a big city and never take the leap? I’ll never have to live with the regret of what could have been. I arrived and left on my own terms. And experienced everything fully while I was there.
A drain on your finances
The rent’s too damn high
Our first apartment in Manhattan was a “steal” at $1750/month. This wasn’t the Upper East Side you saw on Gossip Girl. It was 350 sq ft. The oven set off the fire alarm with every use. The daily dynamite blasting for the new 2nd avenue subway shook the entire building.
After 3 years (and a proposed $400 rent hike), we had had enough. We upgraded to a brand new building in Park Slope (Brooklyn) for a mere $3100/month. It had a view of the Statue of Liberty. We could see the skyline from the rooftop patio. It had a gym and door people.
It also taught us the soul crushing feeling of being “house poor”. A valuable lesson that later informed our home purchase.
…And the taxes are even higher
When you live in NYC, you pay federal, state, and city tax (not to mention my self-employment tax). Our effective tax rate was about 29.5%. Sales tax added on another 8.875% to every purchase. You also pay an annual Christmas tax to every doorman, dog walker, nanny, and other service person in your life.
In Texas, we only pay federal & sales tax. Our effective tax rate is down to 18.7%.
Now that we’re homeowners, we also pay a property tax of 2.17%. But our mortgage (including escrow & PMI) for our 1550 sq ft house with ¼ acre lot in Austin proper is only $2490. And there’s no HOA or Coop fees (which is almost a certainty in NYC).
A million other reasons we felt trapped
We discovered we liked hiking, but didn’t have a car to get out of the city. Our family was far away, so we spent a majority of our vacations visiting them.
We’d be in our 40s before we could buy a small apartment. How would we afford kids and the 2-bedroom we’d need? We struggled to put away any money for retirement.
And our poor dog had no yard and had to “curb” (aka pee on the concrete).
So… should you move to NYC?
Absolutely! I never could have told my younger self not to. As long as you understand the sacrifices you’re making, it can be a wonderful place to build a life.
We thought NYC was our forever home. But our priorities shifted. It became too hard. If the skyline no longer makes your heart flutter, your chapter might be over.
For us, 5 years was the perfect amount of time.
“I live in New York, and I was thinking about the lagoon in Central Park…I was wondering where the ducks went when the lagoon got all icy and frozen over. I wondered if some guy came in a truck and took them away to a zoo or something. Or if they just flew away.”
― J.D. Salinger, The Catcher in the Rye
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