Living in LA on Minimum Wage and Why it’s Not Possible

Strapped for CashSO I just broke it down super hard because I was interested in seeing if it was possible to survive off $10/hour working a 40 hour work week in LA PROPER (i.e. where the standard of living is higher and has a higher percentage of residents against minimum wage increases but still need minimum wage workers in their area). Keep in mind I did the BARE minimum for some things and took the average of others. I accounted for what you would need to survive and a small amount of necessary amenities. Here are my results:
If you were to live in Van Nuys, one of the cheaper areas in LA county your average rent would be about $550-650 per month IF you shared an apt. (and you would have to because it is almost IMPOSSIBLE to have your own place on $10/hr. in LA) AND were only supporting yourself (i.e. you had no kids and/or a working spouse)

Next I looked at the average price of a daily commute based on the IRS’ average standard mileage rates. This includes gas, maintenance, car insurance, possible lease etc. but not any incidentals. The commute from Van Nuys to LA proper is about 20 miles round trip, which according to the standard mileage rate would be about $11/per day, $55/week, $220/month (keep in mind this is JUST accounting for a commute to and from work and nothing else)
I then looked up average cell phone plan cost ($71),a utilities cost for SFV living with roommates ($40), health insurance costs/visits ($40/mo.) and monthly food cost ($196) **this food cost is if you only spent $7/day on food** I made this on the lower end to account for some of the things that MAY be higher (i.e. commute/car costs) NOTE: This obviously does not include alcohol

In short here are the results put together:

EARNINGS (after taxes and mandatory unpaid 30 min workbreak):

WEEKLY PAY: $341.25
MONTHLY PAY: $1365
ANNUAL NET PAY (NEVER missing a day or working less hours): $16,380

LIVING COSTS:

Rent: $550-650
Transportation: $220
Cell Phone: $71
Utilities: $40
Health: $40
Food: $196

ESTIMATED TOTAL OF BASIC LIVING TO WORK IN LA PROPER:
$1,117-1,217/mo.
$13,404-14,404/yr.

This gives you about $148-248 ($37-$62/week) extra to cover anything outside of the things described above (this is including spending anything over your allotted $7/day on food or any household/personal products like hair care, paper towels, face wash, etc.).

**Additionally, you could lessen the cost by getting a monthly bus pass for $100 but a commute from Van Nuys to LA proper was about 1.5-3hrs (depending on traffic) ONE WAY so, while done, is not quite as realistic.**

So there you have it. Even with some variable costs it is safe to say that you really cannot work in LA for $10/hr. with a 40 hour (even 50 really) job and have a balanced healthy lifestyle.

So to all the basin dwellers griping about the minimum wage increases remember these stats or move someplace else where it is possible for “the help” to live close enough to serve you on $10/hr. because, I hate to say it, right now LA is not one of them.

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