In a recent LinkedIn post, Ryan Gomez, CFP® highlights the often-overlooked impact of geographic location on personal finance, particularly concerning high incomes and the cost of living in major metropolitan areas. He argues that the traditional notion of a “six-figure” salary no longer guarantees a comfortable lifestyle in many expensive cities, challenging conventional wisdom about where high earners should reside.
The Shrinking Value of High Incomes in HCOL Cities
Ryan Gomez, CFP® begins by illustrating the stark reality of living costs in top cities. He points out that a comfortable life for a family of four can require over $300,000 annually in many of the most desirable urban centers. Using San Francisco as an example, he states that a family needs a staggering $408,000, while Austin, Texas, requires approximately $229,000. This disparity, he explains, significantly erodes the purchasing power of even substantial incomes.
“Same $200K OTE in SF isn’t really $200k in Austin”
As Gomez, CFP® elaborates on the math, he emphasizes that the difference in cost of living creates a substantial gap in real disposable income. “Because Austin ~$180K+ more purchasing power,” he writes, and this advantage compounds over time, making it difficult for those earning a fixed income to keep pace with the rising costs in high-cost-of-living (HCOL) areas.
Remote Work as a Financial Arbitrage Opportunity
The financial advisor observes that the allure of high-paying jobs in expensive cities can sometimes lead individuals to overlook more financially advantageous opportunities. He notes instances where sales professionals have turned down remote roles to remain in areas with higher nominal compensation, even though the actual value of that compensation is diminished by living expenses.
Challenging the Geographic Tie to Compensation
Gomez, CFP® posits that for many, particularly those in roles where compensation isn’t strictly tied to a specific geographic location, staying in an expensive city is a choice rather than a necessity. He contrasts this with the financial reality for those who embrace remote work and relocate to areas with a lower cost of living.
“And with remote positions, I have clients pulling in $300k+ living in the boonies of Arkansas & Nebraska.”
He further illustrates this point with a personal anecdote about the affordability of housing in less expensive regions, stating, “(And their mortgages make me want to cry living in a HCOL coastal city on the West Coast).” This highlights the significant savings potential available by decoupling income from living expenses.
Strategic Relocation for Financial Growth
For clients considering a move to a lower-cost-of-living area while maintaining a high income, Gomez, CFP® offers a clear strategy: prioritize keeping the income stream and actively changing the cost of living. He advises redirecting the savings generated from this arbitrage into long-term financial goals.
“Keep your income, change your cost of living”
According to Gomez, CFP®, these savings can be strategically allocated to boost retirement accounts, investment portfolios, and down payments for homes. “Let arbitrage do what a raise negotiation can’t,” he contends, suggesting that the financial gains from geographic arbitrage can often surpass what can be achieved through traditional salary negotiations.
He concludes by urging individuals to perform their own financial calculations, emphasizing that the decision of where to live is perhaps the most critical financial choice an individual can make. “Run your numbers for your situation… Where you live might be your biggest financial decision,” he advises.
📝 About This Content
This article is based on insights shared by Ryan Gomez, CFP® on LinkedIn.
📅 Originally posted on August 4, 2026 | View original post on LinkedIn →