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The people that say "just move somewhere cheaper" I fear really haven't thought that statement through because if you move somewhere cheaper, your salary is going to be less, you have to start (most likely) a new job with a new company which hurts your credit, you have to "start at the bottom" and prove yourself and all that crap that goes along with it. . . It's not so simple unfortunately. I wish I had an easy solution but I don't.
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Here is my situation moving from So Cal to SE Florida, well thought out IMO.
Housing
Comparible homes @ 2000 sq.ft., within 2 miles of ocean, 3 bd/2bth, 2 car garage, pool
So Cal: $1.2m
Florida: $ 325k
Savings: 75% or about $875k.
Sales Tax
OC 7.75%
Florida 6%
Savings: 1.75 % on all purchases
State Income Tax
California: 9.3%
Florida: 0
Savings: 9.3% of all earned income.
Just in tax I save 11.5% of my income by moving out of So Cal. Add another $875,000 saved on housing and you have 86.5% decrease in the cost of living. I would really have to take one heck of a paycut to come out behind. I doubt my salary or anyones would go from $100k to 13,500.
This doesn't include the benefits such as leaving overpopulated So. Cal, the worst traffic in the country, a 18% greater chance of contracting cancer based upon breathing So Cal. air, a cold, crowded and polluted ocean. Its no wonder that 400,000 California's will move out of the state this year. California has demonstrated an unprecedented emmigration level unmatched by any state.