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Now more than ever, you are ready to move to a new state.
Don’t worry; I’ve got you covered! It is time you expand your horizons and align your life with your values.
Deciding where to live can be one of your most significant decisions. Of course, you want to be responsible in this decision and make sure you are making the best decision for your wallet, your well-being, lifestyle, and goals.
Here are the important factors to consider when choosing a state to move to, plus some money tips to help make the transition smoother:
1. Assessing the Cost of Living
The most important factor to consider when moving is the cost of living. Moving from one state to another involves a big change in housing, utilities, groceries, hobbies, and even taxes.
- Housing Costs: Will you be renting or buying a home? Rent and home prices vary significantly from state to state. Housing costs are much higher in places like California or New York than in states like Texas or Washington State.
- State Taxes: Income tax rates vary, and some states (like Florida, Washington State, Nevada, and Texas) don’t have a state income tax. This can make a big difference in your take-home pay! If you are able to keep your job from a high-cost-of-living state to a low-cost-of-living state, then you are giving yourself an increase in salary!
- Hobbies: The prices for hobbies you might want to pick up vary by state as well! Going to the symphony in San Francisco, CA, is more expensive than in Portland, OR. Yes, research even your hobbies because this is part of your lifestyle and pass time.
Start by considering the weather in the summer and winter. Can you handle 100-degree summers or snowy winters? Then, consider your values and community. Will your new home state make the transition easier by connecting with like-minded individuals?
Now that you have narrowed down a few states, start researching housing, groceries, hobbies, and taxes.
You may be interested in: The ultimate checklist to buy a house for the first time homeowner.
2. Employment Opportunities
Next, let’s consider your salary. Moving to a new state can help or impact your finances, and you want to make sure you are setting yourself up for success.
- Employment Opportunities: The easiest way to make the move is to be able to keep your job with the same salary. You will have to speak with HR about their policies regarding moving states and wages. Sometimes, your move will not impact your salary, but in other instances, you can move, but you will have a salary adjustment. Even in that case, you are saving on state income tax, for example, and it may be okay with the salary adjustment. Of course, know your numbers before deciding to move. If you have to move jobs, then consider your industry. Some states are known for specific industries (tech in California, finance in New York, energy in Texas), so consider where your skills are in demand so that it is easy to find a job.
- Start a side hustle or business: If you know you are moving in a year and are preparing now, starting an online side hustle or business will really benefit you in the move. You will have flexibility, extra income, and faster access to your money goals.
Look up the job market in the state you are considering, speak with HR, and consider a side hustle or business so that you put your best foot forward as you embark on this new journey! Also, consider growth and financial stability.
Here is how to add a side hustle without burning out.
3. Quality of Life
Choosing a new state isn’t just about finances; quality of life matters, too. It actually matters more because I do not want you thinking about your finances 24/7. I want you to have a financial game plan for reaching your money goals, set it automatically, and start enjoying your life every day!
Ask yourself what environment would make you happiest day-to-day, what hobbies you want to pick up, and what scenery you want to enjoy.
- Climate: Do you thrive in sunny weather? Would you enjoy a snowy winter or six months of rain? The weather could impact your happiness, so choose carefully.
- Culture and Lifestyle: Every state has its unique vibe. How do you want to spend your days? Outdoors in Colorado or at the beach in California. Think about your own culture and the group of people you want to hang out with. Would you find them in the new state? San Francisco is very diverse, whereas Ohio is not. You will be the happiest where you fit in and are aligned with.
- Support system: Is living near family or friends important to you? Let’s say you have children; maybe living near family might help cut expenses—friends you can hang out with to make the move as pleasantly as possible. But if you do not have family and friends nearby, you must put in more effort to start your support system again.
Moving to a state that supports the lifestyle you want and is aligned with your values will ultimately affect your overall well-being, make your new location feel like home, and make the transition pleasant.
4. Tax and Financial Implications
Different states have different tax structures, and this can have a significant impact on your finances. I moved from California to Washington State because they do not have state income tax, and it automatically gave me a little over $1,000 extra a month from my paycheck. California has one of the highest state income taxes in the United States.
- State Income Tax: These states do not have a state income tax: Texas, Florida, Washington State, Alaska, New Hampshire, South Dakota, Tennesse, Wyoming, and Nevada have no state income tax, which means higher take-home pay.
- Property Tax: If you plan on buying a home, property tax rates vary widely and can add significantly to your monthly housing cost. HOA prices also vary!
- Sales Tax: Consider states with lower sales tax to save more when purchasing.
Taxes are crucial when choosing where to live, especially if you’re planning to move long-term or buy a home.
5. Education and Healthcare Access
Education and healthcare are important for families, but they can also impact long-term financial stability and access to quality services.
- Public Education Quality: If you have kids, researching the quality of public education in each state can help you choose a location where they can thrive.
- Healthcare Access and Costs: If you have specific health needs, look into healthcare facilities, insurance costs, and the availability of medical specialists.
States with a strong public education system and accessible healthcare can be a huge plus, especially if you plan on living in the new state long term.
6. Money-Saving Tips for Relocating
Moving states is expensive, but there are some smart ways to keep costs under control. Plan for these expenses. Do not just go with the first option you see.
- Budget for Relocation Costs: Start early, even if you have not decided yet, but start saving now. Moving costs can add up quickly, whether it’s hiring movers or renting a truck. Create a moving budget and stick to it.
- Plan Your Move in the Off-Season: Avoid moving during the summer at all costs. Consider moving during less busy times, like fall or winter. You will find cheaper rates from moving companies.
- Downsize Before Moving: The last thing you want to do is move things you will want to throw away when you arrive at the new state. Plus, it’s a great opportunity to start fresh without clutter.
- Consider DIY Moving: If you want to move on a budget, rent a truck, get some friends, and handle the move yourself. This can save you money.
These tips can help you save on moving costs, which you can then use to pay for settling into your new home. You will also need furniture, so budget for that!
Here is how to build 3 months of savings even if you are living paycheck-to-paycheck.
It’s super exciting that you are considering moving to states that align with your values, help you reach your money goals faster, and offer a quality of life that feels in alignment.
If you start preparing now, your move will feel manageable. And with a solid relocation plan, you’ll be all set for a smoother transition.
Take the time to research, budget, and prioritize what matters most to you in a new location. You’ll be much more likely to land somewhere that fits your lifestyle and financial goals.
More Moving Out-of-State Posts You Might Enjoy:
- How to budget for an out-of-state move
- 6 Signs it is time to move out of California
- How to adjust to life in a new state: Emotionally and Financially
- 5 Things moving out of state that has surprisingly taught me
- 5 Things moms should know before moving kids out of state
- What you need to know about moving to a new state in today’s political climate
