How do you afford to live in California? (apartments, living in)

[.highnlite]

credit card debt

Anyone still using a credit card needs to sit back and take a real good look at their decision making processes.

We gave those things up twenty years ago,, have never missed them.

[Ultrarunner]

Originally Posted by EdJS

That's true, but it worked for us, and I was answering the original question: How do I afford to live in California.

Another aspect is something that was just brought up in the thread: I bought my house in 1997, just before the boom, when it cost a lot less. Even after the housing crash it's still worth more than what I paid for back then.

You've also had 15 years of inflation... the dollar's buying power is a fraction of what it was.

[Ceece]

Originally Posted by blauskies

$80K after taxes in California for a single person is around $55K/year net, that's a great salary in a lot of places, but not in many high cost of living locations. Especially if you’re carrying the debts of what it took you to reach that kind of salary, student loans, credit card debt and etc.

Well no, carrying a ton of debt is going to kill you no matter what. But it's not a given that everyone has debt. I don't.

[Dean Trails]

Originally Posted by nullgeo

Yeah, and I ain't posting how to live free and cheap in detail either. Next thing, people would start screwing it up and laws would be created where none are needed now

Yes, i suspect the pols would love to figure out how to tax your lifestyle. They are not getting their moneys worth from you.

I have a friend who lives on a boat with a roomie (bunkie?) and his living expenses are miniscule. He eats very little and gets most of his clothes at the shelters or local churches. He is totally happy and has free time to think, read and write. With his pension he is able to travel and go where he likes.

[mysticaltyger]

Originally Posted by Ultrarunner

Didn't realize prices had fallen so much...

The woman I worked with in the Bay Area ran an Orthopedic Office and her husband is a factory trained Audi mechanic...

I would think they'd do much better there than they ever could in the Bay Area in terms of housing. That might not have been true during the housing boom, but assuming they could held onto their jobs, they are in a buyer's market of a lifetime in Vegas today, while the Bay Area is still largely unaffordable to people with jobs like theirs.

Originally Posted by Ultrarunner

When I last talked to them about 2 years ago they both found jobs for about half of what they had been previously earning and they had decided to give up their dream home in Iron Mountain because they could rent for a fraction of what they have to pay each month on the mortgage...

While I personally think the whole "dream home" concept is way overrated in terms of the happines it brings, I think they made a good decision. Vegas still has a lot of available land. The Bay Area doesn't and it has an anti-growth attitude on top of it. Barring something really extreme happening, people at their income levels in the Bay Area are never going to be able to afford to buy single family detached houses unless they want to be in debt over their eyeballs and/or live a poverty lifestyle and do some extreme saving (which most people won't do).

Originally Posted by Ultrarunner

Las Vegas/Nevada was definitely the promised land for many... I wonder now Austin/Texas isn't the new promised land?

I suspect Vegas is a better deal these days. I don't think Austin's home prices have dropped that much.

[nullgeo]

Originally Posted by Dean Trails

Yes, i suspect the pols would love to figure out how to tax your lifestyle. They are not getting their moneys worth from you.

I have a friend who lives on a boat with a roomie (bunkie?) and his living expenses are miniscule. He eats very little and gets most of his clothes at the shelters or local churches. He is totally happy and has free time to think, read and write. With his pension he is able to travel and go where he likes.

Oh, they're getting taxes from me ... I don't avoid them ... I'll pay a good share to be a part of America. I don't own real estate in California so don't pay real property tax there, but I do pay personal property tax there on one boat ... ain't much of a boat, so ain't much tax, but still ... and I pay sales taxes of course and other state fees. I don't have to pay sales taxes everywhere I go, because I have exemptions -- but I do pay them anyway without blinking. And I pay real property taxes in Washington. Other taxes and fees in Hawaii. I am exempt from Federal and state income taxes on my veteran's compensation. That's part of Congress' gift to fully disabled vets. I paid regular income tax all my life on other earnings until I retired. Never did any tricks to avoid. Costs money to run a country and a state. I'm happy to participate.

That all said: I live so cheap and modest that my financial contributions don't mean much, just like your friend. On the other hand, I don't use much either, and I have several rental properties and donate half of my potential rental income space to persons in need. That's a contribution to society too. If I rented all that space I would be making a profit and pay more taxes.

[Voyageuse]

You WILL make it in California if you do the following:

1.Live like a broke college kid until you've paid off all of your student loans (this may mean living in a cramped apartment eating ramen until you're out of debt, but the sacrifice will be worth it!)
2.Do not accumulate any more debt. Pay cash for all consumer-goods (the job market, even for a surgeon, is way too unpredictable in CA)
3.Save 3-6 months of expenses
4.Do not get a mortgage/lease payment that is <25% of your take home pay
5.When you're ready to buy a house, put down at least 20% (don't allow some silly realtor to convince you that you can "afford" more house.)
6. Ignore other doctors and "well-meaning" friends/family who mock your frugal lifestyle. Just remember, it will be YOU who has the last laugh.

That's how to live in California, successfully on a $200K income. That's how I do it!

[JGC97]

Originally Posted by Voyageuse

You WILL make it in California if you do the following:

1.Live like a broke college kid until you've paid off all of your student loans (this may mean living in a cramped apartment eating ramen until you're out of debt, but the sacrifice will be worth it!)
2.Do not accumulate any more debt. Pay cash for all consumer-goods (the job market, even for a surgeon, is way too unpredictable in CA)
3.Save 3-6 months of expenses
4.Do not get a mortgage/lease payment that is <25% of your take home pay
5.When you're ready to buy a house, put down at least 20% (don't allow some silly realtor to convince you that you can "afford" more house.)
6. Ignore other doctors and "well-meaning" friends/family who mock your frugal lifestyle. Just remember, it will be YOU who has the last laugh.

That's how to live in California, successfully on a $200K income. That's how I do it!

Good rules. I think #4 should read >25%, though.

[Wing Feathers]

Originally Posted by Voyageuse

That's how to live in California, successfully on a $200K income

With an income that rich, anyone could live well!

[DynamoLA]

Originally Posted by Voyageuse

You WILL make it in California if you do the following:

1.Live like a broke college kid until you've paid off all of your student loans (this may mean living in a cramped apartment eating ramen until you're out of debt, but the sacrifice will be worth it!)
2.Do not accumulate any more debt. Pay cash for all consumer-goods (the job market, even for a surgeon, is way too unpredictable in CA)
3.Save 3-6 months of expenses
4.Do not get a mortgage/lease payment that is <25% of your take home pay
5.When you're ready to buy a house, put down at least 20% (don't allow some silly realtor to convince you that you can "afford" more house.)
6. Ignore other doctors and "well-meaning" friends/family who mock your frugal lifestyle. Just remember, it will be YOU who has the last laugh.

That's how to live in California, successfully on a $200K income. That's how I do it!

Good advice! That's how we do it too. Haven't paid a credit card finance charge in years.