This 33-year-old engineer pays $2,100/month to live with 23 roommates in NYC — 5 ways to bring your costs down without having to live like a college student

Look at rent in cheaper neighborhoods

One of the most effective ways to lower your living costs is to rent in a more affordable neighborhood. Opting for a place with a bit more distance from the hustle can be key.

For example, as of July 2024 in New York City, a 704 square foot apartment in Little Italy averages $6,451 per month. But for a similar space in Washington Heights, you’ll pay around $2,612 per month — a huge difference for a change in location.

Even in Crown Heights, Brooklyn, where Abeysekera chose to live, rent for a one-bedroom apartment averages around $2,935. So if he preferred this living arrangement, he still potentially could have found a similar dorm-like accommodation in a slightly less expensive neighborhood.

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Choose a co-living space with fewer roommates

Abeysekera may have found community with his 23 roommates, but not everyone is cut out for such a busy living space. For those who crave a little more peace, co-living with just two or three roommates can still ease the financial burden, offering the chance to meet new people without sacrificing personal space.

After all, there are plenty of online services dedicated to finding roommates in New York, and with no revolving door of people, it could be easier to make lasting connections.

Cut back on essential costs

Roommates can help lighten the load, but there’s always a way to trim spending a bit more. Essentials like gas, groceries, utilities and rent might seem set in stone, but small tweaks — like cutting back on takeout or trading the Uber for a subway ride — can add up over time.

And let’s not forget about insurance. Whether it’s renters insurance or car insurance, shopping around for a better rate could give you savings you didn’t know were there, leaving you with more cash to enjoy the city without feeling like you’re overpaying on the essentials.

Kiss your credit card debt goodbye

Millions of Americans are struggling to crawl out of debt in the face of record-high interest rates. A personal loan offers lower interest rates and fixed payments, making it a smart choice to consolidate high-interest credit card debt. It helps save money, simplifies payments, and accelerates debt payoff. Credible is a free online service that shows you the best lending options to pay off your credit card debt fast — and save a ton in interest.

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Make your money work for you

Cutting back on the basics can free up some extra cash, but there’s also ways to make your money do some of the heavy lifting for you. Investing even a little spare change into a diversified portfolio that includes ETFs could turn those small contributions into something bigger over time.

Then there’s your savings accounts. Swapping a traditional savings account, with an average return of 0.45%, for a high-yield option offering up to 5%, can make all the difference. Making this simple switch can help turn your savings from passive to proactive, helping you build a cushion for your future.

Budgeting for big city living

In a city as expensive as New York, budgeting is an essential part of financial survival. By taking a closer look at your monthly expenses, you can make smarter financial decisions and pinpoint where savings can be made. Creating a monthly spending limit may sound like a constraint but it’s a strategy that allows you to put aside a little extra each month towards your future goals.

Those small sacrifices can lead to bigger rewards, like planning a getaway, building an emergency fund or enjoying the peace of mind that comes with financial stability. If you need help creating a monthly budget that fits your lifestyle, a financial advisor can offer valuable guidance to help you get started.