It's also important to factor in the ability to move later. If I earn a small amount of money in a place with low cost of living, then I can't move to a high cost of living location later. If I earn a large amount in the US in a high cost of living area, then I can still live frugally and move to a low cost of living area later.
Cost of living is fungible. If I buy a property in an expensive city, then I have to invest a lot of my money, but I can also recoup that later if I sell the property. In boom cities the property will appreciate and create more wealth. Other costs like food and transportation provide the opportunity to be significantly frugal if you desire to be. But with the high compensation available to top workers in tech, it's possible to not be frugal and still save a large amount.
> If I earn a small amount of money in a place with low cost of living, then I can't move to a high cost of living location later.
Having done this out of school, I found myself literally borrowing money for first/last/security. Not much money, and not for long, but that's of course because I had a signed contract before I settled on an apartment. Cheap living is pleasant, but it can leave you in a serious cash crunch should you try to move - especially as a young person.
Cost of living is fungible. If I buy a property in an expensive city, then I have to invest a lot of my money, but I can also recoup that later if I sell the property. In boom cities the property will appreciate and create more wealth. Other costs like food and transportation provide the opportunity to be significantly frugal if you desire to be. But with the high compensation available to top workers in tech, it's possible to not be frugal and still save a large amount.