About to graduate and moving to LA: Can't balance the checkbook

[user_id]

Originally Posted by Benzodiazo

I wish we were getting 230K after taxes. The truth is I'll get about 6K/month without any tax break.

If your income is $120k, then without any special deducts your monthly after tax income should be more like $7,000/month. Of course you may pay into a retirement account, pay some for benefits, etc which would reduce that.

Anyhow, one can easily afford to live in Los Angeles on a $120k income. Two people on $230k is even easier. Home prices in LA are still pretty inflated, but the rents are pretty reasonable. Even in the "hot" areas of Los Angeles you can easily find a great place in the $2,500~$3,000 range.

Anyhow, you're going to need to decide what you want to spend your money on. Nobody can tell you how to do this. Some people are perfectly happy living in a small apartment while they spend their money on travel, going out, etc. Some people prefer having a large home to do activities in. Once you decide how you want to spend your money, then you need to make a realistic budget that makes sense. If you want to live within your means then you should be saving at least 10% (in addition to retirement savings). So if you're getting $6,000/month, your monthly budget should be no more than $5,400/month.