When living abroad, especially in an expensive city such as New York, it’s important to have a clear distinction between needs and wants, especially when you just moved and things aren’t as stable as they were back home. I’ve been budgeting regularly for the past five years, and contrary to what some people may believe, it’s given me more financial freedom than it has restricted me.
While I’m still working toward my financial goals, I’ve built a lifestyle that allows me to visit family, travel, and thrive in an expensive city—even on a modest income.
Conscious spending
I have a clear understanding of my fixed costs, which helps me understand how much I can spend on wants and how much I can save. While I’m still working toward maxing out my Roth IRA and expanding my emergency fund, I prioritize intentional spending to maintain financial independence.
Conscious spending isn’t about depriving yourself—it’s about making sure your money goes toward what truly matters to you. For me, that is visiting my family and friends abroad and spending time with my boyfriend. As a result, I rarely eat out and mostly only use public transportation. My monthly food budget goes mainly toward a plant-based diet, with meat or fish once every other week, which I think is better for my health anyway. I also allocate some money for social activities and set aside at least $500 for savings. Having a clear view of my finances gives me peace of mind. I know where my money is going and feel confident in my choices.
Income
Since my income varies, I also seek flexible work opportunities to maximize earnings. Since freelance work can be inconsistent, negotiating a higher rate is important to ensure financial stability. However, while non-union background work pays minimum wage, the guaranteed 10-hour pay can make it worthwhile, especially if released early. The downtime can also be used productively—whether it’s working on personal projects, networking, or just relaxing. Either way, it’s a win-win situation as you get paid for doing these things.
The best approach is to increase earnings while maintaining mindful spending. I’m still new to the savings system in the States, so the book I Will Teach You to Be Rich was very informative and helpful in setting up my Roth IRA and knowing my other savings options. In addition, the book Your Money or Your Life reinforced the habit of calculating the commute time and quality, lunch cost, etc., into my daily rate to estimate if it’s worth doing. In general, the book offers great insights to live a fulfilled life with what you have instead of falling into the ‘the more the better’ trap.
Government aid
When I first moved to Los Angeles, I applied for food stamps and free healthcare. At first, I hesitated to take advantage of these benefits as I had never needed social aid. I had moved from South Korea with only my savings and no secured job, so after a friend encouraged me to apply, I stopped being hung up on my ego and acknowledged that these programs exist for those in transition. Once I found steady work, I became financially independent again, but having that support gave me the breathing room to get there.
If you’re in a similar situation, use the resources available. What matters isn’t where you are now, but your commitment to improving your situation.
Resources
Here are some helpful resources, categorized by location. If you’re in a different city, check local government websites for similar programs
LA
Los Angeles Public Library
BenefitsCal. Together, we benefit.
Low Income Fare is Easy (LIFE) – LA Metro
Covered California™ | The Official Site of California’s Health Insurance Marketplace
NYC
Culture Pass
GrowNYC | The Sustainability Resource for New Yorkers
The New York Public Library
Fair Fares NYC
ACCESS HRA
General
MyMoney.gov
Finance book recommendation (includes affiliate link):
I Will Teach You to Be Rich by Ramit Sethi
The Psychology of Money by Morgan Housel
Your Money or Your Life by Joseph R. Dominguez and Vicki Robin
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Having a budget system with every purchase noted can be overwhelming. However, I truly believe that having a budget will reduce potential financial stress and make moving to an expensive city to pursue your dreams less daunting.
Gaining control over your spending gives you the freedom to build the life you truly want.
Budgeting isn’t one-size-fits-all. What strategies have worked for you in managing expenses in a pricey city?