We Moved from NYC to Austin—Here’s What It Did to Our Finances
After years of living in New York City, my partner and I started wondering what life might look like somewhere more spacious, more affordable, and a little slower-paced. Before making any decisions, we modeled the move in ReachFi - accounting for taxes, housing, lifestyle changes, and even career adjustments. The results were eye-opening. What started as a “what-if” scenario turned into a real plan that reshaped our finances. Here’s what actually happened when we moved from NYC to Austin—and how ReachFi helped us get there.
1. Housing Costs: A Breath of Fresh Air
In Manhattan, we were renting a one-bedroom apartment for $4,200/month. In Austin, we bought a three-bedroom home in a quiet neighborhood for a $3,000 monthly mortgage. On the surface, that’s a savings of $1,200 per month, but the real benefit is in ownership and long-term equity.
Monthly Savings: $1,200
Annual Impact: $14,400 + equity growth
2. Taxes: From High to Manageable
New York's combined city and state income taxes took a big bite out of our paycheck—almost 10.9% on top of federal. In Texas, there’s no state income tax, which immediately put thousands back in our pockets. However, we traded that for higher property taxes (about 2.2% annually on our Austin home).
Net Tax Impact: +$8,000/year in favor
3. Transportation: Car Life = Cost Shift
We sold one of our two cars in NYC because we rarely used them. In Austin, having at least one vehicle is non-negotiable. We bought a used hybrid and now pay about $650/month for the loan, insurance, and gas.
New Cost: ~$7,800/year
But: No more subway or Uber bills ($300/month avg in NYC)
4. Lifestyle Spending: Tradeoffs
In NYC, we spent a lot on food, events, and convenience (hello, $20 salads). Austin offers a more laid-back lifestyle, but we find ourselves spending more on home improvement, weekend road trips, and dining out.
Change in Discretionary Spending: +$300/month
5. Career and Income: A Slight Hit
We both negotiated partial remote roles, but my partner took a slight pay cut to accommodate a more flexible schedule. Overall, our combined income dipped by around 8%, but the lower cost of living helped offset that.
Net Effect: Lower income, but higher savings rate
6. Financial Independence Timeline: Accelerated with the FIRE Calculator
One of the biggest surprises came when we plugged our numbers into ReachFi’s FIRE calculator. It didn’t just help us track our savings—it projected how much faster we could reach financial independence after the move. The results? We shaved nearly 4 years off our original timeline. Lower housing costs, no state income tax, and smarter lifestyle choices all added up. The FIRE calculator gave us confidence that our new path wasn’t just cheaper—it was smarter for the long haul.
Final Thoughts: Would We Do It Again?
By relocating to Austin, we didn’t just change our lifestyle—we put ourselves on a faster track to financial independence. It's now the city where we’re actively working toward our FIRE goals, with a clearer timeline and more control over our financial future.
Thinking about a big move? Try modeling your scenario with ReachFi to see how it could impact your future.