When weighing job offers, you have to weigh multiple factors into the job offer. For instance, let’s say your salary averages out to $29/hr (how did we get that? Let’s take a salary – $60,000/year, divided by 52 weeks in a year, divided by a 40 hour work week = Our hourly rate, rounded up). That’s assuming our employer pays for insurance, medicade, 401k, etc – and with that we can say it averages to $36/hr).
When we compare a job offer from city A to city B, we can use a formula to determine whether the increase (or decrease) in salary actually is worth it!
(Where do we get the Index? From Sperling’s Best Places!)
Salary in city 1 X (index city 2/index city 1) = equivalent in salary in city 2.
So, for Columbus, Ohio’s $70,000 would equal $138,960 (roughly) in San Francisco, or $120,733 in New York City. Crazy!
What should be noted, is these figures are living in those cities – if you made that salary but lived outside the city limits, you could see a substantial jump in income!
This is particularly relevant to me as I’ve started to weigh job options – the perks weigh into the total worth of the package, and the location determines if it’s worthwhile or not. Lots of options and factors to consider!