Earning a solid income gives you more options, but as your income grows, so do your taxes. A New Yorker received a job offer for $330,000, which looks great on the surface. However, the individual mentioned the city's high living costs and the additional 4% tax rate that the city charges.
The New Yorker posted on Reddit and wondered if it's better to stay out of the city or accept the high-paying job that comes with high living expenses.
"I can live in Hoboken or Jersey City for $750-$1,000 less [each month] and avoid city tax altogether," the Redditor mentioned. The New Yorker proceeded to ask at what income level do taxes and the cost of living stop mattering.
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Redditors shared their advice on how to navigate the situation.
Live In Manhattan For One Year
Many Redditors encouraged the original poster to live in Manhattan for at least one year. The original poster mentioned that he wanted to live in Manhattan since he was 10. You don't have to live in Manhattan forever, and some Redditors mentioned that they enjoyed living in the city during their 20s but wouldn't do it in their 30s and 40s.
Living in Manhattan for one year allows the Redditor to experience a style of living that he has wanted for a long time. If Manhattan proves to be too expensive or doesn't fit the Redditor's lifestyle, he can always move to Hoboken or Jersey City next year.
Some people said taking a similar chance like this was the best decision they ever made. You'll be around ambitious people who can help you advance faster in your career than if you stay in your neighborhood. The city also comes with plenty of amenities and conveniences that you won't find in a typical suburb.
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Do You Have To Be A Millionaire Right Now?
A high income at a young age suggests that the New Yorker can climb the corporate ladder even higher and boost their earnings in the long run. With a promising career trajectory and high earnings, many people questioned whether the Redditor has to become a millionaire right now or if he can afford to live in the city for a few years.
"He will be old and broken like us one day, and can hoard his money. [I] always wished I lived downtown when I was like 25 and could enjoy it," an older commenter stated.
The Redditor can still save plenty of cash. A $330,000 salary comes to $27,500 per month before taxes. While the city's high cost of living and taxes will take a big bite out of the $27,500, it's realistic for the Redditor to save and invest a few thousand dollars each month.
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Avoid Lifestyle Creep
The New Yorker will face higher costs in the city, but beyond the essentials, it's important to avoid lifestyle creep. If you don't make impulsive purchases, it becomes a lot easier to manage your bills while growing your investments.
The original poster is already thinking about putting money into his retirement account. He's also thinking about putting money into his mom's retirement account and wants to become a millionaire by 30. These types of goals are healthy and suggest that the Redditor will avoid lifestyle creep.
You can't buy everything, but you can buy anything. If the New Yorker keeps costs low beyond the essentials, he can save a lot of money with a high salary despite how expensive it is to live in the city.
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