Bay area priced out at 200k

Cisco bayareacol
May 11 78 Comments

I feel like leaving bay area..not sure am I the only one.

TC: 175k
Take home: around 7000/mo
Housing rent (3300)+ kid pre school = 4800
Othe expense(minimal things): 1800 (like gas, insurance, bills, grocery, house hold items etc, once a 2-3 month some clothing etc).
Savings: 400 only and many times this 400 per month also goes to emergency/some surprise expense.
So its mostly $0 or -ve with 175k income.

With just once a week eating out, no car loan or no personal loan.

Yoe: 8
It seems unless its more than 200k its actually -ve savinvs for bay area.. I really donot understand how non IT fields like teaching, banking etc live here.

Thinking to leetcode for 250k+ or leave the bay area. Its getting tough to raise kids finanacially here.

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TOP 78 Comments
  • Google XABa65
    Gtfo from the bay area. Texas will be a much much better quality of life for you
    May 11 7
    • New / Mgmt git commit
      “RackWare” And you totally get it too.
      May 11
    • Google snatch
      Won't OP's TC get adjusted to Texas?
      May 11
    • Austin is not that much cheaper.
      May 11
    • New / Eng h7j8
      Austin is that much cheaper. No state income tax and lower rent will make a huge difference.
      May 12
    • Have you seen rents now? I mean yes if you live in a less nice area outside of town. Downtown rents are still over 2k for a 1br from memory.
      May 12
  • New / Eng
    griesrt

    New Eng

    PRE
    Flipboard
    griesrtmore
    Move to Oakland. I’m paying $1595
    May 11 15
    • New / Eng
      griesrt

      New Eng

      PRE
      Flipboard
      griesrtmore
      Commute from MacArthur to Montgomery. Door to door it’s 35 minutes on avg
      May 12
    • New / Eng
      griesrt

      New Eng

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      griesrtmore
      I live in a one bedroom with my wife. It’s 800 sq ft
      May 12
    • New / Eng
      griesrt

      New Eng

      PRE
      Flipboard
      griesrtmore
      I lived in the mission sf a year ago and there was much more crime. Bad areas are now moving further east. Though anything can happen no matter where you are. I’m keeping a good shotgun close by.
      May 12
    • Wells Fargo qUyB01
      Griesrt is this a stand-alone home or an apt complex?
      May 12
    • New / Eng
      griesrt

      New Eng

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      griesrtmore
      It’s an apartment in a multi family complex. It’s in the Longfellow neighborhood in Oakland. We got a good deal but you could even get a really nice one bedroom near lake Merritt for 2200. It’s around 3k for a stand-alone with a garage.
      May 12
  • Facebook
    Instagrаm

    Facebook

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    Google, Microsoft
    Instagrаmmore
    Luckily there’s Seattle
    May 11 6
    • Facebook
      Instagrаm

      Facebook

      PRE
      Google, Microsoft
      Instagrаmmore
      I can fly to Cali every month for a business trip and stay there for the weekend. I can even do that every weekend on my own and still save more $$
      May 11
    • Google XABa65
      Seattle is not as cheap as you think. A house in a decent school district can easily go for a million
      May 12
    • Facebook
      Instagrаm

      Facebook

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      Google, Microsoft
      Instagrаmmore
      A house in a decent location in Bay area is at least twice as expensive
      May 12
    • Google XABa65
      @instagram, true that. So if you work for faang, even then bay area is unaffordable but Seattle is not. But if you work for Cisco like OP and make 200k, then even Seattle can look expensive.
      May 12
    • Nvidia showeridea
      Homeschool bruh, saves millions. #woke
      May 12
  • Quora vhQW50
    I understand your point but you are exaggerating. I know this because I had exact same TC in a while ago and here is what it shows, the only difference is I was not having 401k.
    May 11 8
    • Quora vhQW50
      You probably overpaid tax. Hope you can get a 10K back next spring.
      May 11
    • Cisco bayareacol
      OP
      That would be party.
      May 11
    • New zon2b
      Leave Cisco. They are know to pay low
      May 11
    • Hortonworks
      qwK8h2xz

      Hortonworks

      PRE
      VersionOne
      qwK8h2xzmore
      Quora, that is a nice base pay of $175k. Do you get bonus and RSU too at Quora?
      May 11
    • Quora vhQW50
      @Hortonworks Quora only has base and options. Indeed base is not bad even compare to FAAG.
      May 11
  • New eNBa60
    A salary of 220K+ is considered upper class in the Bay Area. If you’re the only one working and the wife can’t bring in income to get you over that hump then you’ll either want to move somewhere cheaper/less amenities in the Bay Area or put your kid in a different PreSchool program. Of course most of the problem with the Bay Area is the high housing cost. If you move somewhere like Austin and keep your same TC, you will likely have a significantly better quality of life because housing alone is over 50% cheaper.
    May 11 6
    • New eNBa60
      Household. For example, the median household in San Jose earns $83,400. A Household earning $204,000 puts them in the top income quartile. Source: Bizjournals

      I put 220K as a relative catch all for the Bay since in San Fran it’ll be 231K, Fremont it’s 224K.
      May 11
    • Twitch / Product CP0
      You're fooling yourself if you think that's accurate🙃220k household income in SF living a moderate millennial life means you won't have too much savings. 160k take home is eaten up quickly at a family scale... housing (60k), food (20k), entertainment / travel (25k), other shopping (15k), medical / emergency (10k), kids stuff (20k), misc (5k)
      May 11
    • New eNBa60
      My friend, I literally provided what the median family makes from actual data sources...if you’re making twice what the median makes you’re well ahead of your peers period. If you’re struggling at that household income that is a lifestyle problem. For example, 25K on Travel on 160K take home pay? that’s a massive luxury, not a need. Many of your peers don’t even leave their cities, let alone state...
      May 11
    • New zon2b
      Those making median incomes have house from their parents. You don’t have data for those that rent and are single earners which OP is. His struggle is real
      May 11
    • New eNBa60
      I’m pretty sure my original comment covered housing (suggesting Austin where similar housing/rent is literally over 50% less than in the Bay). Regardless of whether you are a single earner or not, if your household is making over 220K you’re doing way better than everyone else in your city. I didn’t say the OP current TC put him there. You may not “feel” 220K is rich because the housing you wanted has amenities or is in an area of town you felt you should be. The DC metro area is similar to the bay (about 19% less expensive). If I wanted to stop living in a gated community and get a similar size place without marble counter tops I’d easily save over $6K a year. Those are examples of luxuries. In the OP case, this is more of a temp problem because the wife is studying and it appears they’re paying the high child care cost so she can focus. Once she works again and especially if she gets a gig making close to or more than what he makes they should be just fine.
      May 11
  • U are spending way too much. Move to a cheaper apartment so you can shave off 800-1000$. Also 1500 for preschool is too much - find a cheaper day care, the kid is not doing a PHD - 10 yrs from now you will realize it was waste of money.
    May 11 1
    • Cisco bayareacol
      OP
      The cheapest day care we have found is 1300, but we loke the one where we are sending on average expense goes to 1500 for that. Also for apartments we have not found decent place/2bhk with less than 1 hr commute for the price you mention.
      May 12
  • Cisco musigma
    Move to RTP.. Though compensation will be adjusted, yet you will end up saving more
    May 11 0
  • New AXWY54
    With a 175k tc, your take home should be around 10k. If you are putting money in 401k etc , that is saving
    May 12 0
  • Microsoft no-sql
    Something is not adding up here. If your wife is not working and you have kid, you get much more than 7k per month as per your Tc. I worked for Ciscoo before and made less Tc than you. Secondly why do you want to put your kid in preschool when your wife is not working? There are a lots of options in Bay Area where you get 2k rent but you may not have washer dryer
    May 11 2
    • Cisco bayareacol
      OP
      yeah, somehow was not able to convince my family for home study, my partner is also studying and preparing. Which area is just 2k?, I can explore that. I looked Rent.com near Cisco(SJ area) for 2bhk option but it didn't help.
      May 11
    • New eNBa60
      That makes sense. Well hopefully your wife will be done with Studying soon and can apply for jobs. I can understand how a young kid can be a massive distraction for that. If her earning potential for a job is high in the Bay then you may want to suck it up a little longer.
      May 11
  • Accenture / Eng __xjwg
    can you find a place where it's ~2000usd rent?
    May 11 2
    • Cisco bayareacol
      OP
      I have seen some around 2500 which are 1bhk and about atleast 1 hr one way commute time. 1bhk is really tough for family of four.
      May 11
    • 3k gets you a nice 2br in upper east side...
      May 11
  • LinkedIn 黃帝
    If your kid is in preschool, is your spouse working?
    May 11 1
    • Cisco bayareacol
      OP
      no. But we put in TK which is not there in home school
      May 11
  • Capital One Vfua50
    Move to Austin , TX
    May 11 0
  • Headspace sScq20
    I think with 8 yoe you can shoot for a higher TC in the bay area. Going over 200K doesn’t seem to be very hard if your skills are in demand and you’re good at what you’re doing. I used to be in the same boat as you several years ago - I was at 135k TC, 2900 rent + 1400 pre school. Without a side gig some nights and a bit of weekends it was extremely hard to survive. But as I said - try shooting for a 200+ TC.
    May 11 0
  • Quora vhQW50
    How do you have only 7k take home with 175k tc?
    May 11 2
    • Cisco bayareacol
      OP
      Why is it surprise? With medical, 401, ca tax, fica, medicare tax, cavdi tax, federal tax, dental, eye, critical illness, few more deduction etc.. it easily take ~50% cut on income per month
      May 11
    • Facebook shsgsa
      It’s not base salary I think
      May 12
  • Kohl’s ex-wmt
    do you max out 401k and hsa? Do you use higher witholding ? Maybe take more allowances in w4, reduce 401k contribution
    May 11 1
    • Cisco bayareacol
      OP
      No hsa, just normal 5% 401k, but do additinal 200 for tax withholding to avoid rax bill for income coming out of w2 e.g from interest etc
      May 11
  • Amazon
    seattle'd

    Amazon

    PRE
    Amazon, Salesforce, Google, Microsoft, Apple
    seattle'dmore
    Move out of CA.
    May 11 0
  • Nvidia ECC56
    Option #1 is leaving the Bay area. It's just not worth it there....
    May 11 0
  • New / Mgmt git pull
    You’re getting fucked homey.
    May 11 0
  • Move to less expensive apartment? And try hard for better TC, either internal or external. Take it as a push to survive.
    May 11 0
  • Nvidia showeridea
    You gotta pay for pre-school these days?
    May 12 1
    • Cisco bayareacol
      OP
      yes, for these days. Dont know about past
      May 12