Just when you think you’re raking in the big money, you get a serious reality check.

That all depends on who you’re comparing yourself to, of course, and before we dive into the US city in question let’s go local.

You might have seen that Income Calculator doing the rounds these past few weeks, which shows what percentile your household income places you in with regards South Africa.

It’s quite a sobering experience, and takes less than a minute. Click the image below and get started.

Going out a limb here, but you’re probably surprised to see how highly you rank there, aren’t you?

We’re going to head across the pond to America now for their reality check, focusing in on San Francisco and what is dubbed ‘low income’.

The New York Times below:

In the latest sign of the astronomical cost of living in parts of California, the federal government now classifies a family of four earning up to $117,400 [R1,55 million] as low-income in three counties around the Bay Area.

That threshold, the highest of its kind in the nation, applies to San Francisco, San Mateo and Marin Counties. It’s used to determine eligibility for federal and local housing assistance programs…

As the tech industry has drawn legions of highly paid workers to the area, home prices aren’t the only thing that has gone up. Transportation, utilities and food are also costly.

“It’s arguably the most expensive city in the country, so what that translates to is really not that much money,” said Ed Cabrera, a Housing and Urban Development spokesman

The tech boom has been good to some, but if you’re not playing that game then living in San Francisco can become a real battle.

By the way, if you want to score some free dosh to invest in some of the world’s biggest tech companies, without having to worry about how you’re paying your bills, you’re in luck.

Shall we play the rental cost game?

The federal government pegs the “fair market rent” for a two-bedroom in the San Francisco area at $3,121. The median home price has climbed above $1 million, according to a recent report by the California Association of Realtors, and sales are robust.

According to Rent Cafe, here’s your average San Francisco rental prices:

Imagine forking out those prices for a two-bedroom? Here you were thinking the Atlantic Seaboard was costly.

Those rapidly increasing costs are going to lead to a rather obvious conclusion:

Kate Hartley, director of the San Francisco Mayor’s Office of Housing and Community Development, said high construction costs and low federal funding had added to the challenges of keeping low- and middle-income people in the city.

“What makes the Bay Area great is its diversity, its creative and innovative economy, and its free spirit,” she said.

“But the harder it is to house our artists, teachers, restaurant workers, health care providers,” she added, “the more we put that great spirit and strong economy at risk.”

In with the tech bros, and out with the rest.

God, Tinder in San Francisco must be horrid.

[source:nytimes]