As Tupac once said, California knows how to party. If you ask most people where they would like to move if they could, New York or California would probably be high on their list. California is known as the Golden State because the area rapidly modernized due to the industry expansion expedited by the 1848 gold rush era. And California then only became a state in 1850. The first Mcdonald’s opened in California in 1937. Video games, Barbie dolls, the Frisbee, and the skateboard were all created in California. And of course, California is notorious for the Hollywood film industry. The point is that for almost two centuries, California has been at the crux of industry. Are you planning a move here? So, what is the minimum wage in California?
If you are planning a move to California, you should brace yourself financially. California has the highest cost of living standards in the country, relative to New York City. And the rent in California is astronomically high.
If you plan on moving to California, then you should have a strategically calculated personal budget, employment attainment strategies, and a plan.
What Is The Minimum Wage in California?
As of January 1, 2021, the minimum wage in California will increase from $12 to $13 or $14 per hour relative to the city or district. In some circumstances, the minimum wage in California
Generally speaking, any business with 25 employees or less will now pay $13 per hour. For businesses with 26 employees or more, the minimum wage in California will increase to $14 per hour.
However, these Californian cities have mandated these 2021 New Year’s minimum wage increase no matter the number of employees involved:
- San Diego – $14.00 per hour
- Oakland – $14.36 per hour
- Daly City – $15.00 per hour
- Half Moon Bay – $15.00 per hour
- Petaluma – $15.20 per hour
- Santa Rosa – $15.20 per hour
- Richmond – $15.21 per hour
- San Carlos – $15.24 per hour
- South San Francisco – $15.24 per hour
- Menlo Park – $15.25 per hour
- San Jose – $15.45 per hour
- El Cerrito – $15.61 per hour
- Redwood City – $15.62 per hour
- San Mateo – $15.62 per hour
- Cupertino – $15.65 per hour
- Los Altos – $15.65 per hour
- Palo Alto – $15.65 per hour
- Santa Clara – $15.65 per hour
- Belmont – $15.90 per hour
- Sunnyvale – $16.30 per hour
Sound good to you?
Well, if you are planning on moving to California anytime soon, you have to pay attention to your finances.
That is because the minimum wage in California, even with the increase, is overshadowed by the living wage.
California Living Wage
The minimum wage is the state-mandated minimum amount that a business must pay its employees. But the living wage is the amount of money you must make to live a realistically comfortable lifestyle.
If you are a single adult with no children, then the minimum wage and the living wage are almost at parity. So, if you were a single adult with no children living in California, you would need to make at least $32,000 annually to live comfortably.
If you were a single adult living in California with two children, you need to make a living wage of at least $78,000.
Are you a single adult with three children? Then you would need to make a living wage of at least $100,000 to live comfortably in California.
A working couple with three children would need to make over $104,000 together to satisfy a realistic living wage.
The cost of rent, mortgages, utilities, and consumer goods are a lot higher in California relative to other states.
Cost of Living in California
Want to buy a home in California? Good luck with that.
The average price of a home in California is over $600,000. Meanwhile, the national average price for a new home is about $320,000.
Want to buy a home in San Francisco? The average price of a new home in San Francisco is $1.3 million.
San Francisco is also notorious for having the highest rents in the country. The average rent in San Francisco is $4,200 per month. In Los Angeles, the average rent is about $2,800 per month.
You will pay about 43% more for utility payments than the national average.
Buying groceries in California is about 33% more expensive than the national average.
And relative to your tax bracket, California has the highest income taxes in the United States. If you make more than $1 million annually, your tax rate will be over 13.3%.
If you make $58.600, then your tax rate will be 8%.
You should make sure that the minimum wage in California will sustain you and your family long before you attempt to move there.
California is the Golden State, but make sure you don’t end up looking for Fool’s Gold.
Save Money Before Planning to Move
While making sure that the minimum wage sustains your family in California, you also have to make sure that you have savings. Here are some savings platform you can use before moving or while you are already in California.
|App||Fess and minimum:||Best for:|
|Digit||30-day free trial period. $5 per month||Setting aside automatically|
|Acorns||$1 per month||Spare change investing.|
|Qapital||$3 membership||Letting you set rules to automate savings.|