Difference between a salary of $37,000 and $39,000?

Question

I will be starting a new job soon that will reduce my annual salary from $39,000 to $37,000. Obviously, this is a $2000 difference, but do you think it's really significant? I'm moving from NC to GA, where state payroll taxes are lower. I'm thinking that my take home pay will probably end up being similar, but if anyone knows anything different or has any ideas about this, I'd love to hear it.

Answer 1

That only comes out to $38.46 (gross) less per week, and with the slight decrease in the cost of living between NC and GA, I think you'll be just fine.

Answer 2

When you are looking at a difference as small as $2,000, there are so many variables that can come into play to offset it. Will you be traveling the same distance to work? If not, the transportation costs alone could defray the difference. How about your benefits at the new company and what portion of them you are responsible for paying. The bottom line is, you've made this decision based on factors that made the $2,000 seem like a small price to pay, so don't sweat it. If you find that you truly are "out" $2,000 cash in hand and need to come up with it to still make ends meet, then you can look at ways to trim your expenses by that much. It should be that difficult. Just enjoy your new job and your new venue. Good luck.

Answer 3

Even though State payroll taxes are lower I would research the Cost of living for both and compare. Also are there local taxes that would apply that offset savings from State taxes. Look at everything school fees, cost of groceries, even fuel and utility averages for both regions. Really need to research all of it to get an accurate comparisson... Just my $.02

Answer 4

My thoughts would be that this works out to .96 per hour. Insignificant really, would you stay where you are vs. move for that small a difference?

Answer 5

Another issue to consider is the "Cost of Living". You may be making less but will actually be able to live better.