To live comfortably in New York City, people need to bring in at least $185,000 per year. But one 26-year-old Brooklyn bookstore manager shows it’s possible to live in the Big Apple on less than half the recommended annual income.
In a recent interview with CNBC, Eileen Tyrrell talked about how she’s surviving on just $53,000 per year (1). According to her, the three keys to success that keep her afloat include minimal debt, modest rent and next-to-none discretionary spending.
In a breakdown of her monthly budget of $3,477, the bulk goes to rent at $1,566, which she shares with two roommates in Chelsea. After that, she spends $531 on food, $527 on discretionary items, and $321 on utilities. The remaining $532 mostly goes to insurance, transportation and subscriptions, with about $90 for savings and another $50 for a $3,000 student loan.
One caveat: her parents pay her phone bill. Other than that, Tyrrell is maintaining her Manhattan lifestyle thanks primarily to careful budgeting and frugal living. But that doesn’t mean she is denying herself a few small indulgences. In fact, she makes it a point to buy a daily $4 coffee and an occasional bacon, egg and cheese at her local deli.
“I’m not going to lie. I’m not going to sugarcoat it: it’s hard,” she told CNBC. Even with all the sacrifices and stress, she says she’s happy with her lifestyle and that it’s all “worth it.”
In many ways, Tyrrell’s story is the exception, especially in New York City.
Data from United Van Lines suggests more New Yorkers are struggling to keep pace with the rising cost of living and are leaving the state (2). New York has one of the highest moving-out rates in the nation, second only to neighboring New Jersey.
Bank of America reports that about one-quarter of Americans are living paycheck to paycheck (3). Meanwhile, the number of people using buy now, pay later services for groceries jumped 14% between 2024 and 2025 (4).
Federal Reserve data shows credit card debt has hit $1.23 trillion, underscoring the financial strain many households face (5). Tyrrell’s mindset reflects a broader shift in the post-pandemic K-shaped economy, as more Americans consciously try to cut back.
McKinsey data from late 2025 showed a decline in splurge spending and discretionary purchases, with 75% of respondents saying they’re deliberately trading down (6).
Another survey of Americans earning under $75,000, conducted by Talker Research on behalf of EarnIn, highlighted a similar trend (7). Rather than waiting for their paycheck to arrive, 59% say they now pre-plan expenses. This has created a “pre-spending” phenomenon in which more than half of a paycheck is budgeted before it even hits the bank.
Even high earners are tightening their belts. Reports from both Dollar Tree and Walmart suggest people earning over $100,000 are visiting discount retailers more frequently.
While trimming budgets can free up cash flow, some wonder whether it’s enough to truly offset the rising cost of living. Could anyone realistically copy Tyrrell’s lifestyle and avoid being swallowed by a city as expensive as New York?
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There’s a lot to learn from Tyrrell’s story, but not everyone can copy-paste her strategy and live the dream of a Chelsea lifestyle.
One major factor behind her success is that she doesn’t have a big debt. Although Tyrrell uses credit cards, she says she pays them off and never carries a balance.
For someone already weighed down by debt, the first step may be reducing those obligations through a strategy like the Snowball Method, which prioritizes paying off smaller balances first to build momentum.
To stay on top of expenses, many people turn to money management apps. These tools can help visualize spending and give every dollar a purpose.
Still, budgeting and cost-cutting can only go so far. For many Americans, higher prices mean they eventually need another source of income.
Not all of Tyrrell’s $53,000 comes from her full-time job. About $8,000 comes from side gigs such as freelance writing and pet-sitting. She’s also working to generate additional income through her TikTok channel.
She’s far from alone. According fintech platform Self, 45% of Americans have a side hustle and 34% rely on that income to cover essentials (8). Even with careful spending and virtually no debt, many households still need extra income to stay financially stable.
One area where Tyrrell admits she struggles is savings. She currently has about $1,900. When asked about the risks of living with so little in savings, she told CNBC she’s aware of them but feels that, for now, “it’s worth it.”
While some may view that approach as financially irresponsible or naive, Tyrrell says she’s comfortable with her choices and believes things will improve over time.
There’s nothing wrong with that, especially considering her age and the fact that her parents have provided her with a safety net. Still, most financial experts recommend keeping three to six months of expenses in an emergency fund.
That cushion can help cover unexpected bills or job loss and can earn interest when stored in a high-yield savings account.
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CNBC (1); United Van Lines (2); Bank of America (3); Lending Tree (4); Federal Reserve (5); McKinsey (6); New York Post (7); Self (8).
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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