Can I Live in Beverly Hills on $130,000 a Year?

Living in Beverly Hills, California on $130,000 a year is possible but comes with significant challenges due to the high cost of living in the area. This article will explore key factors to consider, including housing, cost of living, and lifestyle expenses, to determine whether this budget can support a comfortable life in one of the world's most exclusive neighborhoods.

Housing

Renting: As of 2023, the average rent for a one-bedroom apartment in Beverly Hills is around $3,000 to $4,000 per month. This would consume a considerable portion of your income. Even a smaller apartment or a sublet arrangement would still be expensive here.

Buying a Home: The median home price in Beverly Hills is over $2 million, making homeownership prohibitively expensive. It’s almost impossible to find a home within the budget unless you have additional assets or financial investments to draw from.

Cost of Living

Utilities: Utility costs can range from $150 to $300 per month, depending on your usage. Electricity, water, gas, and internet services all contribute to this expense.

Groceries: With a higher cost of living, groceries can be more expensive than the national average. A single person might spend approximately $400 to $600 on groceries each month.

Transportation: If you own a car, you will have to factor in costs for gas, insurance, and maintenance. Public transportation in Beverly Hills is limited and often more expensive compared to other cities.

Dining and Entertainment: Dining out and entertainment expenses in Beverly Hills can be quite high. Many restaurants and activities cater to a high-end clientele, driving up costs even further.

Taxes

California has a state income tax that can take a significant portion of your earnings, especially at an income level of $130,000. After-tax income might be around $90,000 to $100,000, equating to about $7,500 to $8,300 per month.

Budgeting: Here’s a rough budget breakdown:

Housing: $3,000 - $4,000 Utilities: $150 - $300 Groceries: $400 - $600 Transportation: $300 - $600 Miscellaneous (dining, entertainment, savings): $1,500 - $2,500

Conclusion

While it is possible to live in Beverly Hills on $130,000 a year, careful budgeting is essential, especially when it comes to housing. Many residents in the area have higher incomes, which allows them to navigate the high costs more easily. If you are flexible with your housing situation, such as living with roommates or willing to live slightly outside of Beverly Hills, your financial situation may be more manageable.

Alternatively, consider the question, 'Why do you want to live in Beverly Hills?' Are the amenities, social scene, or prestige worth the extra expense? Depending on your priorities and lifestyle choices, a more affordable area nearby might provide a similar experience without the financial strain.