Adjusting my finances..... (coupons, car insurance, credit card)

[BarcelonaFan]

I am going to be cutting corners and taking on some new bills. I could either invest in the car I already have paid off or I could get a new one.

Essentially after bills are paid for (rent, insurance, health, etc) I have around 1600 bucks to live off every two weeks. For me, this is pretty good but I understand that I might be just scratching by for others. I have stuff saved so I am not worried, but I may have to tackle on another monthly bill for school and that will bring my total average disposable income to 1200 average, with some weeks adjusted ranging from 1100 to 1300.

What is good disposable income to have in LA? Would I need to keep adusting to make this work? Does this look like too little to play with in LA? I am not looking to be partying like rock star or anything or shop at Armani. My wardrobe consists of good finds at thrift stores, H&M and professionally tailoring all the nice clothes at Target to fit me better LOL. So yes, I am one of those folk that can make it look like I make more. Food and gas i dont really count because they vary so wildly and I live ten mins away from work.

Point is, I am not worried so much as I am in transition, going to school to get a real professional degree to offset my useless liberal arts degree. So I expect to make more money within the next three years after I finally get a really relevant pedigree under my belt.

[BarcelonaFan]

We should make this a thread about all the techniques Angelenos use to make their lives seem less deprived. LOL.

How do Angelnos hustle?

[PDF]

Must be nice to have that much disposable income in the first place! If you want to improve your appearance, just go by some nicer clothes like you suggested.

[BarcelonaFan]

So that's good? I am just out here with no social net. Friends yes, but no family, so I like to have as much in the bank as I can manage.

My 1600 will dwindle down to 1200 two weeks by the end of this year though and it's causing my blood pressure to spike, lol.

If that's still good let me know.

I am too cheap and hate buying things at full price. I majored Economics in college and can see right through supposed bargains and "deals". I think prices are arbitrary and know they bear no relavence to their actual cost. So I tend to hustle, barter my way through life.

I never go out to eat anywhere without a groupon or living social deal. I buy the most inexpensive nice clothes possible and tailor them to fit real nice. One guy thought I was wearing Brooks Brothers and I laughed. Shades 5 bucks at H&M, shoes only New Balance at a sports wearhouse or a local shoe stores in areas where they're marked down because no one wears NBs just Vans. I rummage through Thrift stores; find vintage looking Lacoste shirts I always get compliments on. Izod-Lacoste circa 1980s fit the best baby!

There are so many ways to look good for less. Just micro manage it.

For food, I drive to the Grand Central Market on Sundays. Parking is free and I make out with a huge bag of groceries, mostly produce, for less than 20 bucks! Learn to cook at home and take advantage of potatoes, brown rice and veggies for sides. Beans too. You can make that last all week.

The only time I ever let go and splurge a bit is when I go out dancing. I gotta cut that out.

[drshang]

I don't really understand how 3,200 a month in discretionary income is not a lot for LA.

My wife and I, after rent/utilities/health/insurance/my business expenses probably spend around 3,000 a month in "other" expenses for two people.

That gives enough money (in one year) for a two week vacation to Europe (the expensive part), a two week vacation to Asia, a Vegas trip, a central coast trip, a sequoia trip, 100 dollar dinners once in a while, prime steak, clothes that are far nicer than H&M/Target, smart phones, iPads, etc. And that's for two people, not one.

Granted, we have paid off cars, no debt of any kind, but exactly how much discretionary income does one need? We don't really budget that tight and manage to do a ton of stuff with around 1,500 per person in "discretionary" income (that includes all food and household expenses) a month.

To share specific things that have worked for us for some things to save on day to day type expenses: we do Costco for a lot of household items (wait for the coupons), do Fresh & Easy for day to day groceries (email list signup gives you a 10 dollar coupon every week), Costco is good for prime steaks, Ranch 99/Azn supermarkets good for fresh seafood, farmers markets or sprouts for veggies/fruits.

Also, use a cash back credit card, I think we get hundreds a year in cash back from CC, also look in the mail sometimes you can get 400-600 dollars to sign up for a CC and a couple hundred to sign up for a bank account. Also shop around very aggressively for car insurance, you can save hundreds a year doing that.

Also, take advantage of tax deductions! Especially in CA with the higher marginal rates when you start making $$$. Use 401(k), IRA, whatever you can, lower taxes, higher savings, good for you.

[PDF]

I'm thinking I will only be making 1,000-1,200 a month when I move out to LA, a little more if I get lucky. And all of that will go to bills. You are definitely good. And good tip on the Grand Central Market, loved it when I went there during my June trip.

[BarcelonaFan]

Drshng, wow you have it down nice! But really with this next monthly bill I will have to tackle to get ahead ill be down from 3200 a month to 2400. That's an 800 buck hit I proky won't see again for another three years. I will adjust to where I'll be bringing in 1300 bi weekly but no more than 1400 at best. If you say that's doable than I'm more confident.

PDF, you will have it but harsh but LA is so vast you can make it fit your budget. If you have a plan to move up you will be fine.

[drshang]

BarcelonaFan,

We are similar to you in that we don't really pay full price for anything. And this city has tons of options to find good deals on stuff. I edited my post to list some specifics about stuff that can help keep the expense levels low.

but in general I don't get the complex a lot of people on this board (at least the ones without kids) have about LA costing so much. Besides housing, nothing else really costs more, and some things (especially food related) cost less. For singles over 90-100 in income and couples over 180-200 in income, the tax bill will be higher, but for people lower than that, not really.

Personally I think 2,000 a month in discretionary income should be plenty for one person. Of course it does very much depend on lifestyle...we spend a lot on travel compared to most people, and spend less in other areas. But that should give you an idea at least what we do spending around that much. Now that said, I also recognize that being married your expenses certainly don't go up double over being a single, especially if you marry someone who is financial responsible (VERY IMPORTANT).

[drshang]

I want to add to this thread by saying that in my mind, a lot of living in LA is like living in Vegas. This is a city that really punishes the financially irresponsible, more than most. While the housing costs and vices are quite different between the cities, both of these places have a lot of ways to really spend a lot of money if you want. Also both cities tend to attract people with pretty weak financial skills, and the culture to a certain degree is derived from people who really spend money. There are lots of scenes in this city that involve emptying your bank account, and if you get involved in them, you will probably be broke, even if your income is quite high. But much like Vegas, there are some amazing deals on a lot of stuff IF you have discipline, and IF you are smart with money.

[BarcelonaFan]

At the end of the day I will be averaging 1250 bi monthly. That's 2500 bucks a month disposable income. I am thinking that would be plenty for a thrify guy like me. I don't plan to travel except back home for Christmans. And I drive around the So Cal area exploring different towns but that's about it. Already been to Europe, Latin America and both coasts of the US. So I won't be traveling again until I am done with my graduate degree and get a career going.