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nitpicker

(7,153 posts)
Wed Jul 9, 2014, 09:28 AM Jul 2014

Why college graduates struggle to exist around DC even with a "decent" entry-level job

Let's say someone is hired straight off from college and comes to be a GS-5 in DC, starting salary 34K.

BUT:

7.5 K goes for fed/state income tax (VA used in this case) and SS/Medicare.

Another 2K for subsidized health insurance (sorry, this can't be skipped anymore)

1.5 K for food (This can be done if meat isn't eaten every day, with rare fast food splurges.)

From 23K remaining:

1 K if riding Metro AND the employer offers Metro transit subsidy.

Otherwise, 2.5K for Metro or a paid-for car averaging 20 miles a day (half gas, half insurance).

Next: HOUSING!

One can rent a one-bedroom apartment and have basic utilities, for about 15K a year.

But add another 1.5 K for phone/internet/basic cable.


So- 4K a year left for Everything Else (if no transit subsidy).

Including student loan repayment at 100/month for every 10K in debt.

Even starting off at GS-7 rates (42K a year), taxes meant this adds only 5.7 K to the budget.

Solution: Keep living with parents after college! If possible!

Wait- how does create housing demand? (ha.ha.) And keep the single-housing market inflated?

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Why college graduates struggle to exist around DC even with a "decent" entry-level job (Original Post) nitpicker Jul 2014 OP
It's the military-industrial-political complex that keeps DC afloat. nitpicker Jul 2014 #1
Yes big numbers but elleng Jul 2014 #2
The rents around DC are sickening IronLionZion Jul 2014 #3

nitpicker

(7,153 posts)
1. It's the military-industrial-political complex that keeps DC afloat.
Wed Jul 9, 2014, 09:38 AM
Jul 2014

Military members can get 2K or more a month in basic allowance for housing (which is why landlords can charge that much for apartments). That can go a long way towards making the 2.5 K a month mortgage payment on a 500K home loan. But too many military members get in trouble by forgetting about real estate taxes and utilities, or by having to move when the local housing market is in a downturn.

Retired military members who turn into contractors, and contractors themselves, are a part of the upscale housing demand. So are lobbyists and new political arrivals.

But each real estate market is LOCAL.

elleng

(130,126 posts)
2. Yes big numbers but
Wed Jul 9, 2014, 12:29 PM
Jul 2014

the entry-level job's income will likely increase annually; that's the way it works, 1 step a year.

I started at GS-9 (I think) as an attorney without relevant experience, and worked my way up to 13 or 14. Years ago, but was able to find a nice apartment (within walking distance of office, and The Mall), and next move was to buy a house (after marriage and a baby, and husband's lower GS.)

And its the best health insurance in the country (imo,) always has been subsidized. A 'single standard' premium was and is reasonable, now = $285 bi-weekly (BC/BS), and for many years, probably now, too, Metro fare cards are available from employers.

Life is not cheap, that's the rule adults should live with.



IronLionZion

(45,254 posts)
3. The rents around DC are sickening
Wed Jul 9, 2014, 02:27 PM
Jul 2014

For many its really getting too expensive to live here, especially considering that many jobs have multiple work locations in far flung places, your life can really suck if you live in one suburb and are sent to work in another suburb far away, let alone the district itself.

Many young folks live in damp dingy basement apartments with high rents, or end up sharing a house with a whole bunch of folks.

I really wonder who is living in the new luxurious apartment buildings popping up everywhere. I get angry at those who claim it must be government employees or contractors. I can barely make my rent for my small apartment and I live in the suburbs, since rent keeps increasing but wages have not. As if the assholes in congress haven't been cutting budgets and eliminating thousands of jobs through austerity measures.

I want to find out what jobs these rich people have and how to get one.

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