This as-told-to essay is based on conversations with Morgan S., a 37-year-old strategy senior manager in Houston. It has been edited for length and clarity.<\/p>\n
I’m from Houston<\/a>, and I love it. My monthly take-home pay from my corporate job is just under $10,000 after taxes. I feel very financially secure here and ahead of my age.<\/p>\n One thing that outsiders may not know is that Houston’s property tax<\/a> is among the highest in the country because we have no state income tax. A lot of people hate on Houston, but the city has so much to offer. <\/p>\n To afford the cost of living in Houston, I work to increase my income and live below my means. Regardless of how much money I bring in, I practice responsible spending.<\/p>\n I have multiple streams of income<\/p>\n I’ve worked in the energy industry for 15 years and currently work at a company with lucrative compensation benefits (e.g., a defined contribution plan and RSUs). I’m on a hybrid schedule, working in the office two to three days a week.<\/p>\n My commute is about 25 minutes each way. My healthcare comes with my job for $92 a month, and it’s pretty easy to set appointments.<\/p>\n For investments, I have a rental property<\/a> that pays me $2,900 a month and a private equity investment that pays me $1,250 a month. I’ve also started to earn some side income from social media<\/a>.<\/p>\n I started social media because there’s more to life than corporate work, and there’s so much to be made on these platforms. I currently have an agent pitching me for deals, and I believe in the value of building a monetizable personal brand.<\/p>\n I plan to sell the $465,000 3-bedroom townhouse I purchased in 2025<\/p>\n I live in the Rice Military neighborhood, which is five miles from downtown<\/a>. It’s extremely walkable, there are multiple green spaces, and my family lives nearby. <\/p>\n My house payment is $3,186 a month, plus about $300 in utilities, and there’s no HOA. It’s my second home, and I turned my first into a rental.<\/p>\n Buying real estate is a huge commitment, and this one turned into a nightmare with tens of thousands of dollars in repairs. If I had just taken all the money I spent on this house and invested it in the market, I could’ve been much closer to my coast FIRE<\/a> goal of $1.3 million. I’ll probably sell this house, invest the proceeds, and move back into my more modest rental later this year.<\/p>\n Here’s how I budget to live below my means<\/p>\n My net worth is $1.1 million in savings and investments. To get around, I drive a 2019 Mazda CX5 that I bought used. She gets me from point A to point B, and I plan to drive her until I can no longer do so. I have zero interest in upgrading.<\/p>\n I budget about $400 per month for groceries and rarely go out or order delivery. I don’t drink coffee every day, though on Saturday, I might walk to treat myself to a coffee.<\/p>\n My partner and I are currently debating whether we want to spend $50,000 for a wedding or save that for the future.<\/p>\n To save money, I believe in living below my means: a simple wardrobe<\/a> made of natural fibers that lasts longer than a single wear, buying secondhand vintage, accepting hand-me-down furniture, and eating most meals at home. I also go without expensive hair and eyelash extensions.<\/p>\n I prefer the city over the suburbs<\/p>\n I’ve never lived in the suburbs, and don’t think I’d want to.<\/p>\n One trade-off to living in the city is the outdoors: my partner loves hiking and other outdoor activities, and we can’t really do that here. Also, the suburbs offer a better dollar-per-square-foot<\/a>, but I like being able to walk everywhere, so I think that’s a better trade-off.<\/p>\n It’s possible that if I have kids, we might move to the suburbs<\/a> for better schools. I’m still deciding on whether it’s worth it to have kids, which I think a lot of millennials are contemplating.<\/p>\n Living in Houston is worth it to me<\/p>\n In Houston, we have lots of high-paying jobs, access to great amenities, and sports teams. We’re even hosting the World Cup this summer. There’s a huge Vietnamese community with delicious food; it may be one of the most diverse cities in the country.<\/p>\n I’ve spent a good amount on dining out this past year and my gym membership. Another splurge is golf.<\/p>\n Still, I plan to invest over $100,000 this year and save or invest 53% of my gross income. It’s definitely worth it to me to live in Houston, and I have no plans on moving.<\/p>\n Do you want to share your cost of living with Business Insider? Email editor Tess Martinelli at tmartinelli@businessinsider.com<\/a>.<\/p>\n