Quote:
Originally posted by AGDee
I think that when you are evaluating these differences you have to look at the cost of living in each state as well. Real estate in Connecticut is absolutely insanely high. Salaries tend to be higher in areas where the cost of living is higher. I bought a 1350 sq. ft, 3 bedroom ranch with no garage and a 120 x 60 lot for $137,000 in Michigan. My brother, the same year, bought 10 acres, lake front, wooded property with a 2500 sq. ft house with garage and pole barn for $119,000 in Arkansas. Who has more disposable income? Definitely him!
Dee
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Here is an incredibly over simplified model:
Poor state:
Salary=10
Costs=5
Disposable income=10-5 (=5)
Rich state:
Salary=20
Costs=10
Disposable income=20-10 (=10)
IMO, this shouldn't affect anything much. I may be forced to pay 2K a month in rent if I live in NYC, but I'd also be paid more...
-Rudey