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Still though, on a cost-of-living adjusted basis, it works out the same. The other day someone asked me if a $100k offer at WalMart in Bentonville, Arkansas was
by mountainofdeath 7y ago
Still though, on a cost-of-living adjusted basis, it works out the same. The other day someone asked me if a $100k offer at WalMart in Bentonville, Arkansas was a good offer. The effective purchasing power is well over $200k in Bay area dollars, not to mention the lower tax burden.
Granted, there is huge opportunity cost living in Arkansas.
- akhilcacharya 7y agoDo Tesla’s cost half as much in Bentonville? What about MacBook Pros or student loan payments?
- faceplanted 7y agoNo, but food and rent cost far less, meaning you can buy more Teslas and pay off more of your loans.
- akhilcacharya 7y agoThe math doesn’t add up. Food isn’t uniformly half as expensive and rent is only a limited percentage of your take home. A 1k apartment vs a 4K apartment is a yearly difference of $36k, not $100k.
- hellisothers 7y agoThis. 10 out of 10 discussions I have around this topic with people looking to move out of the Bay Area results in the other party realizing money isn’t going to net out in their favor.
- mountainofdeath 7y agoAlso, don't forget that need based aid (assuming you are talking about student loans for children) are calculated off your total earnings and assets, irrespective of location.
- strikelaserclaw 7y agobiggest purchase of anyone's (average/above average people) life is always a house. When we say purchasing power, we have to include the "weight" of a house (which is proportionally much much greater than say purchasing a macbook pro.)
- mountainofdeath 7y agoNo, but if you are careful with money you can pocket more. For example, Texas and Washington do not levy a state income tax, letting you keep about 10% more (even more true now that you can no longer exclude state tax from federal earnings). Property taxes and housing tend to be far cheaper in Texas and until recently, were also lower in Washington.
- futureastronaut 7y agoRegardless of local cost of living, it's a bad offer becasue Wal-Mart can afford to pay better. That's "company town" pay right there.