Moving out of state isn’t an easy decision to make, especially if you are leaving behind family, friends, and memories. But there are times when moving becomes the best financial decision for your family. Here are three major reasons you might consider moving to another state and how it will affect your finances.
Reason #1: A job or a better job
A downturn in the economy has affected the unemployment rate in the United States in the last few years. So far for 2013, the national unemployment rate dropped to 7.5%, and is expected to have remain unchanged through the month of May. While unemployment is an issue throughout the country, some states have been affected more drastically than others due to bankruptcies in the auto industry, housing, and other major employers. If you’ve been unemployed for a while and have been unsuccessful in finding a new career, taking the plunge and moving for work might be the best financial step for your finances. Leaving family and friends behind can be difficult, but may be easier than facing financial bankruptcy. Here is a list of the top and bottom 5 states by unemployment:
Top States — North Dakota (3%), Nebraska, Vermont, South Dakota, Iowa
Bottom States — North Carolina, California, Mississippi, Illinois, Nevada (9%)
Take into consideration your education, current career and skills as you search for the best location. Even if you’re moving because of a job offer you’ve already received, it’s a good idea to have a back-up or two in case your first job doesn’t last (to avoid moving yet again), and to study the strength of the job market for each career you are qualified for/interested in. Explore unusual careers that might be surprisingly lucrative. For instance, hot dog vendors in New York can make up to $100,000 a year!
Reason #2: A lower cost of living
Income is not the only factor when considering a move: you also have to look at the area’s cost of living. Making a larger paycheck may not be worth it if you’re spending more on housing, food, gasoline, and other amenities. Living expenses can vary widely even from one end of the state to another. Sites like costofliving.net allow you to compare the cost of living among several different cities using highly complex calculators. In the current U.S. economy, the cheapest regions to live are in the South, West, and Midwest. Regions that have the highest cost of living are the West Cost and the East Coast/New England states.
Reason #3: A better climate
Most of us have acclimated to the weather in the region we live. We might complain, but it’s never quite bad enough for us to move just because of the weather. However, if you’re planning on moving already, you should consider climate into your decision, because it will affect many of your household expenses. As those who live in northern regions know, cold temperatures can mean snow and ice. Vehicle maintenance is a huge concern. You may have to purchase a more expensive and less fuel-efficient 4-wheel drive vehicle that will lose value to the damage of corrosive road salt. Damaging effects aren’t excluded to cold climates, either — humid areas can cause wood to rot faster and mold to grow, while extremely arrid regions can cost you money in sun damage to roofs, vehicles, and other equipment.
In addition to the expenses the climate of the area will incur on the upkeep of your possessions, it may cost your health. Many people who experience breathing problems and are frequently sick move to more arid regions for relief. Moving to a region that promotes your health will also save you money on medical expenses.
While there are many other financial reasons to move to another state, these three are probably the most pivotal.
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