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Old 12-03-2011, 09:25 AM
 
3 posts, read 8,932 times
Reputation: 10

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Hello, new to the forums completely. Long story short, I just interviewed internally with the company I've been with since graduating college in 2008. They have been pretty clear about my chances for the position (HR), and will be getting back to me next week. I need to really make sure that I can live on what they would offer before I end up making a mistake.

I currently live in Cincinnati, OH, and the new position would be in Walnut Creek/Fairfield, CA. My current salary is $51k, which is very, very comfortable for me as a single 25yr old in Oh. The likely offer would be from $60-$65k (my company isn't really competitive w/cost of living adj ). Based off several cost of living adjustment calcs, I would need $75k to maintain the same standard.

My question is, if based off anyone's experience, how tough would it be to live off $60k? I'm 25, single, and don't need much space. My major expenses/debt are $15k school loans, $5k car loan, 06 Lexus IS350 (my est is $3k a year maintenance).

I don't want to go from living comfortably now to being absolutely poor, especially when I have pretty decent options for my future in Cincy. But I'm from California and would love to get back. Need to figure this out pretty soon!

Thanks for any help!
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Old 12-03-2011, 10:00 AM
 
Location: Vancouver, WA
8,193 posts, read 16,610,645 times
Reputation: 9433
Quote:
Originally Posted by CaliforniaDream View Post
Hello, new to the forums completely. Long story short, I just interviewed internally with the company I've been with since graduating college in 2008. They have been pretty clear about my chances for the position (HR), and will be getting back to me next week. I need to really make sure that I can live on what they would offer before I end up making a mistake.

I currently live in Cincinnati, OH, and the new position would be in Walnut Creek/Fairfield, CA. My current salary is $51k, which is very, very comfortable for me as a single 25yr old in Oh. The likely offer would be from $60-$65k (my company isn't really competitive w/cost of living adj ). Based off several cost of living adjustment calcs, I would need $75k to maintain the same standard.

My question is, if based off anyone's experience, how tough would it be to live off $60k? I'm 25, single, and don't need much space. My major expenses/debt are $15k school loans, $5k car loan, 06 Lexus IS350 (my est is $3k a year maintenance).

I don't want to go from living comfortably now to being absolutely poor, especially when I have pretty decent options for my future in Cincy. But I'm from California and would love to get back. Need to figure this out pretty soon!

Thanks for any help!
Well,

If you are from CA you should realize COL will be higher than anywhere in the midwest. The main difference will be housing. Take a look on craigslist and see what rents are compared to what you currently pay and that will be your answer. Since you are young you can probably get by with a simple place, maybe smaller than what you live in now. But it also depends on how much you typically spend on extras such as vacations, entertainment, etc...

Will living comfortable in Ohio be worth giving up to live leaner in CA? There will be a trade off. Also what are your opportunities for advancement here? How about with other better paying companies in the Bay area doing something similar?

Derek
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Old 12-03-2011, 10:27 AM
 
3 posts, read 8,932 times
Reputation: 10
Quote:
Originally Posted by MtnSurfer View Post
Well,

If you are from CA you should realize COL will be higher than anywhere in the midwest. The main difference will be housing. Take a look on craigslist and see what rents are compared to what you currently pay and that will be your answer. Since you are young you can probably get by with a simple place, maybe smaller than what you live in now. But it also depends on how much you typically spend on extras such as vacations, entertainment, etc...

Will living comfortable in Ohio be worth giving up to live leaner in CA? There will be a trade off. Also what are your opportunities for advancement here? How about with other better paying companies in the Bay area doing something similar?

Derek
Thanks for the response! I also assumed that the main difference would be housing. Average housing looks like it's going to cost about $600 more per month or $7200 a year more. But these figures I'm seeing on these COL calculators have got me a little worried. So I'm trying to figure out if they are that accurate, because according to them I'd be poor. lol I'm working on my own estimate/budget now, as I know that sometimes these online calculators are a bit inaccurate. I'm just trying to figure out if this is the case here.

And unfortunately, when I lived in CA, I had no bills or responsibilities. I was only there until the completion of high school, so I really don't have an idea to go off of. But you're right, I've also thought about other opportunities out there if I were to leave the company after this job.
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Old 12-03-2011, 10:39 AM
HDL
 
Location: Seek Jesus while He can still be found!
3,216 posts, read 6,773,765 times
Reputation: 8667
Thumbs up YES, I think you should go for it!!!

You could even afford to buy a home if you wanted to barring all the lending standards nowadays. Though I would rent first to make certain that the job works out and take time to get to know the area. There are so many options for you depending upon whether you want to cross the bridge every day or not, which I would personally suggest not doing.

I am confused about the Walnut Creek/Fairfield thing though. Is the job in both cities, because they are about 30 minutes apart from each other and across water? Can you be a bit more specific about the job's location? If you don't want to cross the water, than cities like Brentwood might be something to consider for buying if the position is based in Walnut Creek.

Once you firm up the job's location and what types of things you like to do and be near, we can be more specific about what city might work best for you. Financially though, you should do very well with your current bills and a salary of $60-65K. That area of the Bay has many more options for housing than the South or North Bay/Peninsula or even Monterey area where the other poster is living. Renting a room can be anywhere citywise and be approx $600-$1000 a month.


Quote:
Originally Posted by CaliforniaDream View Post
Hello, new to the forums completely. Long story short, I just interviewed internally with the company I've been with since graduating college in 2008. They have been pretty clear about my chances for the position (HR), and will be getting back to me next week. I need to really make sure that I can live on what they would offer before I end up making a mistake.

I currently live in Cincinnati, OH, and the new position would be in Walnut Creek/Fairfield, CA. My current salary is $51k, which is very, very comfortable for me as a single 25yr old in Oh. The likely offer would be from $60-$65k (my company isn't really competitive w/cost of living adj ). Based off several cost of living adjustment calcs, I would need $75k to maintain the same standard.

My question is, if based off anyone's experience, how tough would it be to live off $60k? I'm 25, single, and don't need much space. My major expenses/debt are $15k school loans, $5k car loan, 06 Lexus IS350 (my est is $3k a year maintenance).

I don't want to go from living comfortably now to being absolutely poor, especially when I have pretty decent options for my future in Cincy. But I'm from California and would love to get back. Need to figure this out pretty soon!

Thanks for any help!
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Old 12-03-2011, 10:44 AM
 
Location: Vancouver, WA
8,193 posts, read 16,610,645 times
Reputation: 9433
Quote:
Originally Posted by CaliforniaDream View Post
Thanks for the response! I also assumed that the main difference would be housing. Average housing looks like it's going to cost about $600 more per month or $7200 a year more. But these figures I'm seeing on these COL calculators have got me a little worried. So I'm trying to figure out if they are that accurate, because according to them I'd be poor. lol I'm working on my own estimate/budget now, as I know that sometimes these online calculators are a bit inaccurate. I'm just trying to figure out if this is the case here.

And unfortunately, when I lived in CA, I had no bills or responsibilities. I was only there until the completion of high school, so I really don't have an idea to go off of. But you're right, I've also thought about other opportunities out there if I were to leave the company after this job.
This is your ticket home if you want to come back to CA. But that salary doesn't have to be a life sentance. Being young you could ask what it would take to get to the next level in your career? Maybe grad school, another position of increased responsibility or complexity, another company, etc... Maybe living leaner would be ok for a season to be able to enjoy some of the parts you missed while away.

Keep in mind COL calculators are based on average costs. Some of those you won't incur since you won't be a property owner such as higher property taxes or cost of labor/construction materials for repairs, etc.. That's already included in the rent prices. And since you don't have a family yet you won't be paying for higher childcare costs, etc... If you keep things simple I don't think it will be too bad. Of course others might say you'll starve since they are used to earning more (and spending more). But it really depends on you and if you can live simpler to enjoy other things for a time.

Derek
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Old 12-03-2011, 11:27 AM
 
3 posts, read 8,932 times
Reputation: 10
Quote:
Originally Posted by HDL View Post
I am confused about the Walnut Creek/Fairfield thing though. Is the job in both cities, because they are about 30 minutes apart from each other and across water? Can you be a bit more specific about the job's location? If you don't want to cross the water, than cities like Brentwood might be something to consider for buying if the position is based in Walnut Creek.
I would be working at two locations. 2 days at Fairfield, 3 days at Walnut Creek. And I have family in Castro Valley, so I'm considering living in Walnut Creek, which would be somewhat equally between my family and my other work location.

And thanks for the encouragement and suggestions, I'm feeling a little better about it.

Quote:
Originally Posted by MtnSurfer View Post
This is your ticket home if you want to come back to CA. But that salary doesn't have to be a life sentance. Being young you could ask what it would take to get to the next level in your career? Maybe grad school, another position of increased responsibility or complexity, another company, etc... Maybe living leaner would be ok for a season to be able to enjoy some of the parts you missed while away.

Keep in mind COL calculators are based on average costs. Some of those you won't incur since you won't be a property owner such as higher property taxes or cost of labor/construction materials for repairs, etc.. That's already included in the rent prices. And since you don't have a family yet you won't be paying for higher childcare costs, etc... If you keep things simple I don't think it will be too bad. Of course others might say you'll starve since they are used to earning more (and spending more). But it really depends on you and if you can live simpler to enjoy other things for a time.

Derek
Thanks, I didn't know the calculators accounted for some of those things. Also, thanks for the insight. I'll take it all into consideration. I'm ok with living a bit simpler to get where I want to be, I just don't want to struggle. Right now, I have around $1200 disposable income, and I think I would be fine at even half of that.

Guess my task right now is to try and come up with an as close to accurate budget as I possibly can.
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Old 12-03-2011, 11:43 AM
 
Location: Santa Cruz, CA
2,190 posts, read 6,836,438 times
Reputation: 2076
to get a sense of cost of rentals in walnut creek :

SF bay area apts/housing for rent classifieds "walnut creek " - craigslist
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Old 12-03-2011, 06:43 PM
 
30,873 posts, read 36,815,390 times
Reputation: 34457
Quote:
Originally Posted by CaliforniaDream View Post
Hello, new to the forums completely. Long story short, I just interviewed internally with the company I've been with since graduating college in 2008. They have been pretty clear about my chances for the position (HR), and will be getting back to me next week. I need to really make sure that I can live on what they would offer before I end up making a mistake.

I currently live in Cincinnati, OH, and the new position would be in Walnut Creek/Fairfield, CA. My current salary is $51k, which is very, very comfortable for me as a single 25yr old in Oh. The likely offer would be from $60-$65k (my company isn't really competitive w/cost of living adj ). Based off several cost of living adjustment calcs, I would need $75k to maintain the same standard.

My question is, if based off anyone's experience, how tough would it be to live off $60k? I'm 25, single, and don't need much space. My major expenses/debt are $15k school loans, $5k car loan, 06 Lexus IS350 (my est is $3k a year maintenance).

I don't want to go from living comfortably now to being absolutely poor, especially when I have pretty decent options for my future in Cincy. But I'm from California and would love to get back. Need to figure this out pretty soon!

Thanks for any help!
You are going to pay more for housing here and you will get less for it. In general, the higher salaries here do not make up for the higher cost of living here.

Here are the questions you need to ask yourself:

--Am I ok with possibly never being able to afford living in a 3BR single detached house with a yard? (Alternative: Am I ok with shelling out more than 1/3 of my gross income on such a house for many years and am I ready to deal with the stress that entails?)

--Am I ok with the possibility of renting for the rest of my life?

--Do I plan on having kids and on buying the requisite 3BR detached house mentioned above?

In general, the trade offs for those who want to have kids are much much harsher than for those who don't. So don't just think about the COL in the here and now, but try to think 10 years down the road if possible.

In general, it takes 2 professional incomes to buy a modest home in this area, so life here can be very hectic for those raising children.

In general, a 60K income is ok but not fantastic for a single person in your position. It's not going to be a luxury lifestyle. If I had 20K in debt (and ostensibly minimal savings), I'd be renting a studio apartment on that income. Since I'm frugal, I'd easily be maxing out my 401K on that income, but I know most people aren't like me .
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Old 12-03-2011, 07:29 PM
 
Location: RSM
5,113 posts, read 19,712,212 times
Reputation: 1927
Don't forget state income tax. This state caps out over 9% at the same level you're paying slightly over 5% in OH.
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Old 12-04-2011, 12:29 AM
HDL
 
Location: Seek Jesus while He can still be found!
3,216 posts, read 6,773,765 times
Reputation: 8667
I'm sorry but I have to disagree with what I've highlighted in red below. Every day the housing market continues to decline in various areas of the 'BAY' (in it's broadest sense of the word) and the affordability of homes increases for those that can get a loan in this tight credit market. There are still some affordable places to buy, though most are on the outer fringes. In fact, in some situations it is cheaper to buy a home than it is to rent.

YES - it is expensive in the Bay Area
YES - there are nicer, less expensive places to own a home than the Bay Area
YES - it would be better to have 2 incomes when buying a home (or even renting)

My advice FWIW -

a) Be flexible and reasonable when trying to live anywhere in the SF Bay Area.
b) Don't expect a brand new home, at an affordable price, next door to Google.
c) The probability of having to commute a distance to work is great, so be prepared and plan accordingly.
d) Be willing to make sacrifices and expect trade offs for being in and/or near SV and having fairly decent weather much of the time.

That is life 101 and for the OP being in his mid-20's, it is part of the initiation into adulthood (imho).

Here are a few examples of homes in Brentwood and Oakley from $100K to under $250K :

http://www.redfin.com/CA/Brentwood/3123-Hudson-Dr-94513/home/930393
http://www.redfin.com/CA/Oakley/33-Mondavi-Ct-94561/home/1358457
http://www.redfin.com/CA/Brentwood/385-Grovewood-Loop-94513/home/542937
http://www.redfin.com/CA/Brentwood/2600-Monroe-Ct-94513/home/1058167
http://www.redfin.com/CA/Brentwood/448-Grovewood-Loop-94513/home/1785250
http://www.redfin.com/CA/Brentwood/1629-Windsor-Way-94513/home/1228398

Is Brentwood the perfect spot to live??? IDK. But if one were to want to buy and be close to both Walnut Creek and Fairfield, it would be 'one' of the places I would look at (though I wouldn't probably live there unless I wanted to buy or rent a home vs renting a room or apartment/condo/townhouse). The OP would probably be better off with an apartment or room share until he decided what city suited him best.

Quote:
Originally Posted by mysticaltyger View Post
You are going to pay more for housing here and you will get less for it. In general, the higher salaries here do not make up for the higher cost of living here.

Here are the questions you need to ask yourself:

--Am I ok with possibly never being able to afford living in a 3BR single detached house with a yard? (Alternative: Am I ok with shelling out more than 1/3 of my gross income on such a house for many years and am I ready to deal with the stress that entails?)

--Am I ok with the possibility of renting for the rest of my life?

--Do I plan on having kids and on buying the requisite 3BR detached house mentioned above?

In general, the trade offs for those who want to have kids are much much harsher than for those who don't. So don't just think about the COL in the here and now, but try to think 10 years down the road if possible.

In general, it takes 2 professional incomes to buy a modest home in this area, so life here can be very hectic for those raising children.

In general, a 60K income is ok but not fantastic for a single person in your position. It's not going to be a luxury lifestyle. If I had 20K in debt (and ostensibly minimal savings), I'd be renting a studio apartment on that income. Since I'm frugal, I'd easily be maxing out my 401K on that income, but I know most people aren't like me .

Last edited by HDL; 12-04-2011 at 12:38 AM..
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