The perennial salary question of “how much is enough? Unfortunately, the harsh truths of urban living complicate this important fiscal choice. National averages and the generalized cost-of-living calculators that sites like nerdwallet.com provide only offer a fuzzy comparison. They fail to take into account the local nuances that make all the difference in whether a given salary will allow you to live a comfortable, happy life in your city. I believe a salary should reflect not just basic needs but quality of life, which varies significantly from one urban center to another.
It reminds me of my experience when I first moved to New York City. On paper, it sounded like I was doing well financially. More than enough, it turns out, to pay for the basics, according to online calculators. Then reality came crashing down extremely quickly. The very price of rent, even for a shoebox in a ghetto, was beyond belief. Suddenly, those "extra" expenses – a decent meal out, a museum visit, a spontaneous concert – became luxuries I could barely afford.
It was not only the inability to make ends meet, it was the way that this affected my quality of life. I was always anxious, always hungry. The innate cultural landscape that first attracted me to the city became all but non-existent. My teacher salary provided for my basic survival needs, but not for me to truly thrive.
This experience drove home one of the most important shortcomings in our approach to negotiating salary. We often focus solely on the essentials: housing, food, transportation. But what about the more ephemeral, yet very real things that create a feeling of happiness and community in one specific town. What about the aesthetic quality, the freedom to take part in the cultural life, the freedom to enjoy the recreational opportunities, the freedom to create a community.
Just look at the example of restaurants and nightclubs. These aren’t just frivolous hanging-out costs. These are vital social infrastructures, particularly for young urban creatives. They provide opportunities for connection, for collaboration, for enjoying the art and culture and people and food of a vibrant city. Similarly, access to shopping centers and boutiques isn't just about consumerism. It's about convenience, about finding unique items that reflect personal style, about contributing to the local economy.
Cultural venues are just as essential. Museums, art galleries, theaters – these institutions enrich our lives, broaden our perspectives, and provide a sense of connection to something larger than ourselves. And of course, we have to talk about the value of outdoor recreation. Whether it be ensuring access to our parks, beaches and recreational areas, we know that getting out into nature is imperative to a healthy lifestyle, physically and mentally.
These considerations loom larger on the minds of younger residents. A vibrant city attracts and retains talent, fostering innovation and economic growth. A city can only be truly vibrant if its younger residents have the means to participate fully in its cultural and social life.
It’s been an eye-opening experience as I’ve started to understand the term “comfortable living” is inextricably connected to cultural context. What the home environment should look like, for instance, is culturally relative. Lighting, chair design, color palette, temperature and humidity – all play a role in our perception of comfort. Individual preferences for each of these factors differ just as greatly.
Cultural comfort zones can be a trap. When we close ourselves off to anyone who is different than us, we rob ourselves. This blinkered approach keeps us from living into possibility and expanding our capacity to learn. Engaging with different cultures, attending cultural festivals and events, and challenging our own assumptions can lead to a richer, more fulfilling life.
You must recognize the effect cultural differences have on professional expectations. That pressure to look a certain way creates more financial stress. This challenge strikes particularly deep for people from marginalized communities, including many Black and Brown folks.
Critics on all sides argue that improving the quality of life is a luxury we cannot afford. They think a salary should mostly be about meeting needs. I think that this is a mistaken belief in a false dichotomy. An income that requires people to scrape by with the barest of necessities is not a lasting fix. It creates tensions, friction, burnout and resentment, and in the end, leads to a significant reduction in overall productivity, creativity and well-being.
Research has found that among advanced economy countries, income inequality has no significant impact on subjective well-being. It’s not even how much money we take home. It’s not just about how much money we have, it’s about how that money allows us to lead healthy lives and fully participate in our communities.
The challenge, as always, is putting a dollar figure on these less tangible aspects. How do we quantify the value of increased cultural participation, of social connection, of access to recreational opportunities. We require a better, more sophisticated way to calculate the cost of living. Let’s take into account everyone’s needs and priorities, especially the often marginalized perspectives of people and communities of color.
At OverTraders.com, we believe that everyone should have access to the tools and knowledge needed to navigate the complexities of today’s markets. We envision a future where everyone makes informed financial choices to live a life they can truly enjoy. Yet we know that financial well-being is not the only component to leading a fulfilled life.
We can’t solve those problems by simply redefining salary to reflect what it costs to actually live in an urban environment. A salary is about much more than just salary. It can be an incredibly powerful tool to help you create a life that is richer, more fulfilling, and more sustainable. It’s more than just creating vibrancy — it is about making sure everyone is able to thrive, rather than merely survive, in the cities where they live. It's time to move beyond the basics and embrace a more holistic approach to compensation, one that truly reflects the diverse and dynamic realities of urban living. We want to foster a community of active, happy people. And finally, our new tagline—to empower people to create and connect—reflects our mission to help everyone share their special talents and passions with the world.
