The problem with that is that the costs arent linear. Minimum wage here is $20/hr but no one can afford to live in the city for that amount, even with roommates. So, there is no savings because they cant afford to live. Throw in that most other basics are also higher in a HCOL city and the minimum wage example just falls apart.Yes, if you move from LCOL and do the same job, but don’t make the same percentage more as the cost of living difference, then yes, this doesn’t apply to you.Not always. I live in the Greater Seattle area and there arent a ton of cheap rentals. To add insult to injury, rent increases for us have averaged ~11%/yr. If you want to live in a HCOL area, you have to make enough to do both. We moved here from a MCOL area where the place we rent now would be a third of the price but I also made ~40% less.You can also rent affordably and invest in the marketI mean, if cost of living is a lot higher it might be harder to save too. If you're paying exorbitant rent costs saving up for a down payment and transitioning to home ownership might be difficult.
Personally, I think high income in a LCOL area is ideal.. I’m just addressing COLA diff between the same jobs. A minimum wage entry level hourly job in HCOL makes $17.50 (almost 42% more than in LCOL) for same job. If they save 10% of their salary, they have $1.75 saved per hour worked vs. $.75 for the other). Both feel the same pain in trying to save 10% and in paying other percentages for food, clothes, etc. One comes out much higher, with the same struggle, generally. This point is what I’m saying folks tend to overlook.
. I’m just addressing COLA diff between the same jobs. A minimum wage entry level hourly job in HCOL makes $17.50 (almost 42% more than in LCOL) for same job. If they save 10% of their salary, they have $1.75 saved per hour worked vs. $.75 for the other). Both feel the same pain in trying to save 10% and in paying other percentages for food, clothes, etc. One comes out much higher, with the same struggle, generally. This point is what I’m saying folks tend to overlook.Statistics: Posted by jjunk — Sat Mar 09, 2024 4:47 pm — Replies 45 — Views 1715