What Is a Good Salary to Live in California
- Y'all'll need a staggering six-figure income to live comfortably in Los Angeles: at least $136,207 if y'all're paying rent or $150,391 if you lot own a house.
- The salary needed to live comfortably in Los Angeles has risen by more than $25,000 in the by year, due to ascension annual costs of transportation and utilities.
- Within California, the cities of San Francisco, San Jose and Los Angeles come with the highest cost of livingcomfortably.
Los Angeles is abode to nigh four million people who relish the sunny weather, cultural diversity and acclaimed foodie scene. Only the benefits of living in L.A. come at a steep cost.
A GOBankingRates study adamant the salary y'all'll demand to live comfortably in 50 major U.S. cities, and Los Angeles came in at No. 3 for the highest required bacon for renters. Y'all'll need to brand a bacon of $136,207 if you lot're paying rent — or $150,391 if you lot own your own home — to live well in L.A.
This isn't the first year that the GOBankingRates study has determined you lot'll need a six-figure salary to live comfortably in L.A. Check out the amounts needed to alive comfortably from years past:
- 2016: $93,690
- 2017: $98,775
- 2018: $110,420
- 2019: $136,207 if paying rent, $150,391 if paying a mortgage
With a median household income of $54,501, information technology would seem that many who alive in Fifty.A. are living well higher up their means.
Housing costs alone would make a meaning dent in necessary expenses, with a median annual rent payment of $37,656.
Find Out: How Much Y'all Demand to Live Comfortably in 50 Major U.s. Cities
What's Behind the Rising Cost of Living Comfortably?
Living in Los Angeles is notoriously pricey, just y'all might be surprised by just how much the basic living expenses will run yous. Check out the cost of almanac necessities by year below:
| Annual Toll of Living Expenses in Los Angeles, 2016-2019 | |||||
| Year | Rent | Groceries | Utilities | Transportation | Healthcare |
| 2016 | $33,060.00 | $four,197.00 | $one,491.48 | $v,400.00 | $2,697.00 |
| 2017 | $35,064.00 | $four,014.36 | $one,596.36 | $5,449.00 | $3,264.00 |
| 2018 | $36,180.00 | $4,014.36 | $2,353.56 | $9,518.00 | $3,144.00 |
| 2019 | $37,656.00 | $iv,363.00 | $3,605.84 | $18,290.xvi | $4,188.fourscore |
Almanac hire has steadily climbed into the high $xxx,000s. The costs of groceries, utilities and healthcare have also been increasing gradually throughout the past four years.
1 outlier, though, is transportation — whereas almanac transportation costs might take run you $v,400 in 2016, you'll pay more than 3 times that in 2019 at $18,290.16.
To determine the figures for this study, GOBankingRates utilized the 50/30/20 rule, which assumes that 50% of income should go toward necessities, 30% should become toward discretionary spending and xx% should be saved.
The costs in the table above are all considered necessities. In 2019, Los Angeles natives will exist paying $64,276.21 in annual necessities if they hire and $74,224.21 if they have a mortgage.
Of course, many metropolis dwellers don't need to earn half-dozen figures to make a living. But when you're using a proficient chunk of your budget — if not all of your budget — on necessities, then you don't have much left over to save for retirement or even become out to dinner to gloat a special occasion.
Related: The Cost of Living Is Quickly Rising in These twenty U.s.a. Cities
Los Angeles Isn't the Merely City Where You Need Vi Figures to Alive Comfortably
Out of the major U.Due south. cities where you will demand to make at to the lowest degree half-dozen figures to live comfortably equally a renter, six are in California. If you're living in San Francisco or San Jose, you lot'll demand to brand $164,213.54 or $143,670, respectively. Those figures are higher if y'all're paying a mortgage rather than renting.
Information technology probably comes as no surprise that New Yorkers should also make well into the six figures to alive comfortably in the Big Apple. According to the report, you'll demand to brand $128,552.42 per year to pay for necessities and have money left over to save. Some other contenders were Honolulu ($125,329.30); Washington, D.C. ($122,933.82); Boston ($120,413.32); and Seattle ($115,722.24).
Also See: Why You Should Abscond New York City When It'southward Time to Retire
All in all, you lot need to make at least six figures to live comfortably in 13 U.S. cities. You'll probably get along fine if you don't brand quite so much, but living comfortably volition be a lot more feasible if yous reside in i of these more affordable cities.
More on Living Comfortably
- 19 Tips to Living Well on A Budget
- How to Salve Money on All Your Monthly Expenses and Bills
- This Is What a Comfortable Retirement Will Cost You lot in Every State
- Sentinel: five Smart Tips to Live Comfortably in an Expensive Globe
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Methodology: GOBankingRates found the cost of living in America's 50 biggest cities past analyzing the post-obit factors: (1) Toll of living index for groceries, utilities, transportation and healthcare sourced from Sperling'southward Best Places. Each index was multiplied by the annual expenditure corporeality in each category from the Bureau of Labor Statistics' 2017 Consumer Expenditure Survey, which measures household annual mean expenditures to determine the annual hateful spending for each category; (2) Hire costs were sourced from Zillow's February 2019 rental value index for single-family residences, and were multiplied past 12 to obtain an annualized yearly spending on rent; (iii) Mortgage rates were based off of Zillow'due south February 2019 median home value, and Zillow's mortgage calculator was used to make up one's mind the monthly mortgage payment for each given metropolis based off of the habitation value and a 30-year fixed loan. Mortgage payments were multiplied by 12 to obtain an annualized amount; (4) Median household income was sourced from the U.Southward. Demography Bureau's 2017 American Customs Survey (this is income prior to being taxed). Once all the data was found, the almanac expenditure corporeality was calculated by calculation together the annual spending for each category. GOBankingRates found the annual expenditures for both people paying a mortgage payment and for people who are paying hire separately, and the median income was subtracted past annual expenditures for those paying a mortgage and those renting to run into how much money is needed or left over for each city. GOBankingRates and so used the fifty/30/20 rule, which assumes that l% of income should become toward necessities, xxx% should get toward discretionary spending and twenty% should go toward savings. The 50% income is the annual expenditure, and that amount was used to observe the additional income needed for splurges and savings.
Nigh the Writer
Source: https://www.gobankingrates.com/money/economy/salary-need-live-well-la-all-time-high/