How Much Is Enough?
Recently I answered a question about salary equivalency between two locations in the USA. The question asked what salary in the SF Bay Area was equivalent to $120k in Chicago.
Some people have created excellent purchasing power calculators that get pretty close to explaining how much stuff costs, including housing, from one location to another. But I find this is seldom the most important factor.Why? Because after the basics of not being hungry, having a secure residence, and access to affordable healthcare, "purchasing power" is not the same as "quality of life."
For example, if you HATE snow and sub zero temps, and spend $30k a year in Chicago leaving as often as possible during the Winter for warmer climates on short and long holidays, then perhaps the move to a place where there is no snow makes a big difference in quality of life, even if you have less spending power.
Conversely, if you hate driving in heavy traffic on a frequent basis, and prefer public transportation and walkable neighborhoods, you'll find that the Bay Area is inferior to Chicago in many locations -- so even if you have MORE spending power in the Bay Area, you'll be less happy.
But at the end of the day, while those calculations (soft quality of life, and hard purchasing power) are important for how you make a decision about whether to move or what job to accept or how to negotiate a salary, keep in mind that the companies you apply to "don't care." Well, they do care to the extent that they are not psychopaths and or to the extent that they know that to be competitive they need to keep soft factors in mind. But at the end of the day, even if you determine you need $180k in the Bay Area, if the local market pays $140k for your skill set and experience, or $250k, that local market rate is the largest determinant of what kind of salaries you will be offered, regardless of equivalency.
Conversely, if you hate driving in heavy traffic on a frequent basis, and prefer public transportation and walkable neighborhoods, you'll find that the Bay Area is inferior to Chicago in many locations -- so even if you have MORE spending power in the Bay Area, you'll be less happy.
But at the end of the day, while those calculations (soft quality of life, and hard purchasing power) are important for how you make a decision about whether to move or what job to accept or how to negotiate a salary, keep in mind that the companies you apply to "don't care." Well, they do care to the extent that they are not psychopaths and or to the extent that they know that to be competitive they need to keep soft factors in mind. But at the end of the day, even if you determine you need $180k in the Bay Area, if the local market pays $140k for your skill set and experience, or $250k, that local market rate is the largest determinant of what kind of salaries you will be offered, regardless of equivalency.