If you want financial success, few places offer more opportunities than L.A. You’ll find a thriving job market and multiple avenues for your small business launch if you have an entrepreneurial mindset.
You can afford the laid-back California lifestyle of your dreams with a little planning and a lot of hard work. Here are five tips for setting yourself up for financial success in L.A.
1. Save for Emergencies
If the past few months taught people anything, it’s that a pandemic can take that seemingly secure job away from you in a heartbeat. What will you do to make ends meet until you find something else?
Most experts recommend saving between three and six month’s worth of living expenses in a liquid account that you can readily access. Your circumstances might dictate stowing away a bit more. For example, if you work in a highly specialized field like academic research, you might want more padding as a job search could extend for months.
2. Start a Meaningful Side Hustle
It’s tragic, but relatively few humans love what they do for a living. One way to fulfill your dreams is to start a meaningful side hustle with your passions. Everyone has heard tales of actors who started out waiting tables and attending casting calls in their spare time. Perhaps you dream of starting an Etsy business with your knitting knack or starting a boutique bed and breakfast.
Breaking ground on your dreams while keeping your day job gives you financial security and the opportunity to do what you love. Additionally, starting when things are going well spares you considerable stress and gives you a fallback plan if something happens — like a pandemic — that affects your main source of income.
4. Get on the Minimalism Trend
If you haven’t caught onto the minimalism trend yet, doing so could set you up for greater financial success in L.A. After all, who wants a bunch of stuff sitting around collecting dust when you could be out having meaningful experiences in the California sun instead?
Sit down with your bank statements and evaluate your budget, categorizing expenses and cutting back where necessary. Before you leave for that Rodeo Drive shopping spree, practice one-in-one-out living — choose one item you will sell or donate to make room for your new purchase. This process makes you more mindful about where and how you spend your money.
5. Get Yourself Covered
Moving to an area with a higher cost of living might make you think it’s time to cut back on non-essentials, and as mentioned above, you’d generally be right! Remember, though, that even if it may be tempting, insurance shouldn’t fall into that category. At the very least, you should secure health insurance and life insurance, even if you think you’re healthy — illness and accidents don’t discriminate.
If you’re new to the insurance game, there are many online resources and calculators that can help you start figuring out how much insurance you need and how to find a cost-effective policy. Once you’re covered, you can go surf the waves knowing you’re fully protected in the event of an injury!
6. Get Over Your Fear of Investing
Want to be more like those Silicon Valley tech investors who seem to know everything there is to know about making money off of the stock market? Regardless of the answer to that question, it does benefit you to learn how to invest in the stock market. If you don’t have time or the inclination to research individual stocks, consider investing in a mutual fund. These diversify your portfolio for you, and you can select those that only put your cash toward businesses that reflect your values.
Set Yourself Up for Financial Success While Living in LA
Few cities offer more opportunities than the City of Angels. Please set yourself up for financial success while living in L.A. by following a few simple tips!