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How Much You Save Can Depend on Where You Live

by retirebyforty on July 16, 2011 · 3 comments

in saving tips

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Let me start out by saying that I’m not going to argue that some people are better savers strictly because they happen to live in a particular place. It’s more correlative than a cause and effect kind of thing. The truth is not every American city costs the same to live in relative to your earnings. More importantly, for those who are either trying to get hired or trying to get educated so they can try to get hired, not every American city offers the same opportunities relative to your ambitions.

For example, everybody knows it costs a fortune to live in New York City. It’s a great city, but it’s tough to save any money when you pay $1,500 rent for a one bedroom apartment.  Yet nobody knows where McAllen, Texas is despite it being one of the cheapest cities (that has a population over 75,000) to live in. In addition to these figures, opportunity is a city-by-city kind of thing too.

If you’re serious about saving money for retirement, you have to sit down and look over the facts and figure out the cost and opportunities in your area. If it’s thousands of dollars cheaper every month for you to live on the other side of the state then that money, or even just a sliver of it, can be contributed to a retirement plan when otherwise you’d have to mine the funds out of money set aside for cost of living.

If you’re on the verge of enrolling into college or starting a new career, than the time may never be better than now to pick up and move to increase your chances of success. Before you know it, there will be so many factors in performing such a transition, such as kids, a mortgage, and other obligations, that you may never be able to do it even if it is becoming increasingly apparent that you should. If you enjoy a little adventure, then consider relocating. It might be the best move you ever made.

Guest post by Jessica Wagner

retireby40> Personally, I don’t think it’s a huge deal what city or state your university is located.  Once you have a degree, you can always move to a city/state with more opportunities. Almost everyone I know got a job elsewhere after graduating from their university.

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{ 3 comments… read them below or add one }

LLF July 20, 2011 at 6:22 am

I would say I agree with the going to school anywhere a getting a job somewhere else idea. The only exception to that is sometimes, the schools are located at an expensive area, like NYU or Columbia. Also, I am loving the idea of teleworking. If you can find a job that lets you telecommute, you can live anywhere as long as you can access the internet.

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retirebyforty July 20, 2011 at 8:17 pm

I don’t know if I like working from home. Whenever I try to do that (for the day job), I never get anything done. :D

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Janett Brown July 23, 2011 at 12:15 am

I totally agree. But, there is something I don’t understand in the behavior of many people. When they don’t get big salaries, they can live in cheap houses. They can get cheap clothes, smoke cheap cigarettes, and visit cheap places. But, as soon as they get a more important job that allows them higher salaries, they start to get the most expensive things they can. Why is that? You were living on cheap stuffs. And you were doing great.

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