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by verteu 800 days ago
Some concrete numbers for the curious:

I'd estimate that a single individual with zero skills in NYC could get:

1) A receptionist job for $46k/yr (includes health insurance) [1]

2) A shared $2k/mo 2BR Jersey City apartment [2]

They'd have a take-home pay of $2960 - $1000/mo (rent) - $1000/mo in other expenses (fairly high estimate IMO).

Annual savings (with a traditional IRA) would be about $13k/yr.

It's not much, but the savings rate is almost 30% of gross income, and retirement calculators say you'll retire at 65 a multimillionaire. Surprisingly, a daily Starbucks or avocado toast (or forgetting the tax-deductible IRA contribution) really does eat into the savings numbers. And forget about having kids until you get a career upgrade.

The major risk is an increase in rent without an increase in wages. Let's investigate:

From 2012-2024, rent in Queens (not sure about JC) rose 45% ('only' 3.14% APY) [3]. Over the same period, national wages grew 47% (3.3% APY) [4]. That's good, since our individual earns 3x more wages than they pay rent. Wage growth was even higher among nonmanagers, so I don't think the growth was captured by the 1%. [5]

Overall, it looks OK to me, though the margins are thin, and you need to share an apartment. Hard to make it work for a family. I'd be curious to see some others run the numbers.

[1] https://www.indeed.com/jobs?q=receptionist+-hour+-experience...

[2] https://streeteasy.com/building/3657-kennedy-boulevard-jerse...

[3] StreetEasy Rent Index: https://streeteasy.com/blog/data-dashboard , chose Queens as it was most comparable in price to JC

[4] https://fred.stlouisfed.org/series/CEU0500000003

[5] https://fred.stlouisfed.org/series/AHETPI