What State Has the Lowest Cost of Living in the USA?
Are you thinking of saving up as much money as you can for a future goal you might have in mind? Whether you are looking to build your own home on your own land, buy a nice piece of property out in the middle of the woods, or just want to save up some money to put yourself ahead in life, finding ways to work on saving is going to be a great first step in this mission.
Of course, it can be excessively difficult to save any money in this day and age. Rent prices are higher than they’ve ever been, housing prices are higher in some areas than others, and the cost of living with things like groceries and gasoline can vary wildly depending on where you go.
What can you do to start saving some money now? You can always look into finding a home in a city with a lower cost of living and use a moving cost calculator to help you figure out your budget for your move when you decide where you would like to go.
How Can This Help Me?
Think about it for a few minutes. What are you currently paying monthly for things like groceries? How much does it cost to fill your vehicle with fuel? What are you currently paying per month for rent?
The answers to these questions come together to form your overall monthly cost of living. Unfortunately, money is a necessity to get by, and you have to find a good job that pays enough for you to live comfortably if you don’t want to scrape by.
On top of having a job that pays decently, you ideally want to live in a place with a lower cost of living than other cities or states in the country. When you’re not paying as much money per month for things like rent, groceries, gas, and more, you will quickly begin noticing how much money you can actually save if you put enough back monthly and don’t spend it.
Which States Have the Lowest Cost of Living in 2020?
To begin getting an idea of which cities you might consider moving to, you should first know which states in the country have the overall lowest cost of living. Once you know which state you might want to move to, you can start narrowing down your list of cities much easier until you settle on the one you think is perfect for you.
With that said, let’s dive into the five most cost-effective states to live in all of the United States. Which one of these states you decide to call home will depend on your own personal tastes and desires.
Love it or hate it, the state of Mississippi easily has the lowest cost of living out of any other state in the nation. In Mississippi, you can find average home prices of about $128,000 if you are buying a home. If you are thinking about renting, you might be surprised to find out that the average cost to rent a two-bedroom apartment monthly is roughly $746 per month.
The Natural State of Arkansas offers the second-lowest cost of living in all of the United States. In Arkansas, things like finding housing, having access to healthcare, and finding reliable transportation to get wherever you need to go will be much simpler and much more affordable than in other parts of the country.
For a family to live relatively comfortably in Arkansas, they would need to bring in a mere $44,571 a year. No problem, since the average annual income of your average Arkansas worker is about $45,726.
Right next door to Arkansas, the Sooner State of Oklahoma comes in as the third most affordable place to live in the United States. You can expect to pay much lower for things like gasoline (which Oklahoma recently led the country in when it came to lowest prices), healthcare, groceries, and more. Housing is one of the noticeably cheaper necessities in Oklahoma, with a two-bedroom apartment boasting an average rent of about $879 a month.
In Oklahoma, the average family can expect to bring in a median income of about $51,424 per year.
Another neighbor of Arkansas and Oklahoma, the Show-Me State of Missouri comes in fourth on the list of the most affordable places to live in the United States. It proudly boasts the second-lowest average rent in the entire country, with a two-bedroom apartment in Missouri coming in with a rent price of about $827 each month.
Missouri also has the second cheapest gas prices of any state in the nation (right behind Oklahoma). For a family to live comfortably in Missouri, they’d need to make about $53,078, which is doable given that the average household income is roughly $53,560 per year.
Finally, we get to the fifth cheapest state in the country to live in at this moment in time. New Mexico, better known by its nickname, the Land of Enchantment, has become well known for its relatively low cost of housing when compared to other parts of the country.
In New Mexico, homebuyers can expect to pay an average price of about $193,200. If you plan on renting, you can expect to pay about $847 a month for a two-bedroom apartment.
Things like groceries and utility bills are noticeably lower than average in New Mexico, as well, and you can expect to make an average income of around $48,059 per year living in New Mexico.
Choose the State That’s Right For You
Each of these states is great choice to think about for anyone who is planning on potentially moving to a more affordable place to live. This will help you get the jump-start you’ve been looking for, allowing you to work and save money, live a little less expensively, and hopefully get ahead, just like you’ve been wanting to.
Evaluate these choices carefully and pick the state that sounds like it would suit you best. Just remember that no matter which of these five states you choose to call your next home, you will be paying some of the lowest prices in the entire country for things like housing, food, fuel, and more.
How empowering of a feeling do you think that is going to be? You’ll find out quickly why the residents of these less expensive states love living there so much!
Frequently Asked Questions
Saving as much money as possible so you can do your best to get ahead in life is something many people are finding themselves doing in these trying times. Finding a place to live with a relatively low cost of living is a great way to put yourself ahead of the rest of the pack when you want to save as much as you can.
Here are some questions frequently asked by people who are undertaking the same mission as you—finding a low-cost city where they can work on building up a nest egg.
Which state has the cheapest housing overall?
While Mississippi is actually the state with the overall cheapest cost of living, you will find that the state with the overall cheapest housing costs is Arkansas. On average, Arkansans can expect to pay around $708 per month for renting an apartment or a mortgage. If buying a home, Arkansas residents can expect to pay around $128,800.
What states pay you to move there?
Coming as a surprise to many folks, some states are currently running programs to seek more working talent or get more folks to come to their state. A few such examples are Alaska’s Alaska Permanent Fund, which pays an annual dividend to the residents of the state from oil royalties.
Similar programs include one in Oklahoma, where the city of Tulsa was looking to pay experienced workers in certain fields to consider moving and contributing to the local workforce.
What is the most expensive state to live in?
The most expensive states to live in are currently Hawaii (with an average home price of over one million dollars), California (where you can expect to pay about $2500 per month in rent), New York (where rent is the highest in the country at almost $3700 per month), and Oregon (where groceries are higher than the average and the normal home price is about $550,000).
Saving Money For a Better Life
While it may seem like it is going to be a long road, saving up enough money to work towards your dream goal, whatever that may be, doesn’t have to be hard. Finding a place to live with a low cost of living when compared to the rest of the country is a great way to start saving.
With careful budgeting and not overspending on things you probably don’t need, you’ll put yourself ahead financially and finally be able to work on building the life you have always dreamed about.