MOVING AND MONEY

Hello everyone,

 

Let’s talk about our almighty ruler today. The dollar. Today’s writing was inspired by a friend’s post on Facebook. He asked how much more a job would have to pay to justify moving states for work. Which is quite a loaded question, and I gave him a short answer since I have no doubt that a long form answer probably won’t be something that he will read. I also used watered down examples because I think exact numbers might be harder for him to grasp conceptually—I know they would be for me. I’ll also be doing this in examples today. Let’s get into it!

So lets say that at your current job you make $20,000 (moving forward I’ll refer to numbers like this as “20K”), and living expenses in that location cost 15K. The job you would be moving to pays the same, however the living expenses of the area are only 10K. That’s 5K more in your wallet per year. Which is nothing to scoff over. Moving costs, what, maybe 5K? So your first year is a little tight, but as you settle in, things have a significant up tick.

Let’s take another example. Let say your job has a significant increase in pay from your current job. 50K, instead of 20K. Living expenses in that area are 25K. I think you can figure out for yourself that this is significantly better net pay than either of the other jobs. That said, what if this new job also requires more hours out of you? That average American works roughly 45 hours per week, to my understanding. If your old job only made you work 35 hours a week, and this new one requires 50 hours, you suddenly have lost a lot of free time to explore life.

This accounts for one of the more difficult aspects of moving, because it is not easily quantifiable. What if you’re really close to your family, but this move will leave you across the country from them? What if you absolutely hate your family but your dad owns the business that is offering you this new job? What if your partner has a good job at home, and would have to find a new one or leave you? Suddenly it’s not so simple. And I don’t have an answer for you. But I do know that, at the end of the day, while money can’t buy happiness, it can produce more avenues to happiness. If you can live without seeing your family constantly, but want to still have access to them, maybe that new job is good. Enough extra money means you could fly back for a weekend to visit them every once in a while.

Of course, there are so many factors to moving that it’s hard to say for sure. But if it is for a job, factor in more than just an increase in pay, because you could end up with a real problem on your hands if your living expenses are too high when compared to how much you are making. At least, that’s my two cents on the issue. What do you think? Am I totally wrong? Are there factors I missed? Let me know!

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