If you’re thinking of moving to a state where your dollars go further, you may not be alone! And it is that, deciding where to live does not have to be based only on your social circles. Employment opportunities could also be a good reason, although not as much as before. Why? Mainly, for the popularization of online business and remote work. For the cheapest state in the United States to live in, it has to meet certain requirements.
Thanks to these new factors, Americans have the opportunity to live in other communities that are more affordable and provide a better quality of life. And all this without losing your job!
For many, the golden dream is to live in a large and dynamic city. But nevertheless, this type of urban metropolises are usually quite expensive. This would make the money you receive even less and, of course, negatively impact your quality of life.
So where can you move to save and live high? Since the cost of living varies by state, the correct question would be: What is the cheapest US state to live in?
The cost of living index in the United States
The cost of living index is a metric that calculates the average cost of living for a state, city, or town based on a score out of 100. Any state with an average of less than 100 is considered to be below the national average for living. cost of living But what if a state has more than 100? Well, in this case, that state would be more expensive than the national average.
Now, it is important that you know that the average cost of living takes into account certain factors, such as the cost of food, housing, clothing, utilities, transportation, health care, public education and of course the tax payment.
To give you an idea, the average cost of living calculated by MIT (Massachusettsts Institute of Technology) is $16.54 per hour or, what is the same, about $68,808 a year. This amount is calculated for two adults who work as the head of a family of four. Thus, the minimum wage of $7.25 per hour leaves many households on the poverty line.
Things to consider before moving to another state
Of course, not everything is as bad as it seems. Many current workers who engage in remote work or telecommuting have even become the proud owners of small online businesses. This advantage allows them to take advantage of their ability to work anywhere to move to a state in the country with a cost of living under. This will automatically make your dollars go a lot further without having to cut back on your lifestyle..
Note: Think that cities or towns can offer you excellent educational services, comprehensive medical care and a good place to walk and develop. If you move, you could become the owner of a large and cheap house or reduce what you pay in rent.
Furthermore, this could also have a positive impact on your lifestyle. You will have more green areas to walk around, less traffic, a welcoming community, etc. You could even lower your tax bill, since some states don’t collect the state income tax or no sales tax applies.
The 5 cheapest US states to live in
Finding a balance between quality and cost of living can be difficult. That is why we have selected the 5 cheapest states in the country to live. To do this, we analyze the data published by MIT in 2020.
This will help you a lot, especially if you have the opportunity to work from home and live in the place you prefer. Before thinking that you could not move from New York or Los Angeles to “the suburbs” focus on the benefits! You will have a larger and more luxurious home, your own car, a better education for your children and you will pay less for your purchases.
In some states across the country you might even be able to say goodbye to expensive gas and fuel. By making this simple change, you could have more money available for investment and, over time, enjoy greater financial freedom.
Mississippi may not be as glamorous and elegant as other states across the country, but it certainly has its upsides. For one thing, you can live here for much less money than you’d normally spend in other states in the United States. Also, Mississippi has more than 50 colleges and universities, and is known for giving a warm welcome to anyone who steps on its territory.
Here you will not have worries like traffic or smog. Conclusion? You will have a better lifestyle!
- Living hourly wage: $10.89
- Childcare (annual): $3,845
- Average annual household income before taxes: $55,683
Arkansas has a temperate climate that has become one of its great attractions, especially for those people who do not like drastic changes in temperature. That magnificent climate is the creator of a spectacular view full of green landscapes at any time of the year.
Arkansas has, at least in essence, a strong economy. Its cities are full of university students and also have large and dynamic centers, similar to those of the great cities of the country. What stands out the most? Educational opportunities in Arkansas are enormous.
- Living hourly wage: $10.67
- Childcare (annual): $8,099
- Average annual household income before taxes: $60,896
Big cities, good music and gastronomy from another world. Tennessee has this and more. This is the “home sweet home” of more than 75 universities in the country and job opportunities are not far behind. In fact, it could be argued that they are relatively high when compared to the national average.
Anything good from Tennessee? Residents do not have to pay any income tax and housing costs rarely top $1,000 a month. If cities aren’t your thing and you long to live outdoors, Tennessee has something for you too. The Great Smoky National Park covers more than 800 square miles and is the most visited national park in the country.
The low housing costs and the strong and growing employment opportunities, enable Tennessee residents to become homeowners in less time and without so many sacrifices.
- Housing (annual): $10,230
- Living hourly wage: $10.97
- Childcare (annual): $8,718
- Average annual household income before taxes: $60,305
#4 West Virginia
This state has many treasures, from incredible mountain ranges to one of the most popular music genres in the country: the bluegrass. Yes, there may not be any big cities in West Virginia. In fact, it looks more like a small town. However, this should not be a negative thing. That slower pace of life could be very relaxing. Typically, West Virginians love the outdoors!
Yes indeed: If you’re looking at West Virginia as an opportunity to relocate, having your own source of income is in your best interest., since (in the workplace) there are not many opportunities, especially for those who are not local.
The positive? If you work remotely, you will not have any problem! This is a cheap state to live in and will allow you to enjoy all of its attractions.
- Living hourly wage: $10.83
- Childcare (annual): $6,079
- Average annual household income before taxes: $61,412
#5 South Dakota
The affordable housing of South Dakota and its high employment rate has made it a popular state to move to. This is the fifth least populated state in the country. Therefore, it offers spaciousness and a significant amount of square meters in outdoor areas. In South Dakota, the weather could be a bit extreme. But the good part is that people are warm and friendly.
Interested in South Dakota as a destination? Well, you’ll be glad to know that this state held second place in the ranking “best place for children”, a list published by SmartAsset.
- Living hourly wage: $10.60
- Childcare (annual): $9,726
- Average annual household income before taxes: $61,410
Complete List of America’s Most Affordable States
If you want to know what other states offer a low cost of living, examine the following table. Here you will find the cheapest states to live according to MIT:
|rank in the list||Condition||Cost of living|
|Four. Five||New Jersey||$64,436|