It sounds like common sense, but a lot of people don’t crunch the numbers when they get an offer for a higher salary at a job in another city. Here are some tools to use.
John Sheesley writes in the Decision Central blog that before you make the decision to follow a higher salary to another city, you may want to get down to the nitty-gritty of the cost of living there:
“Let’s say you’re a network administrator in Louisville, Kentucky, making $50,000 a year and you’re offered a job for $85,000 in San Francisco, California. Sounds like a pretty good deal, right? Not necessarily.”
He recommends using BankRate.com’s cost of living comparison calculator to figure just how much the cost of living will affect what appears to be a higher salary:
“In it, you enter the amount of money you’re making in one city, and it returns the cost comparison to dozens of other cities across the United States. It will show you how much money you need to make in a new city to break even with what you’re making where you are now.”