You can measure the value of living in a city, if you have give-up to do so. For instance, you may have two choices, Boston or Houston, based on job prospects. Suppose the Houston alternative gives you $100k more of lifetime living standard, yet you select Boston. Then, the alignment choice is one you are willing to pay $100k for.
This is a great question because for Tampa to be the best choice normally requires a full examination of the income effects: is the move be driven by a higher income, a better 401k, etc. In this case, I held those constant relative to Madison because it wasn't the feature I wanted to illustrate. Yes, Tampa is the best choice among them.
How do we align our finances with our dreams when considering a new place to call home?
You can measure the value of living in a city, if you have give-up to do so. For instance, you may have two choices, Boston or Houston, based on job prospects. Suppose the Houston alternative gives you $100k more of lifetime living standard, yet you select Boston. Then, the alignment choice is one you are willing to pay $100k for.
If they were to move, would Tampa be the best choice because of the lowest cost?
This is a great question because for Tampa to be the best choice normally requires a full examination of the income effects: is the move be driven by a higher income, a better 401k, etc. In this case, I held those constant relative to Madison because it wasn't the feature I wanted to illustrate. Yes, Tampa is the best choice among them.