Living Large In LA? I Rather Not.
According to this article: http://biz.yahoo.com/special/live05.html, it costs a family of 4 $370,000 a year to live “well” in Los Angeles. That’s 3rd in the nation behind New York City and Boston. We’re talking about owning 2 houses, one in a nice neighborhood and one in the country side or beach house. 1 kid going to private college and the other one is in 8th grade. 2 luxury cars, a BMW 325i and a Lexus RX 330. Weekend get-aways at resorts, taxes, dining out, and health care costs. The part I didn’t like about this was that the fictional family only saved about 1% of their income to maintain this life style. This is definitely not the lifestyle I want to be pursuing. If this was 2 years ago, I may have been building my goals towards this but after reading The Millionaire Next Door, my views on people spending money extravagantly is rather silly and pointless.
I’ll be happy living in 1 mediocre house with 1 mediocre car, 1 motorcycle, dining at restaurants only on the weekends, and saving about 40-50% of my income towards my future goal of being a “Millionaire Next Door”. 10 more years to go!
