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by tcoppi
3616 days ago
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Taxes are also percentage based, and progressive at that. Your effective tax rate at $120k is quite a bit higher than at $60k, so you won't be saving double in that scenario because more of it will be going to taxes. Also, the percentage increase of 401k contributions etc. is very easy to calculate out to a dollar value, I recommend everyone do that when comparing salaries(though you have to remember not to consider taxes for those). I find the idea of overall expenses only doubling for a family moving from OK or MI to a place like Seattle somewhat silly. The vast majority of household budget's largest expense by far is housing. If they want to downgrade their standard of living from a 3-4 br 2000+sq feet house, then maybe it will only double. Otherwise it could easily triple or quadruple, as the original article discusses and evidence for is easily found. Salaries are not 3-4x larger in high CoL areas generally. The difference is pretty stark even starting from an area like Metro DC/Baltimore that isn't exactly known for being cheap, but nowhere near SF, Seattle, NYC or Boston levels. |
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Yes, the square footage of my apartment went way down. Pretty much everyone out here lives in less space, generally it's less a "standard of living" thing than a "that's the norm" thing, but obviously if you really need 2K sqft you're going to want to evaluate things separately.