Hello world, I'm wondering how the salaries compare to the cost of living in the following areas, for tech jobs. Bay area Shenzhen, China London, UK NYC, USA If you work in one of these areas, could you provide an estimate for your total pre-tax salary (not including RSUs)/total rent for the year? If you could also state your YOE, and your job title, what would be appreciated also. I'm trying to collect these data points to make some useful graphics for people.
Is ratio the right metric? Would you rather have: $100k salary / $20k CoL = 5.0 annual savings = $80k or $300k salary / $100k CoL = 3.0 annual savings = $200k
Arguing on your lines - With savings of 80k and CoL 20k, you can sustain 4 years of life (80/20) with 1 year of savings As opposed to 2 years of life (200/100) with 1 year of saving in 100k CoL place. What do you think is more valuable then?
I don't think life expectancy is limited by how long we can sustain CoL, when making a six-figures income. Moreover, by saving more in high CoL and moving to low CoL after retirement, you actually maximize this number rather than living in low CoL the entire time.
It’s incorrect to substract mortgage from salary as part of CoL, since it becomes part of your property.
Incorrect. For first 10 years of any mortgage, only 20% of your payment is towards principal. Rest is interest
@hitman047, something is wrong with your math. Let’s consider a house $500k on 15 years. So you are saying I will pay only 1/5 of it after 10 years?
Shouldn't you express rent as a percentage of your salary instead? That's easier to understand and that's how banks do it when you apply for a mortgage. Debt-to-income ratio.
Dude, it's the same thing. Blind is filled with engineers and finance people to whom that's the exact same information.
Where is Bangalore (SV of india) and Hyperabad?
The OP didn't seem interested in those, for what personal reasons I know not.
It's because India is still quite an outlier in terms of economic size compared to the others that it might have other unaccounted for phenomena that will see the data.
Bay area - 5 years - 1 person. If I were to live in 1b1b then my ratio is ~5.6