http://www.freethedrones.com/blog/2006/09/16/pay-differences-in-job-salaries-between-cities-not-big-enough/ A personal finance blog dedicated to achieving financial freedom for those drones slaving away in jobs they hate. Mon, 24 May 2010 01:48:30 +0000 hourly 1 http://wordpress.org/?v=3.1.3 http://www.freethedrones.com/blog/2006/09/16/pay-differences-in-job-salaries-between-cities-not-big-enough/comment-page-1/#comment-179 $600,000 For A House - Next To A Prison Fri, 13 Oct 2006 22:25:17 +0000 http://www.freethedrones.com/blog/2006/09/16/pay-differences-in-job-salaries-between-cities-not-big-enough/#comment-179 [...] of living to me. Discuss this in the Free the Drones Forums. Posted in Real Estate | Trackback | del.icio.us | Top OfPage [...] [...] of living to me. Discuss this in the Free the Drones Forums. Posted in Real Estate | Trackback | del.icio.us | Top OfPage [...]

]]> http://www.freethedrones.com/blog/2006/09/16/pay-differences-in-job-salaries-between-cities-not-big-enough/comment-page-1/#comment-126 Free The Drones Personal Finance Blog » Blog Archives » Compare Average Home Prices By State Wed, 27 Sep 2006 19:19:30 +0000 http://www.freethedrones.com/blog/2006/09/16/pay-differences-in-job-salaries-between-cities-not-big-enough/#comment-126 [...] A lot of people think this doesn’t matter - but it can be the single biggest personal finance decision you make. Your house is going to be your biggest expense, period. It’s usually around one-third of your income. If you get similar pay in a cheap city, you can cut your monthly expenses, big time. Let’s say you’re picking between D.C. and Houston. That’s $800,000 vs. $155,000. In D.C., at 6% interest, that’s $4,800 a month. In Houston, you pay $929 a month. In reality, you’d probably just live in a tiny apartment in D.C. versus a house in Houston. But let’s assume you’ve got a real choice - same house in either city. How much could you save over time by picking the cheap city? $3,871 a month - at 9% a year - or about $2.4 million at the end of twenty years. So if you do it soon enough, pretty much all you’d need to do to retire is move off to a cheaper city. Most people don’t make anywhere near enough to afford a $4,800 mortgage, but they also don’t need $2.5 million in retirement, either. [...] [...] A lot of people think this doesn’t matter – but it can be the single biggest personal finance decision you make. Your house is going to be your biggest expense, period. It’s usually around one-third of your income. If you get similar pay in a cheap city, you can cut your monthly expenses, big time. Let’s say you’re picking between D.C. and Houston. That’s $800,000 vs. $155,000. In D.C., at 6% interest, that’s $4,800 a month. In Houston, you pay $929 a month. In reality, you’d probably just live in a tiny apartment in D.C. versus a house in Houston. But let’s assume you’ve got a real choice – same house in either city. How much could you save over time by picking the cheap city? $3,871 a month – at 9% a year – or about $2.4 million at the end of twenty years. So if you do it soon enough, pretty much all you’d need to do to retire is move off to a cheaper city. Most people don’t make anywhere near enough to afford a $4,800 mortgage, but they also don’t need $2.5 million in retirement, either. [...]

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