There are several points in your life when change seems natural, such as after high school graduation, after college graduation and after you start a family. However, if you are bored with your career, or if you are interested in new career opportunities, then relocating to a different city can be a great way to reenergize your career and outlook on life. One of the biggest career and cultural changes that you can make in the United States is to relocate from New York City to Los Angeles. If this is a move you are about to make then you need to calculate your job relocation costs to determine if the move is worth the final payoff.
Upfront Costs
Upfront costs for job relocations can either be covered by you or by your company. Companies will generally offer to cover costs like transportation from your home to the new city, moving services, temporary housing while you find a place to live in the new city and possibly even meal allowances. If you are moving at your own expense then you will need to factor in all of these expenses into your relocation budget.
The first upfront cost you will have is mileage. The amount of money you spend driving from New York City to Los Angeles will depend on your vehicle, the number of trips you need to make and the current price of gas. To determine your cost per mile, divide the cost of gas by the average mileage your vehicle gets. Then subtract 20 cents per mile. This is the amount that the IRS will allow you to write off for relocation mileage.
The second upfront cost you will have is your actual moving expenses. If you hire a professional mover you can expect to pay at least $2,000 to move a New York City studio apartment or upward of $10,000 for a multi-room apartment. The larger your apartment is the more you will need to pay the movers. If you have a lot of valuable items or a lot of delicate items, then you will also want to take out extra insurance to protect yourself. If you want to save money you can rent a truck for a week for between $1,000 and $2,000 and do the moving yourself. If you choose this option don’t forget to factor in hotel expenses, gas, insurance and moving supplies. If you already have a truck, or if you don’t have a lot of personal belongings to transport, you can use your own vehicle and save money. However, remember to factor in packing supplies and possibly even shipping costs.
Moving to Los Angeles
New York City is the most expensive city in the United States to live in. In fact, as you are well aware, you spend about 212.10 percent of the national average to live in New York City (Manhattan). Of course, housing takes the biggest chunk of your income. On average, Manhattan real estate is priced at 399.2 percent of the national average. You also pay 137.1 percent of the national average for groceries, 146.6 percent for utilities, 117.4 percent for transportation, 139.2 percent for health care and 136.2 percent for miscellaneous costs. If you are ready for a drastic change in your expenses and your career opportunities then consider a move to Los Angeles.
While Los Angeles is one of the most expensive cities in the world to live in, it is significantly more affordable than New York City. When compared to the average cost of living in New York City, Los Angeles is about 28 percent cheaper. The biggest expense that you will have in Los Angeles is your housing. L.A.’s housing market is priced 245.4 percent higher than the national average, although when compared to New York City’s 399.2 percent index for housing, L.A.’s real estate is going to seem like a steal to you. Your remaining expenses are also going to be more affordable in Los Angeles. You will pay 120.2 percent of the national average for groceries, 121.3 percent for your utilities, 116.5 percent for transportation, 114.2 percent for health care and 111.7 percent for miscellaneous costs.
As you can see, you will save a lot of money on basic necessities when you relocate to Los Angeles from New York City. However, you will have a few more costs than you did back east. For example, you will need a car and you will do more driving in L.A. then you most likely did in New York City. This means you will have auto expenses like insurance, car payments, gas, oil and general maintenance costs. Remember to factor these costs into your budget when planning your relocation.
Relocating Costs
Relocating to a new city can be a great way to refresh your career and life. However, while Los Angeles offers significant savings in living expenses, it has a dramatically different culture that you may or may not enjoy. Before you pack up your belongings, it is a good idea to take a couple of trips to L.A. to test the waters.
