Determine and Negotiate Your Cost of Living

No matter how many times you’ve done it, moving can be overwhelming. Many factors have to be taken into account when making that transition. One of those factors is the cost of living. New city? New cost. Cost of living is the breakdown of what you will need to cover housing, food, taxes, and healthcare in that area. 

How to Determine Your Cost of Living

To determine if you will be able to afford an area’s cost of living, you can use a cost of living calculator. The calculator allows you to see the difference between your current city’s cost of living to another city; and in this case your new location. The calculator will then let you know if you can maintain the standard of living cost based on your current income. With the calculator, you will input where you currently live, the desired location, and your current pre-tax household income. The calculations will be what you will need to maintain the current living standards based on total income, home cost, transportation, food, and utility cost. 

For example, let’s say your current home is in Birmingham, Alabama and your desired location is Baton Rouge, Louisiana. Let’s keep in mind that your pre-tax household income is $50,000. To maintain the current living standard in Baton Rouge you’ll need to earn at least $50,422. The total income you’ll need is $422 more than your current household income. The cost of living in Baton Rouge is 1 percent higher than in Birmghman. From the calculator you will get the calculations that homes tend to cost 10 percent more, transportation cost 1 percent more, and food cost 2 percent more. You get some relief with the cost of utilities, which is 26 percent less than in Birmingham.  

Tips for Negotiating a Cost of Living Adjustment

Your job is often a big influence on where you live. Even with many companies moving to remote work, some locations still matter. 

So what happens when you’ve been put in a situation where moving was never a part of your next steps but your job has requested a move? With the help of the living calculator, you see that your current pre-tax income is not enough for the new location. Seems like it’s time for a price negotiation. These adjustments typically involve an increase in your pay. Negotiating your pay can be intimidating. Here are tips on how to successfully negotiate your cost of living.

Plan Accordingly

Once given your request to move and you’ve done your research to detriment the cost of living, notify your employer to schedule a meeting. This will allow enough time for you and your employer to discuss your request to negotiate your pay. 

Be Confident

Go into your meeting with your employer with confidence. Before going in, prepare and figure out what points you would like to diss in the meeting. This will allow you to show your employer you’ve already researched the area and evaluated the cost of living. Even though the move was suggested by your employer, be prepared to discuss how this move is beneficial and what areas of your work it will impact. Highlight your current achievements as well. 

Give Thanks

After the meeting, send a follow-up email showing thanks and gratitude for their time. Point out specific points that were discussed in the meeting. Circle back on your price adjustment. If it was granted, mention that in the email to have a confirmation in writing as well. 

For more tips on how to navigate your conversion about the cost of living, check out this printable to get started.