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I just got a job offer in Charlotte. I currently live in Fort Lauderdale, Florida; I am married and we have a little baby (10 months)
My current salary in Fort Lauderdale is 95,000; my company pays for medical benefits (I get no deductions from my salary at all for neither me nor my wife and baby, so basically its free). Also, they contribute to a retirement account (about 15,000 a year) on top of my salary; and the company offers free lunch to its employees every day (for free).
The job offer I got in Charlotte is for 87,000, I would have to pay monthly medical benefits for me and my family under a regular healthcare plan (I estimate about 200 deducted from my paycheck every 2 weeks, plus co pays). I do not get free lunch, and only 4% matching in a 401k plan.
Also, I am in a field in which I could get other potential offers fairly soon (not in Charlotte, but anywhere in the US); so I know I could wait for other options.
I understand Charlotte is cheaper and the job being offered is pretty much my dream job, however I am not sure it makes financial sense; clearly I am taking a pay cut but given I do not know how much cheaper Charlotte is I cannot properly estimate how much my pay cut is. I am ok with letting the free lunch and 15,000 extra money in retirement accounts go (and also paying for healthcare instead of being free). But even in that case I am not sure if I will be going down in pay too much.
Recently the company that offered me the job (which originally told me will assist with relocation) told me they will only give me 1,500 for relocation. My estimates are that it cost about 6 to 7 thousand dollars to relocate from south Florida to charlotte, so I am very disappointed with this. I am starting to question if this is right for me and my family.
Any feedback is very welcome. Just for the record, what I am looking for is a very fulfilling job (which it appears to be) and a family oriented place in which we can raise our daughter (and less hectic than Florida). Also I am in field in which I know this is not my only option, and I could find something else (anywhere in the US) in a couple of months instead. help!
Last edited by ss1234; 07-13-2010 at 06:41 AM..
Reason: adding more details
thanks hooligan. Here is where my confusion resides: I have already checked the links you gave me and it is always said that Charlotte is cheaper than South Florida. So I am still unsure if this is really a 'decrease' in salary. I think I am most confused with the healthcare part, in one of those cost of living comparison links I saw that Charlotte's healthcare is much higher than in other cities. Do you consider that a correct statment? (co pays, deductibles, healthcare paycheck deductions...)
I think if its your dream job and you can take the finanical decreases you should do it, especially if you will get better job satisfaction. By the way you relocation fees seem very high I'm moving a family of four with furniture, boxes etc from Ireland for half that price you where quoted to move from Florida .Did you check out a few places for pricing?
It sounds like you have fantastic benefits and salary in Florida. The cost of living here is not that much different, in my opinion. Are you the breadwinner for your family? How much is having extra money important to you? Do you travel, or have a lot of debt? Is your child in day care? Do you plan to pay for your child's college? Are you planning on having more children? Do you own a home in Florida, and are you planning on buying a home in Charlotte? If so, where?
There are so many factors that could go into your decision. The main difference in cost of living from here and south Florida is housing prices. If you will save enough in housing to offset your losses, then maybe it is worth it. I don't know what your job situation or satisfaction is with your current job, but I wouldn't leave for a job with fewer benefits, and the retirement benefit alone is a HUGE cut.
As someone who has spent a LOT of time over the past several years working in Ft. lauderdale / West Palm, yes I agree with you that this is a much "less hectic" area than where you are now. And, yes, the cost of living here is lower, but I can't speak to specifics (as in dollar amounts) just my observations over the years.
My guess is that you would end up with less disposable income in your pocket after moving here, even with the lower cost of living. As for healthcare, I would verify the payroll deductions and co-pays with the HR people at your new job to make sure those numbers are correct. And you can certainly "brown bag" the lunch. I think the biggest financial hit will be on your retirement account - a 4% match is going to put a lot less in your retirement account than what you are getting now (especially over a longer stretch of time); for me, that would be a consideration.
Two other considerations: First - if homeownership is involved - you can likely get a comparable house here for less than what you would pay for one in FLL. But our market here is stalled like everywhere else and, if you decided CLT was not for you and moved in a few years (which it sounds could be an option for you) its likely a guarantee that you would lose money on your house if you tried to sell it that soon. And if you own a house in FLL - would you rent it? If you wanted to sell it, could you?
Second - I am not sure if your wife currently has a job as well or if she would be looking for one here. The job market here is pretty tough and, no matter what her skills or experience, if she looks for a job here, it could take her a while to find something (and we could be talking months, not weeks).
That said, I have always been of the opinion that I do not want to spend my life working at a job I do not like, and would be willing to take a pay cut to start my "dream job" (if I did not already love doing what I do). So you have to look at all of the numbers, and then decide if it is the right move for you, and if a financial loss would be worth it to you personally.
As for moving costs - that seems a bit high to me. We moved down here two years ago from the DC area and our expenses were less than half of what you estimate for your move, so I would look at your options. Also, if you are relocating for work purposes, you can write off some of those moving costs on your taxes.
Check out the following thread I posted awhile back that compares cost of living in FL to NC. We also took paycuts when we moved here from Ft. Lauderdale.
I looked at the costs for each category, and the only thing that has changed since I originally posted this is the sales tax. Unfortunately, it has increased here. In Mecklenburg it is 8.25% and in Union County, it is 7.75%.
coastalgirl, yes I am the breadwinner for my family, saving is VERY important for us, we dont have much debt at all, but do like to travel once a year, our baby is not in daycare and we do plan to have another one.
FLtoNC, I noticed you didnt include the state tax, how has your comparison been affected by it now that you perhaps know what it impacted your income?
FLtoNC, I noticed you didnt include the state tax, how has your comparison been affected by it now that you perhaps know what it impacted your income?
You are correct - I did not include the state tax, because we had just moved here when I posted that thread & had not filed taxes yet. So far we have gotten a refund on the state tax every year. However, I have never really looked at the bottom line on how the state income tax has impacted us.
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Cost of Living
