Dwellics’ customizable cost-of-living calculator helps users compare places of interest based on median income, tax structure, types of jobs available, and workforce demographics. She also noted that not everything is necessarily cheaper outside of a big city – depending on where you want to move, childcare and food could be just as costly, she said.Cost of living tops most people’s list of “need to know” information when looking to relocate. "The longer that you stay away, the harder it is to come back to an expensive area or a city center," she said. One thing people should keep in mind is their long-term plans – if they may want to come back to their original city later, it may be harder to do that if they've taken a pay cut, said Laurie Allen, a CFP and founder of LA Wealth Management, a financial planning firm in Long Beach, California. To be sure, there are also some situations where it may not make sense to move now. "Sometimes you do have to take a short-term hit financially." "Really it's ultimately about making yourself happy and putting yourself in the best situation," said Meinhart from Parsec Financial. If you're going to have a significantly improved quality of life, it may be worth it to relocate even if you aren't necessarily saving a ton of money in your new home, he said.Īmid the pandemic, you may find that being closer to family, having more space inside and outside and having an overall slower pace of life may make it worth moving, said Ma. Outside of financials, it's important to consider the lifestyle factor of moving, said Ma. Then, compare that to what the second year and beyond will look like as well.Įven if you spend more than you thought you would on moving this year, living in a new location might save you a lot of money down the road, he said. Include those costs in your calculation of expenses in the first year post-move, Ma said. You may need to hire movers, purchase new furniture and other essentials or pay to break your lease, said Roger Ma, a CFP and founder of New York City-based financial planning firm lifelaidout. In addition to savings, you should consider the costs of moving, unless your company is offering a relocation bonus such as Stripe. One caveat: if the company you're working for is based in a high-tax state, you may still be dinged for taxes there. "If you're earning over $150,000, moving from a high-tax state like New York, New Jersey or California to one of these tax havens could result in a savings of more than $10,000 per year," said Meinhart. More from Invest in You: Melissa Bradley wants to help people of color jump start their businesses These 4 steps can help reduce financial stress caused by Covid-19 What it takes for Black girls to become leaders, according to Michelle Obama And, states including Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming have no income taxes. If you have lower pay, you may be in a lower marginal tax bracket. Moving from a high-tax state to a low-tax one could also be a big benefit, Meinhart said. Cost of living calculators such as NerdWallet's can help break down some of your potential savings. You can save considerably on rent, mortgage or even property taxes if you're moving from cities such as San Francisco or New York to a suburban area according to Meinhart. "For most people, this is housing, vehicles and taxes," he said. Start with the biggest-ticket items first, said Meinhart, a certified financial planner. Once you know this information, you should sit down and outline your current monthly budget, then compare how costs might change in another location. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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