Summary

The article discusses the misconception that having a low cost of living is easily attainable and highlights the privilege associated with the ability to choose a lifestyle that can reduce living expenses, particularly in Los Angeles.

Abstract

The author of an upcoming Medium article examines the cost of adopting a European lifestyle in Los Angeles, emphasizing that the ability to decrease one's cost of living is a privilege often taken for granted. The piece argues that money management advice is not aimed at the poor, who are struggling to meet basic needs, but rather at the middle class, who have the financial flexibility to make lifestyle changes that can significantly impact their quality of life. It distinguishes between the experiences of those living paycheck to paycheck at different income levels, noting that high-income earners may feel cash-strapped due to their wealth being tied up in assets, while low-income individuals face more immediate and dire financial challenges. The author reflects on the societal issues surrounding poverty and homelessness, acknowledging the limitations of individual actions to effect widespread change, and ultimately, the article serves as a personal narrative on the author's journey to a more fulfilling life, with plans to move to Spain to enhance their quality of life on a modest salary.

Opinions

The author believes that discussions about reducing cost of living are not relevant to those in poverty, as they are more concerned with immediate survival rather than lifestyle optimization.
There is a clear distinction made between the experiences of the rich and the poor when it comes to living paycheck to paycheck, with the rich having their wealth in assets and the poor facing immediate financial threats.
The article suggests that the middle class has the opportunity to make choices that can significantly improve their quality of life, unlike the poor who lack such options.
The author expresses a sense of helplessness in addressing systemic issues like poverty and homelessness, questioning the impact of individual actions such as voting, activism, or charity work.
The piece conveys a personal desire to leave the United States for a better quality of life elsewhere, specifically mentioning plans to move to Spain.
The author criticizes the notion that simply "doing something" can solve complex societal problems, highlighting the inefficacy of past efforts by wealthy individuals and government entities.
The article emphasizes that having a higher income provides more choices and the potential for a more luxurious lifestyle, even in an expensive city like Los Angeles.

You Need A Lot Of Money To Have A Low Cost Of Living

We don’t step around homeless people because we’re mean and heartless

In a forthcoming Medium article, I discuss how much it would cost if you wanted to live a more European lifestyle in Los Angeles. Frequenting cafes, bars and restaurants on the regular. Like everyday or most days of the week.

Here’s how I close that article (you can get notified when it and my other articles publish)—

I referred to the privilege a second ago. Because no doubt it is. This is a great thing to have to worry about.

No doubt. We don’t write these money articles for poor people. We’re not changing the world here. And anybody who acts like they are is delusional, disingenuous or both.

We — or at least I — write these articles for the people in between. For the middle class that still exists in America and is trying to navigate simultaneous housing and retirement crises. For us, cost of living matters because we can control it. And decreasing it can mean the difference between a good or exceptional life now and for the duration.

As Ben Le Fort did such a nice job explaining, living paycheck to paycheck looks different for the rich —

Living paycheck to paycheck is a term we use to describe when someone can barely cover their living expenses with their current income.

For people with a low income, living paycheck to paycheck might mean getting phone calls from the electric company threatening to shut off their power.

Most people making $250,000 per year who claim to be living “paycheck to paycheck” aren’t actually — it just feels that way because the majority of their wealth is in illiquid assets. They may not have tons of cash left over at the end of the month, but their wealth continues to compound.

People making $250,000 experience living “paycheck to paycheck” in a radically different way than people making $50,000 per year.

We need a different term for high-income earners with cash flow issues.

Ben defined the term living hand to mouth.

Here’s my definition of it — you get money and you spend it because you can. You have a high-paying job, a retirement account and a house that’s increasing in value. That’s your wealth. That’s your privilege. And, taken together, these variables help facilitate and sustain — practically and psychologically — a high level of month-to-month spending.

The poor tend not to have these things. Definitely not all of them. Usually not any.

However, something similar goes for the middle class. Those of us — of modest means — but making decent or better money. As in, we have more than enough money to pay our bills and then some. We’re not dealing with the utility company threatening to turn out the lights.

If you make $2,000 a month, rent a $1,200 apartment and take public transportation everywhere, you can’t afford to have any other expenses other than the ones you absolutely require to keep yourself alive. It’s going to be pretty difficult to lower your expenses. And why would the thought even cross your mind?

You’re doing everything you can to stay afloat. The last thing you should expect from yourself is more forced sacrifice. It’s a sin that we live in a country where endless numbers of people live like this. But, here again, there’s not much you — or I — can do about it. It’s part of being a helpless American on social issues. You’d love to help, but you can’t.

What are you going to do?

Vote?

Write your Congress people?

Post on social media?

Become a full-time activist? Either the keyboard warrior type or the kind who goes out and does actual work on the ground.

Give me a break. We routinely step around and sometimes over homeless people on the ground, not because we’re heartless assholes, but because there’s literally nothing we can do about the problem.

If billionaires, millionaires, and all the levels of government who hatch plan after plan that never works can’t do it, going to work for a non-profit or merely doing something isn’t going to solve the problem. While you can certainly change a relative handful of lives, you’re never going to rid society of problems that have become bigger than all of us combined. They’re out of control, thanks to decades of a lack of political will or meaningful attention. So now we just shit on cities for not being able to fix problems they’re unequipped to deal with.

People tell us to do something. Just do something! What in the hell are you supposed to do? Sacrifice the part of your salary you don’t technically need, then get pissed off because you’re still not seeing results? Become poor yourself out of principle?

Sounds harsh. I don’t like writing those words. But it’s just the sad reality.

I mean, for fuck’s sake, almost everyday when I take a morning walk, I pass by more than one person at the lowest point of their life. Then, when I get home to my below market rate, $1,400 apartment (that, at market rate, would rent for like three grand a month), I write about how I can’t wait to get rid of my car payment so I can save more so I can move to Spain faster.

What kind of world am I living in?

Sadly, the real one.

When you make, say, $5,000 a month instead of $2,000. Or, heck, even $3,000 or $4,000, you have a world of choice magically opened up to you.

You can say screw it and rent that sweet $3,000-a-month loft. Because you still have $2,000 left over to play with each month. Play your cards right and you’ll have enough money to buy brunch and get drunk a few times a week. Utilize the limits on your credit cards strategically and you can live like you’re making six figures. Take the hand-to-mouth approach and, suddenly, you’re a baller. Especially in Los Angeles.

Or you can go the route people like me end up taking.

You can say, okay, I’m doing alright. But I want to work less and do more. I want to improve my already high-quality quality of life. You don’t aspire to be that douche bag baller or an actual millionaire or billionaire. You just want to carve out as nice a life for yourself as you can on your modest salary in a place where you can see yourself living until they pick you up in an ambulance for the last — and hopefully — first time.

It’s that simple, man.

America in a five-minute read.

It has been good to me. Relatively speaking. But I still can’t wait to leave.

If you’d like to know more about the journey I’m on, follow me on Medium.

You can also subscribe to my Never Retire: Living The Semi-Retired Life newsletter where I chronicle my big decisions on lifestyle, housing and cost of living, which includes moving to Spain sooner rather than later.

This article is for informational purposes only. It should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.