Paradigm Shifted

Plonkee has a series of posts right now about moving for lower cost of living.

Interesting comments on the posts, but it got me thinking about how much we pay for what.

I live in a 3-BR 2-story rowhouse in the middle of the city with 2 roommates.  For what I pay in rent, I could move 4 hours south to NC and live by myself in a 3-BR house.

This raises two questions:

1. Is living by myself in a large space really what I need?

2. Just because I can get a bigger place elsewhere, does it mean that I live in an overpriced area?

I can answer the one question easily – no.  I’m happy with what I’m paying, and what I’m getting, where I’m getting it.  I do not yearn for more space.

As for the second, that one is tougher.  It occurs to me that for all the data on “pricing”, much of this is subject to perception.  Someone in Durham might think I’m paying too much, but that is because they are likely happy with what they have.  But I pay not just for my actual abode, but for the location.  DC has things that I need that Durham does not.

It reminds me of a recent dinner at Citronelle, DC’s priciest restaurant (and topranked). I don’t know the total, but I estimate it to be around $300 for two people (I suspect more).   Was it overpriced? Or priced just right?

When you dine out, you pay for more than just the food.  You pay for an experience.  It is difficult to place a dollar amount on experiences, especially varying levels of quality.  This particular restaurant had impeccable service – they were attentive to issues I never thought restaurant personnel even thought about.  Plus the food.  I still dream about it sometimes.

And then this makes me think about salaries.  Is my worth based on an average range?  Is it based on what others are making in my workplace?  Is it based on what I think I deserve?  If I make less than the person in the office next to me, am I being undervalued?

How do we really determine what something is worth?