Cost of Living

cost of living
I had recently posted about how my wife and I we’re considering relocating the family and that we have been looking for the best place to live in the United States. The main factors we’ve been looking for is an outdoors environment with a low crime rate and highly rated school district. One major factor which we have also been considering is the cost of living in these potential areas.

We evaluated the cost of living in each area

We currently live in the suburbs of a major city, and based on some research we’ve been doing, our current cost of living is relativity high. Salaries in our are above the national average, which definitely helps contribute to the higher cost of living: the increased salary attracts more employees into the area, who place more a demand on housing and other factors in the community. This increased demand drives prices and ultimately the cost of living up.

Given that we were looking to move to an area with many demographic factors similar to our area, we we’re expecting a commensurate cost of living, however we had to do some real research to get a handle on the actual cost of living in the different areas we were looking to move to, and how high or low it was relative to the cost of living we are accustom to.

You may want to consider 55 communities depending on your age

One major factor is what your income will be in a new area. If you are fortunate you may have already landed a position in your new area, or in many cases, people are relocated by a company and will retain the same position at the same salary in the new area. In both of these cases, you are certain about what your income will be, so that you can use one of the many retirement calculators on the web, plug in your income, select a geographical region, and it will tell you what the cost of living in that area is. A retirement calculator will also tell you whether you’re income is adequate in the new area, or if the cost if living is too high given your income. Besides,
you may be too young to consider 55 communities and assisted living facilities.

It is very important to be honest with yourself when doing these calculations. Some areas may be the best place to live but they are simply too expensive for you to live in without a significant increase in your income. Being aware of the cost of living BEFORE committing your family and relocating to an area is one on the smartest things you can do.