For those struggling to make ends meet, where one lives becomes more important as household income decreases. For example, when taking into account food, utilities, healthcare, housing, and general goods and services, New York City is more than twice as expensive to live in than Pueblo, Colorado. So while residents of both cities may struggle in minimum wage jobs, the Big Apple denizen has less than half the purchasing power of his Rocky Mountain cousin.
The bottom line: If your income is tight, finding a locale with a lower cost of living is a surefire way to makes ends meet and improve your quality of life — even without a raise.
Photo Credit: jdolenga
Yes but NY City might offer more odd jobs than Pueblo, Colorado. I live near Boston and the rent may be more than any place on earth.
I think that is valid with higher paying odd jobs where specialization becomes more of a factor as wages increase, but I suspect that’s not as much of an issue when dealing with low-wage or minimum-wage jobs where minimal unique skills are required.
as a Coloradoin, I can’t imagine why anybody would ever want to live in a place like New York, particularly New York City.
That said, we’re currently being invaded by hostile Californians who move here to get away from the high living costs and pollution, then drive huge vehicles they can’t afford, ignore the traffic laws, and vote up the cost of living, so the more people who don’t want to come here, the better.
It’d be different if more of them were people like Len.
Awww. 🙂
Have you ever been to upstate New York? It is some of the most beautiful land on earth, especially in the Adirondack Park area–which is some six million acres of forest, mountains and lakes.
I’m under the impression that wages generally reflect the cost of living in that area. If you have a job that’s mobile, allowing you to work from anywhere, this makes sense. Otherwise, I’m not so sure it’s this simple.
That is true, Steven, but I am talking about folks who are earning wages at or near minimum wage.
While workers generally earn more in costly areas, the difference in salary does not come close to paying for the increased expenses.
According to the NYT, someone making $50,000 in Houston would have to earn roughly $132,000 in NYC to live the equivalent middle class life. Assuming you remain in the same profession/ job title, the chances of raising your income by a commensurate amount are low.
I’ve lived from CA, to IN, to OH, to PA and cost of living is a key contributor to wealth creation. But in reality, the higher cost of living areas are higher for a reason! (More fun activities, culture, opportunities) And, high cost of living areas have lots more traffic.
I knew you’d have my back on this one, Barb!
Easy to say. Even if you can find a place where is cheaper to live, that doesn’t mean you can find a job their to sustain your expenses.
If you’ve only got a minimum or near-minimum wage job, I disagree. If those jobs were tough to come by, they wouldn’t be paying so poorly in the first place.
seems like this would be an aspect to take into consideration when making retirement plans.
It certainly helps retirees stretch their dollars.
I think it is always an option if one hits the deadend. But it sounds like a very depressing option (at least to me – I am a big city girl.)
Everything in life is a trade, Aloysa. It all comes down to whether you prefer improved standard of living or the excitement that comes with living in a bigger city!
This makes a lot of sense. When we lived in Maine, most of our living expenses were fine but our health insurance premium was killing us. We ended up moving because of it. I hope this helps to lead others to find ways to make the most of their lives and find something that works.
Oh, yeah … I bet there’s a lot of folks right now wishing you’d have never suggested that one.
I live in a small town and the cost of housing is not lower than the “city” 80 miles away. In fact there are fewer options on the market. It’s difficult to get electricians/plumbers/skilled craftsmen etc. The cost of our gas, food and household supplies are higher reflecting the extra delivery cost to get it here. We have to drive into the city for anything but the most basic medical services. Ditto for vet, legal, accounting, beauty, physical therapy, movies, shopping, restaurants (we have just a few), etc etc. In a larger city, you may be able to get along without a car or maybe rarely even need one with public transportation and ammenities within walking distance. In the country if you don’t have a car, you are litterally stranded. So do your research before you move!
Well, if you live in the middle of nowhere, Michelle — and it sounds like you do — then I can see where the cost of living may be more than living in some cities.
But do you think your cost of living is more expensive than living in, say, New York City, San Francisco or Washington, D.C.?
Like Michelle, I live in a small town with not a lot to offer in the way of entertainment. And housing is pretty costly compared to income. And since we have no state income tax, property taxes are ridiculously high. Our nearest large city (population 72,000) is 55 miles away and has pages of help wanted ads in every Sunday paper. Most of those jobs are minimum wage, or slightly above, work is harder to come by here, but similar in pay. Our state is very proud of it’s low unemployment rate, but most people have more than one job, so even if you lose one of your jobs, you’re still fully employed, so that data is really misleading.
We get lots of retired folks from other states that move here and then want things “improved”. If you’re thinking about moving somewhere else because the cost of living appears less make sure you check all aspects before you jump. No entertainment options (except church or the bar), no public transportation, bad weather, poorly maintained roads, limited access to health care….All normal for rural folks, but it might feel like the seventh level of Hell to you if you’re not used to it.
Good points, Deb. A lower cost of living does not necessarily translate to nirvana — but I say it’s still better than living a life beholden to your creditors.
Deb and Michelle made very good points. I live in a beautiful rural area. We want it to stay this way. Often, we see new arrivals try and adjust, but usually they just stay 2 or 3 years. It is a cliche, so much so we seldom even make any effort to get to know new folks anymore because so many past friends moved away. The other thing is that peace and quiet is double edged. Many new folks want the diversions, the shopping, the business. Look before you leap into a new situation is good advice. Maybe even rent for a year to make sure it works for you.
NYC vs Pueblo is pretty extreme comparison. But the point is valid. There are lots of more affordable places to live. Why FL is so popular (albeit costs are rising recently). But many medium sized towns, esp college towns that are affordable but offer many amenities. One problem is that we flock to Uber popular areas which makes them ever more expensive, while ignoring many very good other options. Moving in general is a greatly underutilized method of greatly improving one’s life. Many stay in a place just due to random circumstances vs deliberate choice.