How Do I Spend My $5600/Month Income in LA?
This article has a purpose of sharing my experience with all of you. $5600/month is not a lot in LA, especially when taking into account that the cost of living here is one of the highest in the country. I am 22 right now, so hopefully this number will increase soon.
Back to the main topic, with $5600/month income, I am left with $5120 every month after tax, partially due to the fact I am an F1 student who is in my post graduate training period. With $5120, I put $2000 into my company’s savings account which has the interest rate of 4% a year, compound monthly. leave me with a little over $3000 left.
After depositing $2000 every month to a highly yield account as my safety net in case everything goes downhill, I invest $1000 in the stock market. My portfolio consists of mostly growth stock, which in return will boost my equity in the long run, and dividend stock, which help me to have extra every month. I have another article showing how to become a millionaire by consistently investing $1000 every month into the stock market. In case you are curious, this is a tip from a person who I knew a while ago, and i am doing exactly what he taught me back then.
The stock market leaves me with a little over $2000, which is enough to cover my younger sister, who is still in colleges, and myself. My rent in LA and her rent in Seattle cost me $1100. We are able to achieve this number because we agree to rent a small room away from both LA and Seattle downtown. This leaves me with $1000 which goes to the car insurance, gas money, utilities and food for the two of us. At the end of the month, I am usually left with a $100 to $200 surplus, which I put in my checking account and don't touch it.
That’s how I spend my $5600 income in LA. What do you guys think? Feel free to comment if you think that I either do good or badly.
