3 Financial Regrets I Had After Moving From the East to West Coast
Written by
Cindy Lamothe
Edited by
Levi Leidy
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Packing up your life and heading from the East Coast to the West can feel like swapping snow boots for sandals — exciting, refreshing and full of possibility.
But once the thrill of palm trees and ocean breezes settles, many transplants realize the financial picture isn’t as sunny as the weather. From unexpected costs to lifestyle shifts that hit harder than anticipated, people often discover a few money missteps along the way.
That’s why GOBankingRates spoke with Ali Zane, personal finance expert and CEO at iMax Identity Theft Attorney Firm, about his experience with financial regrets after relocating.
A Raise That Ended Up Costing Me More
Zane decided to move from Charlotte, North Carolina, to San Francisco, California, in 2008, and he said it remains one of the most financially devastating decisions he failed to plan for.
According to a recent study by GOBankingRates, San Jose, San Francisco and San Diego rank among the priciest places to live — in each case, you’d likely need a household income of over $200,000 a year to live comfortably without having to cut corners.
At the time, he was making $68,000 a year in a senior finance position, which was comfortable in Charlotte, where his mortgage was $890 a month and his property taxes were about $1,200 a year.
“My cost of living was about 15% below the national average. So when I took a job in San Francisco with a raise to $95,000, I thought I was making a brilliant financial decision,” he said.
The math seemed straightforward: That extra $27,000 a year in income should have gone a long way toward improving his financial situation.
“I couldn’t have been more wrong, and the cost of my mistake was astonishing.”
My ‘Cheap’ Apartment Became Anything But
Zane’s first shock came when he started apartment hunting in San Francisco.
“I learned that rentals were around $2,200 to $2,600 for a one-bedroom apartment in barely acceptable neighborhoods.”
His initial reaction was to compromise. He rented a two-bedroom apartment 45 minutes outside the city in the East Bay for $1,850 monthly, thinking he was being financially responsible.
“I didn’t account for the actual cost of commuting. My daily round-trip commute took 90 minutes, meaning I was investing 7 1/2 hours per week just sitting in traffic or on public transportation,” Zane said.
When the Commute Cost More Than the Apartment
Zane ended up buying a car, spending $450 per month on car payments, $180 on insurance, $120 on gas and about $80 on maintenance and tolls.
“My actual cost of housing — including commuting — was $2,680 per month, not $1,850,” he said.
In Charlotte, he had paid $890 for housing and a 15-minute commute with no additional expense.
“I’d basically traded $1,070 in extra per-month expenses for $2,250 in gross per-month additional income, netting only $1,180 per month better off,” he explained. “When you consider the far higher California state income tax — about 9.3% versus North Carolina’s 4.99% — my net gain disappeared almost entirely.”
Additional Advice
The broader advice Zane gives to anyone contemplating a cross-country move is this: Do an exhaustive financial analysis that goes well beyond the simple salary comparison.
Write a detailed monthly budget for both your current location and your prospective location, including every expense category. Include state and local taxes — and don’t just look at income tax, but also sales tax, property tax, vehicle registration costs and any other tax obligations that vary across states.
“Look up the actual cost of commuting, whether that’s vehicle costs if you are driving or public transportation costs if you use transit,” Zane advised.
He also advised researching housing market dynamics. Are you planning on renting or buying, and what does each option really cost in your target location?
“Could you talk with people currently living in your target location and ask them candidly about financial surprises they’ve experienced? Most people are amazingly honest about financial regrets if you ask directly,” he said.
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