Living in An Expensive City: 5 Essential Budgeting Tips

Maybe you’ve had to move for a job or perhaps you’ve always wanted to live in the Big Apple. There can be any number of reasons why you’ve decided to live in an expensive city but here you are. Unfortunately, you didn’t expect it to be THIS costly.

Fear not, though, you have options. It’s possible you’re spending so much because you’re just not budgeting properly. Uh-oh, the dreaded “B” word. But don’t despair, you’d be surprised by how much you can save if you just make a few changes to the way you’re spending. Before you know it, you may just have more money in the bank than you thought.

1. Share the Rent

There are plenty of affordable cities for newlyweds because two can share the rent. A city like San Francisco, for example, where the rent prices are astronomical, can be made just a bit easier if both partners split it down the middle. Not married? That’s fine too, find an apartment or house where you can have a roommate or two. The more of you in one dwelling, the easier it will be for everyone to live in an expensive city and pay an affordable cost of rent.

2. Don’t Live in the City

You love New York but do you really need to live smack dab in the middle of Greenwich Village? No. Find an outlying area that is more affordable yet still close enough to get to the city in a reasonable amount of time. The cost of rent might go down but now you have to figure in the cost of transportation. Will you need a car or would public transportation suffice in the expensive city you wish to live? Weighing the costs against each other will help you determine the best location for your home.

3. Eat Smart

Make some meals at home. Eating out can get very expensive quickly and not just at the finer Zagat-rated establishments, either. The price of a Big Mac is higher in Boston than it is in Springfield, so don’t be fooled into thinking you’re saving money by eating fast food all week. Shop at the supermarket and buy food that you can make at home. Even if you’re not much of a cook you can still make affordable meals at home and save some money.

4. Free Can Be Fun

The great thing about large cities is that there is always something going on. That’s why you moved there in the first place. Check out your local paper and find free events that are happening. Movies in the park, free concerts, even museums offer discounts or freebie days where cash-strapped folks can still go out and enjoy themselves. Trust me on this, you’re going to find a ton of great ideas.

5. Resist the Urge to Splurge

I know this one is easier said than done. But stop and think first. That item you want to buy or that bar you want to hit up, is it really worth putting yourself into a financial bind over? Dropping that cash now might mean you have to sacrifice something even better or more important down the line. Consider your finances before you spend. Will that wonderful thing that you must have now be there tomorrow? If so, then get it tomorrow when you’ve got a few extra bucks to spare.