Home Pay off Millennial Money: Would You Move For $ 10,000? Should you?

Millennial Money: Would You Move For $ 10,000? Should you?

3
0

Cities and states spend a lot of money to attract remote workers. Tulsa, Oklahoma, will pay you $ 10,000 to move …

Cities and states spend a lot of money to attract remote workers.

Tulsa, Oklahoma, will pay you $ 10,000 to settle there and telecommute. West Virginia is offering $ 12,000 and two years free rental of outdoor equipment. Move to Maine and the state will help you pay off your student loans.

These incentives are attractive, especially for new remote workers who wish to capitalize on their new flexibility. But a quick decision could cost more than the money you’re looking for.

Read the fine print of the program, talk to your employer, and assess your own compromises before you pack your bags and travel to Topeka, Kansas, where remote workers can get up to $ 10,000.

UNDERSTANDING THE PROCESS, THE REQUIREMENTS

Most remote relocation programs have an application process with multiple rounds of interviews to select potential residents. Only a fraction of the candidates are accepted.

Tulsa Remote only accepted 3% of its 30,000 applicants in 2021, according to Justin Harlan, CEO of Tulsa Remote.

The Opportunity Maine Tax Credit does not limit participation, but it does have a host of other provisions. The refund of the tax credit, for example, depends on the year of graduation and your field of study.

And the Ascend West Virginia program only accepts applicants for certain cities at certain times of the year.

The relocation incentives are designed to increase the local tax base, so most programs pay the allowance over a year or two. And many encourage you to put down roots.

Tulsa Remote will pay the $ 10,000 in a lump sum if you buy a house (the money is otherwise spread over the first year). In Topeka, remote work applicants must purchase a house to get the full $ 10,000.

And remember that any bonus can be taxed as income, so you need to put money aside for the IRS.

ASSESS THE IMPACT ON YOUR CURRENT AND FUTURE JOB

Remote work still has limits. Understand your employers’ expectations before you apply or move, as there are things that can impact your quality of life in your new area.

If your business and coworkers are all on the West Coast, for example, you may need to keep those hours, even if you move to Maine. It can make a few late nights.

Your new city may have a lower cost of living than your current home port – that’s usually part of the draw. Will your business adjust your salary to your new cost of living? You want to be clear on this before you take the plunge.

“Financially, you should be prepared to take a pay cut if you move from a big city to a cheaper location,” says Tina Hawk, senior vice president of human resources at GoodHire, which provides employee selection and management. business background check.

Most relocation programs are only open to those who already have full-time employment with a business located out of state (Maine is an exception). But no job is guaranteed forever, so you need to research the local job market.

Will it be easy to find a new job if you are made redundant? Are there opportunities locally if you overtake your current business? If you’ve dreamed of starting a business someday, is your potential new home entrepreneur-friendly?

DETERMINE YOUR BUSINESS BREAKERS

While money is important, that’s not what makes a place liveable. Take stock of what’s important to you, such as dining, networking, the ability to walk, or the outdoors, and identify your tradeoffs.

“The incentive may grab your attention, but the heart of the matter is when you get there, you have to stay,” says Nate Wildes, executive director of Live + Work in Maine.

Even “Vacationland” isn’t for everyone, Wildes admits. “We are a four-season place. If you hate snow and hate shoveling snow, look elsewhere, please.

Don’t assume that you will like or dislike a place. Experience it firsthand to get a real feel for the city’s vibe. You might be surprised.

Maria Kim, 28, certainly was. The former Washington, DC resident moved to Tulsa as part of the Tulsa Remote program in March 2021.

Initially on the fence, Kim decided to take the plunge after touring the city and meeting other members of the program, which has a strong emphasis on networking and community.

“I was pleasantly surprised,” says Kim, who works full time as a freelance writer. “The city is busy. You can enjoy the perks of a small town with the energy of a big city, and you can explore without too much excess.

_________________________

This column was provided to The Associated Press by the NerdWallet personal finance website. Kelsey Sheehy is a writer at NerdWallet. Email: [email protected] Twitter: @kelseylsheehy.

RELATED LINKS:

How to start a business in 13 steps https://bit.ly/nerdwallet-how-to-start-a-business

Opportunity Maine Tax Credit https://liveandworkinmaine.com/opportunity-maine/

Tulsa remote control https://tulsaremote.com/

Copyright © 2021 The Associated Press. All rights reserved. This material may not be published, broadcast, written or redistributed.


Source link