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I don't know what that has to do with what I said. Are you saying that billing rates are the same across the board, no matter where you work? As in negotiating a higher salary isn't available to you?
Correct.
Negotiating a higher salary than the top the range is not usually available but you can be promoted. The promotion can be negotiated.
Right, because the affordability of the "prestigious" places is exactly the same as the South....
If I'm making $50k in the South I can buy a nice $220k house in a nice, safe area. Then I go out to California to make $180k for the same job (great pay increase), but then that same $220k house you would get in the south all of a sudden costs $1 Million, and you're stacked on top of 4 other houses in a non-desirable area. On top of that the cost of living and taxes are exponentially higher.
ANYbody making $50,000 has NO business buying a home for $220000.
Not every year. But every 2-3 years, it's pretty normal if you're good at negotiating and selling yourself. My salary has increased 125% since I started working about a decade ago.
When you're talking about 3-5% raises per year, for doing the same job, that's a different story. I'd stick it out for that. But as I indicated in a previous post, the highest raise I've ever seen is 2.5%, and I've worked at a lot of different companies, in different industries, and in different states. 3-5% is NOT normal IME. Typically, it's been closer to 1-2%. And that's not based on individual performance, but a company-wide scale for all employees.
Would you stay at the same company, long term, for 1% year over year COLA raises? In many cases, you're not even keeping up with inflation with that.
I think this is fairly typical at the start of ones career (1st 10 years) as your overall cost as an employee is relatively low. Once you reach middle management/senior contributor progress slows unless you are able to attach yourself to high profile projects.
Re: stagnant raises for established employees, remember once you are hired, you are a cost to your employer (unless they are able to directly bill your time out). Typically, there will be a corporate edict that the raise pool for the US is x% this year. At that point, you either distribute that % evenly (simplest way) or try to divide it up either to reward perceived high performers or to make up salary inequalities within your team (at the expense of those from whom you take away).
Negotiating a higher salary than the top the range is not usually available but you can be promoted. The promotion can be negotiated.
I've worked for an engineering firm, and they have a rate chart. Different positions bill out at different rates. You can be promoted to a new title with a different rate.
Furthermore not all firms have the same rate. When you say firms have the same rates across the board that's nonsense.
ANYbody making $50,000 has NO business buying a home for $220000.
At most the person could but a home for $150000.
$176K mortgage (80% LTV @4%) = $840/month. It's the South so add in 1.25% for tax/insurance ($230/month)
$1070 per month total
It works out to 26% ratio of housing costs to gross income, which is in line with typical guidance.
It doesn't mean the person can actually afford it based upon their lifestyle, but the 2-3 times income guidance typically thrown around was from the days of higher interest rates.
ANYbody making $50,000 has NO business buying a home for $220000.
At most the person could but a home for $150000.
Incorrect. One could definitely buy a home in Phoenix, where I live, for $220k on a $50k salary with today's interest rates and little or no debt. The big difference is property taxes. The $220k house in New Jersey is going to be around $5,500 a year in property taxes, or an additional $460/month added to the mortgage. In Phoenix your property taxes might be $1,500 per year, or $125/month. Big difference. In the south property taxes can be just as low if not lower. Perhaps this is why so many leave New Jersey and move to Florida when they retire (that and no state income tax!).
Note the difference in property tax rates across the country here (and note that New Jersey has among the highest rates, along with NY and other parts of New England, as well as Chicago): Property taxes: How does your county compare? - CNNMoney.com!
the 2-3 times income guidance typically thrown around was from the days of higher interest rates.
Yup, and dramatically lower home prices.
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