Think before you answer.
What would a $200,000 salary get you in New York, and what in Cleveland? Well, let's strip it down:
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What would be your purchasing power after accounting for the cost of living? New York's cost of living, for example, is double the national average.
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What about effective tax rates? The tax rate in New York is 25.4% for the $200K salary vs. a tax rate of 20.4% in Cleveland for the $100K salary.
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Different inflation rates? May annual inflation rate in New York metropolitan area was 4.8%, in Cleveland, the rate was 3%.
All these should be considered before deciding. So, have you changed your answer?
Let's start by saying that if you have that choice (of making a six figure salary), then congratulations are in order. You are part of the 5% of Americans who do (according to 2004 census reports). But the real question is - where do you live?
CNNMoney.com used data from 6FigureJobs.com and TheLadders.com to figure out the equivalent of $100,000 after adjusting for the cost of living in the top cities that have the largest numbers of six figures jobs listings. In New York, a $100,000 equivalent salary would require a salary of over $205,000, in Boston more than $137,000, about $101,000 in Cleveland and less than $89,000 in Houston.
So while many six figure jobs are indeed offered in higher cost of living areas, there are still many cities such as Chicago, Atlanta, Seattle, Cleveland and Denver as well as a few others that also have relatively high numbers of six figures jobs to offer. And as if that isn't enough to convince you, sometimes, just to attract talent, companies in those "lesser" cities would offer the same high salaries as in, say, New York.
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Reader Comments (Page 1 of 10)
9-18-2006 @ 10:00AM
Lucy Cooley said...
The regions surrounding Cleveland should not get such a bad rap. There are scads of beautiful old neighborhoods of lovingly handcrafted houses, fabulous museums, and the best orchestra in the country here, all established in the grand old days. The medical community is one of the best, and the region's many wonderful schools send kids to top colleges worldwide. The climate provides four seasons of variety for countless land and water sports, and the general population is down-to-earth, friendly and uninterested in being part of the rat race.
9-19-2006 @ 8:38AM
Nancy said...
Hey I live here in Cleveland and my family has lived here for FOUR generations we have museums, sports, parks, Lake Erie, accessible downtown, entertainment and a good work ethic, we're just not all that fancy here but sometimes we can get glitzy. Movies are filmed here because the scenery is adaptable to that and we treat the Hollywood crowd right. It's a good place to be, no joke.
9-19-2006 @ 7:13AM
Dan said...
Huh? I think you may have an error in your article - a $100,000.00 salary in New Yok City is the equivalent of a higher salary almost anywhere else? The rest of your article implies that NYC is the most expensive place to live, so how come a 100K salary goes farther there than in other places?
9-19-2006 @ 8:41AM
Chris said...
That's not what it says, Dan. Read again.
9-19-2006 @ 7:27AM
kevin said...
Dan, I think you may have an error in your reading. Read it a couple of times and it will make sense to you. I know its early
9-19-2006 @ 7:46AM
Natalie said...
This one is easy: Cleveland. It is beautiful, the people are down-to-earth, and the prices are inexpensive. If you need a taste of the big apple, fly there, it's only 55 minutes away. And when you're tired of all the noise, the crowds, and the rat race, come home. You'll be happy you did!
9-19-2006 @ 8:00AM
Pat said...
I reside in another part of Ohio but my parents grew up in NYC and I have spent a great deal of time there. It is all about your personal preference. NY offers a heck of a lot and if you can tolerate less space want a certain lifestyle, it would be the place for you. If you want to get more for your money and have a more relaxed lifestyle, than Cleveland is a better bet. As I have heard many times: "live in NY City once in your life, but leave before it makes you hard." Its all about preferences and these are certainly two distinctly different choices.
9-19-2006 @ 8:10AM
Georgia said...
Grew up in NJ, have lived in Ohio past 32 years. I go back to visit often, but would never move back. Taxes, Traffic, and Tension...WAY TOO MUCH!
9-19-2006 @ 8:12AM
Steve Dudas said...
Best location in the nation, except for the cold weather and sports teams that can't seem to get a ticket to the big dance. Cleveland has areas that look like Colorado but it's a well kept secret to outsiders. Great town for opportunities, very industrious business climate.
9-25-2006 @ 11:27PM
Anthony said...
I am a born-and-bred New Yorker who is finally relocating to Charlotte. New York City is EXPENSIVE. A $100G salary does not cut it when you figure in all the taxes you are hit with like tolls, an 8.65 sales tax, and environmental control board fines to property owners, among others that no one tells you about until you are living here and it's too late. To live in NYC you need to have an income above $150G. The taxes are killing New York. That is why most Fortune 500 companies have move south, and Charlotte is a booming city. 2nd Banking city in the nation and about to surpass the current number 1, New York City.
9-19-2006 @ 10:36AM
Greg Carroll said...
I lived in NY (on LOng Island) for most of my life. I was a 20 minute LIRR train ride in and loved it. But it got too expensive. I packed up the family and left 7 years ago. Prices of houses are too high, property taxes were ridiculous and getting higher and the salaries didn't necessarily cover it. I moved to Central Maryland where the cost of living is about 25% lower then NY. I work in DC and make a great salary, and the house we just had built on a 1/2 acre of land would have cost me 2-3x as much on Long Island. I miss it, but not enough to move back there. 1/2 hour flight or a 5 hour drive is fine to go see old friends and family.
9-19-2006 @ 8:43AM
beth said...
WE moved to the cleveland area thirty four years ago from the Chicago area. Whenever people visit us they feel Cleveland is the best kept secret of places to live. The suburbs are beautiful and full of charm. the topography is a lovely change from flat Illinois.Lake Erie, Major League sports, Great ethnic restaurants and neighborhoods,and a close proximity to the East coast all make Cleveland a great place to live.
9-19-2006 @ 8:34AM
Joe said...
I live in North Jersey. Although my proximity to NYC makes my cost of living high, I'm making almost double for the same job as I would almost anywhere else. Living in Cleveland might be less expensive, but that's just it...you'd be living in Cleveland. Cleveland isn't a bad city, but it doesn't even come close to New York in terms of culture, restaurants, nightlife...living in NYC (or even close to it) has a certain "aura" that you can't pin a price tag on.
9-19-2006 @ 8:40AM
rich said...
JUST GOT BACK FROM A VISIT TO NYC..........
NI BRAINER ON CHOICE OF WHERE TO LIVE----------CLEVELAND IS SOOOOOOOOOOOOO MUCH BETTER------------------PEOPLE ARE HUMAN, AREA IS MUCH NICER, CLEANER AND LAKE ERIE AND THE SURROUNDING AREA IS BEAUTIFUL--------------DON;T LET OUR SECRET OUT--WE LIKE IT HERE RICH
9-19-2006 @ 8:42AM
angela said...
please 100,000.00 i thought when i hit that magic number i would be set.. ha the more you make the more your life spends it ... i live in atlanta ..
9-19-2006 @ 9:13AM
Bill said...
I'd take Cleveland. I live in Connecticut, everything here is so darn expensive. I've been to the City a few times, and its all expensive. To park for an event, $20 for up to 8hrs. TGI Fridays, a pasta dinner, $22!! The same I can get elsewhere for $12!! Hustle, Bustle, and rude people...not all, but most. Stay where the people are nice, its goes a lot further.
9-19-2006 @ 9:13AM
James Goldstein said...
I live in NYC and have visited Cleveland numerous times. Conclusion: I would rather make $5.50 an hour in NYC then 500K in Cleveland.
9-19-2006 @ 9:14AM
Anne said...
I live in NYC and have a lifelong friend (from across the street) who moved to Cleveland Heights 35 years ago, after marriage. Frankly, if I could withstand the winters there, I would have moved 30 years ago. The houses? Magnificent! The people? Wonderful! The cultural opportunities - museums, symphony, etc. -
un-matched. New York City- I love it, but can't take much more of it. For my money, Cleveland, and the surrounding areas, are the move!
9-19-2006 @ 9:15AM
eric said...
Cleveland is a dump and thats why the salaries paid there are pitiful, the city is pitiful. I make a six figure salary and live in NYC very comfortably, I may add. The money I make I can also enjoy it in NYC as the restaurants, lounges and theatres are the best in the world.
9-19-2006 @ 9:15AM
David said...
I agree, Angela - live in Atlanta too and $100K is just a number - the more you have, the more you spend - the key is to have good budgeting habits no matter how much you make