Let’s set the stage: Two accountants in their mid 20's, Alex and Jordan, both earn the same salary—$75,000 a year—and live in Austin, Texas, one of the most exciting (and expensive) cities in the U.S.
You’d think their financial lives would look pretty similar, right? Spoiler alert: they don’t. Their bank accounts, stress levels, and freedom to enjoy life couldn’t be more different. Why? It all comes down to how they spend their hard-earned cash. Let’s dive into their stories.
The Rent Reality
When it comes to renting, the cost of your living space can vary dramatically based on a variety of factors. For example, location is often the biggest determinant, with urban downtown hotspots typically demanding more than suburban neighborhoods. Other key considerations include the number of bedrooms, included amenities (e.g., gym, on-site parking, pool), and whether you're splitting the costs with a roommate or choosing to live solo.
Alex’s Choice: Alex rents a luxury downtown loft for $2,500/month. It comes with a rooftop pool, valet trash service (yes, that’s a thing), and stunning views of the skyline. But this high-end lifestyle eats up 40% of Alex’s monthly take-home pay.
Jordan’s Choice: Jordan opts for a modest one-bedroom apartment in East Austin for $1,200/month. It’s cozy and functional—no frills, but lots of extra cash left over. Jordan spends just 19% of his take-home pay on rent.
The Verdict: While Alex enjoys the swanky lifestyle, Jordan’s affordable rent means way more wiggle room for savings and fun, such as vacations and the ability to start planning for buying his first home.
Transportation Choices
Transportation is another key cost that can vary widely depending on lifestyle, priorities, and the choices people make to get around. Some prefer the comfort and prestige of a brand-new vehicle, while others opt for the practicality of a used car. Beyond the price of the car itself, factors like fuel efficiency, maintenance expenses, and insurance can significantly impact monthly budgets. With or without a car, transportation costs may also include the use of public transportation and/or rideshare services (i.e., Uber, Lyft).
Alex’s Choice: A shiny new car with a $600/month payment. Add in insurance and gas, and Alex is shelling out around $850/month on their ride. The car turns heads, but it’s burning a hole in Alex’s wallet.
Jordan’s Choice: Jordan rolls with a reliable used car that’s paid off. Insurance and maintenance cost about $200/month. It’s not flashy, but it gets the job done.
The Verdict:Â Alex might be cruising in style, but Jordan is cruising to financial freedom.
Food for Thought
Everyone has to eat, but how much we spend on food varies greatly. Some people prefer to grocery shop and prepare most meals at home, saving money while enjoying the creative process of cooking. Others lean toward the convenience of dining out, sometimes eating all three meals a day from restaurants, cafes, or takeout spots. Even something as seemingly small as grabbing a quick coffee and breakfast sandwich on your way to work five days a week can add up—costing you hundreds, if not thousands, of dollars over the course of a year.
Alex’s Choice: Alex loves dining out—$15 lunch bowls, after-work cocktails, and fancy weekend dinners that add up to around $800/month. Cooking at home? That’s what the microwave is for.
Jordan’s Choice: Jordan enjoys cooking at home, meal-prepping for the week, and indulging in the occasional dinner out. Monthly food costs? Around $300. Bonus: Jordan’s learning to make killer recipes.
The Verdict:Â Alex is paying for convenience, but Jordan is saving hundreds while staying creative in the kitchen.
The Big Picture At a Glance
Here’s how it breaks down monthly—just for the basic expenses. Keep in mind that there are a lot of costs beyond the must-haves, such as entertainment, fitness memberships, pets, clothing, travels and more.
Expense | Alex | Jordan |
Rent | $2,500 | $1,200 |
Transportation | $850 | $200 |
Food | $800 | $300 |
Total | $4,150 | $1,700 |
While Alex spends over $4,000/month on just the basics, Jordan’s living comfortably on less than $2,000/month. That’s a huge difference—over $25,000 more annually in Jordan’s pocket to save, invest, or splurge on things that matter.
Bottom Line: Lessons from Two Lifestyles
Alex’s lifestyle might look glamorous on Instagram, but it comes with financial stress and limited savings. Meanwhile, Jordan’s more intentional spending creates freedom, security, and long-term wealth-building opportunities.
Ultimately, it’s not just about how much money you make—it’s about how you spend it. Small choices, like the type of car you drive or how often you eat out, can make a massive impact on your financial well-being.