New College Grad Living in LA...Terrified/Need Help (Los Angeles: lease, condo)

[beancounter88]

Hi,

So basically, I recently graduated college and will be pursuing an accounting career at the Big 4 in Los Angeles. While I LOVE the city, I am mortified about the COL since I will only be making 55, maybe 60k my first year out. My pay should go up, and, if all goes to plan, I should hit 6 figures by my 5th year out, but I'm still concerned that even six figures won't be enough to make it in the city, much less 55k. Here are my living preferences:

1. I want to live alone as I don't really know anyone in the city yet.
2. I'd prefer to live close to downtown because I'll be working 60-80 hours a week and don't want to spend even more time while half-asleep on the road.
3. I don't need a lot of space and will trade space/condo ammenities in for safety of area and proximity to work any day.
4. I don't want to use a car and prefer to just use public transport/walk to get everywhere.
5. I don't care too much about being in a "hip" or "posh" area. While I don't want to be too far away from all fun whatsoever, since the first 10-15 years of my life will be dedicated to my career, I am not too worried about this stuff right now.

Any suggestions? I'd really like to make LA work, but I'm just worried that, because I'm not a CEO or a Hollywood star, I'm going to drown in the COL. Otherwise, would it be better to ask for a transfer (that is actually very possible)?

[nmnita]

Originally Posted by beancounter88

Hi,

So basically, I recently graduated college and will be pursuing an accounting career at the Big 4 in Los Angeles. While I LOVE the city, I am mortified about the COL since I will only be making 55, maybe 60k my first year out. My pay should go up, and, if all goes to plan, I should hit 6 figures by my 5th year out, but I'm still concerned that even six figures won't be enough to make it in the city, much less 55k. Here are my living preferences:

1. I want to live alone as I don't really know anyone in the city yet.
2. I'd prefer to live close to downtown because I'll be working 60-80 hours a week and don't want to spend even more time while half-asleep on the road.
3. I don't need a lot of space and will trade space/condo ammenities in for safety of area and proximity to work any day.
4. I don't want to use a car and prefer to just use public transport/walk to get everywhere.
5. I don't care too much about being in a "hip" or "posh" area. While I don't want to be too far away from all fun whatsoever, since the first 10-15 years of my life will be dedicated to my career, I am not too worried about this stuff right now.

Any suggestions? I'd really like to make LA work, but I'm just worried that, because I'm not a CEO or a Hollywood star, I'm going to drown in the COL. Otherwise, would it be better to ask for a transfer (that is actually very possible)?

I am sure others will have some ideas and probably more knowledge than me, but if you are looking for safety, proximity (spelling) to downtown, and don't want to go broke I would suggest Eagle Rock or maybe Pasadena.

You should be fine income wise as long as you are not into the "let's party" and go out everynight. As for not driving at all, yes, many do it, but that won't be as easy. You can probably use public transportation to go back and forth to work, but So Ca is pretty car oriented.

Give Ca a try, if after a year it isn't working, then ask for the transfer. It is a fun city and worth the move even if it doesn't turn out to be perfect.

Good luck,

Nita

[LondonBoy99]

Hi beancounter,

Although I am not from LA, I am working for a big 4 firm in London UK and looking into a potential secondment to the LA office at some point.

This might not be applicable to you, but remember if you are hired as an associate in assurance, you will likely spend the majority of your time at your clients workplaces. This is probably something to bare in mind when you say you want to rely on public transport - I have been to LA a couple of times and relied on public transport - it was only for a couple of days but it sure wasn't easy!

Additionally, it's quite possible your firm may have a car scheme? It could be something to look into should you decide to get one.

Also while 55k might be a struggle for the first year or so, you will be fine if you budget according to your means. And the $$$ goes up fast at big 4, and I am sure you will be kept very busy at work so the time will go quickly!

Btw, I don't think you'll be working 60 - 80 hours a week, it's not the NYC office and it's not an i-bank. Maybe 60 hrs, but no more than that realistically. I can't speak for Advisory though, if that's the dept you're hired into.

[Jay100]

Lease a condo nearby your workplace. There are lots of new professionals here that come from far away like Kansas, Missouri, and Colorado. Some can adjust. Some can't. LA is very cosmopolitan. Figure 1500 per month in rent=18k a year. Car lease maybe 250/mo. Food, maybe 300-400/mo. depending on how much you eat. Gas? I think you can do it but you'll just be getting by.

[sll3454]

$55,000 is plenty if you're not supporting a family, making payments on an expensive car, buying a house, or going out all the time. It's well above the median income and close to double the per capita income.

If you haven't already, get your budget written down. You'll see that you're fine.

[Ceece]

That is a lot of money for a young single person. You will be fine.

[Fontucky]

Originally Posted by beancounter88

While I LOVE the city, I am mortified about the COL since I will only be making 55, maybe 60k my first year out. My pay should go up, and, if all goes to plan, I should hit 6 figures by my 5th year out, but I'm still concerned that even six figures won't be enough to make it in the city, much less 55k.

I'd really like to make LA work, but I'm just worried that, because I'm not a CEO or a Hollywood star, I'm going to drown in the COL.

Where does this terror come from? Are you taking to heart the doom and gloomers here at C-D?

[nmnita]

Originally Posted by Jay100

Lease a condo nearby your workplace. There are lots of new professionals here that come from far away like Kansas, Missouri, and Colorado. Some can adjust. Some can't. LA is very cosmopolitan. Figure 1500 per month in rent=18k a year. Car lease maybe 250/mo. Food, maybe 300-400/mo. depending on how much you eat. Gas? I think you can do it but you'll just be getting by.

and add to that perhaps student loans, cc etc. I am not saying it can't be done, in fact it can but you are right, she/he will not have a lot of surplus. I do think 55,000 should be just fine for a single person, but we don't know the debth situation. I also think L.A. is a great place for young, single, professionals.

Nita

[beancounter88]

Originally Posted by nmnita

and add to that perhaps student loans, cc etc. I am not saying it can't be done, in fact it can but you are right, she/he will not have a lot of surplus. I do think 55,000 should be just fine for a single person, but we don't know the debth situation. I also think L.A. is a great place for young, single, professionals.

Nita

If it helps, I don't have any school debt and am not a huge party every night kind of person. My parents also are willing to help out a bit, but I'm really trying to avoid having ask them for help given how much they've already spent on my college/masters and all...

[Jay100]

Originally Posted by nmnita

and add to that perhaps student loans, cc etc. I am not saying it can't be done, in fact it can but you are right, she/he will not have a lot of surplus. I do think 55,000 should be just fine for a single person, but we don't know the debth situation. I also think L.A. is a great place for young, single, professionals.

Nita

Agreed Nita. Then there are travel expenses. Lunch, out with friends and coworkers.