What are you saving for? I keep hearing people in the US earn much more, and it's certainly true in absolute terms, but... I live in a poorer (but not poor, just not germany/france) EU country, with a relatively good but not great salary. I earn way more than I need - I can afford the apartment I want (recently moved to a bigger one due to becoming a parent), I know medical bills won't bankrupt me in case of emergency, I can afford things I want (computers, clothes, eating out, sport equipment, car). Despite not really trying I still save a lot of money.
At the same time, I hear about IT people living in an American metropoly, earning much more than I do, and supposedly struggling with bills. I wonder if the cost of living differences are that huge, or maybe I just have low standards, or is it something different altogether.
A house, land, hobbies, an emergency fund in case needing time away from work, investments, nicer things, a stay-home wife, children, traveling, supporting loved ones, there are so many possible reasons.
I’m saving to buy land and enjoy hobbies I wouldn’t even dream of trying in Europe because I’d be living in a small apartment. Nothing wrong with that, I actually grew up in that sort of life. I’m not your average American… I’m not even American.
My salary is modest, not Silicon Valley/Netflix senior numbers, and I don’t live paycheck to paycheck.
But the “eh it’s good enough” life of Europe and the country I grew up in is… well, too small for my dreams.
London is competitive with tier 2 US cities (i.e. not SF/NYC/Seattle). Switzerland is competitive even with Tier 1 US cities. COL and taxes are higher though.
So it’s not competitive if taxes are higher and COL is higher. What one cares about is the final income in pocket and purchasing power. I don’t really care if my salary says “1 million” if I keep 50k of that, I only care about the final number unless there is some tax loophole one can exercise like pre tax deductions, but still…
I don't buy that COL is significantly higher unless you're firehosing money everywhere for the hell of it. You can spend scads of money, but you're not obligated to. I lived there for five years, and left in December. My grocery bill was the same as it is now in Ireland (but still less than my parents pay in Chicagoland) and while I don't pay rent in Ireland, a friend just got a "steal" on an apartment @ €2500/mo in outer Dublin, while I was paying CHF 2250 for a 3-storey townhouse with private parking in outer Zürich. Road tax is similar. Health insurance more in CH, but we're talking 6k/yr vs 2.4k. And income tax was so low in CH that the foreign tax credit didn't do much for me, and I ended up having to cut a check to the IRS for 5 figures every year. Switzerland is truly exceptional, and you can make crazy money there.
