Cost of Living Adjustments - NYC average, provides, currently, increase, experience

TheMBAGlover

Hypothetical: let's say you live in a city that is about average in terms of cost of living (index = 100). What sort of pay increase would you need to move to NYC?

I currently live in a city with an average cost-of-living and have the opportunity to move to NYC within my firm. Total base + bonus is about $100,000 currently in "average cost-of-living city" which provides plenty of discretionary income in my current locale.

I really want to move to NYC for the near-term experience but I also don't want to feel as though I am poor there. Willing to live in an average place in an average neighborhood. Could use some direction on what sort of pay adjustment I should seek as I will likely be low balled. How bad are taxes in NYC (I hear they are pretty onerous)?

Appreciate your thoughts!

Analti_Calte

Thanks everyone for your responses--pretty helpful fodder.

On the tax note, my current state tax is around 10% so NYC won't be that dramatic of a change. We do not have a sales tax however. Hike in base of 25% would get me to $110K so thats what I will be targeting.

I don't mind scaling back my standard of living but I don't want to eat into my savings either.

thecfawannabe

ohai Wrote:
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> So why do people work in those cities? Clearly
> they are all stupid.

Stupid is a strong word. Not everyone works in finance.

If you're in tech, you should go to silicon valley. If you're an actor, you should go to LA, if you like elderly women, you should go to Florida, etc.

Few people are optimizers; most avoid making changes or taking risks.


numi Wrote:
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> It's because we're really really ridiculously good
> looking, and the abundance of women in these
> cities know that we're not just looking for
> friendship.

this too

wake2000

Add in like 10% for having to listen to Yankees fans...

infinitybenzo

It's because we're really really ridiculously good looking, and the abundance of women in these cities know that we're not just looking for friendship.

mik82

ohai Wrote:
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> I don't see what there is to explain. There are
> other finance hubs around the world, like London,
> Tokyo or Hong Kong. Even within the US, many
> people pursue successful careers in Chicago,
> Boston, San Francisco, or other cities. Many
> people in these cities make more than you do.
> Saying that "if you want to work in finance you
> should be in NYC. End of story." is very short
> sighted and very ignorant.

I'm not sure how my income is relevant to this discussion; no need to resort to personal attacks.

L, TK, HK are far more expensive than NYC. Industry-wise, they are at best on-par with NYC. Furthermore, they would probably be an even bigger culture shock than NYC. Not reasonable choices.

While there are some merits to other US cities (e.g. Chicago is good for derivatives and prop trading and CoL is low), the finance industries of SF, Boston, etc are a fraction of NYC's finance industry.

bbtomato

I moved back to New York as soon as I graduated from college five years ago. My all-in then was around $100K and I was fine. I guess it all depends on people's standards of living -- sure, I wasn't going out and doing bottle service all the time (because I think that's just a waste of money, and I had more senior people at my firm doing it so I'd just tag along when I could)...however, there are plenty of people that live in NYC and make less than $100K. NYC has some of the best places to eat, and they range from super expensive to super reasonable. Public transportation is the best out there. And, as long as you're tactical about pre-gaming before a night out on the town, you can avoid having to sell out $15 a pop for cocktails.

Having lived in other places before, I wouldn't even say that my day-to-day living expenses make a huge difference. I still buy my groceries on sale whenever possible; only do coffee or drink dates when I'm out with someone for the first time; etc. you get the idea. However, the places where I do feel the pinch are mostly in housing and in tax rate. If you're currently in a state where there are no state or local income taxes, add about 10% to what you're making now to see how that should change if you move to NYC. On the apartment side, if you want to afford something comparable to what you're living in now, factor in an additional $1,000 or so per month. Granted, this is a very rough way to ballpark it but your net adjustments to your "index" will be around +20% all else equal.

If it were me, I would ask for a 25% step-up in comp and see what they say. Might end up settling for +10-15% to your current comp, but it could always be worse.

Hope that helps...

-----
Contact me for resume/cover letter review, interview prep, or career advisory services
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MiniMe7

Also, I apologize for saying that NYC elitism is "typical". I know many nice NY people. Clearly not everyone is the same though...

cityboy

I don't see what there is to explain. There are other finance hubs around the world, like London, Tokyo or Hong Kong. Even within the US, many people pursue successful careers in Chicago, Boston, San Francisco, or other cities. Many people in these cities make more than you do. Saying that "if you want to work in finance you should be in NYC. End of story." is very short sighted and very ignorant.

b_sea93

ohai Wrote:
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> Typical NYC elitism...

Would you care to make a cogent argument?