5 Ways To Build Wealth If You Live in a Big City

Living in a big city has its perks, including more job opportunities, an exciting atmosphere, endless entertainment options, good food and diversity. However, it also comes at an expense. 

Big cities have a high cost of living. Most things are more expensive than in small towns, but there are also more opportunities to spend excessively. Food, drinks, entertainment, shopping and activities all cost money. 

Therefore, living on a city-friendly budget so you can start building wealth is essential. Keep reading as we look at five ways to build wealth if you live in a big city.

Housing is often your most significant expense, and that’s especially true in a bigger city. Although it’s difficult, try to find an affordable apartment. You should pay no more than 30% of your income on housing, but that might stretch to 35% or even 40% for high-cost cities. 

Decide your priorities in an apartment: location, amenities, charm, size, etc. You likely won’t be able to get everything you want at an affordable price, but you can probably get your top one or two without using too much of your income on rent.

It’s easy to pay for convenience in big cities. Ordering takeout can be tempting because there are so many great restaurants nearby. DoorDash and Uber Eats make it possible to deliver practically anything. The conveniences don’t stop at dining out. Some people also pay for laundry, cleaning or other chores. 

If you want to save money, try cutting back or cutting out these conveniences. You might have to spend a little more time, but you will save a lot of money on fees and tips.

“The nice thing about living in a big city is that you have so many different choices when it comes to restaurants,” said Grant Sabatier, founder of BankBonus.com. “You don’t always need to city eat out from your budget. Instead, pick a few restaurants you want to try and check out their menus. See which is going to be more budget-friendly and go with that one.”

Most big cities have great public transportation systems, including buses, trains and/or streetcars. It’s a great perk of city living. Your options vary depending on where you live, but most have bus systems that can get you around throughout the city. 

Taxis, Uber and parking costs can be high. Some people even go car-free in big cities. Not owning a car saves you money on gas, permit fees, parking costs, maintenance and upkeep. 

Also, when possible, try walking or biking from one place to another. Not only are walking and biking free, but they are great forms of exercise, too. Many big cities are walkable and bikeable.

Another benefit of big city living is easy access to free entertainment. There’s always something going on. To learn about these events, subscribe to a few local newsletters or Twitter accounts about free local happenings. Websites like Thrillist or Time Out also post free or inexpensive activities.

Things like free concerts, festivals, art shows, parks, community events, and more are always happening — you just have to know about them. 

“If there is something you enjoy doing frequently, like going to a museum, consider an annual membership,” said Sabatier. “Yes, the initial cost is going to be a little higher, but if you’re going several times throughout the year, it may be cheaper in the long run compared to buying a day pass each time.”

Many rent while living in big cities. Buying an apartment (especially a house) can be out of reach financially for many due to high costs.

One thing to remember is that it’s essential to avoid buying expensive furniture. You can shop for more affordable furniture on Facebook Marketplace, Craigslist, second-hand stores or more affordable retailers like Ikea.

When buying furniture as a renter, look for items that can stand a bit of wear and tear, while still looking nice.

Everyone’s reason for living in a big city might be different. For some, it’s because they love the excitement. For others, it may be for work. But two things will always be true about big city living: You’re going to sacrifice space and money.

Although living in a big city is expensive, it’s possible to save money still and build wealth while doing so. It just takes some advanced planning and prioritizing.