Overview of From $69K Debt to Financial Independence in NYC
This episode of the BiggerPockets Money podcast features Kim Hunter-Borst, who explains how she and her husband went from $69,000 in debt to financial independence while living in Manhattan. Their story challenges the idea that you must move to a low-cost-of-living area to reach FI: instead, they used a combination of high income, aggressive expense cuts, family communication, maxed retirement investing, and a rent-stabilized apartment to get ahead. Kim also shares how she now spends her time in retirement and why she helps other women build financial confidence through the FI community.
Key Takeaways
High income alone does not create financial freedom
- Kim and her husband earned about $334,000 per year combined, but they were still living paycheck to paycheck.
- Lifestyle inflation was the main problem: they spent freely because they assumed high income would always continue.
- Their wake-up call came when Kim realized she could be laid off while working in a recession-sensitive industry.
The biggest breakthrough was changing spending habits
They cut back by questioning nearly every recurring expense, including:
- eating out and brunch culture
- wasteful grocery spending
- cable, home phone, and extra phone plan costs
- expensive cell service
- unnecessary “wants disguised as needs”
A major example:
- They switched from an expensive AT&T family plan to Cricket Wireless and cut their phone bill dramatically.
Family alignment was a major part of the plan
- Kim and her husband had open conversations with their children about money, college, and debt.
- Their kids were asked to:
- focus on school
- work during summers
- use scholarships first
- treat student loans as the last resort
- They even set a challenge: if the kids could graduate with $24,000 or less in student loans, the parents would pay it off.
They got out of debt faster than planned
- Their original debt payoff timeline was 2 years.
- They cleared the debt in 18 months.
- Once the debt was gone, they redirected that money into retirement accounts and investing.
Why NYC Worked for Their FI Journey
Rent stabilization was a huge advantage
Kim says their Manhattan apartment was the “cheat code” that made NYC FI possible.
Details of their apartment:
- 2-bedroom, 1-bath
- rent-stabilized
- elevator building
- laundry in the basement
- hardwood floors and high ceilings
Their housing costs:
- rent: $1,720/month
- electricity: about $75–$125/month
- internet/streaming: about $60/month
She noted that comparable units nearby can rent for $3,500+, and some newer luxury buildings charge $7,000/month.
NYC can reduce costs in other areas too
Kim highlighted that New York can actually be cost-efficient in some categories:
- Subway/commuter benefits can keep transportation costs very low
- Museums are free for New York residents
- Theater and Broadway discounts are widely available through annual membership clubs
- Many residents share apartments or live with roommates, which is normal in the city
Rent stabilization basics
Kim explained that:
- rent-stabilized units are typically in buildings built before 1974 with 6+ units
- rent increases are regulated by the state
- if a tenant leaves, the unit generally cannot jump to full market rent overnight
Their Financial Picture Today
Savings rate and spending
- Before retirement, they lived on about half of their income.
- They also donated roughly 10% of income to charity.
- In retirement, their annual spending is about:
- $75,000/year in normal years
- $125,000/year during their “go-go years” with extra travel and fun
Retirement lifestyle
A typical day for Kim includes:
- several hours at the gym
- coffee time with her husband
- time outdoors or with hobbies
- meals out or cooking at home
- shows, socializing, and travel
She and her husband also:
- own a lake house
- own a used car
- travel regularly
- keep an active community life in NYC
Notable Insights
“You don’t need to leave a high-cost city to reach FI”
Kim’s story reinforces that FI in NYC is possible when you have:
- high income
- controlled spending
- stable housing
- intentional investing
Her advice for NYC newcomers
- Don’t move to New York assuming you need a luxury apartment.
- Start with the most affordable realistic housing you can find.
- Consider roommates if needed.
- Don’t romanticize city living as “Sex and the City.”
- Make practical choices early, especially around rent.
Community and Women of FI
Women of FI and WeWolf Collective
Kim also talked about her FI community work:
- She helps run Women of FI, a women-centered FI retreat and events series.
- The annual April retreat sold out quickly, so they added a co-ed fall event.
- They also co-moderate the WeWolf Collective, a private online community for women in FI.
Mission
Their goal is to:
- help women gain financial education and confidence
- build long-term FI relationships
- encourage more women to take control of their money and future
Bottom Line
Kim Hunter-Borst’s story is a strong example of how FI is possible in a high-cost city like New York when you combine:
- disciplined spending
- strong communication at home
- a valuable housing situation
- consistent investing
- a realistic lifestyle
Her biggest lesson: it’s not about escaping NYC; it’s about being intentional enough to make it work.