The Hidden Costs of Living in Los Angeles

Before making the move to Los Angeles we took a long, hard look at the impact the relocation would have on our finances. 

It was known what the salary increase would be for H and we took into account the fact it would take some time for me to break into a new field (of course we didn’t think it would take 10+ months and counting). More than a few web sites informed us the cost of living in LA as compared to Chicago was somewhere between 20-30% more expensive which is pretty accurate.

There have been a number of things we didn’t account for however, some we probably should have assumed and others we had no clue about.

• Health Insurance – Back in Chicago I had my own health insurance through my employer and H had hers. Before leaving for Los Angeles I was put onto H’s and it cost us an extra $90 a month for HMO. Soon after arriving we learned H’s company could not offer an HMO because of the number of employees their LA office had out here. Not sure if this was an insurance regulation or a government one but none the less we had to switch to a PPO. Increased cost per month: $200. For those of you keeping score at home it means we pay $380 a month for health insurance (Don’t get me started on health insurance in the United States to begin with – I just do not understand it). 
• Storage – Living in a new downtown development has some advantages – things are new and usually designed in such a way to maximize space and livability. What’s not included in your monthly rent or purchase price at the majority of these developments is storage space/locker. Our first rental back in Chicago came with a good size storage space in the basement. The condo we still own has a massive closet in the basement to store more than enough stuff. Not so here in Los Angeles. Some buildings have on-site storage you can rent for an additional fee each month. Our building has no on-site storage opportunities what so ever. Can you imagine spending $500,000 for a condo and not having storage? Not long after we packed away some of our things we realized we still had items we needed and/or didn’t want to part with so we had to rent storage off-site. We are currently paying $85 a month for a place to hold our stuff. 
• CRV – I’m not talking about the small SUV but rather the deposit you have to lay down each time you purchase something in a bottle or can. For us the increased cost comes in the form of water and soda/pop. In addition to the $5.99 for a case of Coke (you really have to search to find a deal like that by the way) or $3.99 for water you have to fork over a deposit on the cans and bottles. The cost works out to $1.60 a case. $1.60 might not seem like a lot but it makes that case of Coke almost $7 and that’s if you can find it on sale. The good news is you can get the money back if you are willing to save up your cans and bottles and take them to a recycling station. The recycler will weigh your stuff and give you money back, something we do but it’s really a pain in the ass. There are plenty of people in our building that do not turn their cans and bottles in themselves and just dump them either in the trash or the building’s recycling container. I’m glad they choose to recycle but considering we go through a case of water and soda a week that’s $3.20 every seven day. Now you are talking $12.80 a month which may not seem like a lot but it would cover the cost of Netflix perhaps.
• Electricity/Hydro – Back in Chicago our hydro bill varied throughout the year. Our central air was powered by electricity but our heat was gas. In the summers our monthly bill was in the $65-80 range when we had to run the A/C all the time. During the winter months when we were paying for lights, computers, tv and the washing machine/dryer our bills were in the neighborhood of $35-50. Things are a little different here in LA … It’s one of two things, maybe both, but I haven’t taken the time to look into the matter. On one hand I wonder if hydro rates are just more here in California. Second, because it’s hot all year we find ourselves running the A/C all the time. During the odd week when it’s 65 out during the day we don’t run it but at night we always have the A/C on. Why? We don’t sleep with the windows open because (a) we get no breeze what so ever in our place, and (b) we don’t have screens in the windows. So what’s the monthly damage? Our cheapest bill so far has been $65 and our most expensive just under $100. 

I guess it’s the price you pay for living in this climate, living in a condo downtown, not wanting to lose your life savings if you get a really bad cold, and the cost of enjoying a beverage.