My name is Andrew, that's Professor Meatball! And this... is my roommate Hector. Hi! I have to have
a roommate because that's what it's like to live in California and between the two of us making
healthy six figure salaries each we have ten to twenty thousand dollars to lose
in the year 2020 if retroactively the tax rate increases this is what you need to know
The point of this conversation is that i'm going to talk about how this new law is going to affect
living in california and the pros and cons of living here and why at the end of this video i'll
tell you whether or not i still suggest living in california or not especially for newcomers who
have to decide after graduating whether to take a big tech job like a fan company job down here
just a quick note before we go any further if this was the video you're looking for if i make
you smile anytime i think you owe it to yourself and to professor meatball to hit that like button
for the youtube algorithm if you're new here welcome sit down hit that subscribe button stay
a little longer and with that we'll get started it's important to get the facts straight about
what happens in your local government and local i'm being pretty vague about this i mean the
entire state of california now i'm a midwestern boy i'm from chicago originally and i never
thought about what it would be like to live in california and face these humongous taxes and
the high cost of living the reason why most people my age somewhere between 25 to 35 have a roommate
is because these people have to live with three thousand dollar four thousand dollar five thousand
dollar rent in the sf and southern bay area and do software engineering jobs and data science jobs
california is also specifically known for their pet rent back in chicago i didn't have to pay
lickety split to have professor meatball room with me he was my one and only roommate until very
recently where i realized that there is no way you can affordably or the very least responsibly live
without a roommate splitting a 3 500 rent here in california means that you get all of this this
thousand square foot probably less two-bedroom apartment living pretty close to the teeth when
it comes to your space shuttle of a quarantined space as reported in the last few years a lot of
companies in silicon valley are now going fully remote or at the very least if they plan to open
sometime in 2021 that a lot of the workforce is going to be able to work remote or from home
that means a lot of my colleagues have gone home to live with their parents or go to live in other
places like the nomad life or tax friendly haven such as nevada or florida workers don't need to
work in the bay area and they aren't in september we saw the biggest decline in rentals of studios
one bedrooms in two bedrooms in san francisco in a long time falling by a respective 31 percent 24
and 21 percent respectively and thought leaders are trying to lead the way jack dorsey announced
that 9 000 of his employees for twitter and square are going to be able to work from home
indefinitely only two months into the pandemic and by the end of may over 95 of facebook's 45 000
employees were working remote now early november all of google's and alphabets 200 000 employees
contractors and full-time employees and in between are now working fully remote all over the world
attacks that i mentioned the beginning of the video could be something to do with the flight
away from california in general assembly bill 1253 is going to retroactively change the tax
rate for very wealthy americans however this is where the crux of the story lies do i regret
coming to california having to live in smaller and more compressed lifestyles whereas i could have
been buying a home by now with the capital that i have anywhere else in the country and do i regret
living in a state that is supposedly pushing out its most influential members of society
people who make a million dollars two million dollars five million dollars
and now having to pack up in their teslas and go over to arizona nevada chicago new york or seattle
and the answer is a resounding no i don't regret it the story of how i got to come to california
was a choice a choice between a five-figure salary and a six-figure salary when i had
the choice to do data science work for one of the largest consulting companies in the world
and do data science work for one of the biggest tech companies here in the world i made a choice
and one of them was specifically to do with lifestyle and money the offer that the consulting
company was able to give me was in the high five figure range around 80 to 90 thousand dollars
however even though the data science position for the large tech company was still considered entry
level it was already at a six figure salary so when you go back and do the math there is a 40
chunk missing in total compensation from the consulting package the big tech package allowed
me to take equity in the company it allowed me to have guaranteed year-end bonus rates and it
allowed me a healthy signing bonus on top when i went back and told the consulting company about
the counter offer they were able to raise their offer their base offer at least to six figures
so this was their attempt to try and level the playing field but they had to raise me up a level
of seniority as the position itself in order to justify the cost this spoke volumes to me i
knew a fein company at the time was prestigious and coming to silicon valley was the dream but
this was a huge shock to me because there was a significant gap something that never
was told in college or in personal finance classes or god knows if there were any personal finance
classes in college this was news that if you come to california and work for one of these
big tech companies in a data science field you are going to be making significantly more than
grinding your hours away in an 80 hour work week for an 80 000 paycheck ultimately the ability to
not live the consulting life travel all over the place leave my dog at home lonely and by himself
was the deciding factor i was going to pack my bags come to california and face the music
of a much higher living cost now was all of that worth it if i lived in a small cramped
apartment like this in chicago there is no way i'm paying anything more than two thousand dollars
when i was in college i was paying less than a thousand dollars to live comfortably in a studio
where my dog and everything else just kind of fit together nerdwallet has a handy-dandy calculator
for exactly how much san francisco costs versus chicago and it turns out that a six-figure salary
in san francisco the lowest six-figure salary you can possibly have a hundred thousand dollars
is equivalent to like living on sixty thousand dollars in chicago not only is a two-bedroom
apartment half as much in rent but if you want to buy your very first property you're looking
at more than a 2x on a medium home price a three bedroom and two bath you have a million dollars
meatball do you have a million dollars now beyond the hugely inflated cost of living as in the cost
of the actual rent and the properties you'll find that transportation food entertainment healthcare
and schools also comparatively are much less probably around somewhere between 15 to 25
less in chicago chicago isn't necessarily a cheap place to live it's just in the midwest it's the
third largest city in america and yet it has a lot of the creature comforts that you might find
in any metropolis although you do have to deal with the weather and i'm not going back there
with all that said you might think well you could move back to chicago but it is halfway across the
country but even california neighbors like nevada las vegas or graham 7 recently moved from la
happens to have even a 68 lower cost of living and even compared to chicago las vegas has a
20 to 35 lower cost of living for everything else including somehow entertainment okay
beats its own stereotype with all that said i don't regret coming here i've been able to
invest my time in making incredible friends and making incredible journeys in my career including
making this youtube channel and talking to you guys and i do hope that one day when i'm making
a million dollars that california either changes its policy towards spending and taxing or that
i would be in a neighboring state just like graham 7 like he said he would never leave california
i don't think i'm going anytime soon but as the Coronavirus has been able to show us
the world can be unpredictable at times just a few small requests you might see that i
am posting more often i'm going to try to post a little bit more often for you guys but it's
always going to be around the same exact time hope you guys really enjoyed that i'm going to cover a
lot more of these slice of life details about my economic choices and exactly what it feels like
to make the choices that i've had because i am my best research test subject if this video made
you laugh please hit that like button if you are new here please hit that subscribe button
if you like pictures head over to instagram i'm going to start posting there right now actually
i'm going to go off and do it if i can help you to check out one of the links down below to help
me out a ton if you're wondering how to support me and let me shout out one of my patrons for
this video which is DataHun thank you for being you thank you for supporting the show she is on
the lead tier check out the patreon site if you want to know more information check out
the links down below if you want to see any resources that i mentioned and write
a comment down below because i want to know your thoughts about exactly whether or not it's worth
living here or whether or not it's worth living where you live for now but not for forever peace
my name is andrew that's professor meatball and this is my roommate hector
and what do you want me to say you should say hi hi okay
hey meatball cute