Do you know what it means when someone says the cost of living? The name itself sounds pretty clear, but do you know what all it includes or how it is calculated? Understanding the cost of living is important when deciding to move from one state to another. So today we are going to break down what goes into the cost of living so you can make the right decisions when it comes to choosing a place to live when moving somewhere out of state. Otherwise, you might find yourself going from a comfortable living to barely make it because you didn’t do the proper research.
When researching the cost of living, you should also consider the average wages of an area as well. If the cost of living is 10% higher but the average pay is also 10% higher, than things should balance out. Now, let’s break down the Cost of Living.
Housing: One of the largest expenses you will deal with, housing is important. You don’t want to move to a new town and set up shop in a back alley, you at least want an apartment. Typically the cost of living for housing is based on a basic residence. The Cost of Living Calculator at NerdWallet bases it off a basic 2 bedroom apartment or a basic 3 bedroom, 2 bathroom home.
Food: You have to eat, and food costs money. Especially if you have a family. The typical cost of food is also factored into the cost of living. The cost of food is based on the food found at grocery stores that can be easily accessed. The food sold at farmers markets and smaller stores might not make it into the equation since they are not easily obtained by the entire city.
Healthcare: We all want to be healthy, and having healthcare is a part of a healthy lifestyle. The cost of healthcare is also factored into the cost of living, even though we are not always required to have healthcare for ourselves. For those with children, especially those of infant age, healthcare is vital to make sure they grow up with all their shots and check-ups.
Taxes: You ever feel like taxes are complicated? You don’t even know the half of it. Every state handles taxes differently. Some have a higher sales tax, some have higher taxes when it comes to paychecks, some have both. Because taxes are a part of our everyday lives, they are also factored into the cost of living.
When considering a place to move, look at the cost of living. Understand what it will take to live in that state when you are moving somewhere out of state. While you handle that, Gold Standard Relocation will handle getting you there. We will set up an estimate so you can know how much it will cost to make the move. Click Here to get your free estimate today.