Correct, this what I understand. Before the remote workplace, they were just too comfy in their location to think about locating to the limited tech cities where these salaries are being paid
I mean, I'll be honest, I make around 50k in a non tech job in a low cost of living area.i really don't want for anything. Maybe I just don't like really expensive toys, but anything I want, I buy. I go on nice vacations in country, plenty of wilderness around me. I don't have to look at receipts or bills before paying them and I never think about my bank account. I'm really totally unsure what making 500k instead would do for me, besides retiring super early.
Once you get to higher levels of income it sounds cliche but certain doors open up. You start rubbing shoulders with “influential people.” Now that money is no longer on your mind, you realize the value of your time over everything else. It’s a different perspective on everyday situations.
I don’t think money is a prerequisite to have this mindset, like you said, you don’t want for anything more. but once you get a taste of the luxury it’s hard to go back
The less obvious one is save a shit ton of money so you never have to worry about big healthcare expenses, whether it be illness or injury. It's amazing how quickly life can go from pretty good to pretty not good when you're unable to work for a while, especially when your health insurance is tied to your employment. One bad bike accident took me from a six figure income at the beginning of my career to struggling for over a decade, including a stretch of homelessness.
Financial Independence is a big thing. (Not just retire)
Do you have kids? Have you thought about generational wealth?
These are the things that are in people's minds. If you want to understand more visit subreddits like /r/FIRE or /r/bogelheads or /r/personalfinance?
At 50k you can easily provide for one maybe two people, but at higher salaries you can support a larger family (aging parents, children, relatives) and create generational wealth.
Not for most people. A silicon valley job means a silicon valley house and mortgage - you're in for at least a couple of million for a house in those parts, and it'll be fairly modest by US standards. If you have kids, you have silicon valley school fees and activities. And since all your new friends are silicon valley friends with silicon valley money in their pocket, all your own activities are going to grow more expensive too.
If you don't make a very conscious decision to step off that flywheel, a lot of people find themselves in the position where that 500k is mostly going to maintain your new normal lifestyle.
Ah, I confused this a bit with another remote thread. My intended point is that you can get that TC full-time remote from at least F and G now. They scale down salary based on the market, but not that much, for a 6+ position I think you’d definitely still be at that TC.
And that would be easy if you didn't raise kids or have a spouse that will very quickly be acclimated to all of this. Yanking the rug so you can retire early? That's a quick way to ensure you'll be back at work anyway, because your spouse may take the kids and bail.
It's only a for-sure viable option for those that never marry or have children. And even then I'd caution someone to do it as long as you possibly can stand, you have no idea what lies ahead expense wise in life in your long retirement.
Assuming you didn't buy too close to the annual forest fires, and neither the mortgage crisis or the pandemic wiped out housing prices in your area, yes.
Unfortunately hard to predict those events at the time of house purchase. Some people do very well on Bay Area real estate, some not so well.