The high cost of living in California is now getting painful according to a new report from Smart Asset outlining its challenges.
This study employs the 50/30/20 rule—splitting income among necessities, desires, and either savings or debt—to figure out the necessary pre-tax income for a decent life in these places.
And California presents a particularly challenging financial environment.
On average, an individual needs a salary of $96,500 to live comfortably in major cities nationwide, but this figure significantly rises in California’s urban areas.
For families aiming for a decent standard of living in cities like San Francisco ($339,123) and Oakland ($316,243), earning above $300,000 annually becomes essential to avoid the difficulty of paycheck-to-paycheck existence, indicating California’s high cost of living.
This difference is even more noticeable across various cities within California, from San Jose ($334,547) to San Diego ($289,453), where the income requirements for families are notably above the national average.
At these yearly salaries, you’re looking at a hefty $25,000 to $28,250 per month in income.
For Californians, this highlights the necessity for strategic financial planning to cope with the state’s considerable living expenses, marking a clear difference from the economic conditions in less costly areas.
The US Census Bureau found that 34.4% earned over $100,000 a year in 2022.
And according to a survey by Four Pillar Freedom, 5.7% of all U.S. households earn more than $200k annually.
This percentage only gets smaller as we enter the $300k level, with approximately 2% of employed people earning this amount.
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Also Read: SNAP Benefits Will Now Increase For The Year 2024
Other Economy News Today
A famous retailer is now laying off 614 people in California due to a new acquisition resulting in a new restructuring plan.
Boardriders Wholesale LLC is laying off 614 people in California due to the “recent acquisition by Authentic Brands Group and resulting restructure,” according to state WARN data.
They layoffs began in January with the next round expected by April 26.
Those affected include C-suite executives and other management positions, reports Fashion Dive.
This round of layoffs follows a similar move in September and October 2023, when 84 Boardriders employees were laid off as a result of Authentic Brands Group’s acquisition of the company.
Authentic acquired Boardriders in September 2023.
The previous round of layoffs were also part of restructuring efforts, and employees affected also included C-suite executives.
Boardriders cut 170 jobs in 2022 to reorganize ahead of the Authentic acquisition.
Because of the Authentic deal, “the Company is initiating necessary but difficult measures,” Jennifer Marques, chief human resources officer, wrote in Boardriders’ letter to the California Employment Development Department.
The latest cuts bring the total number of people laid off in California since the Authentic acquisition to 698.
“Authentic’s bench strength is in acquiring great brands with broken business models, converting them into a licensing model, and returning them to profitability,” David Brooks, executive vice president of action & outdoor sports and lifestyle at Authentic, said in an email to Fashion Dive.
“Brands must continue to evolve their business models to thrive and remain competitive.
Embracing change is essential to staying relevant, and part of that change includes our licensing partners taking over key functions and, unfortunately, eliminating certain positions.
These decisions are not taken lightly, but we are pleased that our partners have been able to take on upwards of 5,000 employees globally.”
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Also Read: A Massive Chain with 6,805 Locations Now Begins To Close
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