Quote:
Originally Posted by philepistemer
Maybe if you have kids and your favorite thing in the world is go to expensive restaurants. I live in manhattan and my living expenses are only like 15k higher than when I lived in flyover country.
I am taking into account some extra factors but I think you're also way underselling it. City tax + higher state tax will be about 12.7% compared to the typical 5% state tax so there's your $16k/year on a $210k salary right there.
Average commute time in the US is 25 mins vs. 37 mins in NYC. That's about 3 weeks of work or another $13k/year at your NYC salary rate.
Rent is definitely going to be higher, it's been a couple years since I lived in Manhattan but let's say mediocre studio for $2k/month. Most flyover country (unless you're cherry picking Chicago or something) you could find something much nicer than your NYC studio for let's say $1k/month. That's another $12k/year by my count.
Average work week in NYC is 49 hours, average for the US is 34 hours. That's about $65k based on your $210k salary hourly rate. That's probably a bit extreme (fewer families in NYC), let's call it $50k.
So by my tally per year you're spending as a single dude:
$16k taxes
$13k commute time
$12k rent
$50k additional hour expectations
Or $91k out of your $210k salary based on either additional cost or hours committed. 43%.
So we haven't even touched anything like kids or eating out. Obviously, differing circumstances could change that average a lot but I think I've nailed the typical NYC setup quite well with my 40-50% discount rate. Even lining these up, your typical stuff will be a lot harder in NYC (travel, entertainment, living amenities), you have to really love NYC to live there (and plenty do) but going for the higher salary is generally a math fail.
Last edited by cwar; 04-25-2016 at 01:43 AM.