A ton of our overseas members seem to have been struck down with itchy feet syndrome. We’ve recently had a wave of messages asking advice on how to make the move to LA. The phrase ‘the grass is always greener’ comes to mind. Ironically, judging by the responses to this question, many Brits living in LA vehemently disagree. The number one complaint seems to be the cost of living. This discussion piqued my curiosity. I’ve been here for such a long time and get paid in dollars so I always feel the UK is far more expensive and was surprised to see that many of you felt it was the other way around. So of course it made sense to have a little look and settle this once and for all!
So how much is the price of eggs? (idioms seem to have got the better of me today).
The Economist most recent ‘Worldwide Cost of Living’ survey ranks the City of Angels at number 10 (along with Tel Aviv) , and London is 22 on the chart. That result surprised me as I always feel London is much more expensive.
I rent an apartment in the middle of Hollywood, which is a very touristy, and whilst there are many houses worth well over a million dollars it also still a little bit sketchy and run down in places. So I picked Queensway/Bayswater in London as a comparison, which is fair, don’t you think?
Currently an average one bedroom in London W2 can be had for £1300 per month, and a one bedroom in Los Angeles is around $1695 – the current exchange rate is $1.32 to £1, so LA is fractionally cheaper in this department.
I had a quick look at basic groceries and chose Tesco in the UK and Ralph’s in the USA to compare. Ralphs came out more expensive, but only because I added a couple of British imports to the list; overall groceries seem to be around the same price. Plus we all know there are deals to be had by shopping around at places like Trader Joe’s or Smart & Final. Use your supermarket loyalty cards too and shop according to what’s on offer. I always stock up when I see my favourite brand of coffee on sale for $4.99 a bag, as at full price it is $10.99. Whole Foods also offer discounts for Amazon Prime Members.
You can save even more if you have a Costco membership. Two dozen local organic eggs are only $6.99 there. I know it is tricky for many to buy in bulk, but why not split stuff with a friend?
Petrol is far cheaper here; I paid $3.69 per gallon today and I thought that was actually bit pricey, I think the average price has just risen again in Britain and is currently £1.23 per litre, which works out to be an eye watering $6.13 a gallon!!!
TESCO RALPHS
Pint of milk £0.48 $0.55 UK 8¢ more
Fresh baguette £1.00 $0.99 UK 31ç more
1 doz. Free range eggs £1.69 $3.49 USA $1.28 more
PG TIPS (80) £2.49 $11.79 USA $7.85 more
Kerrygold Butter 8oz £1.90 $2.99 USA $0.51 more
So it stands to reason that transportation is cheaper in LA too. I looked at Uber’s base costs and they charge $1.06 per mile, whereas in London you will pay £1.25 a difference of 57 cents, which definitely adds up on a long journey. Bus fares are also marginally cheaper here – $1.75 v £1.50; making a London bus ride $0.46 more expensive.
As you can see it is actually not drastically different, although the minimum wage in LA is about $2-3 higher than the National Living Wage in London. I also realize that many of you balk at paying for healthcare, but if you are self-employed you do get a tax deduction (as long as you are earning). Plus healthcare costs are scaled according to your income, so the less you earn the less you pay.
Obviously my research was very limited, so if you want a more in-depth comparison head on over to The Economist survey at www.Eiu.com – the basic report is free to download.
Sadly a decent pint is definitely more expensive here, but sitting amongst the swaying palm trees, with a warm breeze and constant sunshine whilst sipping it, is priceless .
Would love to hear your thoughts on this topic and especially if you have been shocked by the cost of something or have any money savings tips to share with the group.
Hope to see some of you at Breakfast Club next week, it was packed to the rafters last Tuesday, although Amazon Studios were giving away free tickets to Mike Leigh’s latest film Peterloo. Coincidentally our host venue Cecconi’s West Hollywood, only charges $15 for a Full English, and that includes bottomless tea or coffee plus tax and tip (and complimentary valet parking)! Cecconi’s in Mayfair charges £15 + a 12.5% service charge.
Food for thought, indeed!
Cheers!
Eileen
