Thinking of moving to LA (Los Angeles, Corona: apartment, rent, car insurance)

[anto1982]

I live in the Tampa area of Florida now and I visited LA last year and I was amazed how much nicer it looks then Florida. Anyway The thing that's scaring me away is the prices. Is there anywhere in Southern California (it doesn't have to be the Los Angeles area) that someone can afford making 40,000 a year?

[EscapeCalifornia]

Depends on your definition of "afford". Plenty of people around here live on that or less. But they aren't buying houses at today's prices, driving nice cars (unless they live with their parents rent-free), saving for retirement, putting kids through college, etc. $40k for a single person is very doable if you have a roommate but don't expect to advance much beyond that. The more inland areas are cheaper.

[motoman]

As an example, to afford the average rent in the LA area, which is about $1,600, you need to make about $60,000, at a minimum. So if you and another person, both making $40,000 per year, lived in a two bedroom apartment, you would be ok, but you wouldn't have much money left over unless you were extremely frugal.

$40,000 per year is $3,333 per month, pre-tax. After taxes, insurance, etc., it's probably less than $2,500. Your rent, utilities, etc., are probably going to cost you about $1,000 per month, assuming you have a roommate, although you probably could find something $100-$200 per month cheaper. But let's assume worst case.

$2,500 - $1,000 = $1,500 for all remaining living expenses.

A cheap car, with insurance and gas will cost you $500+ per month. That leaves you with $1,000. You have to feed yourself, clothe yourself, educate yourself, entertain yourself, etc. $1,000 doesn't go very far. And you haven't saved a dime yet.

[Mel2882]

I disagree. I made 40 thousand last year and lived in Corona (inland empire). I brought home about $2,500 a month. My rent was $900 a month for a one bedroom (not brand new, but pretty nice) and I did not have a roommate. Even living on my own, my rent plus utilities wasn't even $1,000. Electric was about $20, same as gas, and internet was about the same. I had a $400 car payment plus insurance and all the other stuff that comes with a car, and still managed to go out to dinner, have Starbucks everyday, buy some new clothes, and save about $400 a month.

It depends on how you live, really. I spend nowhere near $1,000 a month on entertainment or food as the above poster mentioned, and if you're making $40,000, you're probably not used to spending that much on it in the first place. I don't go on monthly shopping sprees, and you didn't mention going to school, so I doubt you'll need money to "educate" yourself.

I think you'll be fine if you say you don't need to live right in LA. I would recommend looking in the inland empire. It's not as nice, but it's not that far from anything either.

[motoman]

Mel2882, I want to understand your numbers:

Take-home pay = $2,500
Rent and utilities = $1,000
Car payment = $400
Starbucks = $100+
Savings = $400
Remaining = $600

What did you spend on:

Car insurance =
Gas for your car =
Television =
Phone (cell or landline) =
Car maintenance (oil changes, other maintenance) =
Taxes on your car, including smog tests =
Food =
Clothes =
Entertainment =
Toiletries =
Travel =
Etc? =

Based on just minimum numbers, given that you said you saved about $400 per month, your numbers don't work. You would be cash flow negative.

I am curious how you make $600 work for all of your basic expenses. I would think food alone would eat up at least half of that. And then car insurance and gas most of the other half. Which would leave you with almost nothing for everything else.

If you didn't save the $400 per month, I can see it working a little better. But as it stands, I just can't see how it would work.

[Mel2882]

Originally Posted by motoman

Mel2882, I want to understand your numbers:

Take-home pay = $2,500
Rent and utilities = $1,000
Car payment = $400
Starbucks = $100+
Savings = $400
Remaining = $600

What did you spend on:

Car insurance =
Gas for your car =
Television =
Phone (cell or landline) =
Car maintenance (oil changes, other maintenance) =
Taxes on your car, including smog tests =
Food =
Clothes =
Entertainment =
Toiletries =
Travel =
Etc? =

Based on just minimum numbers, given that you said you saved about $400 per month, your numbers don't work. You would be cash flow negative.

I am curious how you make $600 work for all of your basic expenses. I would think food alone would eat up at least half of that. And then car insurance and gas most of the other half. Which would leave you with almost nothing for everything else.

If you didn't save the $400 per month, I can see it working a little better. But as it stands, I just can't see how it would work.

Car insurance = $200 a month, but 2 months off in a 6 month period
Gas for your car = appx 200 a month
Television = zero, i didn't have cable/direct tv, etc
Phone (cell or landline) = $40 a month for cell, didn't have a landline
Car maintenance (oil changes, other maintenance) = had a good car, got a $20 oil change every time it needed it, about every 3 months
Taxes on your car, including smog tests = zero, it was less than 4 years old. if stuff were to have come up, i would have probably used some savings money
Food = i'd say about maybe $ 150 a month for groceries...i buy on sale
Clothes = maybe $50 a month, but new clothes were not necessary every month
Entertainment = appx $75
Toiletries = $25?
Travel = probably no more than $500 over the year...but i used extra income on that, such as money received at Christmas, tax return, etc.
Etc? = Internet, about $20 a month

In addition, take about $100 off because my rent and utilities together were about $950 and I know I didn't spend $100 at Starbucks per month. All I can tell you is, I'm not making it up, it worked!

Of course excluding the savings, most money is spent, but take that out, and I think it's pretty doable if you want it to work and you're careful with how you're spending.

[Charles]

Originally Posted by Mel2882

Television = zero, i didn't have cable/direct tv, etc

Food = i'd say about maybe $ 150 a month for groceries...i buy on sale
Clothes = maybe $50 a month, but new clothes were not necessary every month

Toiletries = $25?
Travel = probably no more than $500 over the year...but i used extra income on that, such as money received at Christmas, tax return, etc.
Etc? = Internet, about $20 a month

I should have married you!

[motoman]

Very impressive. Mel, you are unlike 99.999999999999% of Americans.

[Mel2882]

Thanks, I'll take that as a compliment. But I think anyone could do it if they weren't putting money into savings on the side, right?

[Ectoprism]

Wow, I've been wanting to move to LA ever since I stayed there for 3 weeks last summer and the one thing that's put me off was the cost of living. Looking at this thread, it honestly doesn't seem so unrealistic.

I'm in Atlanta, which is suppose to be a cheap city to live in and my current monthly bills are.....

Rent/Utilities (including cable internet ) = $900
Car Payment = $297 ( only 3 payments left...yay)
Car Insurance = $93
Gas = $100-120
Food/Stuff the apartment requires = $100

After all my required bills I'm left with about $500 or so a month in left over cash.

My biggest worry would be if my car would pass Cali's emissions standards. It's an 03' Beetle.