I haven't had this much fun since I wrote that the cost of a pet is $48,000. Other than their pets, the financial choice people defend the most is what city they choose to live in. About 95% of the comments are in the spirit of "oh yeah, well..."
Personally, I like people commenting and telling me I'm wrong (it keeps me humble and is a bit of fun). Besides, it's not that big of a deal to me (it's just a suggestion), but some people take it super-seriously. For a jokester like me, that's just like waving a red flag in front of a bull. ;-)
But every once in awhile, someone comments and sees the light of what I'm suggesting, and that's nice too. One such comment happened in my post titled Yes, Moving to a Cheaper Cost-of-Living City Can Make You Rich. The reader said:
Having been stationed 4 different places in my military career, I have noticed a significant impact from cost of living differences. My salary and my wife's salary (she's a teacher) is the same but gives us a much more comfortable, affordable lifestyle in Kansas than it did in the Seattle-Tacoma area. No, it's not as scenic, but we found a very nice starter house for $100,000. Our leisure activities are the same as they have been every place we've lived (camping at state parks, traveling to visit family, running local 5k/10k races).... I think the point of the original post here has been lost... there can be major trade-offs based on where you live, and people have to choose whether the sunny-coastal-major-city lifestyle is worth the premium that you may be paying for it. If it is, great. But maybe a more affordable, medium-large city has 90% of what you want at half the cost of living.
Yeah, that's what I said/meant. ;-)
It is also a question of what you do with that savings. If you simply spend it on frivolities, you are probably better off buying real property in an expensive area. In living in a less expensive area, you are passing on making one of the best investments you can ever make. Real estate in these areas out perform stocks (probably not this year though). It is really the fastest way to wealth although it does cost in the near term.
Posted by: Lord | October 04, 2006 at 02:20 PM
Of course Buffet has his beach pads too, so it is not entirely out of the question even if you live elsewhere.
Posted by: Lord | October 04, 2006 at 02:22 PM