pilchardthecat

I have an opportunity to relocate to the Pasadena area. We have a few weeks to decide if we're interested enough to take a trip out there before we commit finally. We are looking at houses in either Glendora or La Verne as they seem to be cheaper and not too far away. I have a wife and two kids (11 and 7)

We have many other things to think about but i'm really struggling with the cost of living calculation. Firstly the net pay calculation seems to vary between $7 and about $9.5 a month for a (roughly) 165k job.

Rent (until we either get perm residency or come home) seems to be around $3.5-$4k/month in a decent school area. We are pretty much mortgage free in the UK (modest house worth maybe $400k if we sold it and bought dollars) so would be borrowing another $350-450k if we bought

If i factor in $800/month on medical, pension contributions, two cars, insurance, bills, food, and the other stuff we typically spend money on now, it looks like i'm short between $2500 and $4000 a month... despite getting something like a 40-50% pay rise and supposedly paying less tax

Am i missing something or is it just so expensive that you had to either get there before the bubble or turn up with a million dollars in cash to get that wonderful standard of living i hear about?

Pulaski

Are you saying you've budgeted $800 for all those things?

The cost of even "high deductible" health insurance ($150-$200/mth) and related contributions to a Health Savings Account ($560/mth) will take up most of the $800.

Then cars - allow $200/mth for gas (its cheap, but you will use a lot more of it) and servicing, assuming you bought for cash, or $500/mth if you're leasing or financing. For the first year car insurance is likely to cost you around $200/mth, and will drop progressively over the next 4-5 years, to a more normal level. Some people report getting a discount based on UK no-claims, many do not.

Utilities (water, heating, elecricity) probably average around $250-$300/mth. Food and household supplies for a family of four - I doubt $100/wk would do it, a minimum of $150 might do it, or it might not. ......

Other stuff? .... Meal for a family of four in a chain restaurant, allow $100. Probably about as much for a night out at the cinema. Theme park visit - $300-$400, ... plus food!

You are contemplating a move to one of the most expensive areas of the US.

robin1234

I was puzzling over that sentence too. I thought maybe it was a typo and OP meant $8,000 a month? Although that seems a bit high.

pilchardthecat

Sorry that was unclear - the only accurate number i have for the sundry items at the bottom is the $800 which is just for the corporate health policy. The rest of it is a guestimate but seems about right based on your numbers, although i havent allowed for car insurance at $200/month (x2 cars). I'm using $1000/month for food

So basically it's a non-starter, i would need another $40k after tax just to break even, and that's using the higher number from the paycheck calculators

Just out of interest, what do think 165k would be after tax?

Pulaski

So tell 'em it's not enough. If they want you they'll find more money for you. .... Start by asking for another $50k, and maybe they'll agree on $40k, or you can make it work on $30k.
My rule of thumb is take home (after health ins and HSA contribution) is about 70% of gross, so just under $10,000/mth.

pilchardthecat

Thanks, i can now work back to a gross pay figure. The current offer is financial suicide!

Pulaski

I got sçrewed like that myself. Luckily I had a green card and was able to walk out.

sir_eccles

Just so you are aware for a bit of perspective, the median household income in the US (often two working adults) is around $53k. For California it is a bit higher around $62k.

Pulaski

Which is why 15- 20% of the US population live in trailers, and as many again live in low cost apartments. And those figures wouldn't include those who live in "low-income" parts of town that most people, even US citizens, would consider to be scary.

I took a shortcut through such an area in a nearby town one evening on the way home from a meal out with Mrs P and little Miss P, and inadvertently drove into the middle of an armed police confrontation!

sir_eccles

I know, I don't know how some people do it. When I say "some people" I'm not even talking minimum wage people but pillars of society such as teachers, nurses, firemen etc.

Pulaski

Agreed. Not only do I not know how they do it, I don't even know why they do it - why do people go into those careers?

I admire them for doing so, and I know we need them, but the pay for teachers is just embarrassing. ..... I thought nurses were relatively well paid?

sir_eccles

Maybe, I don't really know. Maybe once they have a few years they are alright but I'm sure the starting salary is poor for what they have to put up with.

username.exe

My wife works for the school of nursing at a university here. Starting salaries for nurses are around $70k. Teachers (elementary at least) are paid abysmally, around $35-40k iirc.

Just reading through some of the good advice in this thread, I would have guessed that $165k would be a reasonable salary for a family of 4 in SoCal.
Sure, you're not living in a mansion at the beach but if you maintain reasonable expenses I think you'd be okay in Pasadena. We looked at that area last year and liked it a lot.

BTW my electricity bill last month was $16; gas was $40... We don't need AC but that's not bad for a family of four.

sir_eccles

right, that's it I'm retraining!

roberth1970

We (family of 4) moved to the Bay Area a few years ago on a salary of about $190k (there was a commission element, so I'm not 100% sure what I took home that year).

Which sounds crazy - especially In comparison with the US average incomes, but really, if you want a decent (not extravagant, we now run oldish cars, don't own a helicopter or a yacht) lifestyle in a nice area, I think it would be hard on much less.

Mad, but there you go.