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But what you have available to save is not a % of your total salary, it's a % of your total net income (salary - taxes - living expenses). If those jobs in SF p
by rqebmm 13y ago
But what you have available to save is not a % of your total salary, it's a % of your total net income (salary - taxes - living expenses). If those jobs in SF pay higher wages purely to keep up with the inflated living expenses, then you don't really have more money to devote to your 401k.
- ransom1538 13y agoRent becomes a fixed low amount over time due to rent control. Eventually rent becomes negligible. However, salaries continue to climb.
- grmarcil 13y agoWhere in the world does that apply? NYC has some of the most tenant-friendly rent control laws I know of, and most rent-controlled units are fairly close to market rate, and the legends you hear about exist but are so rare they might as well not. Urban centers have a pretty finite supply of housing, so you're looking at what amounts to a long-running auction for rents among residents. People are generally pretty willing to "bid" 25-35% of their income on rent (or more, depending on the area and demographic), so as average salary rises, rents are going to rise too, unless you're expecting a major urban retreat sometime soon.