Sunday, May 27, 2007

Do the math

Before we made the move, a lot of people doubted the economics. Now we're solely talking about money here, not quality of life (we'll talk about that in another posting).

Remember, too, that neither of us had a job when we moved here (Mary was teaching online only--not enough to pay the bills!). We both found good employment within 6 weeks of beginning the job search.

So anyway, here's the bottom line, for those of you who are curious. We are not including costs associated with Rachel's college education, as those are covered by a separate fund that doesn't impact our monthly outlay.

  • Our monthly "nut" has decreased 20%.
  • Our gross annual income, which includes Jeff's bonus for 1/2 Rachel's NYU tuition for the next 3 years, has gone up 20%. Even if we didn't include that bonus, it has gone up 10%.
  • Our health insurance costs have decreased markedly. Mary pays ZERO for health insurance, and Jeff pays just $100/month for health and dental (which also covers Mary's dental)--for equal or better coverage than we had before. Rachel is covered under NYU's plan.
What does all this mean?
  • We now have enough money each month to contribute heartily to a savings plan and/or retirement plan.
  • We'll have almost no college-related debt in 2010, which Rachel graduates.
  • No more relying on credit cards.
  • Mary is working a regular work-week, which in NYC means 35 hours/week. And no weekends, no evenings.
And this is just the beginning. The opportunities to earn more money here are tremendous (and Mary plans to cash in, over time!).

Plus, we have real estate investment plans--probably in Europe first. Not sure we really want to buy in the NYC metro area yet. Renting is working out just fine. It's less stressful than owning, and it really has no downsides, since we're in a good building.

Another post will talk about quality of life changes from SLO to here. But if you do the math, for us, this move couldn't have been better, even though we ended up with less profit on our home than we anticipated. The other percentages make up the difference.

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