How do you afford to live in California? (Merced: real estate, credit card)

[jaijai]

Yes, snarky comments due to the fact that it's a relatively huge income and these times are very difficult for many people.
I can just barely afford to rent in Santa Cruz county.
Since you can live where you want, then live where you love and where you feel most connected.

[jaijai]

Originally Posted by mstnghu2

No, I said it right. I know a lot of people are in debt, but not everybody. The OP said that everybody seems to be rich or in tons of debt. There are a lot of people in CA who live beyond their means, but there are also quite a few of us who know how to manage our money properly.

got it.

[jklmnop]

[quote=mstnghu2;22312017]If somebody is not capable of living comfortably in CA on $200k-$300k a year, they need a serious lesson in money management. It's possibly to live very well on that much income in CA, even in many of the nicer/safer areas of the state.


This is exactly what I am trying to avoid. I don't want to buy into a home that I can't afford. My point is that despite a very generous salary, I will be living a very modest lifestyle: public schools for my children just like everyone else, driving a pickup truck (not a bmw) to work, shopping bulk at costco, nothing glamorous at all. I wont be living paycheck to paycheck but I wont be rolling in the dough either. That is why I am curious how everyone else gets by in California.

[jklmnop]

Originally Posted by nullgeo

Ok, serious post ... and, as I suspected, from a new MD. No, that's not a snarky comment ... I suspected because very (VERY) few people come to California with that kind of starting income and with their choice of so many places to live except doctors. Also, if you were in a financial-related field (investment banking, venture capital, etc.), or software engineering, you wouldn't have any questions about how to get by on that kind of income -- nor probably where you would be living.

So, serious answer: you'll get by almost anywhere -- once you put as much mind to personal economics as you have applied to getting through med school.

The reason you will read so many snarky comebacks here is, $200K + is a LOT of income, even for California. You are going to be very high on the scale. I understand your student loans are huge, and that is a major expense. But you are in a profession, as you know, that has no questionable future. Retirement and savings categories of your initial budget are VERY discretionary. You are not facing ANY danger of your industry suddenly taking a downturn or booting you for any reason. You can create your retirement when you have paid your student loans -- using the same budget.

Congratulations on your success entering the profession. Good luck finding the position you want. And welcome to California, the finest 163,696 sq mi on the planet earth.

Thanks nullgeo. I definitely consider myself privileged to be a physician and as you noticed I am not a financial guru. That is why I am being extra careful to keep my head above water. Hopefully on a surfboard.

[ragnarkar]

[quote=jklmnop;22313493]

Originally Posted by mstnghu2

If somebody is not capable of living comfortably in CA on $200k-$300k a year, they need a serious lesson in money management. It's possibly to live very well on that much income in CA, even in many of the nicer/safer areas of the state.


This is exactly what I am trying to avoid. I don't want to buy into a home that I can't afford. My point is that despite a very generous salary, I will be living a very modest lifestyle: public schools for my children just like everyone else, driving a pickup truck (not a bmw) to work, shopping bulk at costco, nothing glamorous at all. I wont be living paycheck to paycheck but I wont be rolling in the dough either. That is why I am curious how everyone else gets by in California.

I shop at Whole Foods, Trader Joe, and other high-end grocery places..

But only pay about $600 in rent to share a place.

And drive a Civic over a decade old.

In the end, my monthly budget is about $1500 and I save the rest.

A rule of thumb for living somewhat *Frugally* in California is to budget $1500/mo for the first person and $1000 for each additional person.

[eastontracks]

i was able to live alright this year on my income which was maybe about 3k after taxes. i think its all relative to the bills people have of course

3000:
1k rent in burbank
100 utilities
500 car payment and student loans
300 savings
150 car insurance
rest went to other debt and spending. not too bad.

[winkosmosis]

Troll thread??

[gone down south]

The thing is, when you move to CA you have to give up the American dream of buying a big shiny new house. If you're OK with not owning a house, or buying a much smaller/older one than you would pretty much anywhere else in the country, you'll find your money goes a lot further.

[jaijai]

Originally Posted by winkosmosis

Troll thread??

Seems possible.
Or it's just really weird that an educated man can't figure out how he's going to live with that kind of money ... in California or elsewhere.
Sorry jklmnop but it's just odd.
With that generous income and the willingness to live modestly, you'll be o.k..
That you don't realize that fact is puzzling to me.
Find a good money manager as you seem kind of clueless.
Although i forget that if you're just out of med school, you're probably very young.

[CA4Now]

Originally Posted by jklmnop

I know this depends on your proximity to the ocean and desirable/safe neighborhoods. l am looking mostly at Santa Rosa, Santa Cruz, Pasadena, Burbank, Thousand Oaks, Temecula, parts of Orange County.

Temecula's out since it's nowhere near the ocean. In Pasadena, you'd have to send your kids to private schools. Burbank is part of LAUSD but has some good schools. For Orange County, you might want to look at that subforum. Hopefully, you got a lot of answers about Santa Rosa and Santa Cruz on your other thread.

I know not everyone makes six figure salaries in California so...how do you get by?

Most of us bought well before the most recent housing bubble.