Why You Should be Living in These States

When the topic of saving money hits the table, you’re undoubtedly going to come face to face with a number of traditional pieces of advice on how you could be doing this better.

Take budgeting for instance, truly the most practical and topical talking point when it comes to better situating your finances and ultimately saving money.

If you’re not budget, chances are you’re not saving.

Then, talk can easily shift to a natural progression of expenses, an ancillary piece of the budgeting process that allows you to be told, point-blank often times, that you’re just spending too much money on wants and needs, and thus need to start thinking about cutting those expenses, looking for lesser-expensive alternatives or taking a long, hard look at how you’re living from one paycheck to the next.

The stumbling block with those two pieces advice shouldn’t center on the fact that they’re not reasonable, because that’s anything but the case.

They’re the foundation of reasonability when it comes to how you should be saving, and if you’re not, finding out which of these cornerstones you’re doing wrong.

The fact remains, however, that we are doing these wrong, with only 1 in 3 Americans using a detailed household budget.^[1]

The part about expenses and living paycheck to paycheck is equally damning with 78 percent of the American population living paycheck to paycheck, a disappointing fact when you consider the simplicity of budgeting expenses as a simple math problem gone awry.^[2]

So if those pieces of advice fall on deaf ears, where do we go from here?

Perhaps thinking outside the box is a better means to produce better results as far as saving money.

Then again, forget the box, how about thinking outside of the state you live in? How’s that for getting out of your comfort zone?

Truth be told, the talk about where you should be living in order to maximize your salary and minimize expenses often is talk that is heralded and lauded for the retirement crowd more so than a fresh-faced workforce employee out of college or someone in their 30s or 40s (although this can pertain obviously to any age, too) that might be making a decent salary but most of it is going to a high cost of living based on two factors: the job they’re in is paying far less than the national average along with housing and other fixed costs simply being higher in one state than another.

Now, this isn’t a call to action to pick up and move on a whim, but consider that your job title, where you live and how much you’re spending from one month to the next on that aforementioned budget can look a lot brighter and more prosperous financially if you’re living in a state that pays and keeps cost of living down.

Consider states like California and New York typically find their way on to the list, mostly due to a median income that can’t keep up with the cost of living, a lethal financial combination for any would-be worker.

New York, for instance, has a media income of just over $41,000 ($41,600) but cost of living is second highest in the country, along with taxes being on the high side (roughly $2,300).^[3]

Consider what it costs to live in New York and how much you’ll make on average, the idea of big-city living sounds promising on paper but really has to be thought out based on income, expenses, etc.

You might be rationalizing that New York might be a tough sell, but it’s population would suggest a wide-open job market.

Think again. New York isn’t in the top 10 in recent polls and studies regarding states with best job prospects.

And with that, you’ll want to think about where you live, for financial and job prospect reasons, so you can earn, save and live comfortably in these states:

Idaho: Competitive wages and low-cost living puts this state on top of any list

The hidden gem that was the movie “Moving,” starring the late Richard Pryor has his character all set to move to Boise, Idaho as part of a relocation for a new job.

Of course, the move goes sour in a hurry as part of the script, but moving to Iowa in the real world won’t be nearly as complicated or costly.

Idaho has an annual salary of just over $43,000, with only 26 percent of expenses spent on living expenses, and 74 percent of the income kept after paying for housing, suggesting that home values aren’t all that unreasonable.^[4]

The average house in Idaho is below the national average, too, with $172,000 going as the sale price versus $185,000 on average across the United States.^[5]

Unemployment in Iowa is at a record-low, too, for the state, and is hiring at record paces too for them. Job growth is around 2.4 percent with almost 17,000 jobs added and growth in health care and finances with a top 10 economy in the United States.^[6]

And yes, the potatoes are great, too.

Iowa: Between Idaho and Iowa, the “I’s” have it made for prospective states

If you thought Idaho boasted a housing market to make your eyes pop, wait till you check out Iowa.

Sure, Iowa isn’t New York or California but the average home here is about $127,000 versus the $185,000 that is the national average.^[7]

Engineering seems to have the most lucrative pay in Iowa, with salaries that are in the high $60,000 range and closer to $70,000 per year for software engineers at $69,000 and mechanical engineers not far off at around $67,000.^[8] Those figures puts Iowa at about the average, with maxing out salaries hitting the low to mid $80,000 range.

Taxes in Iowa are equally as affordable with a 1.29 percent median rate, middle of the pack, along with bills and expenses (utilities) being low, such as an example of an apartment in Des Moines with a $110 cap on water, trash and electric bills in total.^[9]

Mississippi: The south does it again with this gem of a state, money wise

Arguably the most affordable state in the United States, Mississippi boasts about a 14 percent reduction in cost of living versus other states on average, 30 percent less for home buyers (roughly $112,000) for the average home.^[10]

Those numbers are staggering, in addition to affordable rent and plenty of worthwhile hot spots.

Financially, a $112,000 mortgage average is going to translate into a mortgage payment well under $1,000 per month, leaving plenty of room for other budgetary needs.

That said, Mississippi cost of living overall not only is superbly low but so are utilities, and groceries, two of the bigger expenses on any budget.

Utah: This state is perfect blend of happening job market, reasonable living costs

When you think of the perfect state, one with a city feel, lots of available and up-and-coming jobs, and a cost of living that is reasonable, Utah might not come to mind.

It should.

A few things about Utah stand out more so than other states, with one small piece that is misleading.

So, for Utah, the average house price is well above the national average, with $220,000 versus $185,000, respectively, but consider rent in Utah is much cheaper than nationally speaking, suggesting that you’d want to take advantage of the job market that is booming and decide to rent and save (alway a good game plan); Rent for a two-bedroom apartment is $842 in Utah, compared to $1,027 nationally on average.^[11]

Utah, as well, is one of the more lucrative and easier places to find work, too.

The unemployment rate is around 3.2 percent, with nearly 70 percent of its labor force employed, specifically with a growing economy centering on construction and a bigger, better hospitality piece of the piece, namely with Salt Lake City being a nightlife draw, albeit with higher home prices but still overall a safe bet and good combination with better jobs and lower than average rent.^[12]

Nebraska: This state hits on all three cylinders: affordability, jobs, cost of living

Nebraska is, in two words, a hidden gem.

The bells and whistles might not replicate that of a flashier state, but Nebraska has a low cost of living, namely home prices being well under the national average: $137,000 versus $185,000.^[13]

The median salary is nearly $50,000 per year ($46,490) and only about 25 percent of a person’s total income is spent on housing.^[14]

That’s a terrific combination when you consider median income in larger states like New York being less than Nebraska, minus the cost of living comparison being grossly off between the two.

Finding a job in Nebraska should prove to be easier, too, as the media salary is nice, but so is the 2.7 percent unemployment rate and nearly 70 percent (69.1) of the population in Nebraska gainfully employed.^[15]

Granted, the job market or prospective employers will dictate where you ultimately choose to live.

If you’ve been searching for a job, for instance, for months, and a job in Nevada or New York comes into the open market, you might have to figure out if the move is worth the salary being offered but perhaps take it as a last resort, not that either state doesn’t have its perks, either.

But saving money isn’t just about the black and white, nuts and bolts of expenses versus income but also can have variables like where you live play a huge part in that as well.

A state like Florida, for example, boasts a robust job market, but isn’t on the best of the best list, either. Florida is adding jobs at about a 3 percent rate, with 228,000 jobs added in the past year, mainly in construction and the service industry.^[16]

Anyone who is looking might let Florida and its growing opportunities and bigger city, tropical feel dictate that as a landing spot worth considering.

Where you end up, living and job wise, really is a discussion that deserves your undivided attention, if for no other reason that it’s one of the bigger decisions you’ll make in your lifetime, but if you’re ignoring financial prosperity and flexibility as contributing factors, the idea of saving money might be a topic where mum is the word.

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