Thursday, April 10, 2008

Expenses in New York


I was thinking about writing a little about the expenses you will face when moving to New York. I was pretty well prepared myself when it came to expenses but I still faced expenses I didn’t expect. I’m not only talking about accidentally leaving my IPod in the washer.

The first thing you should consider before moving to New York is to make a budget. Write down what you expect to earn or receive in student loans each period. Of course you also have to write down the amount you have in your bank account.

After this, it’s important that you estimate how much the tuition will cost each semester or quarter. You should also write down or even better, put it in Excel, how much your rent will be. Overall you should put down your fixed costs in your budget.

Now that you know your income and your expenses, you will see how much you are left with each month. I calculated for four years and I now know exactly how much I can spend each day. I also put down my expenses in Excel every day so that I can go back each month to evaluate how much of those expenses I have to make up for.

I’m not only writing down the numbers but also what I buy or spend my money on. This makes it possible for me to go back and see what expenses that was unnecessary.

I think it’s important that you have the possibility to spend a minimum of $5 every day. Some days you will spend less but the overall average will probably be higher for most people. If you buy groceries yourself and don’t eat out a lot you will save a lot of money.

I don’t think you will be able to eat at home all the time though. Some days you will have to stay in school a little longer and you will get hungry. Chicken over rice, falafel, and other meals you will find in Manhattan usually costs about $5. For breakfast you can buy a cheese bagel for $1.

You will also have to spend money on cloths, subway cards, bar visits, umbrellas, and other small things. When you know your budget it’s pretty easy to plan in what to buy. You will get an idea of how much you can spend and what things you should avoid buying.

The first quarter I was relatively careful. I didn’t really know if there would be an unexpected expense showing up or not. By then I didn’t put down my expenses and earnings in my computer either. It definitely got easier when I started putting down that information.

In general it’s important to create a budget and to be aware of that there will be unexpected expenses that will surprise you. Be careful not to go out shopping to much the first semester. It takes a while to get a feel of how much you will be able to spend.

Also, try to take the opportunity of using store discount cards, buying prepaid phone cards for domestic calls, and look up in what stores you will save the most money.

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