That only works if you are single, and live in 200 sq ft studio (which by the way will run you 24K per year after tax dollars). Then you can save and get ahead.

If you have a family of four you will almost ALWAYS be significantly worse off in palo alto. Even if you rent, The average 4 bedroom in palo alto is about 7k per month if your lucky which comes out to 84k which is about 130k in pretax dollars. Day care for 2 kids is about 60k per year. You'll need at least 225K just to scrape by, with no eating out, no vacations, etc..