Many (if not most) of the job market rules indisputable 40 or 50 years ago are no longer valid. While your father may have worked in one place all his life, these days employees change jobs or even switch careers far more frequently. Moreover, some people decide to move to another city, state, or country in pursuit of their ambitious goals. With this trend, it becomes more important to determine the optimal compensation to request in a new working place. The money to earn is not the only variable if you’re going to live in another location, though. Knowing how much you’ll have to pay for accommodation, transportation, and food is crucial, too. Where can you find all that data? You could ask your friends, relatives, or colleagues, of course, provided you have such people who can help you. What if not? Then, you can use numerous salary and cost of living calculators available online. Below is some general information about these tools along with their examples.
1. Salary
What calculations related to salary can we do?
Salary calculators are convenient online applications that help you see if your current salary is within the range acceptable for professionals with your educational level in your industry, state, and city. Salary calculators will allow you to do the following:
- Determine what pay rise you can ask your boss for. When you run a search, you can see the lowest and highest salaries in your field, and thus can figure out how much more money you deserve. Of course, asking your senior for a salary increment point blank is not a good idea. Still, you can get your bearings at least.
- Find out if people in a similar position get more or less money in a different city or state. This will help you make the final decision if you should move or stay. Remember, though, that salary is not the only factor to be considered in this situation. The cost of living is also of paramount importance: you may have to spend more money in the new place than in your native state.
- See if switching careers will improve your financial position. If for some reason, you’ve come to be disappointed in your current job or even industry, and decide to choose a different profession, you should know how much money you can expect to make.
- Understand if you should take a degree course in a particular field. If you see that people who have obtained the degree earn more than those without it, you know that the course is worth your money.
Calculators
One of the best salary calculators, in our financial experts’ opinion, is salary.com. This is a free tool that generates salary reports almost for any job title out there. Here, you will also find tons of useful information on how to negotiate your compensation, benefits available in your position, requirements and responsibilities, most popular cities where professionals in your field work, and other details. The tool also lets you create a customized salary report by analyzing specific details you provide.
Find more examples of salary calculators here.
2. Cost of living
What calculations related to the cost of living can we do?
The cost of living refers to the amount of money a person has to spend on his or her basic needs. Prices in different states and even cities may vary greatly. For instance, according to a recently conducted research, the most affordable city in the USA is Memphis, Tennessee. While calculating the cost of living, the following components are considered in the first turn:
- Food. Groceries in one state may cost significantly more than in another. Over a longer period, groceries can eat up a considerable portion of your income. For example, according to the data from the Bureau of Labor Statistics, a typical American family spends around $7,000 on food annually.
- Housing expenses. The cost of groceries, though, is nothing in comparison with what Americans have to pay for rent or mortgage. Exact figures in different states and cities are not identical, of course. Yet, whatever they’re, they constitute the largest budget item for most families. Apart from rent or mortgage, consider bills for electricity, gas, and other utility services.
- Transportation. Those who take a bus to work will have to pay less than those who drive their own car since they have to spend money on fuel and repairs. Anyway, the transportation costs are only behind housing expenses as the largest budget item.
- Leisure. All work and no play… Americans can’t live without entertainment. Basketball or football matches, cinema, shows – all that costs money.
Calculators
Taking those factors in account, cost of living calculators compare sample prices between your current location and the one where you think of living. You specify how much you earn, the city where you live, and the city where you’re going to move. The tool will indicate what goods will cost you more or less. You shouldn’t blindly accept those figures, though, as they are just samples. The final cost of living may still differ from what the software suggests.
The top cost of living calculator, in our financial service providers’ view, is bankrate.com. Select you current city, the city you’re moving to, and your income. The tool will give you the cost of living comparison in three categories:
- Housing cost: home price, apartment rent, electricity and energy costs, and other details.
- Food cost: eggs, fruit, vegetables, and other food items.
- Lifestyle cost: items of personal hygiene, household services, clothes, and other products.
You will clearly see which services or goods will be more expensive in the new place. Other examples of cost of living calculators can be found here.
Salary and cost of living calculators are invaluable financial tools for anyone who wants to change their place of residence, negotiate a pay rise with their boss, or understand if switching careers will take their well-being to a new level.
