Lower Your Cost of Living by Relocating

Relocating to another city or state can lower your cost of living expenses substantially.

I know this to be true firsthand as we recently relocated from Minneapolis to Houston. The cost of living difference is significant. First of all, our comparable home in Houston cost 39% less than our home in Minneapolis. Plus, we have no state income tax in Texas. These two factors alone make our decision to move fiscally wise.

According to the online cost of living calculator found at CNNMoney.com, the cost of living in Houston is 8% less compared to Minneapolis. CNNMoney.com estimates that groceries cost 7.0% less, housing is 18.5% less, and healthcare is 2.6% less. On the flipside, utilities cost 2.5% more and transportation cost 2.2% more. Directionally I find all of these estimates to be true. But like many online calculators, taxes are not included in the comparison.

If your personal circumstances permit, you might also consider relocating to a city with a lower cost of living.