How can people possibly afford to live in one of the most expensive cities on the planet? It\u2019s a question New Yorkers hear a lot, often delivered with a mix of awe, pity and confusion.<\/p>\n
We surveyed hundreds of New Yorkers about how they spend, splurge and save. We found that many people \u2014 rich, poor or somewhere in between \u2014 live life as a series of small calculations that add up to one big question: What makes living in New York worth it?<\/a><\/p>\n Ellen Hagan grew up in a small town in Kentucky, and moved to New York City as quickly as she could after she graduated from college. She arrived a few weeks before Sept. 11, and tried to get her bearings in a city turned upside down.<\/p>\n She found a group of fellow young artists and writers who wanted to take advantage of everything they could in the city, on very limited budgets. They went to poetry readings and dance parties, and rented tiny apartments in the East Village.<\/p>\n All the while, Ms. Hagan was diligent about saving money, even when she had very little of it.<\/p>\n \u201cI didn\u2019t know what I was saving for, but I knew I wasn\u2019t going to have a job that would give me a pension,\u201d she said. \u201cI wanted to make enough money to live the New York existence I was dreaming of.\u201d<\/p>\n Twenty-five years later, Ms. Hagan and her husband, David Flores, whom she started dating in her early years in New York, have much more money than they used to. Still, they feel more anxious about money than they hoped they would at this point in their lives.<\/p>\n The couple both work at DreamYard, a Bronx arts nonprofit. Last year, they made $178,135<\/strong> there collectively, with Ms. Hagan, 47, directing the poetry and theater programs, and Mr. Flores, also 47, serving as the head of visual art and design.<\/p>\n They typically bring in another $40,000 to $60,000<\/strong> a year through their freelance work. Mr. Flores is an adjunct professor, a photographer and a filmmaker, and Ms. Hagan teaches at a graduate writing program and writes books and poetry. They try to set aside about 15 percent of their income each year to grow their savings.<\/p>\n The couple live in Washington Heights in Upper Manhattan with their two daughters, who are 12 and 15.<\/p>\n Homeownership Doesn\u2019t Solve Everything<\/p>\n As a young couple, Ms. Hagan and Mr. Flores lived in a 400-square-foot East Village rental. When their rent started to tick up, Ms. Hagan began looking for a place to buy, seeing homeownership as a buoy that would all but guarantee a secure financial life in New York.<\/p>\n Sixteen years ago, the couple found a perfect apartment in Washington Heights and scrambled to cobble together a down payment. They pooled their savings to put a 15 percent down payment on the $335,000 home. Once they closed, they were left with only a few hundred dollars in savings, but were thrilled and relieved.<\/p>\n \u201cI had this sense that when you buy, you\u2019re set in New York City,\u201d Ms. Hagan said.<\/p>\n The reality, she has found, is more complicated.<\/p>\n The couple\u2019s mortgage payment is $1,300<\/strong> a month, and their maintenance fees keep rising, partially as a result of a new local law that requires increased inspections and repairs for buildings. Local Law 11<\/a> boosted their maintenance by $462 a month, at least temporarily, to about $1,900<\/strong> total. And when the building\u2019s management installed a new security system, each unit had to chip in $95 a month for three months.<\/p>\n Ms. Hagan loves the apartment, but she worries that they may eventually be priced out of their neighborhood.<\/p>\n \u201cThis building isn\u2019t going to be for us at some point,\u201d she said. \u201cThis feels like, uh oh, they\u2019re imagining people who have much higher incomes than we do.\u201d<\/p>\n Keeping the Kids Busy<\/p>\n Ms. Hagan and Mr. Flores, who each maintain packed calendars, have encouraged their daughters to adopt the same approach to city living.<\/p>\n \u201cI\u2019m definitely a proponent of, let\u2019s fill your schedule and see what you love,\u201d Ms. Hagan said.<\/p>\n The girls\u2019 public school offers free debate and band classes before and after school, and they\u2019ll appear this spring in the school\u2019s productions of \u201cAnnie\u201d and \u201cThe Addams Family.\u201d<\/p>\n