Carpooling can help you cut these costs by sharing them with others. That means paying for repairs, gas and possibly tolls and parking permits. Only about one in 20 American workers commute by public transit. Transportation costs are a major expense for many Americans. Anyone else will need to budget accordingly.
If you or your partner is a stay-at-home parent or if you have extended family helping you out you won't need to shell out for these expenses. This could mean the cost of a caregiver who comes to your house, of pre-kindergarten or of after-school daycare. There's the cost of childcare if you need it. There's the cost of education and whether you'll need to take out student loans to get (or complete) a college education. Education and Childcareĭepending on your circumstances there are several other large expenses that may shape your cost of living. Others (I'm looking at you, California) have high income taxes. Some states don't have any state-level income tax. There's even greater variation in income taxes. While every state has property taxes, these vary considerably from place to place. When you consider that some cities have zero sales tax while others have sales taxes in excess of 9%, it's easy to see why taxes need to be included in any cost of living comparison. What about taxes? State and local taxes can combine with your federal income taxes to take a serious bite out of your income. That means you want to keep a close eye on grocery costs. But if you're on a tight budget you're probably cooking most, if not all, of your meals at home. If you never cook you won't be as affected by a change in food prices if you move.
That's the kind of thing that can make a big difference to your bottom line. Most cities exempt grocery items from sales taxes but a few do not. Even basics like a pound of pasta or a bag of apples can vary in cost from place to place. That's why our cost of living calculator takes local food prices into account. While you can make changes to your lifestyle to cut back on the cost of food, you're still affected by food costs in your area. Food Photo credit: © iStock/DragonImagesĪnother big expense category is food. So, moving to an area with lower housing costs can make a serious difference to your overall cost of living. Depending on where you live and how much you make, paying less than 30% of your income to keep a roof over your head may or may not be possible. If you pay more than that you're considered "burdened" by your housing costs. Your budget will be more sustainable if you can spend less than 30% of your income on housing. While there are many budgeting tips and tricks that can help you cut down on extra expenses, it's harder to trim the costs of the basics. The cost of many of these necessities has been rising across the US. Then there's food, childcare (if you have kids), medical costs and transportation. That means housing, whether you rent or buy. People differ in how much they're willing to pay on extras like entertainment and gifts but we all have to pay for the necessities. Let's talk about the factors that go into estimating your cost of living. If not, you might be overwhelmed by higher costs in your new home. Therefore, it's incredibly important to plan ahead before your big move. The biggest expenses we all face can vary significantly from one place to another. That's where a cost of living calculator like ours can really make a major difference. Are the other cities on your list more or less affordable than your current home? If you're considering moving to another town or city you may be wondering what salary you'd need to maintain your standard of living in the new location.
Cost of Living Calculator Photo credit: © iStock/fizkes
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