‘My goal right now is to move out but not be pinching pennies’: I have saved $50k and want financial independence by 30, but LA's cost of living holds me back. Can I achieve it?

Hi Money Minder,

How can I assist you today?

I’m a 25-year-old with a bachelor’s in BS Environmental Studies (plus a minor in Biology). I work full-time, making around $28 an hour, which adds up to roughly $58,000 a year. I’ve managed to squirrel away over $50k in my Roth IRA and 401k in the last couple of years. I live at home, so no rent (woohoo!), but I do have four chihuahuas I look after. Most of my spending goes on them, food, the gym, car stuff, and a storage locker. Since I’m saving a lot, I usually bring home about $1,500 every two weeks. Living in Los Angeles County is wild expensive, though. Oh, and I do some pet sitting on the side, which brings in an extra $1,000-$2,000 per month.

Right now, I’m working on getting certified in ArcGIS, hoping it will lead me into urban planning or something similar. Ideally, I’d like to double my salary by the time I’m 30. Doable, right? I really want to know if I’m on the path to hitting financial independence soon. Also, where should I move to give myself the best shot at a good life? I dream of having my own place—maybe buying some land and putting a mobile home or RV on it. I’m all about having space for my pets and living peacefully without crazy rent hikes. I’ve even thought about moving abroad, but I’m clueless about how to make that work with my job.

My main goal right now is to move out, but I don’t want to be scraping by… I also have a boyfriend who makes around $45,000 a year. He’s figuring out his career too. He’s in school to become a certified welder, aiming to become a Welding Inspector, but he’s also thinking about joining the LAPD. Supposedly, they pay about $80,000 starting out. We’re both kinda lost and wonder if it’s even possible for us to live together and stay in LA with our current finances. We’re open to moving, but we want our income and quality of life to go up, not down. I’m down to move to the middle of nowhere, as long as it’s safe and my commute stays under an hour.

Oh, and I had a bit of a mental breakdown—it happens—and randomly booked flights to Tokyo, Japan. The flights cost us about $1,600, and I have no idea what we’ll spend once we’re there. So now I’m trying to be super frugal to avoid financial chaos when October rolls around.

Money Minder, what should I be doing better to hit my goals by 30?

Thanks,

Lost and Ambitious

Response from THE MONEY MINDER:

Hello There,

Congratulations on your accomplishments so far, especially given your financial discipline and proactive approach to aiming higher. It sounds like you are already laying a strong foundation for your future, but there are some strategic adjustments you can consider to achieve your goals by 30 and beyond.

Firstly, aiming to double your salary in five years is an ambitious yet attainable goal, especially in sectors like urban planning and GIS, given the right certifications and experience. The ArcGIS certification is definitely a step in the right direction. Focus on networking within that field and perhaps look for internships or volunteer opportunities that can bolster your resume. Even in high-cost areas like Los Angeles, specialized skills in GIS and urban planning are in demand, which could significantly increase your earning potential.

Given your desire for financial independence and owning property, you may want to consider a phased approach. While buying land and living in a mobile home or RV can provide cost savings and space for your pets, the initial investment can be substantial. Start exploring suburban or rural areas adjacent to LA where the cost of land is lower yet still within a reasonable commuting distance. Areas like the Inland Empire might offer a compromise of affordability and proximity.

Regarding mutual financial goals with your boyfriend, coalescing a plan where you both increase your earning potential makes sense. Welding inspectors can indeed command high salaries, and should he decide to join the LAPD, the starting salaries are promising. Both avenues provide a pathway to increase your household income.

Living together in LA on your combined current income can be challenging but not impossible. Research affordable housing options and consider shared space rentals or smaller units initially. Keep your commutes manageable by focusing on areas with good public transport or those within an hour’s drive.

In terms of financial planning for your Tokyo trip, it’s great you are thinking ahead. Establish a strict budget for your trip, and try to allocate savings specifically for travel expenses. Consider cutting back on discretionary spending temporarily to build this travel fund.

Lastly, addressing any major financial decisions like moving internationally requires thorough planning. Research job markets, cost of living, and legal requirements for your profession in potential destination countries. Sometimes, remote work opportunities in your field could offer the flexibility to live in more affordable locales.

Overall, keep saving diligently, upskill yourself continuously, and remain open to incremental lifestyle changes that bring you closer to your goals. Best of luck on your journey to financial independence and a peaceful living environment.

Farewell,
THE MONEY MINDER