The paradox of high income and financial
Every now and then I meet someone who is surprised and asks why I moved from the US to Europe – as they see living and working in the US as the best possible outcome for a software engineer. In my case there were a lot of personal reasons (e.g. family) that I won’t dwell into in this post, but I think one thing people do not understand is the precarity of your financial situation when living in the US.
You can make a lot of money in the US (e.g. large 6 digits, 7 digits) but may still feel like being in a precarious state because:
- As much as you make a lot of money, you also spend a lot of money – e.g. houses in the SF bay area are very expensive without being anything fancy/luxurious. This just stems from the fact that resources are limited and that everyone is competing for them. In practice if you want to own your place, you take a large mortgage, meaning that you have to maintain your high income for a long period
- Your financial situation can take a drastic turn at any time – employment in the US is at will meaning you can get fired at any time for no specific reason (with some exceptions). While layoffs can also happen in Europe, they are significantly harsher in the US where there are close to no safety nets
- Your right to live in the US might be revoked – while this is a risk that always exists when you are living abroad, it’s a bit more pronounced in the US where your right to stay is likely tied to your employment. The H1B holders that got impacted by layoffs likely went through a very stressful period to find another job and maintain their right to stay in the US
- Healthcare costs are potentially uncapped – the US healthcare system is pretty complex and messy. You can have health insurance, make sure that your surgery is covered by your insurance but still be responsible for the full cost of the operation post surgery because your insurance may decline it later on. Hospital bills in the US are high – I don’t think many Europeans have seen 6 digits hospital bills.
We often talk about mental health in the software engineering industry but at the core if you can’t even feel financially safe, you can only marginally improve your mental health/stress level.
With all that being said, I personally had a blast living in the US and this post is not meant to tell you not to move to the US – but you shouldn’t assume the grass is greener on the other side: it’s greener on some aspects and less green on some others. You have to find what works best for you based on your priorities.