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Old 09-29-2007, 03:27 AM
 
70 posts, read 295,627 times
Reputation: 25

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Alright,

I'm trying to make sense of everything. I looked into payscale.com and salary.com, but they aren't seeming to help much.

I have offers from $55,000-$60,000 in the Los Angeles Area.
I have offers from $48,000-$53,000 in the Hartford, Connecticut area.
And I have an offer for $55,000 in the Boston area.

My question is are these ranges enough to survive in the areas I've mentioned? I mean, considering car payments, rent for a good one bedroom or studio, etc..

I have $100,000 in student loan debt that I'll need to repay, so that should give some more perspective on my situation. I'm tempted to just take the offer for $60,000 starting, but I realize that cost of living can make a lesser salary more "lucrative" for me.

Also, I'm a Computer Engineering major, and will be doing anything from web development to actual software engineering. I'll have a bachelors degree from a fairly good school (not ivy). Are these offer ranges reasonable, or am I being stiffed?
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Old 09-29-2007, 05:32 AM
 
735 posts, read 3,502,199 times
Reputation: 254
I have friends that are software engineers and I believe they started out of college at around $70K. But that was about 12-15 years ago- I'm not sure what the current pay scale looks like.

L.A. will be very expensive and a big move. The logical choice is to take the offer in Boston (I assume this is where you are currently).

My tip would be to accept the offer with a start date in a month or so (if you can hold out) and continue looking.

Best of luck!
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Old 09-29-2007, 09:02 AM
 
Location: 42°22'55.2"N 71°24'46.8"W
4,848 posts, read 11,815,153 times
Reputation: 2962
I think those offers are pretty fair. In terms of best salary for the cost of living, I would choose Hartford. The Boston and LA offers are pretty similar in terms of cost of living. It really depends on where you want to live, since all 3 cities are very different and each offers something different. Don't worry too much about your starting salary -- you're doing WELL above average compared to the average grad (and maybe about average or a couple thousand above average for a software engineer). Just choose the city that you think you will enjoy the most. i.e. if you like safe walkable cities, then Boston would be your best bet, but if you hate cold weather, then LA would be your best choice. You don't want to be miserable just to make an couple extra grand per year.

$70k 12-15 years ago seems like a lot of dough, man! Even the top companies like Google are only offering around $70k to new college grads w/a bachelors. Other well-paying large companies like Raytheon and TI are offering in the mid $60's. Lockheed offers are only in the high $40's to low $50's and they overwork you. $50k is typical for a small startup too, but you will get stock options if they go public.

Just to give you an idea about Boston though: we supported our family of 3 on a $60k salary our first year in Boston. It wasn't too bad and were still able to go out every weekend and own 2 cars. Healthcare, car insurance, and rent ate up about 50% of our take-home pay.
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Old 09-29-2007, 06:33 PM
 
6 posts, read 14,657 times
Reputation: 10
Boston is very expensive. The question is how far you are willing to commute, and what type of housing you would consider. We lived downtown about five years ago, and at that time a studio right in Boston proper was $1200-$1500 a month, a two bedroom downtown was about $2,500 a month. Most people I knew who earned about $55,000 either lived some distance outside of Boston and commuted in, or shared an apartment with several other people.
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Old 09-29-2007, 07:40 PM
 
Location: Metrowest, MA
1,810 posts, read 10,488,243 times
Reputation: 922
Default You're the boomerang generation?

I think you better get a roommate or live with your parents... for the next 5-10 years


Here's a quick breakdown...
$60K a year... = $5K/month.

After Taxes, SS, health insurance, .... take home pay ~$3K/month.
With $100K in student loan... it means $1000 a month... just in student loan for the next 10 years.
With only $2K, you have to pay
rent,
utilities (phone, electricity, heat, tv, ...),
car loan?,
gas,
car insurance($100/month),
food,
...

ummm... Good luck.... I hope you have a loving parent...
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Old 09-30-2007, 11:46 AM
 
Location: 42°22'55.2"N 71°24'46.8"W
4,848 posts, read 11,815,153 times
Reputation: 2962
Quote:
Originally Posted by smarty View Post
I think you better get a roommate or live with your parents... for the next 5-10 years


Here's a quick breakdown...
$60K a year... = $5K/month.

After Taxes, SS, health insurance, .... take home pay ~$3K/month.
With $100K in student loan... it means $1000 a month... just in student loan for the next 10 years.
With only $2K, you have to pay
rent,
utilities (phone, electricity, heat, tv, ...),
car loan?,
gas,
car insurance($100/month),
food,
...

ummm... Good luck.... I hope you have a loving parent...
Remember w/the new tax laws, $60k is still in one of the lowest tax brackets. That was exactly how much my wife made out of college, and her take home pay was $1660 biweekly, which is $3600/mo.

I didn't see that $100k in student loan debt the first time I read it. That's a lot of debt! In your case, it may be better to start off in Hartford for a couple years since it will give you the most bang for your buck. Their downtown area is really starting to be revitalized -- have you visited before?
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Old 09-30-2007, 12:46 PM
 
70 posts, read 295,627 times
Reputation: 25
I have a question. How much would I have to make (before and after taxes) to live comfortably in LA, while paying off my student loans? I'm just curious?

What about Boston?

What about Hartford?

In addition to these offers, maybe I can give myself a target to reach for? The general message I'm getting is that these salaries are too low. Where should I be in the future to be alright?
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Old 09-30-2007, 03:29 PM
 
Location: In my mind
630 posts, read 2,227,061 times
Reputation: 704
Do you actually have job offers ?? If so counter with the offer for a higher yearly wage. Either they will say yes or no the offer stands as is. You may have a degree, but some major companies may want some true back work history in the field. Also some may require clearances, you get paid more for these. I don't have a degree but work in a field that the pay is backed by the experience, not the degree.

Some companies may low-ball you a bit to see if you just take their offer. If you have an offer letter in hand I would call and see if they will negotiate the yearly wage.

Best Wishes to you on your job search !!!
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Old 09-30-2007, 09:19 PM
 
Location: Newtonville, MA
27 posts, read 135,741 times
Reputation: 20
Quote:
Originally Posted by MagicTouch View Post
Do you actually have job offers ?? If so counter with the offer for a higher yearly wage. Either they will say yes or no the offer stands as is. You may have a degree, but some major companies may want some true back work history in the field. Also some may require clearances, you get paid more for these. I don't have a degree but work in a field that the pay is backed by the experience, not the degree.

Some companies may low-ball you a bit to see if you just take their offer. If you have an offer letter in hand I would call and see if they will negotiate the yearly wage.

Best Wishes to you on your job search !!!
Definitely agree with this. If you're not dead set on one location see what you can get. Might as well give it a shot and that may help make your decision a little easier. Don't be a d%&@ about it but just say I have so and so offer but really like your offer, what can you do to make the money a little more comparable.
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Old 09-30-2007, 10:14 PM
 
Location: Metrowest, MA
1,810 posts, read 10,488,243 times
Reputation: 922
Quote:
Originally Posted by greatfire View Post
I have a question. How much would I have to make (before and after taxes) to live comfortably in LA, while paying off my student loans? I'm just curious?

What about Boston?

What about Hartford?

In addition to these offers, maybe I can give myself a target to reach for? The general message I'm getting is that these salaries are too low. Where should I be in the future to be alright?
The salary is not too low... Many live with salary much less. My feeling is you are not willing to drive an old car or take public transportation, commute with a friend, cook (instead of eat out), ... etc.

Unfortunately, you started in a hole (deep in debt). You're carrying a house mortgage without a house (many people has less than $100K in a house loan).

It is not a big difference where you work. The concern is you can get yourself into real trouble if you keep spending. The old rule of thumb to qualify for a mortgage is total debt payment less than 28-33% of your salary. This means about $1500-1800 a month you can spend on rent/payment. Since you have to pay $1K for student loan, you only have $500-800 towards your apartment. Most apartment in the area are $1500. You need to figure out what other things you need to sacrifice to fill that gap.

Some examples
- may not get a new expensive car. reduce car payment from $400 to $200.
- May need to find 2-3 roommate or live with your parent.
- may not go out to eat/drink as often.
- may need to skip the $100 concert/sport tickets.
- May need to skip on nice clothes.

If you are not careful, you can get into Credit Card debt very easily as car breaks down, need new tires, your teeth need fillings, higher electric bill for the summer, heating bill in the winter, .... At 18-25% interest rate, it is very difficult to get out of CC debt. You need to plan a few hundred a month for the "just in case" situations. A few hundred for retirement 401K.

I hope you do not have a lot of credit card debt already.... or are not think about having a girlfriend or get marry soon. You will have to suffer the next 5-10 years before you can start at the break even point... you may even have to skip vacation in the mean time.
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