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Last Updated on January 3, 2018

The 10 Most (And Least) Expensive States In America

The 10 Most (And Least) Expensive States In America

2017 cost-of-living index figures by C2ER (Council for Community and Economic Research) are fresh out of the oven. Well, despite continued widespread recovery tactics, where you live in America has a great deal of impact on what economic challenges you face. No country is immune from economic slumps but higher than average state autonomy in America means economic growth varies by state. While one might expect to see California and New York on the list of most expensive states in America, shifting economic landscapes make several unexpected states more expensive as well. Complicated economic factors, as well as public officials struggling to meet the challenges of the future, make these ten states the most expensive and most affordable in America.

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    Most Expensive States

    1. Hawaii

    Take palm-fringed, sandy beaches, sizzling cultural melt, and add incredibly beautiful flora and fauna – and that’s the ‘magical’ allure of Hawaii. All these goodies, however, come with a steep price. Looking to buy a home in Hawaii? That’ll set you back a whopping $1 million on average. And that isn’t all – it’ll cost you nearly$3000 to rent a two-bedroom apartment and the monthly energy bill is estimated at $455.51, a figure that’s about 3 times what you’d shed in some leafy suburbs of California. But you live in Hawaii, the Aloha State!

    2. New York

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    Chiming at the second place is the Empire State. That in and of itself isn’t surprising at all in a state where the average home goes for $1.6 million (yes, you read that right). Looking to rent? Forget about it; a cozy two-bedroom apartment averages $4200 in monthly rent. Of course, New York is vast and uneven recovery/growth is partly to blame. Despite the improvement in unemployment rates since the end recession, New York continues to battle with aging infrastructure and starkly different growth rates. But there are areas like Rochester (average home price is $287000) where life is surprisingly easier than Manhattan. Nonetheless, you will still shed more than $160 for monthly energy bill there.

    3. California

    Not surprisingly, California is also one of the most expensive states in America. High housing costs in this state have long made it one of the pricier states, but population growth is another concern. At around $1 million, the average price of a home in metro San Francisco is the 3rd highest nationwide. California is also the number one state for poverty, reportedly carrying $1.6 billion in debt. While the state holds only 12% of the American population, nearly 33% of all welfare recipients are Californian.

    4. Massachusetts

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    It’s official – it’s now more expensive to live in Massachusetts than Alaska! The cost of groceries is through the roof, with 24-ounce T-bone steak going for more than $62! While the average price of a home is $634,233, expect to pay 3 or even 5 more times in most Newton, Framingham, and Cambridge neighborhoods. At $2668, the average rent for a sweet two-bedroom apartment in Boston is the 4th highest in the US. And the energy bill of $287.63 is close to $100 more than would be in Anchorage.

    5. Alaska

    A newcomer to this list, Alaska – the moose state – offers unsurpassed natural beauty and close-knit culture you’ll never find elsewhere. With only 760 farms, it’s no surprise that most produce and food items are hauled from different states. And that trickles down to tons of other costs. A loaf of bread which goes for a mere $1.79 in Iowa will set you back $4.68 in Anchorage. But again, this is Alaska – the land of amazing wildlife. Paying utility bills ($201.39 for energy) and healthcare isn’t a walk in the park either.

    Least Expensive States

    1. Mississippi

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    One of the less densely populated states, Mississippi is one of the least expensive states to live in. With low per capita income, the state’s housing costs remain correspondingly low as well (the average home price of $199,028), making the cost of living affordable. Mississippi previously relied mainly on cotton production to drive the economy. In the last two decades or so, however, Mississippi has diversified agricultural and livestock industries, ensuring economic growth. Now focusing on producing rice, soybeans, chicken, and catfish, Mississippi continues to pursue diversification to enrich its economy, a strategy which has been successful so far.

    2. Indiana

    Next up, is Indiana, a state famous for the Indianapolis 500 and low-cost homes (averaged at $270,204). At the Crossroads of America, you can expect rock-bottom prices for groceries and other basic food items. A head of lettuce goes for a paltry $1.04 while a pound of coffee and ground beef will set you back just $4.43 and $3.74 respectively. A boom in the local economy has pushed prices up a teensy bit, but you can still pick up a check at dinner.

    3. Michigan

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    The Great Lakes State, much like Mississippi and Arkansas, offer low-cost housing (averaged at $274,355) for consumers, yet it’s consistently ranked in the top ten for best states to do business. After all, this is the home of the American auto industry. The average gas price in Detroit was about $2.04 when it hit more than $3 in most parts of the country. The auto industry has bounced back, healthcare is thriving and high-tech jobs are supplanting manufacturing, helping this state become more competitive to prospective employers, keeping the economy working for Michigan citizens.

    4. Arkansas

    Like Mississippi, Arkansas is a more rural state, offering consumers low housing costs. Arkansas also boasts incredibly low costs for doing business, attracting six Fortune 500 companies to the state. Rent for a two-bedroom apartment is just $700 a month and the monthly energy bill is $145.79, roughly half of what you’d pay in Massachusetts. In short, Arkansas’ low cost of living is balanced by a lower household income than average but still remains a top state for the economic climate.

    5. Oklahoma

    Rounding up our list is the Sooner State, the home of undulating wheat fields. And the cost of groceries, including a loaf of wheat bread for less than $3, is appropriately cheap. Well, that isn’t all – a grand 2,400 square-foot home will only chip off around $300K from your bank account. With a sub-$150 monthly energy bill and low-cost health care, Oklahoma is certainly one of the best places you’d be lucky to call home.

    Featured photo credit: US Department of Interior via om.wikipedia.org

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    Published on November 20, 2018

    The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

    The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

    The truth is, there are many “money saving guides” online, but most don’t cover the root issue for not saving.

    Once I’d discovered a few key factors that allowed me to save 10k in one year, I realized why most articles couldn’t help me. The problem is that even with the right strategies you can still fail to save money. You need to have the right systems in place and the right mindset.

    In this guide, I’ll cover the best ways to save money — practical yet powerful steps you can take to start saving more. It won’t be easy but with hard work, I’m confident you’ll be able to save more money–even if you’re an impulsive spender.

    Why Your Past Prevents You from Saving Money

    Are you constantly thinking about your financial mistakes?

    If so, these thoughts are holding you back from saving.

    I get it, you wish you could go back in time to avoid your financial downfalls. But dwelling over your past will only rob you from your future. Instead, reflect on your mistakes and ask yourself what lessons you can learn from them.

    It wasn’t easy for me to accept that I had accumulated thousands of dollars in credit card debt. Once I did, I started heading in the right direction. Embrace your past failures and use them as an opportunity to set new financial goals.

    For example, after accepting that you’re thousands of dollars in debt create a plan to be debt free in a year or two. This way when you’ll be at peace even when you get negative thoughts about your finances. Now you can focus more time on saving and less on your past financial mistakes.

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    How to Effortlessly Track Your Spending

    Stop manually tracking your spending.

    Leverage powerful analytic tools such as Personal Capital and these money management apps to do the work for you. This tool has worked for me and has kept me motivated to why I’m saving in the first place. Once you login to your Personal Capital dashboard, you’re able to view your net worth.

    When I’d first signed up with Personal Capital, I had a negative net worth, but this motivated me to save more. With this tool, you can also view your spending patterns, expenses, and how much money you’re saving.

    Use your net worth as your north star to saving more. Whenever you experience financial setbacks, view how far you’ve come along. Saving money is only half the battle, being consistent is the other half.

    The Truth on Why You Keep Failing

    Saving money isn’t sexy. If it was, wouldn’t everyone be doing it?

    Some people are natural savers, but most are impulsive spenders. Instead of denying that you’re an impulsive spender, embrace it.

    Don’t try to save 60 to 70% of your income if this means you’ll live a miserable life. Saving money isn’t a race but a marathon. You’re saving for retirement and for large purchases.

    If you’re currently having a hard time saving, start spending more money on nice things. This may sound counterintuitive but hear me out. Wouldn’t it be better to save $200 each month for 12 months instead of $500 for 3 months?

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    Most people run into trouble because they create budgets that set them up for failure. This system won’t work for those who are frugal, but chances are they don’t need help saving. This system is for those who can’t save money and need to be rewarded for their hard work.

    Only because you’re buying nice things doesn’t mean that you’ll save less. Here are some rules you should have in place:

    1. Save more than 50% of your available money (after expenses)
    2. Only buy nice things after saving
    3. Automate your savings with automatic bank transfers

    These are the same rules that helped me save thousands each year while buying the latest iPhone. Focus only on items that are important to you. Remember, you can afford anything but not everything.

    How to Foolproof Yourself out of Debt

    Personal finance is a game. On one end, you’re earning money; and on the to other, you’re saving. But what ends up counting in the end isn’t how much you earn but how much you save. Research shows that about 60% of Americans spend more than they save.[1]

    So how can you separate yourself from the 60%?

    By not accumulating more debt. This way you’ll have more money to save and avoid having more financial obligations. A great way to stop accumulating debt is using cash to pay for all your transactions.

    This will be challenging, depending on how reliant you are with your credit card, but it’s worth the effort. Not only will you stop accruing debt, but you’ll also be more conscious with what you buy.

    For example, you’ll think twice about purchasing a new $200 headphone despite having the cash to buy them. According to a poll conducted by The CreditCards.com, 5 out of 6 Americans are impulsive spenders.[2]

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    Telling yourself that you’ll have the discipline to not buy things won’t cut it. This is equal to having junk food in your fridge while trying to eat healthy–it’s only a matter of time before you slip. By using cash to make your purchases, you’ll spend less and save more.

    A Proven Formula to Skyrocket Your Savings

    Having proven systems in place to help you save more is important, but they’re not the best way to save money.

    You can search for dozens of ways to save money, but there’ll always be a limit. Instead of spending the majority of your effort saving, look for ways to increase your income. The truth is that once you have the right systems in place, saving is easy.

    What’s challenging is earning more money. There are many routes you can take to achieve this. For example, you can work long and hard at your current job to earn a raise. But there’s one problem–you’re depending on someone else to give you a raise.

    Your company will have to have the budget, and you’ll have to know how to toot your own horn to get this raise. This isn’t to say that earning a raise is impossible, but things are better when you’re in control right? That’s why building a side-hustle is the best way to increase your income.

    Think of your side-hustle as a part-time job doing something you enjoy. You can sell items on eBay for a profit, or design websites for small businesses. Building a side-hustle will be on the hardest things you’ll do, be too stubborn to quit.

    During the early stages, you won’t be making money and that’s okay. Since you already have a source of income, you won’t be dependent on your side-hustle to pay for your expenses. Depending on how much time you invest in your side-hustle, it can one day replace your current income.

    Whatever route you take, focus more on earning and save as much as possible. You have more control than you give yourself credit for.

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    Transform Yourself into a Saving Money Machine

    Saving money isn’t complicated but it’s one of the hardest things you’ll do.

    By learning from your mistakes and rewarding yourself after saving you’ll save more. What would you do with an extra $200 or $500 each month? To some, this is life-changing money that can improve the quality of their lives.

    The truth is saving money is an art. Save too much and you’ll quit, but save too little and you’ll pay for the consequences in the future. Saving money takes effort and having the right systems in place.

    Imagine if you’d started saving an extra $100 this next month? Or, saved $20K in one year? Although it’s hard to imagine, this can be your reality if you follow the principles covered in this guide.

    Take a moment to brainstorm which goals you’d be able to reach if you had extra money each month. Use these goals as motivation to help you stay on track on your journey to saving more. If I was able to save thousands of dollars with little guidance, imagine what you’ll be able to do.

    What are you waiting for? Go and start saving money, the sky is your limit.

    Featured photo credit: rawpixel via unsplash.com

    Reference

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