4 Secrets to Budget Success Living in an Urban Area
Written by
Chris Adam
Edited by
Chris Cluff
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If you’ve recently tried to build a budget because of inflation and higher prices, you know how tough it can be. If you live in a big city like New York, you know it can seem nearly impossible.
But there are secrets to budget success when living in an urban area. Some of these apply to most places you might live, while a few are specific to larger cities only.
Be Realistic
Let’s start with this: Be realistic about the need for a budget and what it will include. Sure, it can be scary when you see the price of things in big cities, but don’t let that deter you from creating a realistic budget.
Shop Around for Housing
The price of housing and apartment living can be frightening when you look at them directly. According to RentCafe and moving company PODS, the average rent for a one-room bedroom apartment in New York City is about $4,475 per month. That’s compared to the national average of $1,700.
That’s why it’s important to create a realistic budget that includes a close estimate to housing prices and other expenses that are more in big cities. One quick tip: See whether you can find a place just outside the city, where you may discover significantly lower rents and housing prices.
Find Cheaper Produce
To make up for increased costs for housing and other necessities, use your budget to brainstorm ways to save on food costs. You should check out local markets for cheaper produce and other goods. According to PODS, “Start exploring local farmers markets and street vendors for produce instead of heading to a store for every purchase.”
Another way to cut your spending on food: Save eating out for special occasions or as a way to treat yourself. In addition, use your budget as a place to map out your grocery shopping and meal planning.
Consider Your Options for Getting Around
Ditch the car! That’s an easy way to save money if you live in a big city, but it may not be realistic for you.
If not, still look at your public transportation, bicycle or carpool options to save money.
According to Dave Ramsey, “Whether you’re adding up expenses for your commute to and from work, figuring the cost of your personal errands, or stressing over how much that dream vacation flight will cost, making a budget for your transportation needs should always be part of your personal finance plan.”
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