How Much Money Do You Need to Live in Los Angeles?

As the second-largest city in the United States, Los Angeles attracts residents from across the country and around the globe. As the epicenter of the multibillion-dollar entertainment industry, the city is a magnet for aspiring actors, directors and screenwriters. With idyllic weather year-round, beautiful beaches and a diversity of scenery, it is possible, during some months, for an Angeleno to snow ski in the morning and surf in the afternoon.

Los Angeles is a perfect study in how the demand curve works. When demand for something is high, prices rise. There is plenty of demand to live in Los Angeles. As a result, everything including rent, food, gas, and utilities is expensive. When considering a move to LA, the first order of business is understanding how much money it is going to take to pay the bills.

The following information is detailed in averages, but keep in mind Los Angeles is a huge, sprawling city. Prices vary wildly depending on where you plant roots. Rents in Santa Monica are not comparable to rents in South Central LA. By understanding the average cost of rent, utilities, food and transportation in

The Path to Financial Abundance

There are many paths to financial abundance: inheritance, marriage, lottery, business success, just to name a few. For most of us, however, the path to financial abundance will be paved with savings. It is a method based more so on self-discipline than luck. In that regard, it can be gratifying. The essence of saving is to spend less than what is earned. Yet this simple concept is easily lost in the complex world of digital money. Quite simply, it is very easy to over-spend.

To manage this potential problem effectively, it helps to look back to simpler times, remind ourselves what worked then, and adapt those strategies to today’s realities. As a young adult in the 1980s, I lived for years in a cash-only manner. I would cash my paycheck on Friday afternoons. The cash was then allocated to a series of paper envelopes labeled rent, truck payment, utilities, food and extra. Each of the first four would receive 25% of the required monthly obligation. Any cash left over went into the extra envelope. At month’s end my bills

Save More Money Can Reduce Financial Stress

I’ve long held the position that even though we live in one of the wealthiest, most financially blessed countries ever, as a society, we also live a life of serious financial stress. I often joke that it’s probably less stressful to live in the rainforests of South America, hunting and gathering, than to live in our modern, tech-savvy society, paycheck to paycheck. A lot of this stress stems from the fact that, as a society, we just don’t save money very well. According to a past Marketwatch article, almost 69% of Americans have less than $1000 saved. That is an astonishing amount of us that are basically one paycheck away from homelessness, or at least raiding our retirement funds in case of an emergency.

Why Americans Have a Hard Time Saving Money

There is a plethora of reasons behind our insufficient savings habits, such as a lack of discipline and making bad financial decisions. Maybe, it is simply that good jobs and hourly rates just don’t exist anymore for the lower and middle class (which I would argue as a legitimate factor). We can even rationalize that the value of

Key Tips for Budgeting Your Money

It’s almost a truism that budgeting is a critical step for anyone looking to get serious about money management. After all, you have to know where your money is going in order to make plans for the future. But if you haven’t ever tracked your spending, how do you get started?

Here are three tips that will help you set up a budget and start managing your money.

Determine Wants Versus Needs

The first step towards creating a budget is determining which expenses are wants and which are needs. Housing, utilities, groceries, transportation, clothing and childcare are generally considered necessities; entertainment, travel and dining out are thought of as “wants,” or what are known as discretionary expenses. That being said, there often is some gray area between a want and a need: You may need a car to get to work if carpooling or public transit is not an option, for example, but a flashy sports car may be a want. Everyone must buy clothes, but designer clothes are not requirements. If you can afford or have already purchased a luxury version of your necessary expenses, remember that downgrading is always an option if you decide that type

Budgeting a Success in the New Year

At the end of each year – and the beginning of the new one – most of us think about things we’d like to accomplish in the coming year.  It’s a time we engage in self-reflection, ideas for self-improvement, and new – or ongoing – resolutions and goals.

One of the most common resolutions is losing weight, but we all know how that goes: crowded gyms in early January, inevitable drop-off when February rolls around. In fact, a study done by the University of Scranton shows that only about 8% of people actually achieve their resolutions.

Financial resolutions often include starting – or finally sticking to – a budget. Unfortunately, that resolution is all-too-often hard to stick to as well.

Why do so many people have trouble sticking to their resolutions? One of the main reasons is having unrealistic expectations. Overconfidence doesn’t just affect fitness goals, it affects investors’ behavior as well.

How can you make this the year you stick to your goals?

Take Baby Steps

Be reasonable in assessing where you are with your finances and don’t try to tackle everything at once. Start by listing all the areas of your financial situation you would like to

Strong quarterly as AI boosts increase

Internet giant Baidu is expected to report solid second-quarter financial results in line with consensus market estimates, as mainland China’s largest online search engine operator steps up its transformation into a global powerhouse in artificial intelligence (AI).Analysts anticipate Nasdaq-listed Baidu to provide on Thursday further details about its AI strategy, following the State Council’s announcement last week of an ambitious national AI development plan.”Laying out a road map for AI is a very encouraging sign of support from the government,” said Jefferies equity analyst Karen Chan.Baidu is forecast to post a 21 per cent year-on-year increase in net profit to 3.4 billion yuan (US$503 million) in the three months ended June 30, according to a Bloomberg survey of analysts’ estimates.That gain was attributed by Jefferies to a rise in average spending per online advertising customer and Baidu’s efforts in controlling its traffic acquisition cost.Revenue is estimated to be up 14 per cent year-on-year to 20.7 billion yuan. It would represent the mid-point of Baidu’s second-quarter revenue guidance, ranging from 20.5 billion yuan to 20.9 billion yuan.Investors this week will likely focus on Baidu’s search recovery outlook, mobile newsfeed advertising traction, content investment, and sales and marketing spending, according

Financial Tips

Keys to Financial Success Although making resolutions to improve your financial situation is a good thing to do at any time of year, many people find it easier at the beginning of a new year. Regardless of when you begin, the basics remain the same. Here are my top ten keys to getting ahead financially.

1. Get Paid What You’re Worth and Spend Less Than You Earn

It sounds simplistic, but many people struggle with this first basic rule.

Make sure you know what your job is worth in the marketplace, by conducting an evaluation of your skills, productivity, job tasks, contribution to the company, and the going rate, both inside and outside the company, for what you do. Being underpaid even a thousand dollars a year can have a significant cumulative effect over the course of your working life.

No matter how much or how little you’re paid, you’ll never get ahead if you spend more than you earn. Often it’s easier to spend less than it is to earn more, and a little cost-cutting effort in a number of areas can result in big savings. It doesn’t always have to involve

A Few Financial Basics

1. Create a Financial Calendar

If you don’t trust yourself to remember to pay your quarterly taxes or periodically pull a credit report, think about setting appointment reminders for these important money to-dos in the same way that you would an annual doctor’s visit or car tune-up. A good place to start? Our ultimate financial calendar .

2. Check Your Interest Rate

Q: Which loan should you pay off first ? A: The one with the highest interest rate. Q: Which savings account should you open? A: The one with the best interest rate. Q: Why does credit card debt give us such a headache? A: Blame it on the compound interest rate. Bottom line here: Paying attention to interest rates will help inform which debt or savings commitments you should focus on.

3. Track Your Net Worth

Your net worth—the difference between your assets and debt—is the big-picture number that can tell you where you stand financially . Keep an eye on it, and it can help keep you apprised of the progress you’re making toward your financial goals—or warn you if you’re backsliding.

4. Set a Budget, Period

This is the starting point for every other goal in your

The Personal Finance Mountain

  1. The Oh, Sh*t Moment

This moment is different for everyone, but it’s the point where you realize you’re not happy in the foothills anymore. For an awful lot of people, it seems to be related to debt.

For me, it was when I really wanted to quit a job I hated, but realized I couldn’t because I still owed a bunch of money in student loans. I hated that feeling and I decided then and there to figure out how to make sure I would never be trapped in a job I hated again because of money.

For some people, it’s a desire to escape the rat race way before the average retirement age.

For others it’s something entirely different.

However you want to slice it, it’s a realization that your money is controlling you, instead of the other way around. And that you’re just not going to put up with that crap anymore.

If that’s where you are, congrats! Welcome to the personal finance mountain.

  1. Budget

This word gets such a bad rap, but a budget is actually empowering! How can you get a job done if you don’t even

Woody Harrelson Is a Terrible Debt Collector

He was bad at his paper route. And not a great hype man for a lame gym. But as the actor tells Wealthsimple, he’s gotten better at money over the years, partly by not needing to spend much of it.

I was 9 or 10 years old when I got my first job, delivering the Houston Chronicle. Here was the problem: I was good at delivering newspapers, but I was terrible at collecting money from my customers. When I did my collection rounds, a lot of people would be like, “Hey, can you come back tomorrow?” And I’d say, “Sure, no problem. Sorry to bother you.” But day after day they always had an excuse or they’d pretend not to be home, and as a little kid, my collection efforts had no real teeth.

The way it worked, I’d buy the newspapers in bulk from the publisher as an independent contractor, and once the customers paid me, I’d turn a small profit. But despite all my hard work delivering papers, with my ineffective collection efforts I’d usually have a net loss. I’d hoped to make a little spending money, but I didn’t make money — I

How to Save $100,000 by Age 25

I won’t lie. These factors may have contributed to my general enthusiasm about life. But there’s another reason I sometimes stare into space and smile at nothing (even if anyone in the vicinity thinks I’m a crazy person).

For the first time in my life, I have absolute freedom to only pursue the things that interest me. The last two decades have been an uninterrupted freight train of schooling and work, so it’s a pretty surreal feeling. There are moments of pure elation, and even the occasional faint trace of guilt. Did I cheat, somehow? Surely it can’t be this easy? I’m waiting for a giant skyhook to descend from the heavens and hoist me up by the seat of my elephant pants, violently jerking me back into reality.

It wasn’t until 2013 that I even twigged this was an option. I’d been working as a business journalist for a couple of years, and one of my responsibilities was researching and writing personal finance features.

I’d chosen the topic of ‘net worth’, which is defined as everything you own, minus everything you owe. Naturally I was curious what my own net worth was, so I did the

Should You Pay Off Your Mortgage Early?

Don’t Forget About The Baby Steps

I’ve followed the Baby Steps for about six years now, and I’ve become an absolute die-hard fan.

Here they are, in order from top to bottom:

  1. Save up $1,000 for a mini-emergency fund
  2. Pay off your consumer debts (car, student loans, credit cards, etc.)
  3. Save up 3-6 months of expenses for your real emergency fund
  4. Invest 15% into your retirement
  5. Save for your kids’ college education
  6. Pay off your house
  7. Become wealthy and give

Note that if you’re on Steps 1, 2, or 3, you shouldn’t be investing OR paying your house off early. Before you even consider either option, you should be debt free except your home and have a fully-funded emergency fund.

Pay Off Your Mortgage Early? Absolutely.

If given the choice between investing extra money in the stock market (beyond the standard 15%) and paying off my mortgage, I’d choose paying off the mortgage every. single. time.

You know that 4% interest rate that you’ve got on your mortgage loan? If you pay off your mortgage early, you don’t ever have to pay it! Basically, it’s like locking in an investment for 4% that has absolutely no chance of going down…ever. If you pay off a $150,000, 30 year mortgage, that equates to over $100,000 in guaranteed

Are You Living Paycheck-to-Paycheck?

A large number of American households live from one paycheck to the next. This number has gone down since September 2016, according to a survey conducted by McKinsey & Company, where consumers expressed more confidence in their financial stability compared to the last eight years. But about 24% of the participants in McKinsey’s study still lived paycheck to paycheck. This means they struggled to cover their basic expenses and had empty checking accounts until the next pay period. With families to support and unexpected additional expenses, this can be a very difficult experience for anyone to go through.

The problem can arise for several reasons, but the main driving factor is not having enough financial knowledge. When you are financially knowledgeable, you understand the essentials of budgeting and how managing your money will help you be stable and reduce anxiety and stress.

Creating a Budget Can Help

If you are living from one paycheck to the next, the first thing you need to do is make a budget. What are your expenses? What are necessary and what are extraneous? How much do you need to have every month for your required expenses (rent, food, insurance, etc.)? When are

Best Budgeting Software of 2017

The best budgeting software helps you manage your money in a way that is organized, provides the detail you require and displays the information that you need in a way that allows for quick comprehension and analysis.

Here are four budgeting software systems that meet those criteria. Each system is distinguished by how it could best fit your personal approach to managing your finances.

Best for Fans of Zero-Based Budgeting

You Need A Budget (YNAB for short) is built on the zero-based budgeting principle that calls for you to “give every dollar a job.” With YNAB you need to be involved in your finances and willing to change old habits to make the system work.

According to YNAB, following those four rules will help you pay off debts, save money and stop living paycheck to paycheck. It’s a tall order, but YNAB users say it works.

This browser-based subscription system runs on both Windows and Mac computers. Android and iPhone apps are available and are able to sync data back to your desktop. YNAB also connects to bank and credit card accounts to download transactions, but it does not offer a way to track investments. Following a 34-day

Idea Staycation Your Summer

As the kids finish school and the weather heats up, many people are getting excited about long-awaited summer vacations. Summer vacations are a time to relax, unwind and spend some quality time with loved ones. Big vacations, however, do require quite a bit of planning and, of course, can end up costing some serious cash, especially with a whole family in tow.

If you haven’t gotten around to making summer vacation plans, or it’s just not in the cards this year, you might be the perfect candidate for a summer staycation. (A staycation can be just as enjoyable as a vacation, and can enrich your life for the whole year.

A staycation is like a vacation, only you spend it at home. Instead of spending lots of money on airfare and expensive hotels, you can take advantage of the attractions your area has to offer that you never get a chance to enjoy. This includes your house – when was the last time you relaxed at home?

Get Out

Outside, that is. National parks, state parks, county parks, metro parks and nature centers all provide a place to run around and enjoy nature. As

Ways to Stunt a Child’s Financial Growth

Financial knowledge isn’t built into our DNA. It has to be learned. Unlike long division and gymnastics, personal finance is not properly covered in school (if covered at all). So it falls upon parents to impart financial knowledge to their children. Unfortunately it’s easy to slip up and make mistakes. In this article, we’ll look at five ways you may be stunting your child’s financial growth.

The Vow of Silence

A lot of funding has been put into researching why kids fall into particular traps. Teen pregnancy, drug use, underage drinking and many other early problems have been traced back to a lack of communication – hence, the “if you’re not teaching your kids about ____, then who is?” campaigns. A lack of financial education doesn’t seem as serious as a drug addiction, but its long-term consequences are quite severe. Remaining mum on financial matters sends the message that either money is not important, or it’s something to fear and never mention. Neither of these are lessons that help with the financial realities children will face as they grow up.

If you’re not willing to teach good financial habits to your children, the school system and

The Beauty of Budgeting

Can you name a Fortune 500 company that doesn’t have a budget? Don’t spend too much time thinking about it – there aren’t any. Successful businesses around the world have one thing in common: they budget their money. And they do it because it works.

But although making money and making a budget appear to go hand-in-hand, a 2013 Gallup poll found that only one in three Americans prepared a detailed written or computerized household budget. Things may be improving somewhat: A Bankrate.com survey in 2015 found a much higher number said they budgeted (36% on paper and 26% on a computer or smartphone app). On the other hand, another 18% didn’t budget and a matching number answered “yes” to keeping the information “all in your head.”

If you’re one of the non-budgeters (or sketchy budgeters), we’ll show you how to get a better idea of how you spend your money by putting together – and sticking to – a personal budget.

Get Over the Terminology

Part of America’s aversion to budgeting may be rooted in language. The word “budget” – much like the word “diet” – has negative connotations. Budgets and diets are viewed as restrictive reminders of things

Steps to Budget Based on Your Values

Are you finding yourself struggling to stick to a budget? Many clients and Millennials that I talk to are always excited once we are done talking about how to budget. I’ve realized that, like myself, we missed out on not just financial literacy but how to view our money. I have four ways that will help you start to think of your money as a tool to create a better life where you spend your money according to what you value. Here are my four steps to start.

What Are Your Values?

Often I’ve found myself in the past spending money on items that I didn’t use for very long or were poor quality. I’ve learned over time that if we develop an understanding of our values we can learn to spend money with a wiser purpose. When we spend wisely, our budgets become easier to manage and we start to control our finances without them controlling us. (For more from this author, see: 5 Ways to Improve Your Finances Throughout Life.)

From Values to Goals

Our values will lead to our goals in life. If you value family, I am guessing you may have a goal of starting

Student Loan Forgiveness: How Does it Work?

For decades, educators have encouraged young people to get increasingly expensive post-secondary degrees that provide arguably decreasing real returns in the labor market, and to take out large subsidized loans, regardless of their career choices.

In 2016, the average college graduate borrowed between $26,450 and $31,200. Fortunately, some borrowers may find relief. There are many programs in place, some old and some new, through which debt forgiveness is possible, and we should expect more programs to surface in the near future, as untenable student debt burdens become a larger political topic.

Using Debt Forgiveness

Debt forgiveness programs are exactly what they sound like. In a student loan forgiveness program, qualifying borrowers may have some or all of their public student debt forgiven, either immediately or over a period of time. Unfortunately, none of these programs forgive private loans. The only known methods of discharging or removing private loan amounts is through bankruptcy or a one-off restructuring with the borrower’s private lender.

Currently, there are four major programs and several other minor programs that might cancel or significantly reduce your federal student loan balance. The major ones are Public Service Loan Forgiveness, Perkins loan cancellation, income-based repayment and Teacher

Should You Pay in Cash?

Articles and books on personal finance generally pack in as many tips as possible in an effort to make at least a couple essential ones stick. This shotgun approach is worth it if it helps readers learn to pay themselves first, spend less than they make, and so on, but saying too much sometimes means explaining too little.

In this article we’ll focus on just one technique to improve your finances, by taking a close at how making purchases with cash can contribute to your ability to budget, save and invest.

There is also the security advantage with debit and credit cards. Debit cards are protected by your personal identification number (PIN) and credit cards by your signature (and for some cards, a PIN number too). Cash is only protected by your ability to defend it should someone else want to take it from you.

Moreover, cards are as widely accepted as cash – with the exception of a few mom and pop shops. And yet, from a personal finance view, cash is almost always the better choice for making a purchase. Here’s why:

Overpaying

One of the drawbacks of credit and debit cards is that they encourage you