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On paper, yes. However, you often make quite a bit more money in the more expensive cities. I'd say for a young person, work in an expensive large city. You increase your earning potential by working here and transferring down. Much easier to transfer down than up. Many companies will even keep your salary from a city like NYC and let you move to a city like Charlotte, Atlanta, Miami, Houston, Dallas, etc. Then, you've got the years of experience for possibly a better-known company, or at least proof of years succeeding in a more challenging job market which will translate into hopefully a better job in a smaller market. It'll pay less, but you have the leverage of the experience and higher salary in the more expensive job market. And, when living in NYC or SF or LA, don't outlive your means. Live with roommates. Live in dumpy apartments. It's making an investment in yourself. And you'll have been paying more into SS and/or a 401k. Or better yet, more expensive cities are often in cities/states with good pension programs in the public sector.
If you decide you need to move somewhere to cheaper to buy a house, do it later on. But at that point, you can command a higher wage hopefully, your experience may be considered more highly than others in the smaller market, or you could even get a transfer to a cheaper COL. However, many companies/firms in a city like NYC are not ones that have couterparts or offices in these millennial boom cities like Raleigh, Nashville, and Austin. They're more in Miami, Charlotte, Atlanta, Dallas, and Houston. So, IMO, cities like that are where you strike a real balance between low COL and high(er) wages in most job sectors. Either way, though, cities like Miami and Atlanta are getting pretty expensive now. It's still cheaper than NYC/LA/SF, but sometimes the trade-off isn't worth the slightly lower COL anymore. One of my friends from NYC lived in Atlanta, came back here, and thought about going back down. Then she looked at the COL in places like Midtown or residential areas near the fun parts of the city and realized she wouldn't really save all that much money to pick up her life, start a new career, and live in a less fun city again.
Agree with most of this again. If you're single, live on the coasts, specifically NYC, SF, LA and Boston, maybe even Philly.
...If you want a young, fun city with good millennial-type jobs, there aren't too many options out there. I'd much rather be in one of the major cities than live in Austin. I've tried explaining it to friends that live in NYC and are thinking of moving. You have to consider how much owning a car costs (payments, gas, insurance, parking, maintenance, expensive repairs). Plus, if you live in a dumpy NYC studio, you're not going to move to Austin and live in a dumpy studio there as well. You're going to think "wow I should get a nice new 1 bedroom apartment now." So in actuality, your salary is probably less, your housing costs likely will not be significantly lower, and you'll be paying everything required to own a car. Are you really saving all that much money by going to an Austin/Nashville/Raleigh/Denver?
That's a really good point! I think it's very important we pay attention to the "hidden costs" of some of these L/MCoL areas. Thanks for that, it's really making a big difference.
Quote:
Originally Posted by jessemh431
On paper, yes. However, you often make quite a bit more money in the more expensive cities. I'd say for a young person, work in an expensive large city. You increase your earning potential by working here and transferring down. Much easier to transfer down than up. Many companies will even keep your salary from a city like NYC and let you move to a city like Charlotte, Atlanta, Miami, Houston, Dallas, etc. Then, you've got the years of experience for possibly a better-known company, or at least proof of years succeeding in a more challenging job market which will translate into hopefully a better job in a smaller market. It'll pay less, but you have the leverage of the experience and higher salary in the more expensive job market. And, when living in NYC or SF or LA, don't outlive your means. Live with roommates. Live in dumpy apartments. It's making an investment in yourself. And you'll have been paying more into SS and/or a 401k. Or better yet, more expensive cities are often in cities/states with good pension programs in the public sector.
If you decide you need to move somewhere to cheaper to buy a house, do it later on. But at that point, you can command a higher wage hopefully, your experience may be considered more highly than others in the smaller market, or you could even get a transfer to a cheaper COL. However, many companies/firms in a city like NYC are not ones that have couterparts or offices in these millennial boom cities like Raleigh, Nashville, and Austin. They're more in Miami, Charlotte, Atlanta, Dallas, and Houston. So, IMO, cities like that are where you strike a real balance between low COL and high(er) wages in most job sectors. Either way, though, cities like Miami and Atlanta are getting pretty expensive now. It's still cheaper than NYC/LA/SF, but sometimes the trade-off isn't worth the slightly lower COL anymore. One of my friends from NYC lived in Atlanta, came back here, and thought about going back down. Then she looked at the COL in places like Midtown or residential areas near the fun parts of the city and realized she wouldn't really save all that much money to pick up her life, start a new career, and live in a less fun city again.
wow, that's some straight no-BS wisdom right there. Thanks so much.
I would concentrate more on living and less on how much it costs to do so. Life is so short and when we die our net worth doesn't mean diddly squat. Remember that money is a means and not necessarily and end. It's now you live that's important. Do things that give you energy and avoid things that drain you.
You can be miserable and rich in Manhattan and you can be poor and happy in the middle of nowhere. Conversely you can be poor and happy in San Francisco and rich and miserable in a small town. I personally know people who fit in each segment.
The happiest friend I have has degrees in Physics and English Lit, lives in the sticks in Oregon, does carpentry for a living (he barely scrapes by) but has a loving wife and 5 fantastic home schooled kids ages 3-16. They also belong to a church which gives them a strong support network locally. He made a lot more when he lived in the city, which also had a high cost of living, but to be honest I've never once walked into a happier, more loving home. I also have a friend who was comfortable but miserable in a low cost environment. Moved to the high cost city and lives hand to mouth. He'll die without a penny to his name but spends lots of time and money doing cultural things, eating out and travelling. Always renting places, no ambition to own (or be owned as he would put it). He's totally content.
I would concentrate more on living and less on how much it costs to do so. Life is so short and when we die our net worth doesn't mean diddly squat. Remember that money is a means and not necessarily and end. It's now you live that's important. Do things that give you energy and avoid things that drain you.
You can be miserable and rich in Manhattan and you can be poor and happy in the middle of nowhere. Conversely you can be poor and happy in San Francisco and rich and miserable in a small town. I personally know people who fit in each segment.
The happiest friend I have has degrees in Physics and English Lit, lives in the sticks in Oregon, does carpentry for a living (he barely scrapes by) but has a loving wife and 5 fantastic home schooled kids ages 3-16. They also belong to a church which gives them a strong support network locally. He made a lot more when he lived in the city, which also had a high cost of living, but to be honest I've never once walked into a happier, more loving home. I also have a friend who was comfortable but miserable in a low cost environment. Moved to the high cost city and lives hand to mouth. He'll die without a penny to his name but spends lots of time and money doing cultural things, eating out and travelling. Always renting places, no ambition to own (or be owned as he would put it). He's totally content.
Yeah, there are no straight up right or wrong answers for everyone.
You have to look at your unique situation and do what works best for you.
That is what makes life scary and exciting at the same time.
A wild card of sorts is if you have a job in a high COL city/area where you might only have to go in a select number of times into the office/have some flexibility, but could live in a lower COL area of that metro or in a nearby metro. Some people do this in the NYC area where they may live in the Hudson Valley and take the train from these places: MNR Map
or may even live in say the Albany area and take this train into NYC: https://www.amtrak.com/content/dam/p...W08-090418.pdf
So, depending on the situation and what one is willing to do, you may even be able to have the best of both worlds, without even having to drive to work.
That's a personal decision. For me personally, COL is a deal breaker. I've lived on both ends of the COL spectrum (high and low). It affects so many areas of ones life and, IMO, the quality of life in an area. I want the best bang for my buck.
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