I'm confused about how the COL index number is calculated and what (if anything) it really means. Looking at these three examples:
...has me confused. My town's stats are:
COL index: 118.2 (lower than the above examples)
Median household income: $148K (higher than above examples)
Median house or condo value: $829K
So...? I'm surprised my COL is lower when the income and housing appear to be higher. What gives?
I was going to say that in my area $150K would be good. Not great, good. Apparently I was right on target if you look at the median household income stats.
ETA: DH and I have actually discussed this before because we have theorized that the reported average income is on the low side. I believe this only takes into account salary/business based annual income and not investment/portfolio/capital gaines based? Am I right on that?
I think that doing well is probably $250K+
I think *rich* is not having to have an income. If you are relying on annual income (from work, not investments), you aren't rich.