A couple can definitely live off of $1000 a week in NYC, although their quality of life can vary quite a bit depending on where exactly they live + their necessary costs + spending habits.
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We went to NYC last year during Christmas for 5 nights. My husband and I budgeted about $2000(for personal expenses not including hotel room or air travel which were separate). It was more than enough.
It's still VERY hard to pull off living on $1000 a month. Even if you can walk away from rent with $700 a month in your pocket you still have electricity, internet, and whatever other utilities left over. Odds are you're down to $550-$600 at best after that. That's all transportation and food.
The answer is yes, you will find some good food in that price range, you won't starve. Allowing maybe $100 per person per day will get you a nice dinner every night and an occasional sit down lunch too. Adding more to the budget means you can maybe go to a 5 star dinner for a splurge one night too.
NYC has some of the best dining options in the world but eating out can quickly bust your budget. That said, there are a few budget-friendly options but I highly suggest adding a little extra to your food budget so you can eat at a few of NYC's restaurants.
My advice is to keep the cash low per day, get more when you need it from your bank's ATM. New York is a an expensive city. If you include hotel rates, transportation, dining, and maybe a show or two think in terms of about $1,000 a day average.
The cost of living in NYC will vary between individuals and families. On average, individuals spend around $2,500 per month on living expenses. Families can expect to spend closer to $4,000 per month.
You should plan to spend around $316 per day on your vacation in New York City, which is the average daily price based on the expenses of other visitors. Past travelers have spent, on average, $50 on meals for one day and $49 on local transportation. Also, the average hotel price in New York City for a couple is $331.