Is This a Good Rent on My Salary?

Seeking Advice Forum
1

Hi all! I’m in my second year out of college and figuring out personal finances. Last year, I rented for $1,800 + $50 utilities on a $70k salary, which felt fine. I’m moving to NYC and found a spacious apartment in a great location for about $2,080 a month, utilities included. I’ll be commuting 5x a week, so I’m prioritizing an easy commute and a lively area.

Here’s my financial breakdown:

  • Salary: $72k (increase for NYC)
  • Bonus: $12k (guaranteed)
  • 401k contribution: $580/month
  • Savings goal: $900/month
  • Roth IRA: $100/month
  • Debt: $0
  • Relo bonus: $7k
  • Potential promotion in April

Wondering if I should keep this apartment or look for a cheaper option. What will I be left with after taxes? Is this feasible?

2

A good rule of thumb is to take your yearly salary and divide it by 36 to determine an acceptable rent. With a $72k salary, that gives you about $2k. Since $2,080 is close, it seems fine. Considering your guaranteed bonus, you’re looking at an $84k total, which gives you about $2,300. You’re within your means!