Affording rent in New York — or any major city, for that matter — isn’t easy. But plenty of TV shows over the years have made it seem like it is. A recent study is going viral for calculating that “Friends”’ Monica Geller — who had one of the most well-known apartments in small-screen history — would need to make $555,000 a year today to live in that apartment. No, none of those 5s are typos. Even adjusted downward to go back to “Friends” days, that is probably way more than she made as a cook.
In NYC (and many other cities in the US), the 40x rent rule is the widely accepted standard for how much salary you need to show in order to qualify for an apartment. For instance, if the rent is $2,000 a month, you need to make $80,000 a year to qualify. Monica’s colossal loft today would be — sit down — around $13,875 a month. Multiply that by 40 and you’ll get that $555K she’d need. (And don’t expect Joey to lend her any of it.)
If you’re searching for an apartment, or looking to move, you may understandably be stressed about facing this income requirement. So we’ve put together 7 tips on how you can boost your income — a number of them simply by maximizing the money you already have. See below.
And remember, don’t get down on yourself at any point in the process…there’s a reason why TV Land is an escape from reality, so be proud of yourself for even scoring a small studio in a big city!
Save and Budget
Before crafting your plan to save more, start by assessing your current financial situation. Create a budget to track your expenses and identify areas where you can cut back. Allocate a portion of your income to savings each month. Even small amounts can add up over time, providing a financial cushion for your future.
MoneyLion offers a convenient marketplace to compare high-yield savings accounts from our trusted partners that could help grow your money. See offers below:
Get Your Side Hustle On
Look for chances to diversify your sources of income. This could involve taking on a side hustle, freelancing, or monetizing a hobby or skill. By earning from multiple streams, you can increase your overall earning potential, save money, and reduce reliance on a single source.
Invest Like a Boss
When it comes to making money, learning how to invest like the pros is just as important as tending to your career. Educate yourself about different investment options, such as stocks, bonds, mutual funds, real estate, and cryptocurrencies. Diversifying your investment portfolio can help spread risk and potentially enhance returns over the long term. Consider your risk tolerance, investment goals, and time horizon when choosing investments.
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Maximize Your Employer Benefits
Maximize the benefits offered by your employer, such as retirement plans, health savings accounts, or employee stock purchase programs. Take advantage of matching contributions to retirement accounts, as this is essentially free money that can grow over time through compound interest.
Polish Your Skills (and Keep Learning)
Invest in yourself by acquiring new skills and knowledge that can enhance your earning potential. Consider taking courses, attending workshops, or pursuing certifications relevant to your field or desired career path. The more valuable your skills are in the marketplace, the more opportunities you’ll have to command higher wages or attract clients willing to pay for your expertise.
Network, Network, Network
Cultivate professional relationships within your industry or community. Networking can open doors to new job opportunities, freelance gigs, or business partnerships. Stay connected with colleagues, mentors, and peers who can provide advice, referrals, or insights that may lead to financial opportunities. Even one or two email check-ins a day, applied consistently, can pay off over time, as you’ll stay in the top of people’s minds.
Pay Down That Debt
You can’t feel financially free if you’re drowning in debt. Pay down your high-interest debt as quickly as possible to free up more of your income for saving and investing. Prioritize debts with the highest interest rates first while making minimum payments on other debts. Avoid taking on new debt unless it’s necessary or serves a strategic purpose, like financing a business venture ,continuing your education, or to consolidate your debt
MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms, and fees from different lenders and choose the best offer for you – see offers below:
Loan Offers (5k start) widget code creator: Widget Code Creator
Looking for more strategies on how to save and earn more — and invest smarter? Download the MoneyLion app today.
