Watch the clip, that is exactly what he is talking about. In context he it saying people should move from expensive metropolitan areas and into cheaper states if they cannot afford to live in the cities.
Which is funny because income drops vomparatively in lower cost of living areas, especially if there isn’t a lot of options for employment, so it doesn’t really address the issue.
Yes but usually things like rent and taxes end up taking a smaller portion of your income. So even though you went from 130k to 90k taxes and rent went from 60% to 40% of your income. This is of course dependent on your career having roles in cheaper states.
The thing is, the remaining percentage of your income is smaller when income goes down and not everything you want to buy goes down.
If your income is cut in half but you still have 10% of your income as disposable, the 10% is half what it was in t he city. So if you travel anywhere you have half as much to spend on travel. If your savings is cut in half because it is the same percentsge then you have half as much saved up and are pretty much stuck in lower cost of living areas.
Sure, going out on the town is cheaper while living there, but your options are now limited to lower cost areas.
It is a possible short term benefit for being stuck long term.
Watch the clip, that is exactly what he is talking about. In context he it saying people should move from expensive metropolitan areas and into cheaper states if they cannot afford to live in the cities.
Which is funny because income drops vomparatively in lower cost of living areas, especially if there isn’t a lot of options for employment, so it doesn’t really address the issue.
Yes but usually things like rent and taxes end up taking a smaller portion of your income. So even though you went from 130k to 90k taxes and rent went from 60% to 40% of your income. This is of course dependent on your career having roles in cheaper states.
The thing is, the remaining percentage of your income is smaller when income goes down and not everything you want to buy goes down.
If your income is cut in half but you still have 10% of your income as disposable, the 10% is half what it was in t he city. So if you travel anywhere you have half as much to spend on travel. If your savings is cut in half because it is the same percentsge then you have half as much saved up and are pretty much stuck in lower cost of living areas.
Sure, going out on the town is cheaper while living there, but your options are now limited to lower cost areas.
It is a possible short term benefit for being stuck long term.