Career Advancement opportunities or LCOL?

[thurston howell iv]

Scenario: Gov't employee. Live in LCOL -midwest. Considering move to "DC Area" (MD,VA, DC) for career advancement.
I understand that the COL is much higher and then there's the commutes... However, where I'm at currently, there is no opportunity to move up at all.

Pro's:
Opportunities for career advancement are greater.
Pay would jump by $20k just for the initial move. Then there's the regular step increases.
Will expose me to me to other agencies
Will probably result in more diverse training opportunities
Will round out my resume
More networking opportunities

Con's:
Cost
Longer Commute
Still cold in the winter


I've really been looking to make a move for a while. I have the sinking feeling I'm trading one bad for another. Even with a $20k raise, if I increase my commute and housing expenses, does the opportunity outweigh the cost?  There is another option where I may be summoned by a former boss to a place I'd rather be. The pay increase would be about $17k more, the area would also be HCOL but would be closer to my family. Issue is that the boss is sometimes difficult to deal with. Mood swings and tantrums.  Not sure if I want to deal with that.

I feel like I've beat this to death. What am I missing?

[inline five]

General rule of thumb you typically are much better off moving to HCOL area, gaining experience and saving like a madman and/or later transferring to a lower COL area with the increased pay scale.

[nick663]

I doubt 20k would cover the cost of living difference in NoVA compared to the midwest.

That being said, it would really depend on age/stage of life for me.  Straight out of college or early in your career a HCOL area may make sense as you can get a roommate, save a ton, and move to a LCOL area.  If you're 40 and have a decent nest egg already it would be almost like starting over so I can't imagine it being worthwhile.

You mention advancement... is there not a private sector equivalent of your current role?  Just wondering if you could get the advancement you're looking for without moving to a HCOL area by switching employers.

[Gone Fishing]

We had some good friends move to the DC area.  They are very flexible and adaptable and have lived in cities around the world.  They couldn't get out fast enough. 

We left a mid COL city for a LCOL rural community.  I still visit the city we left from time to time, and don't miss it at all.  My wife does a bit, mostly for social reasons.

Lay out the numbers, assuming FIRE is your goal, and see what the difference is.  For someone on a 10-15 year FIRE path, that is aready making decent money, I don't see making huge changes to chase a little more money worth it.  And, I've worked for one psyco, I wouldn't do it again!

[mizzourah2006]

Wouldn’t $20k be an enormous hit? I live in a low cost of living area and was in discussions with a company in Alexandria and most calculators said I’d need to make roughly 50% more just to maintain a similar purchasing power and their top offer was also only about $20k more.

[DreamFIRE]

DC, no thanks.  Count me as one who would prefer to stay in the midwest.

[big_slacker]

Been to DC/NOVA many times on business. No way in hell would I live in that area unless we're talking about an outrageous pay bump, and $20k ain't outrageous considering COL there. Hard pass.

[patchyfacialhair]

I love the idea of raising a kid in DC. Tons of diversity (it's lily white where I live), tons of jobs, and tons of free activities like museums and whatnot.

Would I move there without a significant pay bump? Absolutely not. Even with the pay bump we'd be downsizing to stay within budget. Also, the only way I'd move is if I lived super close to work...since the traffic is horrendous and the Metro isn't exactly reliable, so I'd want to walk/bike.

Anyways...good luck, OP.

[AZDude]

My thought would be that if you are going to pay the HCOL, why not move somewhere you might actually enjoy living? Life is not always about making more $ and moving up the ladder.

[MrMoogle]

How much are you making now? 

Here's a comparison for me for where I live vs DC:
https://www.nerdwallet.com/cost-of-living-calculator/compare/huntsville-vs-washington

Don't pay attention to the income number because that doesn't matter so much (to the mustachian).  Pay attention to the increased costs.

My current apartment is pretty nice for me, I'm spending $720 a month.  The increase in rent is 238% (on average), so the increase in rent for a year is over $20k.  So rent alone, I'd be losing out with just a $20k bump.   Maybe I'd drop back to something like my old apartment at $650 /month, then it would be $17.7k increase in annual living expenses compared to what I have now. 

That's the big expense, but I'd take another ~15% on other things, so take that into account to.

Then add in taxes related to the increase in income and DC taxes.

I'd need a ~50% bump for it to be worth it to me.  While I might be able to get that, I'm happy where I am.

[Vegasgirl]

Contrary to some comments I live in the DC metro area and think its a great area.  There is a lot of opportunity here you'd just have to be strategic about the move.  You'd definitely want to take the traffic into consideration and try to live closer to work.  The weather would be the same but there are plenty of free things to do all around town.  I'm biased since I'm born and raised in the area. Also you'd prb want to rent so location could be flexible.

[inline five]

You don't make a move for just a salary adjustment. You do it because there are many more opportunities to increase your job skills and pay level above a LCOL area.

Then work your way back to a lower COL area with the skill set you acquire.

[thurston howell iv]

Thanks for all the replies.

Part of my issue is that DW and I are what you might consider late bloomers (mid 40's). We are both well educated and earn decent money. I've been focused on repaying the student debt and now want to focus on higher income so as to sock away more 'stache.  Since we started late, we're really behind the eight ball and I figure 6-10 more years of work depending on how we position ourselves.

The location calculator is helpful and indicates I'd need closer to $37k extra to break even. Since I'm in federal government, I'd like to stay, but pay is tied to grade and where I'm at there is no room for advancement. I'm not interested in being stagnant and collecting steps. DW has the potential to probably earn more in the DC area as well.  I could go the civilian route, but the fed has many opportunities and the work is preferable.

My thought was to move to the DC area for a year or two to see if I could move up a couple of grades and then move back to where I'd rather live.  I might even consider the SES track but it seems like such a hassle for not that much more money.

At this time, I am really considering the 3rd option of moving to the HCOL with the crazy boss if the grade and pay are right so I can be closer to family- they're older now...

Long range plan is to be able to be in the south west or retire completely to a cheaper country.


Current home has about $70k in equity- Market is decent in my area so sale should be easy.
I owe $40k on a student loan at 2.6% (so it's on auto-pilot)
Other than that I have the other student loan which will probably be paid in full next month. $6600 @5.5%
Essentially, debt free. (our monthly spend is $2k-$2.5k includes mtg, food, utilities, gas, etc.)
Current household income is around $200k
Goal is $1m -1.5m  (we're pretty frugal and really eager to get out of the rat race.)

[MrMoogle]

Thanks for all the replies.

Part of my issue is that DW and I are what you might consider late bloomers (mid 40's). We are both well educated and earn decent money. I've been focused on repaying the student debt and now want to focus on higher income so as to sock away more 'stache.  Since we started late, we're really behind the eight ball and I figure 6-10 more years of work depending on how we position ourselves.

The location calculator is helpful and indicates I'd need closer to $37k extra to break even. Since I'm in federal government, I'd like to stay, but pay is tied to grade and where I'm at there is no room for advancement. I'm not interested in being stagnant and collecting steps. DW has the potential to probably earn more in the DC area as well.  I could go the civilian route, but the fed has many opportunities and the work is preferable.

My thought was to move to the DC area for a year or two to see if I could move up a couple of grades and then move back to where I'd rather live.  I might even consider the SES track but it seems like such a hassle for not that much more money.

At this time, I am really considering the 3rd option of moving to the HCOL with the crazy boss if the grade and pay are right so I can be closer to family- they're older now...

Long range plan is to be able to be in the south west or retire completely to a cheaper country.


Current home has about $70k in equity- Market is decent in my area so sale should be easy.
I owe $40k on a student loan at 2.6% (so it's on auto-pilot)
Other than that I have the other student loan which will probably be paid in full next month. $6600 @5.5%
Essentially, debt free. (our monthly spend is $2k-$2.5k includes mtg, food, utilities, gas, etc.)
Current household income is around $200k
Goal is $1m -1.5m  (we're pretty frugal and really eager to get out of the rat race.)

With $200k in LCOL area, it shouldn't be that difficult to save $100k a year.  That's 10 years to $1m without any stock gains.

[LurkingMustache]

Not sure if I quite understand - if you are in a LCOL area already making 200k, why would you just not keep that and save 150k a year and call it a day.  Congrats, you won.

If it is a household income, and you move to a HCOL area - you could risk A) not performing at your job.  Now 200k is less guaranteed, in an area that is more expensive. B) what happens to your partner's income?  Would a small pay bump for one person make up for the HCOL AND the potential loss of their income? C) If already around the 200k mark, I assume the government has consistent bumps year over year...  it seems like even in a LCOL area that small % increases would make large impacts regardless of where you live.

Edit: Missed the part about family - obviously outside of money, being with family and enjoying your time is what is important.  If the move helps with that then it seems like the risks around money would be worth it.