r/Explainlikeimscared • u/kooj80 • 10d ago
How do people know what their take-home pay and living expenses are going to be when moving to a new city for a new job?
So I'm looking to potentially move cities for a job, but I'm getting stuck because how do I realistically estimate what my take-home pay is going to be after I know my gross pay? I know there are online calculators I can use, but is that really what everyone has always done? Use online calculators? Before online calculators were people just winging it lmao? Or calculating their take home pay by hand via IRS documentation?
And as far as calculating new living expenses goes (car insurance rates, groceries, gas, tolls, etc), I guess the best you can do is estimate? How did people do this before the internet?
I would hate to get there with my new job and apartment and then realize I calculated wrong and need to move apartments again soon...
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u/LittleCowGirl 10d ago
Historically I would think landlords would know what gross you needed in their area to reasonably be able to rent from them. You either provide paystubs or your contract with your intent to hire that shows your future income & the landlord determined if you met the income criteria or not (if the rent was ~25% of your income or so). I’d imagine apartment locators were also bigger business, though they still do business now! Renting used to also not be as expensive; there was a lot more “we threw a dart at the map to decide where to live” back in the day.
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u/kooj80 10d ago
interesting. i'm a lil to anxious to imagine living life like that. just winging it is crazy lmao.
i'm probably more worried than I need to be, i just don't wanna get stuck in a lease in a place i can't afford
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u/LittleCowGirl 10d ago
You should look for an apartment finder (also called an apartment locator) in the area you’re planning to move to. Tell them your gross, the percent you’d like to pay for rent, and all your requirements for a unit/complex & they will get you sorted out! They typically will send a list of options to you, then you choose the ones you’d like to see & they will schedule the visits for you. You don’t have to pay them, they make a commission from the apartments when you sign your lease (but do make sure you give them credit along the way with the landlord & don’t cut them out when you find the one!).
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u/kooj80 10d ago
what if i'm getting a unit/apartment from an independent landlord?
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u/LittleCowGirl 10d ago
I rented a house with a realtor’s help, so I’d imagine it’s a similar process. She sent us listings and we toured what we were interested in & helped facilitate getting the lease all sorted. Apartment finders are licensed real estate agents with a specialty, I believe, so you should be able to find someone who works this way.
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u/RosenButtons 10d ago
I got my last apartment from an independent landlord. They didn't market online at all really. Just a phone number on a sign in the yard. Lol. No realtor.
Use a tax estimator to determine your take-home pay. If you're worried about groceries, then build an online order of a normal haul at your nearest store so you can see how much it costs. You can ask the landlord or the utilities companies for average cost per month from the previous tenant. When making your budget you can factor all these costs in plus your regular expenses and have a clear idea how much you can afford to spend on an apartment. Don't rent at the very top of your budget if you can manage that.
The FBI crime map will show you how safe an area is, plus you can ask redditors from your new city for tips.
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u/_tvjames_ 8d ago
I'm on my phone so don't have a link handy but there are websites where you can estimate your takehome by answering questions and entering your zip code.
There are other sites that let you compare Cost of Living in two locations.
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u/wateryoudoingthere 10d ago
If you’re feeling brave, you can call a grocery store (like waaay outside of peak hours) and ask them the price of a few items. If you get someone nice they’ll hook you up.
After you accept an offer you can ask for benefit package info in advance to get a clearer picture of your take home pay.
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u/SnowZelda 10d ago
All my advice is assuming you're in the US.
I have always estimated 30% off the top for taxes, assuming you're under 250k a year. The online calculators are likely more accurate.
For car insurance you should be able to call your current insurance and ask for a quote for where your new zip code is. Your groceries will most likely be more or less the same unless you're moving to a significantly more expensive or more remote area. Gas and tolls you can calculate by putting in where you are apartment hunting and where you plan to work and checking what Google maps says tolls will cost and how many miles you'll be driving. You can find gas prices for anywhere pretty readily on Google.
Before the Internet people would ask their future employer some of these questions, or ask friends and family if they knew anyone in that area they could connect you with so you could ask them.