Eric Lee

Period 4

June 8, 2011

Cost of Living: Analysis

Provided the circumstances I was faced with, I came to realize living in Southern

California, or Orange County for that matter, is a privilege. For just one person, it is already very

difficult to make a living off of a $45,000 salary (that is also Paul Kim’s fault for picking such an

expensive condo and mine for agreeing with him). There were many hidden costs that I did not

anticipate having to pay for since my parents always handled everything. I also did not anticipate

many things to cost as much as they did. Having a greater income meant having greater taxes to

pay. Prior to going through this project, I had a vague understanding of how much money

families lose from taxes each year, but I did not know how much that value was exactly. After

paying taxes, I lost about one fourth of my income. I was forced to cut down on many other

things I take for granted under the care of my parents. For example, my family is under Verizon

Wireless with a family with three additional lines. Each line has unlimited talking and texting.

Altogether, that amounts to $200.00 per month. Our family also currently has four operating

automobiles. Three out of the four cars we own must pump premium at the gas station, which is

additional $0.20 per gallon on average. To own a car, one must also have car insurance.

Throughout the course of this project, I did not have the money to own a car. Without a car, I

also did not have to worry about car insurance. After going through this project, I realized how

much hard work my mother and father put in to sustain our family. It is difficult to truly

understand the value of money, and this project has helped further my understanding of how

important money is and how to budget it correctly.