Thanks to alert reader and all around supportive husband Sean Sullivan for showing me this graphic from Visual Capitalist illustrating how much income it takes to live comfortably in each state.
This is helpful in my business, because often clients talk about relocating to a less expensive place to live. But what does less expensive mean?
- Lower cost to buy a house?
- Lower cost of basics like gas and groceries?
- Lower property, income, sales taxes?
- Lower home and car insurance?
Let’s face it, moving may get you lower expenses on some things, only to face sticker shock in other areas. Knowing what total income is needed to live comfortably in a place is helpful in putting those decisions in context.
Clearly, there will be huge variances within states. It’s got to be cheaper to live in say, Bakersfield, CA than San Francisco. And I’m guessing that $112,000/year income in New York will allow for a much more comfortable lifestyle in Buffalo, NY than Manhattan.
The point, and I do have one, is that if you are considering moving states in retirement, don’t just go with the assumption that Florida is cheaper than Colorado because your brother got a screaming deal on a condo in Boca. Consider multiple factors such as:
- Cost and availability of homeowners insurance (looking at you, Florida and Louisiana)
- Convenience and quality of medical care
- Proximity of friends/family/future caregivers
- Availability of activities that you enjoy
- Safety/crime rates
- Public transportation or ride services for when you don’t drive anymore
- Desirability of the area for future home sale
Hey, you may relocate and decide in 10 years to do it again. Moving in early retirement is not the last move you will likely make, so don’t stress too much. There isn’t much that can’t be undone in life.
