Is 125k a good salary in Austin?
The last few years have shown some remarkable development in the capital city of Texas, Austin. The remaining tech industry, emerging live cultural scene, and high-quality living standards are all coming together to make people want to move to Austin. But there remains the large question: is $125,000 a salary which comfortably fills into the living expenses of this ever-growing expensive city? To really find that out, let's delve deeper.
Cost of Living in Austin
While Austin was once a beacon of affordability when compared with other major metros, cost-of-living data from PayScale shows the city now runs 3% above the country's average.
The largest factors are housing and utilities.
The median price for a home in Austin is approximately $521,000, about 32% higher than a city of a similar size, such as Plano, TX.
One-bedroom apartments rent on average at $1862 per month. Other related expenses, including energy and telephone bills, remain above the national average in the state.
However, some costs, such as groceries and healthcare, respectively, are actually lower than in other major cities. Therefore, it really becomes more dependent on lifestyle and spending habits.
How far will a $125k salary carry you?
Most experts are of the opinion that with 125,000 dollars, it is humanely possible for a single person or a couple without kids to live comfortably in Austin.
This means you could, therefore, afford a home up to $500,000, or pay rent for a nice apartment, all the while saving and being able to enjoy discretionary spending.
Of course, the costs of housing would vary with regard to the neighborhood. Life downtown, in the core of the city of Austin, or the hip areas like South Congress, will have a much higher staggering cost than life in the suburbs of Round Rock or Pflugerville. But generally, $125,000 permits one to have some flexibility.
Remember that, with no state income tax in Texas, it allows one the chance to stretch his/her salary more than he/she would in high-taxed states such as California or New York. On the other end, property taxes are high in the Austin area, something one should budget for in case of planning to buy a home.
For instance, hiring a weekly cleaning service Austin could be a cost running from $100 to $200+ per month. Look at cutting back spending in an area or two so that you can afford to splurge in areas that mean the most to you.
Budgeting and Saving on $125k
Making the best out of a $125,000 salary in Austin would require the creation of a budget and living within one's means. Financial experts advise that an individual should not spend more than 28-30% of their gross income on housing costs.
For example, if the amount of money you take home in a month totals about $7,000, then you would not want your monthly mortgage or rent expense to exceed $2,000. Appropriately allocate the rest of the income to other essential expenses, discretionary spending, and saving/investing.
Don't forget to account for one-off type expenses, like Austin cleaning service fees, car maintenance, traveling, etc.
And hey, Austin is just filled with free and cheap fun things to do: live music, outdoor plentifulness, and more. Maximize the fun and stuff into your social calendar plenty of good times to keep from emptying your wallet.
Job Opportunities and Salary Growth
The major employers in town include Dell, IBM, and Amazon, among other giants. No wonder Austin is considered one of the best places in America for growing your career in technology and any other discipline.
The job market, however, has got the competition very stiff, with salaries offered usually remaining above most parts in the country.
This is a pretty huge amount to start with—$125k. Even if you have never earned such a sum in your life, try to negotiate for a better salary when you feel the time is right based on the experience you have gained. Most of the Austin-based companies have assured some guaranteed annual cost-of-living salary increments, including other increments based on merits and potential for promotions.
Or you might be forced to job-hop every couple of years just to net substantial salary bumps. Staying at the same company for any length of time could equate to plateaued earnings. But hey, at $125k, that is plenty of cushion to take you down the road of your career journey.
Quality of Life on $125k
The other biggest draws to moving to Austin are the quality of life that the city offers. Excellent weather, an outdoor culture, music, and food scenes that are unbeatable, with a generally laid-back vibe, mean Austin residents always have several reasons to enjoy life when they're not at work.
On a salary of $125,000, you can afford the many offerings this city has: from dining out in top restaurants to local festivals and events. And nice trips for the weekend can also easily explore the Texas Hill Country, along with other closer-in cities like San Antonio.
Plus, some of the lowest crime rates and traffic of other major metros add to its appeal. While the city is best known for its slogan "Keep Austin Weird," it could also be a place that finds itself labeled "Friendliest."
Of course, it's not an ideal city. Summers in Austin are awfully hot, and the fast growth of the city brings some issues with infrastructure. But in general, for such a sum as $125k, you will have an excellent level of life.
The Verdict
So, is $125,000 a good salary in Austin? The answer is a resounding yes. In effect, it puts you well above the average household income, which rests at $71,576, and enables one to live comfortably at the same time save for the future.
Whether single, married, or with kids, $125k is the amount of money that gives the opportunity to live in a nice house, pay bills, and enjoy life in Austin. All that is really necessary is to be careful with the budget, negotiate that salary up every chance one gets, and check out all the free or almost free activities around the city.
Now, Austin may not be the screaming deal it was before, but it does still offer quite a bit more bang for the buck when compared to other huge tech hubs like San Francisco or NYC. If you're considering moving for a job paying $125k, then Austin definitely makes it to the shortlist.