Moving to LA, Financial Fear, & Answering Your Qs! | October Coffee + Money Talk

TL;DR

Moving to Los Angeles created a short-term financial squeeze as moving costs, rent, a lease breakage, and new-home purchases hit at once while work paused for September. The discussion also covers a 6.9% mortgage rate, possible home-price declines of 20–30% in some cities, and practical moving steps such as building a mock budget and comparing three movers. Read on for the full answers.

Transcript

I feel so weird starting off this video because clearly my background has changed a little bit it's the same couch but we are in a different place and so I'm starting the October coffee and money talk from Los Angeles in our new home if you missed the announcement be sure to go back and watch our big announcement video where we explain why moving t... Read More

Key Insights

• 👶 Financial challenges post move include expenses, Covid isolation, and adjusting to new living arrangements.
• 💦 Housing market trends indicate longer listing times for homes and potential price drops in certain cities like Colorado.
• 🤲 Budgeting strategies for moving include creating mock budgets, getting moving estimates, and establishing sinking funds for additional expenses.
• 🛟 Whole life insurance policies can be used for down payments but impact the death benefit, posing potential drawbacks.
• 💳 Prioritizing emergency funds over paying off credit card debt is crucial to avoid financial setbacks.
• 💁 Tips for affiliate marketing include focusing on a few favorite products/services and creating targeted content.
• 👻 Flexibility with 529 plans allows for various options if kids choose not to go to college immediately.
• 🤑 Pell Grants offer free government money for college students with financial need.
• 🤑 Consideration for writing a money book for kids under eight years old may be in the works.

Questions & Answers

Q: How did moving to Los Angeles affect her finances?

The move caused unusually high outflows for rent, breaking the previous lease, moving services, and purchases for the new home. After not working throughout September, she found herself asking when the next paycheck would arrive and how much she could pay herself.

Q: Why did she move from San Diego to Los Angeles?

She says the move to Los Angeles is part of a plan to pursue financial freedom. The excerpt does not explain the full strategy, instead directing viewers to the earlier announcement video.

Q: What made the move to Los Angeles especially difficult?

She tested positive for COVID after returning from FinCon 22, just two days before the movers arrived. She isolated from Kyle and Quinn, spent five hours outside while the movers worked, later isolated in a hotel, and flew her youngest sister in to help with their one-and-a-half-year-old child.

Q: What are her thoughts on rising mortgage rates and the housing market?

She feels both scared and excited because higher mortgage rates may discourage bidding wars. She also observes more housing inventory and homes remaining listed longer than they did the previous year.

Q: What mortgage rate does she mention, and how high does she think it could go?

She says mortgage rates were at 6.9%. She believed they could potentially reach 8% by December.

Q: How much could home prices fall in some housing markets?

She cites videos suggesting that prices in some U.S. cities could fall by 20–30%. Colorado particularly interests her because that is where she wants to buy a home.

Q: How should someone build a budget before moving to Seattle?

Create a mock budget using expected Seattle expenses. She recommends researching rent or estimated mortgage payments on Zillow, then looking up average utility costs or calculators from local electric and gas companies.

Q: How should someone estimate cross-country moving costs?

Get estimates from three moving companies if an employer is not covering the move. Comparing estimates can help identify priorities, such as whether professional packing is worth including or negotiating as part of an employer-supported relocation.

Summary & Key Takeaways

• Financial update post move to Los Angeles, facing challenges with Covid, expenses, and new living arrangements.

• Answering viewer questions regarding housing market trends, budgeting for moving costs, whole life insurance policies, and more.

• Sharing insights on savings strategies, car purchases, affiliate marketing, and financial planning for college and kids.