Cost of living in NYC is pretty insane. Housing is consistently high. Food prices are nuts ... think > $7 for a box of cereal. For taxes, you've got Federal tax, state tax, and city tax, plus some exciting new taxes like MTA taxes for the mismanaged transit authority you're already paying your fare to use. Want to own a car? Either park on the street for free where you'll need to move your car no fewer than three times a week due to street-cleaning, or you can get a parking garage for anywhere from $300/month to $550/month depending on the type of car you're trying to park. The list goes on and on.
It's an expensive place to live. The upside is that anytime you take a vacation elsewhere it feels like you're stealing because everything is so comparatively inexpensive.
$7 cereal? $550/month parking? Yes, if you're referring to the most chic organic cereal you can find at Whole Foods and you're parking a Bentley.
Alternatively, you can shop at C-Town or Costco and find any number of parking spots for $250/month. Zipcar is prevalent everywhere as well if you don't want the overhead.
Don't get me wrong, NYC is expensive, but you don't have to make it out to be more than it really is. If you don't make the money to live in a certain neighborhood, think about moving.
absolutely, you are so right. NY'ers are so spoiled and are used to overspending. "I like to take my girlfriend out to eat.. taxi here and there.." Please.. learn how to budget and spend wisely. Eat at home. Take the subway.
This strikes me as similar to the common explanation of why Whole Foods "appears" so expensive when apples-apples comparisons can show prices there to be similar to those of Safeway; yes, the apples cost the same, but Whole Foods gives way more prominence to the super-expensive rare varietal organic local apples that cost 3x as much.
Net result: whatever the absolute price comparisons say, it takes more mental effort to shop cost effectively at Whole Foods.
Manhattan is very expensive, but the parking example is a bad one. Manhattan is a different point in the design space of cities than say Houston. You don't have a car on Manhattan, because the city is configured so you don't need one. There are lots of people who make $1m/year in Manhattan that take the subway, bus, or commuter rail to work (or walk!).
Food is also, on the whole, cheaper than in many large cities. You pay somewhat more for groceries, but can often get away paying a lot less for eating lunch/dinner out, because of the prevalence of cheap ethnic food options.
Housing of course blows all of those advantages away in terms of its impact on your budget.
You're talking about Manhattan. NYC is a big place. A lot of people live in outer boroughs (and I don't mean Downtown Brooklyn), where it's a yes, one hour commute to work, but you can rent a house with a driveway, or find parking with absolutely no problem (street cleaning once a week). And if you live in Manhattan, you don't need a car anyway.
If you work in finance, then not living in Manhattan means you're not "serious" and will be passed over for promotions, etc.
Basically, high rollers are expected to live a high-roller lifestyle. If you display signs of frugality it means you're still thinking like a poor person.
Not that I disagree, but there's also the practical angle: if you spend 2 hours commuting every day, that's cutting into the hours you can show that you devote to work.
That's not true at all. I know plenty of people working in upper echelons of finance companies that live in outer boroughs, New Jersey, Long Island, Westchester, etc. I would actually say most are.
It's an expensive place to live. The upside is that anytime you take a vacation elsewhere it feels like you're stealing because everything is so comparatively inexpensive.