Living a frugal lifestyle is a choice embraced by many to make the most of their income and savings. However, the location where you live can have a significant impact on your ability to live economically. Some states offer a low cost of living and abundant opportunities to save money, while others present challenges due to high housing costs, healthcare expenses, taxes, and daily expenses.
After analyzing data and studies conducted on all fifty states, we have identified six states that may pose challenges for frugal living:
1. Hawaii: According to a study conducted in 2023 by GoBankingRates, it is estimated that you need an annual salary of almost $200,000 to be fully happy in Hawaii. The average salary in the state is $72,000, compared to the national average of $56,000. This significant wage difference, coupled with the high cost of living, makes Hawaii a challenging state for frugal living.
2. California: While California’s unemployment rate has dropped from its pandemic height, it still remains at 4.1%, one of the highest in the nation. Unless you are willing to reside in more affordable cities like Stockton, Sacramento, or Bakersfield, you will have to contend with the state’s relatively low average salary of $53,000, which is the same as the national average. Combining this with the high living costs in California creates a frugalist’s nightmare.
3. New York: The Empire State is known for its empire-sized costs of living. On average, New York residents spend over $37,000 more than the national average. Additionally, the state’s unemployment rate stands at 4.3%. While a study suggests that happiness can be achieved with an annual salary of $81,420, frugalists should consider exploring other states.
4. New Jersey: With a cost of living that is 14% higher than the national average and a housing cost that is 31% higher, New Jersey poses challenges for those pursuing a frugal lifestyle. Although the unemployment rate has decreased to 3.4%, the overall higher cost of living in the state, which is $52,000 more than the national average, makes it a red light zone for any frugalist looking to relocate.
5. Alaska: Achieving happiness in Alaska requires a significant income, while the state’s unemployment rate stands at 4.3%. The study mentioned earlier suggests that emotional well-being can be achieved with an annual salary of $75,300. However, given the challenges faced by frugal individuals in this state, we recommend passing on Alaska.
When pursuing a frugal lifestyle, it is essential to carefully consider your living environment. The states mentioned above present specific challenges due to their high cost of living, taxes, and housing prices. While they may offer unique attractions, they might not be the most suitable choice for those committed to frugality. It is crucial to weigh the pros and cons of each location, considering all aspects of cost, from housing to groceries, before making a decision. If frugality is your goal, it might be wiser to consider states with a lower cost of living.
Living within your means and stretching your income is a goal that many aspire to achieve. By making informed decisions about where to live, you can maximize your ability to live frugally and build a financially secure future.
