Salary Question (Phoenix, Williams: apartment, for rent, insurance)

[Sonia Williams]

I recently received a job offer in Phoenix with a salary of 78k a year. Insurance isn’t the best but it’s there. I am moving from a more expensive area near San Francisco and it will be quite the pay cut for me, so wondering if it is worth it to lose 15k out of my salary to live somewhere so much cheaper, or if it’ll put me in the same exact spot I am in now. Thanks! All insight and info on what kind of lifestyle a couple without kids can have on that sort of salary in Phoenix would be super helpful. I’ve done the city comparison calculators, but they are oftentimes contradictory.

[mborner]

If you made $93k in San Francisco, you'll live like a king on $78k in Phoenix. I don't know what city calculator you were using but there is a huge disparity between the two cities, COL wise, not even close. They are at complete opposite ends of the scale.

[locolife]

Shouldn't be an issue, how much are you paying for a place to live in SF? If it's near average then I think you're in really good shape with this move.

[KurtAZ]

Honestly, only you can answer this question. The biggest difference is going to be housing. What are you paying now vs. what you would be paying here. If you are going form $3k/mo to $1.5k per month...that is a net savings of $18k per year and you have made up your deficit. Actually...$18k net income is probably more like $25k in pre-tax salary so you would be doing even better.

Do you have a car? Cause you are going to need one.

Insurance rates, taxes, etc. are going to be other minor considerations...housing is the big one.

[john3232]

Originally Posted by Sonia Williams

I recently received a job offer in Phoenix with a salary of 78k a year. Insurance isn’t the best but it’s there. I am moving from a more expensive area near San Francisco and it will be quite the pay cut for me, so wondering if it is worth it to lose 15k out of my salary to live somewhere so much cheaper, or if it’ll put me in the same exact spot I am in now. Thanks! All insight and info on what kind of lifestyle a couple without kids can have on that sort of salary in Phoenix would be super helpful. I’ve done the city comparison calculators, but they are oftentimes contradictory.

I will assume you are renting near SF. What are you paying for rent?

My guess is roughly $1000 a month more for a similar apartment in the up and coming downtown areas of Phx.

A huge plus here is you will be able to afford a home should you want to buy .

Weather in AZ of course is extremely hot during the summer months whereas the SF area has excellent weather year round.

Bottom line: I just don't see you getting anywhere on 100 grand a year in the Bay Area. The cost of housing is just too much. You've got to be earning the big bucks or at least $250 grand a year.

When I was a boy my family moved to SF in the 60's to start over. I recall crab fishing over the piers and the white sand beach. Even in the early 80's housing was still affordable. My first apartment (an in-law) was $210 a month in the Outer Sunset district.

But that SF no longer exists.

The only thing I still recognize is Golden Gate Park.

[DetroitN8V]

$93k in SF is probably closer to $50k in Phoenix. I honestly don't know how you survived there on that. Your buying power should increase, but don't expect to live the high life here on $78k. With modest living and little debt, you'll be fine.

[military spouse]

A couple should be fine, but it probably won't improve your lifestyle THAT much. Of course, if you are living in an old house in a less nice area, you may be able to improve that aspect of your life.

[DetroitN8V]

Originally Posted by military spouse

A couple should be fine, but it probably won't improve your lifestyle THAT much. Of course, if you are living in an old house in a less nice area, you may be able to improve that aspect of your life.

I don't disagree with much of this, but the age of the house doesn't mean anything. There are LOADS of new houses here that are crappy, cheap and in bad areas. There are also older homes that are in great areas and quite pricey.

[bobspez]

The biggest issue will be the summer heat. Totally different than S.F. Also allergies and sandstorms. I was offered a job there and turned it down after visiting for 2 weeks.

[MrsMac]

You’ll have MUCH more buying power here with the $78,000! The biggest savings will be housing (at least 25% less rent cost than the Bay Area suburbs for a similar apartment) so you should actually be able to afford to buy a place in time. Gas, food, restaurants, beauty services; it all costs less here. (I go home a few times a year to visit and I feel the price difference!) Yes, the summers are HOT but this born and raised San Francisco girl manages just fine here.