The price you pay, living in Silicon Valley

I always tell myself that we are extremely fortunate to be living in Silicon Valley.  The weather is beyond incredible (hey, I grew up on the east coast - NEW JERSEY to be exact), we are close to the ocean, major cities, resort communities, we live in a multicultural area, surrounded by the smartest and most ambitious people in the world, we are living the heart of high technology and bio technology.  We have it "all" here.

And then I remember the COST of living here.  The actual price of everything, from housing, to food, to schools.  Everything we purchase, we pay more.  And the rat race to have "more" never seems to end.

A house down the block from us sold for ten million dollars.  Yes, TEN MILLION.  And another one sold for over fifteen million. And the median price for a home in North Palo Alto is three million.  So where do people get this kind of money (oh yeah, they work at Google)?  Or maybe their startups or venture funds hit it big.  So do you see where I am going with this one?

How does the average person make it here?  How do they keep up with the Apple, Google, Yahoo, VMware, strike-it rich folks?  And how much is really enough here in Silicon Valley?   A couple days ago, I had to do some "busy work" and I brought my laptop to University Cafe, here in downtown, Palo Alto.  There, I overheard a very interesting conversation.  (Sorry, I didn't mean to listen - but you were talking SO LOUD).  And your conversation went like this:

Man 1:  Well, the company sold for one hundred and fifty million.  A lot lower than I expected, but I did get to walk away with three million, after taxes.  Not what I was hoping for, but at least it will pay off the house in Tahoe and cover taxes for a few years.  The wife should be happy about that.

Man 2:  I hear you.  Last year I only cleared a million (after taxes) and felt broke. Wife was miserable, kids were miserable, I was miserable.  And we did not go Hawaii cause we only wanted to stay at the Fairmont, but the suites were $1500 a night, and we decided to hold off and tighten the belt.  But another deal looks like it will come through.  Target for this year - ten million after taxes.  Family will be much happier.

Me: (To myself).  Tightening the belt?  WTF??????

(They both kept saying "after taxes", cause I guess that is what you want to know.  What is the bottom line.)

I left the restaurant, very, very sad.  I love living here.  I feel blessed that we can "afford" our mortgage payments and both have solid incomes and careers.  But for god sake, how much is enough? Heck, I know a lot of great things I can do with that million, and it will be MORE THAN ENOUGH to keep a lot of us pretty darn content.   

I think we warped here, in Silicon Valley.  At least, some of us are......  The other's are well... working and raising a family and getting by, day to day.