This story is part of CNBC Make It’s Millennial Money series, which examines how people earn, spend and save their money.
Living in New York City’s Manhattan borough on $53,000 a year isn’t easy.
For Eileen Tyrrell, a bookstore manager who lives with two roommates in the pricey Chelsea neighborhood, making it work means saying no in a city seemingly built for spending. In Manhattan, a single adult needs about $68,000 a year just to cover basic necessities, before taxes, according to the MIT Living Wage Calculator.
“People ask me all the time how it’s possible to live here on that income,” Tyrrell tells CNBC Make It. “I’m not going to lie. I’m not going to sugarcoat it. It’s hard, but it’s so worth it.”
Eileen Tyrrell on the High Line, an elevated park in New York City.
CNBC Make It
For Tyrrell, 26, making the math work comes down to three things: having almost no debt, paying relatively low rent for Manhattan and keeping her everyday spending low.
“When you think of New York, you think of all of these amazing experiences, and you think of going to a Broadway show, and then going to a club after that, and then doing brunch at an amazing restaurant the next day,” she says. “But when you live here, you can’t live like that.”
Still, Tyrrell says she feels fulfilled by the life she’s built in New York, which includes work she finds meaningful and time spent volunteering in her community.
A closer look at how she keeps costs low
Here’s a look at Tyrrell’s expenses for September 2025, which were a bit higher than usual because she was catching up on some bills.
Christina Locopo | CNBC Make It
Tyrrell usually spends about $3,000 a month on expenses, including rent, utilities, insurance and transportation, with housing making up the largest share of that total.
She pays $1,566 a month for her share of a three-bedroom apartment in Manhattan’s Chelsea neighborhood, which rents for a total of $4,698 per month. While that may sound steep compared with much of the U.S., similar units in her neighborhood list for around $7,000 a month.
In addition to living with roommates, Tyrrell lives in a rent-stabilized apartment, which means annual rent increases are limited under city rules. Tyrrell moved into the unit in 2022 after a friend invited her to join the lease — something she says she felt lucky to have.
“Having a rent-stabilized apartment means we’re never going to have the sticker shock of a huge rent increase,” she says.
Outside of housing, Tyrrell relies more on responsible spending habits than a formal budget. She aims to keep grocery costs under $300 a month and shops mostly at Trader Joe’s. She dines out rarely and sticks to inexpensive options when she does, like breakfast sandwiches from her neighborhood deli or a $6 Dunkin’ combo.
Her discretionary spending is typically under $400 a month, with about $100 of that going toward donations. To help keep costs low, she takes advantage of couponing and rewards programs at local retailers.
“I just don’t spend a lot of money,” she says. “All of my furniture and most of my possessions are things that I either brought with me from college or are hand-me-downs that friends gave me.”
‘I love my life so much’
Tyrell’s frugality also extends to how she spends her free time. She finds enjoyment in low-cost routines, like walking around New York, meeting friends for coffee instead of drinks and or watching TV at home.
“I had to train myself to find hobbies and interests that weren’t related to spending money,” she says. “And that really helps when you’re living on this type of budget.”
Eileen Tyrrell in the Chelsea neighborhood of New York City.
CNBC Make It
Tyrrell says the hardest part of living on a modest income in New York isn’t tracking expenses — it’s resisting the constant pull to participate in the city’s social life.
Learning to opt out of those experiences was an adjustment, especially when she first moved to New York in 2022, but one she’s grown more comfortable with over time.
“It’s OK that I’m living on this tight budget,” Tyrrell says. “Where I’m at right now is so rewarding and so meaningful. I have a job that I love, I have a life that I love and the financial stability is not quite there. But for now, it’s a tradeoff that I’m comfortable with and willing to make because I love my life so much.”
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