Using Cost of Living Comparisons to Make Relocation Decisions
If you’ve been faced with the daunting task of finding a new job in these shaky times, you may have already realized that you may have to expand your job search area. More and more, people are looking to other towns or cities for employment when an appropriate job isn’t available in their home town. By widening your search radius, you’re likely to increase the number of job openings you can investigate.
Once you’ve started interviewing for jobs that require relocation and seriously considering job offers for them, you’ll need to find a way to compare apples to apples. A job offer that includes a salary of a specific amount in one city may not be comparable to a job offer for the same amount in another city. Differing costs of living will allow your salary to have more or less purchasing power from location to location.
So how are you going to evaluate these job offers? Fortunately, cost of living comparisons make it easy to view job offers on a level playing field. For instance, if you are used to making $35,000 each year, a cost of living comparison will allow you to see what a comparable salary in a specific city might be. If a city you are considering relocating to has a higher cost of living than your current home, you may have to make $38,000 to purchase the same things (rent/mortgage, utilities, food, i.e.) in the new city. Likewise, a lower cost of living may only require you to make $32,000 to maintain your current standard of living.
Finding cost of living comparison information couldn’t be easier. Several websites, such as Bankrate.com or CNN Money, have this information readily available. In fact, Bankrate.com allows you to input the city you are in now and the city you are considering moving. Then, with the click of a button, you can see exactly how much money you will require to keep living in the same manner you are used to.
Deciding to relocate to a new city is a major decision. Many factors other than money, including finding a new home and leaving friends and family, have to be weighed before you make your final decision. However, having the information available to evaluate the financial ramifications of your relocation will leave you more time to consider the more emotional part of your decision.
Filed under: Personal Finance
[...] CVN Money wrote an interesting post today onHere’s a quick excerpt If you’ve been faced with the daunting task of finding a new job in these shaky times, you may have already realized that you may have to expand your job search area. More and more, people are looking to other towns or cities for employment when an appropriate job isn’t available in their home town. By widening your search radius, you’re likely to increase the number of job openings you can investigate. Once you’ve started interviewing for jobs that require relocation and seriously considerin [...]
Additionally, looking at the taxes a state imposes is an important aspect of looking at the financial picture before you move. Many states have sales taxes — the highest are Tennessee, Louisiana, Washington, New York, Arkansas, Alabama, Oklahoma and California. This will eat up some of your income. Cigarette taxes are highest in New Jersey, Rhode Island, Washington, Alaska, Arizona, Maine, Connecticut, Maryland and Michigan.
Also check on Personal Income Tax (e.g 41 states have a personal income tax. The states of New Hampshire and Tennessee only tax the interest and dividends of personal income. The states of Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming do not tax personal income.),Taxes on Retirement Income (e.g How does the state or city you want to move to handle taxes on retirement plans. Some will heavily tax IRA’s and other accounts for retirement. Some states even tax military pensions and retirement plans. All these factors will eat up your retirement income when you factor it into the expenses you may be paying. ) and Retirement Savings and Estate and Inheritance Taxes.
Sam
Fix My Personal Finance
http://fixmypersonalfinance.com/
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[...] Using Cost of Living Comparisons to Make Relocation DecisionsSeveral websites, such as Bankrate.com or CNN Money, have this information readily available. In fact, Bankrate.com allows you to input the city you are in now and the city you are considering moving. Then, with the click of a button, … [...]
[...] Cables, Docks & Kits News » News News Using Cost of Living Comparisons to Make Relocation Decisions2008-08-21 02:16:00Purchasing cost of living will allow your salary to location. So how are you [...]