Concerned about COL moving to LA. Overreacting? (apartments, credit card)

[frimpter928]

I am going in May for 1.5 weeks to see it's a place I can live. As I mentioned in another thread, I will not be getting a new job, rather I would transfer to our LA office. Because I am choosing to move there, I highly doubt that they will give me a COL increase.

So with that being said I will be bringing with me my Chicago salary. I currently make $93,500.00 per yer.

A few concerns:

1. Income tax in Illinois is 4.95%. In California I know it's almost triple that so I will have less money on my paycheck.

2. In Chicago I have no car (not needed) but I will have to buy one if I move to LA. That's an extra added expense.

3. While I make a solid salary, I do pay close together to $600 in student loans a month. But outside of that I have no debt. No credit card debt, no mortgage, no car loan debt (but if I move to LA I will have to get a car). Single guy here too.

So I guess my concern comes in the form that moving to LA I will have to pay more in rent, get a car, and my paycheck will be less. I would have to work in downtown so I am looking at apartments in Koreatown. But I am wondering if getting a roommate might be worth it to alleviate some of the financial burden? Or should my salary be okay?

Just curious on other's experiences there if what I make and all the factors considered, that my salary is manageable. Also, I should add that I am not one that needs to be eating at fancy places all the time, but yes, I do like to go out and try out different restaurants and bars be it if they are $ or $$$. I also want to be able to do a couple of domestic trips somewhere, and I always do one international trip somewhere. LA might help that I am starting to want to travel more to Asia, so I would think that Asia flights tend to be cheaper than from Chicago in general?

[MuscleCar]

The car, registration and fuel will definitely be an expense. Parking is always a consideration as well. Koreatown is the most densely populated area of SoCal, generally as dense as Chicago and NYC. Street parking is a nightmare, so a place to live with parking would be necessary. The train does run through that area.

You probably pay more taxes in Illinois than here. Lots of little nickles and dimes get us here though.

[frimpter928]

Originally Posted by MuscleCar

The car, registration and fuel will definitely be an expense. Parking is always a consideration as well. Koreatown is the most densely populated area of SoCal, generally as dense as Chicago and NYC. Street parking is a nightmare, so a place to live with parking would be necessary. The train does run through that area.

You probably pay more taxes in Illinois than here. Lots of little nickles and dimes get us here though.

So in regards to Koreatown, is it worth it to live car free there for a while? I would love to live by the coast, but since my office would be in downtown, I would have to take the train and I also wouldn't want such an extreme commute either. It seems like from Koreatown my commute would be about 30 minutes or so. I would want to take the train every day. So I guess if Koreatown has everything I need and I work downtown, really the only days I would want or need a car may be the weekends when I explore the city. I was considering then using Uber on the weekends, but that also really adds up.

I suppose though if I only use my car on the weekends, that at least alleviates some of my fuel costs. Also if I am spending $60 per weekend on Uber alone, I wonder if it just makes more sense to get a car.

[ryanms3030]

If you live in Koreatown and work in DTLA then you don't necessarily need a car. You can easily commute on the Red/Purple line. $93k is more then enough for a single person to survive on in LA

[Texamichiforniasota]

Just a clarification on taxes, unlike IL which has a flat tax system, CA has a progressive income taxes like the federal income tax system, with lower rates on the income up to the bracket with your marginal rate. Your marginal rate would max out 9.3% for your income between $56,086 and $286,492. On an income of $93,500, without any deductions or credits, you would pay a total state income tax $5,949, or an effective rate of 6.4%. So, still higher than IL, but no where near double or triple.

[frimpter928]

Originally Posted by Texamichiforniasota

Just a clarification on taxes, unlike IL which has a flat tax system, CA has a progressive income taxes like the federal income tax system, with lower rates on the income up to the bracket with your marginal rate. Your marginal rate would max out 9.3% for your income between $56,086 and $286,492. On an income of $93,500, without any deductions or credits, you would pay a total state income tax $5,949, or an effective rate of 6.4%. So, still higher than IL, but no where near double or triple.

That's good to know. I am still in the research stage of everything since I wouldn't move until January 2020. That is more reassuring. I saw 13% income tax, but I suppose that is for people who make more than the bracket I would fall in. That is very good to know.

[frimpter928]

Originally Posted by ryanms3030

If you live in Koreatown and work in DTLA then you don't necessarily need a car. You can easily commute on the Red/Purple line. $93k is more then enough for a single person to survive on in LA

Thanks. That is what I was thinking. I can go there car fee if I live in Ktown. If I feel I need one, then I suppose I can go ahead and go in the process of buying one.

[sean1the1]

Originally Posted by frimpter928

Thanks. That is what I was thinking. I can go there car fee if I live in Ktown. If I feel I need one, then I suppose I can go ahead and go in the process of buying one.

I agree koreatown is the perfect place to live without a car. I would suggest trying it out when you come here in May. There's nothing wrong with getting a roommate you can find a nice moden apartment with a roommate and it'd be affordable. The salary of $93k will be perfectly fine for 2% California destroys Illinois. You would be moving in January the perfect time of year to leave Illinois.

[frimpter928]

Originally Posted by sean1the1

I agree koreatown is the perfect place to live without a car. I would suggest trying it out when you come here in May. There's nothing wrong with getting a roommate you can find a nice moden apartment with a roommate and it'd be affordable. The salary of $93k will be perfectly fine for 2% California destroys Illinois. You would be moving in January the perfect time of year to leave Illinois.

This is so reassuring. The COL has been my biggest concern with LA. My job will not care if I transfer there, and I have plenty of friends that live there too.

I am also excited about potential career prospects if I move out there. I work in digital marketing, but on the side write short stories it's kind of my art. Would love to get them published one day, and LA seems like a good city to explore that side project.

When I am there in May I am getting an AirBnb for a few days in East Hollywood and a few days in Koreatown and work from our LA office to see how I like the neighborhoods, the commute and will also explore the rest of the city.

[Hiruko]

Originally Posted by frimpter928

I am going in May for 1.5 weeks to see it's a place I can live. As I mentioned in another thread, I will not be getting a new job, rather I would transfer to our LA office. Because I am choosing to move there, I highly doubt that they will give me a COL increase.

So with that being said I will be bringing with me my Chicago salary. I currently make $93,500.00 per yer.

A few concerns:

1. Income tax in Illinois is 4.95%. In California I know it's almost triple that so I will have less money on my paycheck.

2. In Chicago I have no car (not needed) but I will have to buy one if I move to LA. That's an extra added expense.

3. While I make a solid salary, I do pay close together to $600 in student loans a month. But outside of that I have no debt. No credit card debt, no mortgage, no car loan debt (but if I move to LA I will have to get a car). Single guy here too.

So I guess my concern comes in the form that moving to LA I will have to pay more in rent, get a car, and my paycheck will be less. I would have to work in downtown so I am looking at apartments in Koreatown. But I am wondering if getting a roommate might be worth it to alleviate some of the financial burden? Or should my salary be okay?

Just curious on other's experiences there if what I make and all the factors considered, that my salary is manageable. Also, I should add that I am not one that needs to be eating at fancy places all the time, but yes, I do like to go out and try out different restaurants and bars be it if they are $ or $$$. I also want to be able to do a couple of domestic trips somewhere, and I always do one international trip somewhere. LA might help that I am starting to want to travel more to Asia, so I would think that Asia flights tend to be cheaper than from Chicago in general?

I feel like almost no one in California can afford to live in California. It's something you have to really want. Virtually all of the data show that coastal Californians have very high debt burdens (particularly housing) relative to the rest of the country. At the same time, $94k in Chicago does not exactly lend itself to a lavish existence either. If you are happy in Chicago, it wouldn't be worth it to me if I were in your shoes.