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Cost of Living Analyses by: Dan The Roommate Man If you've ever moved from the Midwest or the South to either coast, you realize just how different the costs of day-to-day living can vary among various U.S. cities. Many transplanted families pursue cross-country moves with the knowledge that their new hometowns will be more expensive. And many employers recognize that impending cost-of-living increase with a 'cost-of-living allowance' -- a slight raise in salary so that an employee may maintain his or her current standard of living without having to tighten the purse strings upon arrival. Nevertheless, no matter how prepared you think you are, you are in for sticker shock, Your grocery bill suddenly increases dramatically ... and yet you haven't bought anything out of the ordinary from your usual fare. You can spot disparities in the simplest of items. A six-pack of soda, for example, might cost $1.50 in the South, or perhaps $.99 during an occasional sale. That same six-pack can cost you as much as $3.50 or more in major East Coast cities such as New York or Boston. Your favorite fast-food haunt in Chicago might charge you $3.59 for a burger that costs you $4.59 in Seattle. If you're moving to a major metropolitan area, you could face steep parking fees, higher rent, an increase in taxes or other penalties. So many individuals and families on the move never stop to consider what the cumulative effect of these cost-of-living increases will be on their overall standard of living. You can, however, do a little preliminary homework and determine what your living expenses are likely to be in your new hometown -- and how much higher or lower they'll be than your current ones. Of course, you can head to the library or bookstore and explore titles on the subject, but the Web is probably your fastest and most convenient resource. Many sites are dedicated in part or in full to this subject. It hardly bears repeating, but the cities of San Francisco and New York take the cake for ranking among the country's most expensive. Ever talked to a friend who lives in one of these cities? Guaranteed, you'll feel better about your own increasing rent. Countless apartment-renters in these cities and others pay exorbitant rents and yet still continue to haul their laundry to a local Laundromat because they either aren't provided with laundry machines in their units or even in their buildings. Such inconveniences make it imperative that you determine to the best of your ability how much money you'll need in your new hometown to maintain your current standard of living -- whatever that might be. That preparatory work will go a long way toward decreasing the stress surrounding your move. And if you're negotiating a cost-of-living increase with your employer prior to a transfer, doing your research is worth the effort. (See Virtual Relocation's Relo Smart) While cost-of-living Web sites are many, they're not all created equal. Many cost-of-living comparisons fail to take into consideration the effect that changes in income, housing quality and/or size of household will have upon the availability of disposable income. An organization called Runzheimer International, which specializes in this very subject, recommends that consumers take into account four primary factors when considering cost-of-living changes: housing, transportation, goods and services, and taxes. Each one of these factors contains subcategories. For example, housing includes rent or mortgage payment and interest, as well as real estate taxes, home insurance and maintenance. Goods and services is inclusive of a near-limitless array of subcategories, including clothing, medical care, recreation, restaurants, groceries and more. Transportation includes not only the expenses involved in owning one or more cars; it also includes your car insurance and registration fees, taxes, gas, maintenance, tires and more. Transportation also might include bus fees, subway token fees, toll charges, ferry charges or other related costs. And your taxes could include a myriad of charges: sales tax, property taxes, state income tax, local taxes, Social Security, and more. A cost-of-living analysis can certainly be an eye-opener for any prospective transferee. And the reality of how much bite it's going to take out of the budget causes many employees to decline the offer of a transfer (if, indeed, it is an offer as opposed to a command). Aside from cost-of-living concerns, other reasons why prospective transferees decline a move include top nine reasons offers are refused. Children, and the emotional impact that a move could have upon them, are a common reason for declines, followed by disinterest in moving to a new location (and loyalty to one's current hometown), a conflict with one's spouse or partner over employment issues and concern about the effect that the transfer could have upon one's career in the long term. Runzheimer International conducted a 1998 study with some fascinating results. The organization found that married employees refuse transfer offers more often, as do employees with children, females, employees who are homeowners, employees over the age of '40
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