115K salary - can I survive ? (San Francisco, Ross: apartment, rent, car insurance)

[recoil_72]

Hi all,

I'm Italian and I live in Italy (sorry for english ) . I'm considering to move to San Francisco working for my company, a US software company.

During the interview I received the following proposal of salary: 115K$ (to be confirmed and to be detailed benefits and bonus).

I'm married, my wife would prefer stay home and we have a 2 year-old child.

Starting from the gross salary, I've calculated the following net salary:

GROSS = 115K
TAXES (Fed, California, social security) = 33%
NET PER YEAR (about) = 74K
NET PER MONTH (about) = 6400$

Let's see the estimated expenses:

RENT AN APARTMENT = 2500$ (2 beds in a condo - south SF)
FOOD = 500$ (supermarket only)
UTILITIES (considering included gas/electricity) = 150$
TV/INTERNET = 150$
CAR INSURANCE (no credit history, small and old car paid cash) = 100$
MEDICAL INSURANCE = 90$ (my colleagues pays that with 2 children and wife)

I didn't consider the following items: preschool (we'll pay when he's 3 year-old) - car (paid cash) and contingency.

The salary becomes 3000$ per month

With this salary I have to may medical visits (when necessary and not included in my medical plan), restaurants, gasoline or public transportation.

Did I consider all the possible expenses ?
Are my expenses accurate ?
What I have to consider as utilities when I rent an apartment ?

Thanks in advance

[7x7er]

In my experience utilities here are very cheap - living anywhere in San Francisco will mean you most likely will not have air conditioning (nor will you need it), and you don't need to use the heat that often. My electric bill for my apartment generally runs about $50/month. Trash and water is often included in the price you pay your landlord. So $150 is a reasonable estimate after you consider cable television and internet.

Also, you should probably save a portion of your paycheck in a 401k or similar pre-tax savings plan. So I would budget your net to be more like 60% of your Gross - so $69k or $5750 per month.

I think you will be completely okay. There are plenty of people that survive in San Francisco on much less. I believe the median household income is somewhere around $78k, so you will be doing much better than most people.

[recoil_72]

Originally Posted by 7x7er

Also, you should probably save a portion of your paycheck in a 401k or similar pre-tax savings plan. So I would budget your net to be more like 60% of your Gross - so $69k or $5750 per month.

Thank you 7x7er, I didn't mention that I didn't consider for the moment the 401K and pre-tax. My colleague that lives in San Francisco explained me what they are but, in this moment, is not clear yet if my salary will be paid in Italy (where we don't have 401K but some other retirement funds) or in US.

Originally Posted by 7x7er

I think you will be completely okay. There are plenty of people that survive in San Francisco on much less. I believe the median household income is somewhere around $78k, so you will be doing much better than most people.

Sometimes, reading this forum, I've seen that only salaries over 150K (for a family) are acceptable.. for this reason I was a little afraid about the proposed salary.

Thanks again !

[DocGoldstein]

$3,000 a month cushion is more than a lot of people who live in S.F take home total net. So I think you will be okay unless you suddenly buy a Porsche (don't buy a Porsche).

[recoil_72]

Originally Posted by DocGoldstein

$3,000 a month cushion is more than a lot of people who live in S.F take home total net. So I think you will be okay unless you suddenly buy a Porsche (don't buy a Porsche).

Thank you DocGoldstein !

part of the 3000$ will be used to pay the mortgage loan of our home in Italy. We will continue to pay this house for at least 6 / 8 months and, when we are sure to remain in US, we will sell it in order to buy a new house in US.

We'll see, as indicated I'm still doing interviews and the job is not sure and well detailed in terms of salary/benefits.

[capoeira]

Originally Posted by 7x7er

In my experience utilities here are very cheap - living anywhere in San Francisco will mean you most likely will not have air conditioning (nor will you need it), and you don't need to use the heat that often. My electric bill for my apartment generally runs about $50/month.

The electricity rates from PG&E are among the highest in the country.

PG&E, SoCal Edison and SDG&E offer among the highest electricity rates in nation | FlashReport

"There’s a new #1 cost utility. PG&E rates were highest "

For a 3 bedroom condo my combined electricity/gas rate last month was $275. Of this $246 was electricity including an electric dryer and stove. No air conditioning of course and I have not turned on the heat in SF since 2007.

[RWingFan]

If ya cant make it on 115k I might as well start packing for Indiana, school is very expensive around here

[capoeira]

Originally Posted by recoil_72

Let's see the estimated expenses:

RENT AN APARTMENT = 2500$ (2 beds in a condo - south SF)
FOOD = 500$ (supermarket only)
UTILITIES (considering included gas/electricity) = 150$
TV/INTERNET = 150$
CAR INSURANCE (no credit history, small and old car paid cash) = 100$
MEDICAL INSURANCE = 90$ (my colleagues pays that with 2 children and wife)


Did I consider all the possible expenses ?
Are my expenses accurate ?

This seems to be an accurate estimate of expenses. You probably also have to add in renter's insurance and life insurance. The food costs will have the greatest variation depending on how much one shops for bargains. I have noticed that Target is frequently much cheaper than Safeway or Lucky for the identical grocery items.

[RWingFan]

thats great knowledge

[7x7er]

Originally Posted by capoeira

The electricity rates from PG&E are among the highest in the country.

PG&E, SoCal Edison and SDG&E offer among the highest electricity rates in nation | FlashReport

"There’s a new #1 cost utility. PG&E rates were highest "

For a 3 bedroom condo my combined electricity/gas rate last month was $275. Of this $246 was electricity including an electric dryer and stove. No air conditioning of course and I have not turned on the heat in SF since 2007.

Hmm. Interesting. I'm trying to figure out why you would pay over $200 more per month than me for electric. I'm in a 3-bedroom as well (that I share with roommates). We don't have an in-unit washer and dryer, but that certainly can't account for the $200 difference.