Brooklyn isn’t the most affordable area to live in. A single person’s monthly living cost is $1,529, and that’s without rent. In popular neighborhoods like Williamsburg, a one-bedroom apartment’s average monthly rental price is $4,384. Transportation costs around $132 monthly with a MetroCard.
Despite the high cost of living, many find Brooklyn’s unique character and cultural offerings worth the financial investment. Suppose you’re uncertain whether you can afford to live in this vibrant city due to the cost. In that case, you should sort out your finances. By achieving financial independence, you can live the lifestyle you desire.
Here are five strategies to get one step closer to that goal.
1. Stick to a Budget
You’d be surprised to know that many people don’t have budgeting skills.
One way to develop your skills is to use a spreadsheet to track all the money coming in and out. This will help you determine if you have any unnecessary expenses and where you can cut back.
Decide how much you want to spend each month, and stick to it. Ensure you set money aside for savings when you start budgeting.
2. Pay Off Debts
Whether you quickly swiped your credit card to buy a bagel from Bagel Hole or had to take out a loan in an emergency, you must have a plan to pay off any debts.
Once you’ve set up your budget, you’ll see where you have extra cash that you can put toward debt repayments.
3. Start an Emergency Fund
Financial emergencies are an inevitable part of life. Perhaps your dog needs veterinary care, or your laptop broke. Having a fund set aside for these unexpected expenses is crucial.
Once you’ve repaid most of your debts, you can put more money into the emergency fund each month.
4. Start Investing
If you’re new to investing, reaching out to a financial advisor is a good idea.
The first thing to do is consider a retirement plan. If you have a 401(k) at work, start making contributions. This way, you know you’ll have a measure of financial stability in the future.
However, investing goes beyond just setting up a retirement fund.
You can set up an account with online options trading brokers (recommended for more experienced investors) or other investment platforms. Here, you’ll find resources to help you navigate financial markets.
5. Be Frugal
If you want to achieve financial freedom, you need to live below your means. That might be hard, given the many fun things to do in Brooklyn. However, if you spend less in your day-to-day life, you’ll be much more financially secure in the future.
Wrapping Up
These five habits may not make you a millionaire, but they will help you save money and achieve financial freedom.
It can be hard to be frugal in Brooklyn, with housing, groceries, and basic necessities getting more expensive than the state average. But, with some savvy know-how and a strict budget, you’ll easily be able to save for your future.
