>You must have an insanely huge apartment for rent to increase by $4k/m
I meant to type 3K/mo (which is where my 36K adjustment came from). And yes, I've actually looked up housing in the Yay when I was considering a prospect there. Honestly, at the tiime I was looking for 2 bedrooms so my 3K adjustment may actually be under because now I need 3 bedrooms.
>Of course, you also have the option of downsizing into a smaller apartment.
No I don't. I have a wife and 2 children who if I can afford to give them their own room, I will.
That being said, I understand my calculations do not apply to everyone because we are not all at the same places in our lives (and may never be).
> No I don't. I have a wife and 2 children who if I can afford to give them their own room, I will.
Fair enough, I didn't mean you specifically. Once you have a family the advantages of a low-cost locale definitely become greater.
Of course, the advantage of working in SF/NYC is that by the time I'm ready to have kids I'll have enough money saved up to buy a house in a low-cost area in cash.
> Of course, the advantage of working in SF/NYC is that by the time I'm ready to have kids I'll have enough money saved up to buy a house in a low-cost area in cash.
That doesn't follow from the argument. If the COL adjustment means that the salary differential is not enough to cover the difference, you will be able to save more in the low cost location as well.
Of course all of those arguments are reductive as COL is not that easy to calculate and there may be other financial advantages to being local to the higher cost area (more diversity of work, less risk at job loss, or higher chance for a lottery style payout for instance).
> If the COL adjustment means that the salary differential is not enough to cover the difference, you will be able to save more in the low cost location as well.
That's assuming you are spending all of your income.
If you're saving money in KC (on $80k/yr) you should also be able save twice as much on $150k/yr—even if you assume a linear cost multiplier for all your expenses.
I meant to type 3K/mo (which is where my 36K adjustment came from). And yes, I've actually looked up housing in the Yay when I was considering a prospect there. Honestly, at the tiime I was looking for 2 bedrooms so my 3K adjustment may actually be under because now I need 3 bedrooms.
>Of course, you also have the option of downsizing into a smaller apartment.
No I don't. I have a wife and 2 children who if I can afford to give them their own room, I will.
That being said, I understand my calculations do not apply to everyone because we are not all at the same places in our lives (and may never be).