Topic Guide
What Is High cost of living?
High cost of living is a subject covered in depth across 1 podcast episode in our database. Below you'll find key concepts, expert insights, and the top episodes to listen to — all distilled from hours of conversation by leading experts.
Key Concepts in High cost of living
Financial independence (fi) - lean work optional
This is Paula Pant's personal definition of financial independence. It means having enough assets to cover essential living expenses, allowing one to be 'work optional' and pursue passions without financial constraint, even if it entails a 'lean' or more modest lifestyle rather than extreme luxury. The episode demonstrates how this can be achieved even in a high-cost city.
House hacking
A real estate strategy where one buys a multi-unit property, lives in one unit, and rents out the others to cover or significantly reduce their mortgage and housing costs. Paula Pant used this strategy by buying a triplex, which was a pivotal decision in her path to financial independence.
Ugly produce services
Online grocery delivery services (like Imperfect Foods, now Misfit Market, and Amazon Fresh) that sell 'ugly' or misshapen produce, overstock items, or products nearing their best-by date at a discount. Paula uses these services to keep her grocery costs low in New York City.
Nyc health insurance age-based discrimination ban
New York State, along with Vermont, prohibits health insurance carriers from charging different premiums based on age for ACA plans. This policy means younger individuals (e.g., in their 20s-40s) pay the same rate as older individuals (e.g., up to 64), making individual health insurance appear 'preposterously expensive' for younger residents, though potentially cheaper for older ones compared to other states.
What Experts Say About High cost of living
- 1.Paula Pant achieved financial independence by house hacking a triplex after quitting her $31,000 job with just $25,000 saved, eventually moving to NYC and never earning more than $32,000 annually in her career.
- 2.Her cost of living in New York City is surprisingly similar to what it was in Las Vegas, despite higher rent, due to lifestyle adjustments like not owning a car and utilizing extensive building amenities for recreation and work.
- 3.Living in a luxury building with 80,000 square feet of amenities, including pools, a gym, and co-working spaces, significantly reduced her external spending and fostered a local community within her building.
- 4.Eliminating a car in NYC improved her quality of life and drastically cut transportation costs, as walking and public transit (buses every 10 minutes, subway access) are efficient alternatives capped at $34-36 per week.
- 5.Grocery costs in NYC can be managed by using online services like Amazon Fresh and Imperfect Foods, keeping weekly spending around $80-100.
- 6.New York State and City impose higher income taxes, and individual health insurance is notably expensive due to state regulations preventing age-based premium discrimination.