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If it's a choice between low cost of living/low salary and high cost of living/high salary do you happen to have any figures which show which one actually works

If it's a choice between low cost of living/low salary and high cost of living/high salary do you happen to have any figures which show which one actually works out as more profitable?

josephlord 13y ago
Normally depends on what you need to live. Family needing family house go low cost. Recent grad, share a place in high cost high salary area. It's a spectrum and particular jobs may override the general but it is a start.
- k-mcgrady 13y ago
  Good point, I never thought of it like that.
Amadou 13y ago
My thinking is that a good job with pay appropriate to the area is better in a high-cost area than in a low-cost area. The reason being is that part of your pay goes towards housing which eventually means a mortgage. Once you decide to retire you can cash out that mortgage. A modest house in the bay area is still a million dollar house. A modest house in vegas is a $200K house. $1M in hand gives you a lot more flexibility than $200K.
- rdl 13y ago
  Also, an iPod or other globally-priced goods are cheap in high-cost high-wage areas, expensive in low-cost low-wage areas. Student loans, etc. are like iPods. I think the ideal is to work in a high-wage high-cost area early on your career, to build up a high salary history and cover some of your fixed costs (student loans, etc.), while not incurring large recurring high costs (buying a house). Then, relocate to a low-cost low-wage area while working remotely for a high percentage of your original salary. A $150k/yr Silicon Valley salary that became $110k/yr to telecommute from a low-cost, low-tax, low-wage area would be awesome buying power. A lot of people do this with fixed retirement income (pensions, or even social security) -- retire to a low cost area.
andrewljohnson 13y ago
It's obviously case by case. Some cities have better bang for your buck. Here's one report from Forbes. http://www.forbes.com/sites/joelkotkin/2012/07/09/the-cities-where-a-paycheck-stretches-the-farthest/ http://www.forbes.com/sites/joelkotkin/2012/07/09/the-cities... Also really depends on what you want. Cheap house or great nightlife? Great schools or rock climbing?

If it's a choice between low cost of living/low salary and high cost of living/high salary do you happen to have any figures which show which one actually works out as more profitable?

josephlord 13y ago

Normally depends on what you need to live. Family needing family house go low cost. Recent grad, share a place in high cost high salary area. It's a spectrum and particular jobs may override the general but it is a start.

k-mcgrady 13y ago
Good point, I never thought of it like that.

Amadou 13y ago

My thinking is that a good job with pay appropriate to the area is better in a high-cost area than in a low-cost area. The reason being is that part of your pay goes towards housing which eventually means a mortgage. Once you decide to retire you can cash out that mortgage. A modest house in the bay area is still a million dollar house. A modest house in vegas is a $200K house. $1M in hand gives you a lot more flexibility than $200K.

rdl 13y ago
Also, an iPod or other globally-priced goods are cheap in high-cost high-wage areas, expensive in low-cost low-wage areas. Student loans, etc. are like iPods. I think the ideal is to work in a high-wage high-cost area early on your career, to build up a high salary history and cover some of your fixed costs (student loans, etc.), while not incurring large recurring high costs (buying a house). Then, relocate to a low-cost low-wage area while working remotely for a high percentage of your original salary. A $150k/yr Silicon Valley salary that became $110k/yr to telecommute from a low-cost, low-tax, low-wage area would be awesome buying power. A lot of people do this with fixed retirement income (pensions, or even social security) -- retire to a low cost area.

andrewljohnson 13y ago

It's obviously case by case. Some cities have better bang for your buck. Here's one report from Forbes. http://www.forbes.com/sites/joelkotkin/2012/07/09/the-cities-where-a-paycheck-stretches-the-farthest/ http://www.forbes.com/sites/joelkotkin/2012/07/09/the-cities... Also really depends on what you want. Cheap house or great nightlife? Great schools or rock climbing?