How to Live in a Big City on a Small Budget

The opportunities that a big city offers can keep you happy, social, and engaged while staying true to your budget. Perhaps the most important factor is finding accommodations that have what you need for an affordable price. Once you’re nestled into your urban abode, you may have to adjust your lifestyle a bit to stay within your budget, since many items and activities cost more in big cities. Finally, be sure to take advantage of all the free and low cost social and cultural activities that are occurring in the midst of your metropolis.

Method 1

Method 1 of 3:

Finding Inexpensive Accommodations

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Look for options in multiple neighborhoods. If you’re still looking for somewhere to stay, don’t limit yourself the most popular areas. The fact of the matter is, it’ll cost more to live in the neighborhoods everyone wants to live in. That said, there are many people in every big city getting by on small budgets, and you’ll likely find a neighborhood where people are making it happen by paying less in rent. The classic example is looking a bit further out.^{[1]XResearch source}
- For instance, simply by moving across the Hudson from New York City will save your hundreds of dollars per month, while only minimally prolonging your commute into the city.
- In addition to looking for spots online, spend time in the neighborhoods you might like to live. Not only will this help you find the ideal area, you may even wind up spotting a “for rent” sign in person.
2
Find roommates. If you’re working with a small budget, you’ll be living with roommates in one capacity or another. In fact, the more the merrier, since all shared expenses can be split multiple ways. Aside from the rent, you’ll be paying less for internet, water, electricity, etc.^{[2]XResearch source}
- The best place to start your search is online. Websites like Craigslist are used all over, and can help you find a room in a house or multi-room apartment, or fellow housing-hunters you can rent a place with. Many cities also have housing websites specific to their area.
The less time and money you need to spend commuting, the happier you'll be. Even if your job is in an area of town you don't want to live in, living in a nearby neighborhood or close to a public transit option that can get you there will save you in both the financial and day-to-day sanity departments.^{[3]XExpert SourceTrent Larsen, CFP®
Certified Financial PlannerExpert Interview. 22 July 2020.}
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Method 2

Method 2 of 3:

Adjusting Your Lifestyle

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Use public transportation. Reducing your reliance on a personal vehicle will not only save you a significant amount of money, it may also make your commute a bit easier. In fact, living in a big city often makes it possible to live without a vehicle entirely. Almost every major city has a reliable, inexpensive method of public transportation, whether this is a bus system, subway, or light rail system.^{[4]XResearch source}
- The cost of owning and using a personal vehicle in a big city are higher than you might expect. For instance: parking, tolls, tickets, and gas are all important to think about.
2
Get a bicycle. Not only will you be happier and healthier if you ride your bike everyday, it’s often the quickest way to travel, unless you need to go all the way to the other side of town. If you need to get a bike, look for a local bike co-op to start your search. They can point out the best places to get bikes locally, and otherwise get you back in the saddle.
- Craigslist is also a great source for inexpensive, used bikes of all sorts.
- Many big cities have weekly or monthly social rides. Sometimes these are incorporate themes and stops along the way
3
Set a budget for yourself. Sure, framing it this way makes it sound like an assignment from business class. However you want to think of it, it’s important to plan according to your income, financial responsibilities, and the cost-of-living in your area.^{[5]XResearch source}
- Start by compiling a list of your expenses. Be sure to include regular monthly expenses, as well as more frequent smaller purchases, for items like groceries or social activities. Carry a notepad around and record each purchase to help keep track of what you're spending.^{[6]XExpert SourceTrent Larsen, CFP®
  Certified Financial PlannerExpert Interview. 22 July 2020.}
- Record your income closely too, especially if you don't have a regular income.
- With this information in front of you, you'll be able to see areas where you can potentially reduce spending, or realize you need to earn more income.
4
Live more frugally.^{[7]XExpert SourceTrent Larsen, CFP®
Certified Financial PlannerExpert Interview. 22 July 2020.} Getting by on a budget takes a good amount of discipline. Fortunately, if you’re able to control your spending - despite all the bright lights and convincing advertisements in a big city - you’ll also be able to reward yourself from time to time.^{[8]XResearch source}
- For instance, tell yourself, “Alright, Johnny, go two weeks without ordering pizza and you can take yourself to that new bar specializing in hop-flavored hot dogs over in Echo Park.”
5
Consider another source of income. Even with disciplined spending and careful budgeting, your income might not quite keep up. Fortunately, big cities offer plenty of part-time employment opportunities. Service industry jobs can be especially lucrative, and you can likely find a spot to work one or two nights a week to help pad your pockets with a bit of spending money.^{[9]XResearch source}
- Other opportunities include walking dogs or driving for a ride-sharing or food-delivery company. Many of these operate exclusively through apps you can operate from your phone.
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Method 3

Method 3 of 3:

Enjoying Free and Low-Cost Opportunities

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Follow local event organizations. Major cities often have multiple media sources that can help you keep up with all the free opportunities the city offers. While the free monthly music periodical will include lists of certain types of events, social media sources are even better, providing timely info on free events and activities throughout the city.
- Search something like “free events in Chicago” online and check out the results. There will likely be Facebook pages or Instagram accounts dedicated to notifying their followers what, when, and where you can catch free local events.
- For example, the organization Do512 is a multi-platform media source that keeps followers up-to-date on all sorts of events in Austin, Texas. Notably, the “DoStuff” network has expanded around the U.S. - check to see if there is website dedicated to your area by switching the "512" to your area code in an online search.^{[10]XResearch source}
2
Attend free exhibits and activities. In addition to free shows and other events, stay on the lookout for regular free opportunities as well. For instance, certain art galleries might host free monthly shows, or your local brewery may have free yoga once or twice a week.
- Particularly good examples include the museums in your city. Many large museums - and even some planetariums, zoos, etc. - invite local residents to visit for free once a month, or even once a week. Check the websites for the museums in your area.
- Whenever you attend or happen upon a free event you enjoy, as organizers if similar events occur regularly. Even if they happen elsewhere, these are the folks that might be able to point your towards similar opportunities.
3
Check Craigslist before your buy anything. While most tangible items may cost more (and be harder to find) in the city, the high population also means there are plenty of people to borrow from. In particular, many regular household items you may need are likely available online.^{[11]XResearch source}
- Websites like Craigslist or local equivalents often contain used furniture and other home goods at a very low cost - or even free.
- The quality and quantity of items on these websites may surprise you. It can’t hurt to look.
4
Cook more meals at home. One of the pitfalls many people fall into in urban life is lots of take out, delivery, and meals out on the town.^{[12]XExpert SourceTrent Larsen, CFP®
Certified Financial PlannerExpert Interview. 22 July 2020.} Not only can this out a hit on your health, the cost can add up quickly. To save money, plan meals ahead of time, shop accordingly, and make large batches of food that will can provide multiple meals.^{[13]XResearch source}
- Ideally, you can even go in on groceries with your roommates. A big batch of rice or noodles with veggies and chicken or tofu, for instance, can provide several people with multiple servings for a surprisingly low cost.
- Get in the habit of shopping at market in culturally distinct areas of town to add intrigue and fun to your meals.
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