How To Save Money Living In Los Angeles

*This post has been reviewed by an Illinois Registered CPA. However, when making important financial decisions, it's best to speak with your financial advisor.

Last Updated on July 31, 2022

Learn How To Save Money Living In Los Angeles

Los Angeles. We all fantasize about living there. It is one of the greatest cities in the world. Home of some of the greatest celebrities of all time, it is one of the most visited cities by families, couples, and singles. There are many things to do in Los Angeles. People love it for its museums and theaters, film studios, and behind-the-scenes tours. There are also beautiful beaches, restaurants, and other fun activities.

Being the center of Hollywood and the film and TV industry, LA receives a lot of attention. It has the well-known Hollywood Walk of Fame. People seem to love to live in Los Angeles. There are great job opportunities, a unique infrastructure, friendly people, excellent education, and so much more.

Living in LA can be quite expensive, though. The average cost of living there is $5,811. That means that you would need some money and savings. If you are wondering how to save money on different aspects of LA life, you are in the right place. We are going to give you tips on how to save money living in Los Angeles, and still be able to afford all its glamor.

How To Live On A Budget In Los Angeles

Let’s clear something up first. Yes, it is possible to live on a budget in Los Angeles. In fact, it is possible to do it anywhere. You need to plan your budget to make it work. Many people do not realize that when they plan their budget they can afford to do anything. Budgeting is a great way to save money fast, and if you wonder why you can’t save money, chances are you are not planning your finances as you should.

To plan your budget you would have to do the following:

Creating a Budget	Tips
Write down your monthly income	Include anything from your monthly salary to bonuses or winnings
Set goals and make a plan	Establish specific short and long-term goals
Track and adjust when needed	Check your bank account often and make changes when needed
Review the budget regularly	Stay motivated by checking on the status of your budget throughout the month

Another way to live on a budget in LA is to use methods like:

1. 50-30-20 Method
2. Digital Envelope System

The first one allows you to budget your money according to three categories – needs, wants, and savings. The second one allows you to plan your money and put it in digital envelopes. For example, if we take the 50-30-20 method, with an average monthly salary in LA of $6,756 (yearly $81,072), it would look like this:

• $3,378 (or 50%) for your needs
• $2,026 (or 30%) for your wants
• $1,351 (or 20%) for your savings

Using the same monthly salary in LA, but with the digital envelope system, you could do the following:

1. Envelope for rent = $2,550
2. Envelope for bills = $700
3. Envelope for food = $800
4. Envelope for vacation = $1,000
5. Envelope for emergencies = $1,000
6. Envelope for transportation = $700

You can see that with the right planning and adjustments you can live in LA and save money. You can also allow yourself to go to the cinema, and take advantage of the entertainment industry. If you already live there, why not have the full LA experience?

Saving Money On Rent And Bills In Los Angeles

Rent

The average rent in Los Angeles is around $2,524 per month. It depends on various factors, like:

• Location
• Size
• Quality

To save money on rent in Los Angeles you would have to research different neighborhoods to see if it suits your needs. The location could make a difference in the rent cost. For example, in certain areas, rent can be insanely high. That is why it is important to research which areas are more affordable.

If you live alone you can get a smaller place that includes the essentials. You do not need an extra bedroom if you are by yourself, and that could save you significant money. If you already live on your own in a bigger apartment, consider getting a roommate or two. That way you can split the costs for everything, including rent and bills, to maximize your savings.

If you do not mind living modestly, you could always move. Luxury apartments usually cost more to rent. If you want to stay on budget, living luxuriously shouldn’t be your primary goal.

Bills

To save money on bills while you live in LA you could consider using the half payment method. It is a method that helps you stay on track with your bills when you are paid biweekly. Split your bills in half and set aside money from each paycheck. That way when the due date comes you can pay the bill in full. To save money on your bills, you can also do this:

• Invest in solar panels if you own a home
• Switch to LED bulbs
• Invest in a water meter
• Change service providers

How To Save Money On Food In Los Angeles

An average person spends around $35 per day on food and transportation in Los Angeles. It is safe to say that food can be expensive in LA. To save money on food you should start implementing some strategies.

For example, every time you have the chance, eat at home. Avoid eating out at restaurants since they can be expensive. Start planning your meals for each week and pack a lunch for work. Hopefully you will also develop healthy habits.

Another way is to take advantage of coupons, discounts, and promotions while shopping. Many stores have weekly discounts that allow you to save money on groceries. You can do a weekly grocery shopping trip and plan your menu around items that are on sale.

Coupons are also a great way to save money on food. Use them strategically. The best strategy is to stack the coupons and then use them for different deals.

If you live in LA, compare the prices in your local shops. The prices for many products can vary. You may find the same product for less in a different store. Another tip is to take advantage of food trucks. They are typically cheaper than eating at restaurants in LA. If you are a fan of tacos, this should be easy for you.

An advantage of LA is that it is in a sunny state, which means more fresh produce. You can buy fruits and vegetables for a cheaper price if they are in season. You can plant your own garden to grow them yourself and save money by doing that. Another benefit may be developing a healthy lifestyle and having fresh food year round.

Saving Money On Transportation In Los Angeles

One way to save money on transportation in LA is to buy a car. Many people say that if you live in LA, you need a car, but that is not always the case for the City of Angels. Having a car may also mean having to pay for a parking spot, which costs extra money.

That is why another option is to use public transport in LA. With public transport, you can avoid being stuck in traffic wasting gas. It is cheaper to use the bus or subway rather than a taxi or uber. A single ticket is only $1.75, while a day pass is $3.50 (regular $7). Using public transportation is a great way to save money.

You can also use a bike to get around LA. It has the perfect weather for bikers and you can stay healthy that way. Another option is to walk, but be sure to research if that particular neighborhood is safe.

How To Save Money In Los Angeles On Entertainment

After a long week of work, you might need a night out with your friends to relax and have a good time. In LA that could cost you some money, but here are some tips on how you can save on entertainment in LA:

1. Free concerts
2. Free comedy show
3. Happy hour
4. Cheap tickets

You can take advantage of the free concerts. In summer there are a lot of free music events that allow you to get together with your friends to enjoy a night out. Some of the most famous ones are the KCRW Summer Nights, Amoeba Music Live Concerts, and Polliwog Park Concerts.

Everyone loves a great laugh. Especially after a stressful week of work. In Los Angeles, there are many free or cheap comedy shows for you to choose from. Examples are Midnight Madness, The Oaks Comedy, and Chocolate Sundaes Comedy.

If you decide to go out to a bar or a club, make sure to take advantage of the happy hour. You could get a great discount on food and drinks just by eating at this time. If you want to explore, search for cheap tickets and discounts. There are websites that allow you to find the cheapest tickets in LA for any event, like Goldstar.

How To Save Money In Los Angeles As A Student

Besides the basic things for saving money as a student, in Los Angeles you can also try the following:

• Use the university recreation center
• Visit the university library
• Take advantage of college discounts
• Join student communities
• Find a part-time job

Make sure to carry your student ID anywhere you go. That way you can show it when you pay for something and there is a chance that you will get a discount.

Also, you can use the public library to have some fun as well. They have special movie nights where students get together and watch movies. That way you will save money on entertainment and have fun with your friends. Do not forget to take advantage of as many student discounts as you can. That way you will be able to stay out of debt without the need to fix your credit score.

Frequently Asked Questions (FAQs)

Can you live cheaply in Los Angeles?

Yes, it is possible to live in Los Angeles cheaply. You should think about the neighborhood where you’ll live first. There are cheaper and more expensive areas, which can make a big difference to your budget. You could also try some of the strategies we discussed above. It is possible to live cheaply in LA if you know how to budget your money wisely.

How much money do you need to move to Los Angeles?

Moving to Los Angeles can be expensive. This blog recommends having savings of about $20,000 before you move there. You’ll want to be prepared to pay for the following items:

Categories	What It Covers
Moving	Travel + Shipping
Rent	First and last month’s rent + deposit
Starting Out	Job search expenses + other deposits
Emergency	Fund to help cover unplanned expenses

Is it worth it to move to Los Angeles?

It is worth moving to the City of Angels. It has amazing weather, great job opportunities, and a lot of entertainment. There is no question that it’s one of the most fun US cities. It is close to beautiful beaches and Hollywood. If you decide to move there, make sure to read this article to find out how to save money living in Los Angeles.

Can you live in your car in Los Angeles?

It is not advisable to live in your car in Los Angeles. There are safety issues, hygiene problems, and it is not always legal. The law does not allow living in your car in certain areas, although it cannot prohibit you from taking a nap for a few hours after a long drive.

Is Los Angeles cheaper than New York City?

These are two of the best cities in the US. They are both expensive with higher standards of living. The cost of living in NYC is $7,408, while in LA it is $5,811. You can see that the Big Apple is a little bit more expensive than the City of Angels.

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