How Your Finances Are Affected By Where You Live

It’s true that everyone has a right to live where they want to live. You’re allowed to live anywhere you desire. However, where you live may affect your finances. It can either help you flourish or hinder your advancement. Before you move to a new area, you should consider the following elements that may change your financial status:

Cost-of-Living Differences

The cost-of-living refers to your everyday expenses like housing, food, necessities and so forth. The price of such things varies from one city to another, one state to another, and one country to another. One town could have two-bedroom apartments for $600 a month while a town 20 miles away offers them for $2,000 a month. The same goes for groceries, gasoline, clothing and more. You really have to investigate the area before you pick up and take yourself and your family there. It would be wise for you to spend some time in the community and talk to the people about it, too. You may want to find out what kind of resources the town offers, as well. You could get some assistance with food costs, medical bills and other items if you need to.

Finance Options

The borrowing options available to an individual may be limited depending on where they live. This can be a good thing or a bad thing. On one hand, local laws limiting the amount of money a lender can give borrowers helps prevent people from getting in over their head with too much debt. On the other hand, these laws have the potential to restrict a person’s ability to use a consumer installment loan for practical purposes such as getting their car fixed or making repairs to the house. Check for any state or local regulations placed on lenders before planning a major expense around the prospect of borrowed funds. Otherwise, you may find yourself unable to access the capital necessary for the financial decision you’re making.

Local Tax Variations

The amount paid in taxes varies from place to place. For example, you’ll pay nine percent tax at a department store if you shop in the 29927 zip code, whereas you’ll only pay six or seven-percent if you spend money over in 29901. The deviation can make a huge difference in the amount of savings you keep each pay date and how comfortably you navigate life each week. The same is true for income tax and personal property tax rates, incentivizing families in especially high-tax areas to find ways to reduce what they owe to the government.

finances and where you live

Income Taxes

The income taxes are another area of concern in finances. Some states do not have local income taxes while other states do. For example, Florida does not charge its residents state income taxes. States such as Georgia and South Carolina do. You may want to consider that before you make a move as well because it can also make a huge difference for you at the end of the year.

Property Taxes

Property taxes are a whole separate issue. Some states charge different taxes for housing property taxes than others do. You could end up saving thousands of your hard earned dollars every year just by going to a different area to live. Housing is not the only thing that such entities charge either. If you own a car, you may have to pay property taxes on the vehicle, as well. The property taxes can be low or high depending on what part of the state you live in.

Entertainment

Even things like entertainment can cost you much more in on are than they do in another. Everyone needs to get out and have some fun every once in a while. Well, you can do that, but it may be expensive for you if you choose a zip code in a business district or a tourist area. Do some research and find out what you’re getting into before you get into it. Stop by the local restaurants, bowling alleys, movie theaters, fitness centers and other places that you may frequent whenever you want to have a little fun.

Conduct some research before you take the plunge into a new area to live. You’ll be glad you took a little quality time to find out the challenges you might have in a new location. You might change your mind about the location entirely.

2020 Kimberly Signature

 

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