Considering job offer 100,000k base salary

[Myeasha Jones]

I’m having a hard time on Deciding to take a job offer in Palo Alto My biggest hesitation is the average rent cost in Palo Alto being $4,200 for a 1 bedroom 

My personal non negotiable are not having a commute / living within 5 miles of my job

the offer I got is $100,000 base and $40,000k in equity after 1 year.

I’m currently with a company where my base pay is $38,480 and $26,100 (housing allowance) & there’s $100 bonus per lease.

So people are saying I’m crazy for even considering to stay but I’m truly having a hard time because

I also would need to pay for full time childcare in Palo Alto most quotes I have are within $2700-3500, so I’m adding that with the cost of housing and it doesn’t really add up and it’s making my head hurt. I’m the sole income provider.

Is this offer something I should be moved to take?

[Carlos Ptriawan]

A lot and a lot people would say $140k is not enough, $200k not enough to stay in the area , the same story since 1995 LOL but it all depends on your lifestyle. Change palo alto to new york to london to orange county and you still get into the same problem. The highest growing city in planet would have expensive living cost but there's always way to strategize that. Either living 30-1 hour driving away, buy food at grocery depot, house hack,etc. But the most important thing in my opinion is to keep investing in real estate, just buy decent car , dont rent when you can and immediately buy a house. With 1 BR condo is only $399k it's good time to buy before it goes back to 600k again lol .. 

[Matt Bishop]

@Myeasha Jones, even at a whopping $100000 salary, I don't believe your income would qualify you for a two bedroom apartment. I believe they require income to be 3X rent.

[Myeasha Jones]

Quote from @Matt Bishop:

@Myeasha Jones, even at a whopping $100000 salary, I don't believe your income would qualify you for a two bedroom apartment. I believe they require income to be 3X rent.

Hi, you're right. I've had to look at options for 1900-2300 because of this. 

 There are a few I found for 1995 and 2 for 2295 these are without utilities.

[Steve Milford]

There are 2 scenarios here. Don't listen to others who say yes no, because everyone considers from their perception.

1) Are you going to kick yourself later if you don't end up giving it a shot?

2) Does it pencil out? Change your housing value to pre-tax since you would have to pay elsewhere. Considering 25% tax bracket, the sum of this + salary = $73,200. So the spread is $26,800. So with daycare you will wipe that out. And then reduce it further $56,400 for housing.  After year one, you get some of that housing cost back in equity. But in year two and beyond, full housing cost. I've known people go work high-tech in SV. Most end up doubling / tripling up in one-bedrooms just for work housing, their families are elsewhere, and they go home every two weeks +/-. These companies usually are excellent on the resume, but many people don't stay long. Up to you. 

As a single Dad, I could never have taken that chance as my support is where I am at. It just is. If I didn't have a kid, easy choice, I'd go for it. But with a kid it's different because me working a ton doesn't help my kid live a better life.

[Jonathan R McLaughlin]

A few other thoughts: 

1) Don't discount the possiblity/likelihood of the cost of living going up where you are. 

2) you almost certainly won't be in the 25% bracket with dependents etc, not even close. I would ask a knowledgeable person (CPA) what kind of taxes you are looking at...I think you may benefit

3) any chance of a day-care subsidy of some kind? There are dependent care allowances and other stuff that defrays costs, and vouchers are a possibility though some daycares don't like them.

4) can you negotiate something with the new company to defray the cost of care? How about health insurance?

5) If the equity is real after one year that's a big deal, much better than the $100/lease (are they kidding?) and 40% of your total comp...and 2 years of daycare.

Running the numbers in my head I'm struggling to believe you wouldn't be better off with the higher salary, higher costs be damned. And I'm in a similar high cost area (boston) and have been torched for similar daycare costs.

We have lived this, good luck!

[Jay Thomas]

Quote from @Myeasha Jones:

Quote from @Jay Thomas:

When looking at the total compensation package, it's important to factor in other costs that may arise from taking the job. Such as, living closer to Palo Alto can be expensive as real estate prices in the area tend to be high. This could offset some of the benefit of a higher salary or equity stake. Furthermore, if you require full-time childcare then this must also be taken into account when evaluating your offer. All these additional costs should be factored into your decision-making process.

Thanks Jay.  

No problem, Myeasha.. just remember “If you cannot do great things, do small things in a great way.”
- Napoleon Hill