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Cost of living need not be a hardship if one is willing to consider non-traditional areas such as "intentional community" living. Http://www.ganas.org on Staten Island just up the hill from the ferry offers comfortable short or long-term living for about $700/month _including food_. A good source for other opportunities is http://www.ic.org .
When on a temporary contracting gig, I lived in a co-op type house in the middle of Plainfield, NJ -- formal parlor and professional catering kitchen, a mansion that had not been cut up into apartments and was actually sometimes used for soap opera "location" shots and special corporate functions. Residents had to use the back stairs during these events but this happened only once every couple of months. My room was bigger than some apartments I've rented and included two walk-in closets, and $600 included heat and electric and cable. It was a lot of fun to serve a sit-down dinner to my co-workers in the dining room where the curtains were probably worth more than my 20-acre farm back home.
Current employer uses "cost of living" to justify low pay scales across the board here in economically-depressed agricultural Western New York. I could live in a $300/month slum or trailer but choose instead to rent a nice house, and it costs almost as much as a New Jersey condo. Under some pressure right now from the hourly sector, they are looking at their rates and I am willing to be patient for a while. Don't expect six figures, but will not swallow "cost of living" excuse forever.
Dori Green
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