Rich v Affluent

[Anonymous]

Anonymous wrote:Why do people stay in super high COL areas. That's what I can't figure out..... If I ever get married I am getting the heck out of DC and going someplace like PP mentioned. Is it really that hard to find a job paying 100-150k outside of DC in these areas?

Yes. But it depends on your line of work. In my field, I'd probably make half as much in a small midwestern town. My husband wouldn't be able to find an equivalent job, and would be in another line of work. The difference might be less stark in healthcare? But I have no idea.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I make about $200k, and I definitely feel very rich. We can pay for any college our kids get accepted to out of cash flow - even if it's $70k a year.

We receive catalogues by mail for some crazy cruises with a price of $95k per person for a 3-week cruise. Who is taking a 3-week cruise paying $200k for a couple? Definitely nobody like us, yet that doesn't prevent me from feeling rich. I'm so far from thinking that if I can't afford that cruise, I must be a middle class.

I don't understand how you could pay $70K a year out of $200K cash flow. Or does your spouse work? $200K is about, what, $130K after taxes, so your net spend is only $60K annually now, so you could pay $70K for college?

Yes, he works and also makes about $200k. Even when I didn't work and stayed home with the kids, I felt rich because our expenses were lower.

So you are saying you can cash flow $70K out of $400K, not $200K. DUH.

[Anonymous]

Anonymous wrote:Why do people stay in super high COL areas. That's what I can't figure out..... If I ever get married I am getting the heck out of DC and going someplace like PP mentioned. Is it really that hard to find a job paying 100-150k outside of DC in these areas?

It is if you have a policy job, or in some types of law. You know, there's a pesky thing called a state bar exam that limits just moving to a poor state and setting up shop there. What is your professional expertise in?

[Anonymous]

Anonymous wrote:Why do people stay in super high COL areas. That's what I can't figure out..... If I ever get married I am getting the heck out of DC and going someplace like PP mentioned. Is it really that hard to find a job paying 100-150k outside of DC in these areas?

Yes, shockingly, in less urban, lower cost of living areas, the salaries are lower and there are fewer job opportunities. Jobs in suburban and rural areas tend to be grouped around a much smaller set of employers and there are fewer opportunities and less competition for candidates, so they can pay less and expect more because where else are you going? Take a peruse through the job listings in other areas and see what they're offering salary-wise. It looks really low after being in DC. And, I think that DC is not even in the top 5 most expensive cities in the US, though I could be off on that. I know that NYC and the Bay area are significantly more.

And, as has been noted repeatedly, the DC area is home to a lot of jobs that require proximity to the city. One of our friends moved for a job several years ago, and it took her lobbyist husband quite some time to find a comparable job in their non-DC location. Another moved to an area for a job but was subsequently laid off when the function was outsourced and had no other comparable employers locally (ironically, he's now working remotely as a consultant for a DC-based organization -- but this requires paying his own taxes and benefits). Bar membership is another big issue, as are other jurisdiction-specific certifications that don't transfer easily.