What’s a good salary for a single person living in California?
Making California home can be expensive, and some places have a much higher cost of living than others. In fact, if you’re wondering where to live in the Golden State, your income can be the deciding factor. A good salary for singles in California varies widely by location and industry: $50,000 might be enough in some areas, $100,000 in others.
Here, we’ll provide real-world stats to show you the true cost of living. We’ll compare annual salaries across occupations to gain insight into what single Californians typically earn.
What is the true cost of living in California?
California is the fourth most expensive state in the United States, according to the Missouri Economic Research and Information Center (MERIC). Only Hawaii, Washington, D.C., and Massachusetts have higher costs of living. Data from the Bureau of Economic Analysis (BEA) calculates the average annual cost of living in California to be $46,636.
Average cost of living figures reflect how much it costs people to live in California. Living expenses generally refer to necessary expenses such as:
- housing
- food
- Utilities
- transportation
- taxes
- health care
- child care
- clothing
- educate
Where people choose to live in California and how they live can affect their personal cost of living. Their career choice can determine whether they can comfortably afford living expenses. What is considered a good salary for a single person in a metro area can be very different from what is paid for someone living in a farming community.
What is the real cost of living in Los Angeles?
According to the Bureau of Labor Statistics (BLS), households in the Los Angeles metro area spent an average of $67,587 per year in 2019-20. Most spending falls into eight categories:
- Housing
- transportation
- food
- Life insurance and pension
- health care
- entertainment
- Cash donation
- clothing and services
The latest data from the BLS shows that the consumer price index (CPI) for goods and services in Los Angeles has more than doubled since 2019. Some of the biggest gains were in the food and energy categories. Meanwhile, the average weekly wage for all occupations in Los Angeles is $1,698, for a combined annual wage of $88,296.
What is the true cost of living in the San Francisco Bay Area?
According to BLS data, San Francisco Bay Area residents spent an average of $91,728 per year in 2019-20. San Franciscons spend the most on housing, followed by:
- Life insurance and pension
- food
- transportation
- health care
- Cash donation
- entertainment
- educate
Similar to Los Angeles, San Francisco’s consumer price index more than doubled between 2019 and 2022, with consumers paying more for food, medical bills and household items. In terms of weekly wages, the average Bay Area worker earns $2,696, or $140,192 per year.
Why is the cost of living in California so high?
The high cost of living in California is largely due to supply and demand. Generally speaking, when demand for goods and services exceeds supply, it causes prices to rise.
For example, high demand versus low supply for an item such as housing can cause real estate values to skyrocket. California is an attractive place to live because its strong economy and job market drive more people to move there, driving up demand for housing. The state ranks as the fourth most expensive state for rent, with a typical home valued at $775,876, according to Zillow.
Meanwhile, California residents pay higher property taxes, adding to the cost of living. They also typically pay more for fuel due to higher taxes and environmental regulatory surcharges.
Inflation adds to California’s high cost of living. As of September 2022, the CPI rose by 8.3% year-on-year. When inflation rises, the things you spend your money on tend to become more expensive, further driving up the cost of living.
Is the cost of living in California worth it?
California is far from the cheapest state to live in. Whether it’s worth making your home there depends on why you want to live in the Golden State. For example, if you land a high-paying job in a promising field, a higher cost of living may be an acceptable trade-off for you to launch your dream career.
On the other hand, you may find that the cost of living in California is simply too high for your budget. In that case, you might consider moving to a state with a lower cost of living, or at least somewhere else in California.
Using a budget planner app is a great way to keep track of spending no matter where you end up. You can link the app to your bank accounts and credit cards to keep tabs on where your money is going and see at a glance where you might need to cut back. Staying on budget is one of the most effective ways to control the cost of living.
Takeout
How much is a person’s annual salary? The simplest answer might be this: an amount that allows you to pay all your basic expenses, save a little money, pay off debt, or work towards another financial goal. Whether it’s $50,000, $100,000 or more depends on your preferred lifestyle and where you choose to live.
If you’re struggling to keep your spending under control, using a money tracker app like SoFi Insights can help. Insights is an all-in-one financial tool to manage spending, monitor your credit and control your money.
FAQ
What is a livable salary for a single person in California?
Assuming a 40-hour workweek, the living wage for a single person without children in California is $21.82 an hour or $45,385 a year. Whether that salary is right for someone to live on depends on where they live in California and how they typically spend their money.
What is a Comfort Salary in California?
The salary you need to live comfortably in California depends on how many people are in your household, how many people in your household are earning income, where you live in the state, and your typical annual expenses.
What is a good monthly income in California?
Based on the Bureau of Economic Analysis estimates of what Californians pay for living, California earns a decent monthly income of $3,886. A good monthly income for you will depend on how much your expenses are and how much you typically spend each month.