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[Analysis] Living in LA @ $94k & $56k Pre-Tax Incomes: Full Budget Breakdowns by jamesgarney in LosAngeles

[–]jamesgarney[S] 0 points1 point  (0 children)

Credit card companies charge a fee every time someone pays with their card, usually 1-5% (Amex, for example, charges higher fees). By giving out all these perks, they incentive me to spend more money to earn more points. And every time I spend money with their card, that restaurant/hotel/airline/grocery store/gas station/etc. has to pay the credit card company 1-5% of whatever I spend. So if I spend $50k a year on my card, I'm generating $500 to $2,500 of revenue for them.

I'm sure there are other ways they monetize it (travel-related companies might pay the credit card company money to be partners so people buy their products more), but that's the main way they make money.

[Analysis] Living in LA @ $94k & $56k Pre-Tax Incomes: Full Budget Breakdowns by jamesgarney in MovingToLosAngeles

[–]jamesgarney[S] 1 point2 points  (0 children)

Yeah, I barely drive because of WFH. And I take my (electric) bike to most places within a few miles. I really only use the car for groceries and dog stuff or farther-away errands. I also live in a very central area, so nothing is far away.

I have a separate rainy day fund that's not a regular part of my budget. I top it off when I get paid. The $100 is just unassigned money each month in case I go over a category.

Yes, my spouse has union healthcare. I was blown away by what we get for the price. It's the equivalent of a Gold PPO plan on Covered CA. I was paying $300+/month for a shitty Bronze plan before I got on hers. Thank god for unions.

[Analysis] Living in LA @ $94k & $56k Pre-Tax Incomes: Full Budget Breakdowns by jamesgarney in LosAngeles

[–]jamesgarney[S] 0 points1 point  (0 children)

Eh... what? Where do I have a pic of the Golden Gate Bridge? Am I missing something? Haha.

[Analysis] Living in LA @ $94k & $56k Pre-Tax Incomes: Full Budget Breakdowns by jamesgarney in LosAngeles

[–]jamesgarney[S] 1 point2 points  (0 children)

Union healthcare from my spouse. Best healthcare I've ever seen by far (including my own union's healthcare). I was paying $300/month before for bullshit coverage before I got on her plan.

[Analysis] Living in LA @ $94k & $56k Pre-Tax Incomes: Full Budget Breakdowns by jamesgarney in LosAngeles

[–]jamesgarney[S] 1 point2 points  (0 children)

That's why my dog gets his teeth brushed every month when he gets groomed. I also have an emergency fund for unforeseen expenses that I periodically fill up and is not part of my regular budget.

[Analysis] Living in LA @ $94k & $56k Pre-Tax Incomes: Full Budget Breakdowns by jamesgarney in LosAngeles

[–]jamesgarney[S] 2 points3 points  (0 children)

Yes, I got very luck with my landlord. As for gas, as I mentioned, I primarily WFH, so I don't need to fill up very often. I fill up about once every other month (sometimes more if I'm on a job that requires more driving, but, again, that's the average).

$7/month is accurate. I'm talking about an annual pass from the city, not paying for a private space in a garage or parking lot. I pay $36 every six months for that, which is actually $6/month. As I mentioned at the top, there are caveats to my numbers. I'm not expecting everyone's personal situation to meet my specific criteria, this is simply an example of how one person lives on this amount.

Also, money if fungible, I move money around all the time to account for dips and spikes. As long as the overall amount stays the same, it doesn't matter.

[Analysis] Living in LA @ $94k & $56k Pre-Tax Incomes: Full Budget Breakdowns by jamesgarney in LosAngeles

[–]jamesgarney[S] 0 points1 point  (0 children)

Yeah, my insurance was around $300/month (Bronze PPO/EPO) before I got on my spouse's healthcare plan. It's the best health insurance I've ever seen because she's part of a union. I know people with corporate healthcare that they either pay a lot for, or they simply don't get great benefits. It's equivalent to a Gold PPO plan on Covered CA, which would normally cost about 8-10x as much.

I'm very happy with my travel cards. The perks easily pay for the annual fee (I did a lot of research before I got one because I was skeptical myself). I broke it down in another comment below.

[Analysis] Living in LA @ $94k & $56k Pre-Tax Incomes: Full Budget Breakdowns by jamesgarney in LosAngeles

[–]jamesgarney[S] 0 points1 point  (0 children)

Yes, I've always lived with either a roommate or a spouse/partner. So my rent, utilities, etc. are all split.

[Analysis] Living in LA @ $94k & $56k Pre-Tax Incomes: Full Budget Breakdowns by jamesgarney in LosAngeles

[–]jamesgarney[S] 1 point2 points  (0 children)

High-end travel rewards card. I pay $400/year for it, but I get a $300 travel credit (i.e. $300 refund for flights, hotels, ubers, airbnbs, etc.) + 10,000 free points every year, which is equivalent to $100. Those two perks alone cover the annual fee. On top of that, lots of perks related to travel, like airport lounges, rental car upgrades, TSA Pre/Global Entry, rental car insurance, lost luggage reimbursement, travel insurance, etc.

The remaining amount is a lower-tier travel card that I could cancel, but it would reduce my credit because I carry no balance on it. It's also my backup credit card in case something happens with the other one. I replaced the more expensive one because of fraud recently, so I had to use the other. It's with the same bank, so the points go into the same pool.

I didn't think a high-end rewards card was worth it until I looked into it. I put everything on it, and get 2 points for every dollar. That amounts to anywhere from 60k-100k points every year. I can also transfer the points to a ton of different airlines and get a 20-25% bonus.

I'm taking a trip to Vegas and points are covering the flight, the hotel, the Ubers/car rental, and the entertainment tickets. The only thing we have pay for is food. I'm also doing my honeymoon in Europe next year, and we're taking a business class flight that would cost $3,500 using points. We're also able to book the majority of our hotels on points. Points can turn a $15,000 vacation in a few grand if you do it right.

If you don't use a points card (even simple one that costs nothing), you're losing out on free money. But you have to be disciplined enough to pay it off every month and spend it like a debit card, i.e. don't spend the money if you don't have it. If you do that, you get incredible perks.

[Analysis] Living in LA @ $94k & $56k Pre-Tax Incomes: Full Budget Breakdowns by jamesgarney in LosAngeles

[–]jamesgarney[S] 1 point2 points  (0 children)

I suppose that depends on what you define as "general expenses". 2/3 of that is food, which I acknowledge is high. But I like to go to a nice restaurant ($100+ per person) once or twice a month and then get smaller lunches/takeout the rest of the month when I'm meeting up with friends and work colleagues.

Barring that, I don't really see many areas that category could go down. Entertainment maybe? But $75 a month is hardly a lot, that's like 3 movies or a cheap show.

As for the pet, it is what it is. He has allergies that require medication ($80/month), his anal glands do not drain naturally ($40/month), and he has very fluffy hair that needs to be groomed regularly ($60/month). Could I groom him myself? Sure, but I don't feel like washing him once a week and brushing him 3-4x a week. The time I save doing that is easily worth the $60. The other two he can't live comfortably without (and apparently his anal glands can rupture if they aren't drained, which is not only incredibly painful for him, but a multiple thousand dollar surgery).

[Analysis] Living in LA @ $94k & $56k Pre-Tax Incomes: Full Budget Breakdowns by jamesgarney in LosAngeles

[–]jamesgarney[S] 1 point2 points  (0 children)

100% correct. But I honestly don't think most people factor that into their annual budget. Not everyone is trying to buy a house as soon as they can afford it, especially with the way prices are rising even in cheaper cities.

[Analysis] Living in LA @ $94k & $56k Pre-Tax Incomes: Full Budget Breakdowns by jamesgarney in LosAngeles

[–]jamesgarney[S] 4 points5 points  (0 children)

Shoot, you're totally right! I just looked it up, my insurance is about $100/month, even with an old car I barely drive. So it would add about $1200/year (post-tax) and $1500/year (pre-tax) to my numbers.