HCOL Areas Triggering Financial Distress, Of Course - Or, Being Trapped into Being a HENRY

"Here, it's so expensive. Especially rent. The bitter pill to swallow is that I don't see it getting any more financially bearable."

That's what more and more of clients for my coaching/tarot-reading services are telling me. Yes, they are experiencing increased financial distress linked directly to being rooted in a HCOL (high cost of living) area.

A recent Yahoo/Marist poll bears that out. It found that 45%, that is almost half, of responders rated where they are based as not very affordable or not affordable at all. 

The common sense solution would seem to be: Relocate to a LCOL (low cost of living) region. There's a ton of information about the cheap living spots both in the US and abroad. 

But the actual situation is complex. 

At the top of the list is this: You don't know if the move will pan out. 

What about employment opportunities: the availability, compensation and sustainability? 

Will rents rise as they did in one-time LCOL paradise like Tucson, Arizona? 

Can you make friends? 

What about the quality of the infrastructure such as healthcare, education and culture? 

How far are you from family? 

If the relocation is a disappointment you may be forced into what I call the Goldilocks Syndrome. That is, multiple moves. Those are expensive, of course. In addition, they're emotionally draining. 

That's why I advise those considering an exit from HCOL to approach it as an experiment. There are so many variables involved. There are no sure bets. 

Those at high-compensation levels in professional services in HCOL regions such as the New York Metro area often entertain fantasies about a more affordable and more relaxed lifestyle somewhere else. However, they usually can't trade off the probable haircut on compensation. There is the old joke in public relations circles that if you're not in certain zip code, don't even apply for a good job. 

As a result, professionals can wind up a HENRY. Those are the high earners who can't achieve financial independence. Their income from work is eaten up by the typical expenses of the HCOL. 

Look at this. The base salary for a first-year law associate at a Kirkland & Ellis or Paul Weiss - $225,000 - doesn't go too far when the average Manhattan rent is about $3,256 for a studio and $4,028 for a one-bedroom. For those Manhattan law firms which don't offer 24/7 access to free food or vouchers for meals when working late the average expense for a food delivery is $39.11 can add up. What employee in professional services has the time to shop frugally for groceries, cook and pack a lunch.

All this creates the geographical squeeze of being where the extreme career opportunities are or risking much in seeking out affordability and a version of lifestyle bliss in LCOL. 

But, for the aging, there may no choice. They could be forced to pull up roots from where they had done their careers. Meanwhile, the increasing risk is that the LCOL region might not remain significantly cheaper living.  

Thrown off your game, maybe the first time since you started working? You made all the right moves and then the world moved in another direction.

Intuitive Coaching. Special expertise with transitions, reskilling and aging. Psychic/tarot readings, upon request. Complimentary consultation with Jane Genova (Text 203-468-8579, janegenova374@gmail.com). Yes, test out the chemistry. There’s no risk.