Can a family live on $120,000 yearly in New York City?

Living on $120,000 per year in New York City can be challenging for a family, especially considering the high cost of living in the city. Here are some key factors to consider:

Cost of Living in New York City

• Housing: The average monthly rent in New York City is approximately $4,469, and home prices are around $1,670,5401. This makes housing one of the most significant expenses.
• Utilities: Monthly utility bills cost about $213.201.
• Food: Groceries are about 19% more expensive than the national average1.
• Transportation: Gasoline costs around $3.64 per gallon, and a monthly public transportation pass is about $12715.
• Healthcare: Healthcare services are 13% more expensive than the national average1.

Income Requirements for Comfortable Living

A recent study suggests that a family of four needs to make at least $318,406 annually to live comfortably in New York City, with 50% of income going towards necessities, 30% for discretionary spending, and 20% for savings2. This indicates that $120,000 might not be sufficient for a comfortable lifestyle for a family.

Budgeting Considerations

To make $120,000 work, a family would need to budget very carefully:

• Housing: Consider sharing an apartment or finding more affordable options outside of Manhattan.
• Transportation: Use public transportation to save on fuel and parking costs.
• Food: Plan meals and shop at budget-friendly stores.
• Entertainment: Limit discretionary spending on entertainment and leisure activities.

In summary, while it is possible to live on $120,000 in New York City, it would likely require significant budgeting and lifestyle adjustments, especially for a family. The income is below the recommended threshold for a comfortable lifestyle in the city.