Cheapest States To Live In To Make The Most Of Your Money!
Are you looking for the most affordable states to live in?
Perhaps you want to save money, be financially independent, or retire early? Maybe you just want to manage your money better?
Then where you live can make a significant difference. On whether you achieve your financial goals. Or not.
So today, let’s consider some of the cheapest states to live in 2021. To make your hard-earned dollars go further.
Cheapest States To Live In
Also, every state has something unique to offer. Especially when it comes to your budget.
So, it is important to take a look at some big-hitting expenses. These costs can really take a bite out of your cash flow. They must be considered when deciding where to live.
Disclosure: This post contains referral links.
Cheap States To Live In Will Reduce Costs In The Large Budget Categories
For most families, the following expenses take the greatest share of our money:
It just makes sense that these represent the largest expenses for most of us.
We all need a place to live, food to eat, and a means to get where we need to go. Managing these expenses wisely will limit your financial risks.
So, keep these costs in mind. When searching for the most affordable states to live in.
But there’s more to your budget than these 3 areas. Let’s focus on 2 others next…
The Most Affordable States To Live In: Health Care Costs
Health care costs are another area to check into. But health care impacts some of us more than others.
Are you in your 20’s and have a short-term goal to strike out on your own? Well, health care costs are probably not a big deal at that age.
On the other hand, as we get older, health care costs become a larger concern.
Cheapest States To Live In: Low Taxes
But, I also want to throw income taxes into this discussion. Don’t forget to consider tax-friendly states. And, I will have a little more on a few of those states in a moment.
So, if you are looking to make a move. To somewhere with a lower cost of living. And head off money issues before they get started. Then, any of the following states are viable contenders.
It’s time to take a closer look at these most affordable states to live in for the year 2021. Because keeping your living costs in check will help you avoid common money problems in the future.
Most Affordable States To Live In: Texas
They say everything is bigger and better in Texas, and it’s the truth. But did you know that Texas is also one of the cheapest states to live in?
Texas is a land of opportunity with a strong foundation for entrepreneurial exploration and growth. It also boasts a relatively low cost of living. With the main metropolitan areas– Austin, Dallas, and Houston– being more affordable than similar cities throughout the country.
In addition to one of the lowest costs of living in the U.S. and high earning potential, Texas is a deregulated state with progressive energy options. With strong green initiatives, you can save money while protecting the environment: click here to learn about free green energy.
One Of The Cheapest States To Live In: Iowa
Iowa is another one of the most affordable states to live in. It is an often-overlooked state. Being stereotyped as mostly farming.
However, Iowa is one of the cheapest places to live in America. And also has some of the best options for healthcare and education in the country.
The capital is Des Moines. And Des Moines is rated as one of the top five cities to live in across America. The city gets high marks for having an excellent median home value to median income ratio as compared to similar-sized cities.
Utilities are on par with the national average. But, housing costs are significantly cheaper. Which helps keep your mortgage costs down.
The median housing cost in the USA is around $230,000. However, in Iowa, it’s only $141,000.
Do you work in the education or healthcare industries? Then, consider Iowa as a great place to earn an income without paying extremely high rent and transportation costs.
An Affordable State To Live In: Kansas
There’s no place like home, especially if your home is in Kansas. This state makes the list of most affordable places to live every year. And is 3rd on our list of cheap states to live in, work in, or retire to.
It’s known for its low housing and transportation costs. Also, grocery costs are significantly less than the national average. These features make it one of the cheapest places to live in the USA.
Kansas isn’t as entrepreneur-friendly as other states. But it offers several industries with robust employment opportunities.
Kansas has growing healthcare, manufacturing, and agriculture industries. And they frequently have openings available for skilled workers.
Cheapest States To Live In The US: Arkansas
Arkansas boasts the second-lowest-cost of living in the U.S. It is another cheap state to live in.
Having visited Arkansas several times, it’s a great place to enjoy the outdoors. So step out and get some fresh air and exercise without breaking your budget.
Furthermore, housing, transportation, groceries, utilities, and healthcare all fall below the national average, with transportation being significantly so. The low cost of living makes it an attractive option if you make minimum wage. And need to make the most of every dollar.
One of the other perks of living in Arkansas is that healthy food is extremely affordable when compared with other states.
Those living on a shoestring budget will be able to eat well. And won’t have to worry about sacrificing their health due to monetary limitations.
Resource: Save money on your grocery purchases
Most Affordable States: Oklahoma
Consider Oklahoma when developing your medium-term financial goals. That is if you desire a state with a low cost of living.
It has both a low cost of living and a low unemployment rate, making it a smart option for 2021. Housing costs are only 75% of the national average, and the job market is diverse for both skilled and unskilled laborers.
Oklahoma has a bustling economy. But there are also a lot of undeveloped areas.
So, while living in Oklahoma, you have the option to buy an extremely affordable house. And it may come with plenty of extra land.
Resource: Get a mortgage for your new home
One Of The Cheapest States To Live In America: Missouri
Missouri is another state with extremely affordable housing. It is rated at about 70% of the national average. This makes the state one of the cheapest areas to live in.
While the cost of groceries and utilities are on par with the rest of the country. Opportunities to make the most of your finances are tremendous.
Missouri also offers a rich job market in specialty areas like biotech. Also, plenty of jobs in retail and service.
Finally, St. Louis is ranked as one of the best American cities to live in. It scores high marks for affordability and vibrant culture.
Best States To Live In For Cost Of Living: Mississippi
When it comes to the cheapest states to live in, Mississippi always ranks near the top.
While there is no official cost of living index reported by the U.S. Government. There are private indices and surveys that do.
These take into account the big-spending areas I have already mentioned. Those being housing, food, and transportation.
But also costs like health care, insurance, and services. For example, child care services in Mississippi are cheaper in comparison to other states.
The state has mild winters. Is home to dozens of high-quality colleges and universities.
Also, you won’t be far from great areas to relax. Like the Mississippi Gulf Coast and New Orleans.
Finally, jobs are plentiful in the state. Especially in education, agriculture, manufacturing, and food processing.
Across the board, Mississippi shines. When looking for one of the cheapest states to live in. And keeping your costs in check is a great way to improve your credit score.
Resource: Check your credit score for free
Cheapest States To Live In: Tennessee
Tennessee is one of the best states to live in for the cost of living. It is 11% lower than the national average.
And, employment opportunities are plentiful. Tennessee boasts an unemployment rate lower than the national average. Plus, plenty of land for recreation or business use.
And let’s not forget about another cost of living factor: taxes! Sometimes people overlook taxes when looking for an affordable place to live. And Tennessee checks in as a very tax-friendly state.
Tennessee has no tax on earned income. And, property taxes are very low.
There is a quirky tax on dividends and interest. It is called the Hall tax.
But here’s the good news. The Hall tax is being phased out. And, it will be completely repealed starting in 2021.
While we are on the subject of taxes. And how they impact our list of most affordable places to live. I want to highlight a few more low tax havens next.
Cheapest States To Live In For Low-Income Taxes
- South Dakota
With the repeal of the Hall tax, Tennessee will join the other seven states listed above that do not impose an income tax.
New Hampshire doesn’t tax earned income either. But they have their version of Tennessee’s Hall tax. The state taxes investment income in the form of interest and dividends at 5%.
As you might imagine, we are not big fans of special taxes on dividends here at Dividends Diversify!
Finally, I want to offer a couple of personal thoughts on taxes. Because I live in a high tax county that is located within a high tax state.
The tax burden is driving people away. And that is putting downward pressure on our home values.
Resulting in a bigger tax burden on those of us who choose to stay. Or, have to stay. So don’t forget about taxes when looking for the least expensive state to live in.
Summary: Low-Cost Places To Live
There are many affordable states in which to live. No matter how you choose to work and play in 2021.
Find the state that helps achieve your financial goals. Then set off on a new adventure.
What Are The Cheapest States To Live In?
Be sure to consider these states for their lower costs of living:
It is interesting to note that states on the East and West Coast are not represented.
And don’t forget to consider tax-friendly states.
Cheapest States To Live In For Low-Income Taxes
- South Dakota
Finally, it looks like Texas is the big winner making both my cost-friendly and tax-friendly lists. It ranks very high. And could be the cheapest state to live in.
More Reading To Help Reduce Your Expenses
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- Save money on all your online purchases
- Bad financial decisions you must avoid
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