The Grand LA Life: Achievable Dream or Bankruptcy Pitfall?
The state of living and real estate in the city of LA has risen by 207% in the last ten years, according to the findings of NeighborhoodScout. Despite the staggering costs, people continue to strive to get their own piece of fast-paced LA living. If you happen to be one of those aiming to live out their LA dream life, it would be in your best interest to find out how you can best afford it. So as a newcomer, what do you need to know about being able to afford to live in LA?
Frugal Housing Arrangement
Your housing options must always be foremost in your thoughts if you’re ever considering moving anywhere. LA is generally considered to be the third least affordable metro area, based on the findings of Mel Wilson & Associates Realtors. If you’re thinking of moving to LA, it’s important to know that the median price for a one-bedroom apartment comes up to around $2,300. If your parents have a home in LA, it’s practical to consider living with them. If that isn’t an option, consider opting for a more affordable arrangement like a roommate.
Handle Your Debt
At this point, Americans carry an average of $38,000 in personal debt which excludes any mortgages, according to the study conducted by Northwestern Mutual. With LA being a high-cost area, monthly payments for different loans can be challenging to balance. To make things easier for you, it’s smart to find ways to alleviate the strain of differing monthly payments. For example, consolidating your debt ensures that you’ll have a single and fixed amount to pay each month. Try to talk to a financial adviser to get a firm idea of what your options are for debt management.
Know the Job Market
In order to really hammer out a good financial plan to accompany your credit projections, it would be smart for you to get to know the job market. There are a lot of available jobs in the LA market but it is worth noting that most of them offer minimum wages. In fact, the average minimum wage offered is about $12 for smaller businesses and has an “increase cap” of $15. So it would be to your benefit to know which areas to check out when you’re hunting jobs like the famous Silicon Beach strip where software and tech companies are located.
Living in LA can be challenging and seem intimidating but it is entirely possible. All it takes is that you lay out your plans carefully and consider all your options before you commit. Making your LA dreams come true will always need a healthy dose of reality to help it materialize.