Software program Engineer Devonte Duncan Discusses His Cost of Living in NYC

This as-told-to essay relies on a dialog for our Cost of Living video collection with Devonte Duncan, 27, a software program engineer residing in Brooklyn, New York City. It has been edited for size and readability.

When I began making six figures, I bear in mind my pals and I might exit to eat, and the very first thing I might do was say, “guys, I got it.” I might put my card down and pay for like 10 folks.

That cannot be an all-the-time factor anymore. Dropping $300 on a invoice each couple of weeks — it begins so as to add up.

I work as a software program engineer, with an annual base wage of $159,000, and I reside in Brooklyn, New York City, the place I used to be born and raised.

Brooklyn appears like house to me. It has been a bit disheartening to see the price of residing rise through the years. My household’s first condo was rented for $900. Today, my condo is as much as $3,450.

That’s for my two-bedroom, two-bathroom condo with included parking that I share with my fiancée. Since I make extra as a software program engineer than she does as a faculty instructor, she contributes a flat $1,000, and I cowl the remaining hire and round $500 a month of utility payments.

Courtesy of Devonte Duncan

My month-to-month wage is $13,250, and my month-to-month take-home after tax and different contributions is $7,752. My solely facet revenue is from my YouTube channel, Dose of Devy, the place I submit day-in-the-life movies. At its peak, I used to be incomes as much as $400 a month. Now that I have never been posting as usually, I earn round $100 a month. The repairs is fairly low-cost.

My relationship with cash is a bit strained. I’ve needed to be taught the abilities for coping with it alone. I did not perceive how credit score scores labored, how loans labored, or what it could even appear like to purchase a house, as a result of no person in my household really owns one.

How I went from dropping out of faculty to creating six figures

I used to be a physics main at City College for 3 years earlier than I noticed my expertise there was turning into unsustainable. I took out a mortgage for about $2,000, as a result of I used to be already working to pay for different bills. The state of affairs took a toll on my GPA, and I misplaced my benefit scholarship.

That was after I realized it was time to drop out and discover one thing else, main me to the Marcy Lab School, a year-long software program engineering fellowship. I did not inform my dad and mom as a result of the very last thing you wish to inform a bunch of Caribbean immigrants — who got here right here so their children can have a greater life — is that you just dropped out of faculty.

Eventually, they discovered, and I graduated from the Marcy Lab School. My first job out of the fellowship, I used to be making virtually six figures.

Even then, my mother was nonetheless like: “Oh, but you still need a degree. They’ll probably pay you more.” Yet, I haven’t got any plans to return to varsity. My plans are simply to determine how to earn more money.

My bills, from transportation to groceries and hobbies

I personal a 2019 Subaru Outback that I’m presently financing as a result of I traded in my previous 2021 Tesla Model 3 to Carvana at a loss. My month-to-month automotive fee is $450, insurance coverage is $208, and I spend round $90 on fuel. I additionally spend round $50 a month on the MTA after I go into town, since I do not wish to pay congestion pricing or road parking.

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Typically, I’m spending $600 on meals, that is about $400 for grocery purchasing and $200 for consuming out. When I used to be looking for myself, consuming out value virtually as a lot as groceries as a result of meals had gotten so costly. Now that I’m in a relationship, cooking at house is a bit cheaper as a result of the meals we make final us a number of days.

I’ve a brief however enjoyable record of hobbies. The first, and most costly, is constructing my ardour mission, OpenBorough.NYC, a civic dashboard that retains New Yorkers knowledgeable about native politics. The complete I spend can go as much as $300 a month. I additionally spent as much as $300 on video video games during the last three years.

I do not sometimes have a tough funds relating to journey. Earlier this yr, I spent $3,000 on a two-week journey to Japan. I additionally went to a Bad Bunny live performance in Brazil. That did value a reasonably penny, but it surely was value it.

I’ve a Planet Fitness membership for about $40 a month, however I do not really go as a result of the constructing I reside in now has a gymnasium. One day, I’ll get round to canceling that membership.

Courtesy of Devonte Duncan

Putting friction between me and my cash

Back after I was at my peak spending — paying for everyone’s dinner, happening loopy journeys, and shopping for random issues like an electrical skateboard — I noticed I had racked up a whole lot of debt. I stored preventing with way of life creep.

I made a decision to take out a debt consolidation mortgage for about $30,000. That runs me about $947 a month. If I had stored paying the bank cards, I might have paid practically 25% curiosity on every. The consolidation mortgage is about 17%, so I’m paying a lot much less curiosity total. In two years, will probably be utterly paid off.

The lesson I took away from racking up debt was that simply since you earn more money doesn’t suggest it’s important to spend more cash.

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Since I’m not tremendous financially disciplined, I developed a system that does the work for me.

With each paycheck, I put aside 10% in my financial savings account, which involves about $700 a month. In my thoughts, the financial savings account doesn’t exist. I do higher after I put friction between me and my cash. I then have one other checking account I take advantage of to pay my payments and switch my month-to-month funds for issues like meals right into a separate account. From my 401(okay), I get a 4% employer match, and I max it out at additionally 10% contribution. Annually, I’m saving about $15,900.

I presently have no financial savings targets exterior of saving 10% of my wage, as a result of I noticed you possibly can’t save your approach out of poverty. The value of issues goes up approach sooner than my wages are. And so, as soon as I’m debt-free, I’m going to proceed to avoid wasting, however I’m going to take a position a whole lot of my cash in myself and my concepts, in hopes that sometime they flip into one thing that may assist me reside my goals.

If I needed to determine whether or not residing in New York is value the associated fee, I believe it relies upon virtually solely on who you might be and what you are right here for. Everyone who lives right here and grew up right here is sort of simply preventing to remain house.

Now I am going out to eat loads much less, and I hang around with much less pals as a result of I do know I’ve already set the pattern of I’m choosing up the tab — and I do not wish to try this anymore as a result of it is tremendous costly.