I recently moved from Los Angeles to Oklahoma and have noticed a huge decrease in our cost of living.
In short I’ve realized that the cost of living really matters to your personal finances.
What is Cost of Living?
The cost of living refers to the prices paid for everyday products and services for a given area. Each region, state, and city have their unique cost of living.
A dollar earned in one region won’t buy as much or could buy more in another section of the country. Purchasing power varies.
Your cost of living determines how far your dollar will go and thus directly impacts the quality of life for your family.
How Our Cost of Living Has Decreased
Upon moving, these are known cost of living decreases we’ve experienced thus far moving from California to Oklahoma:
- We’ve saved about $750 a year in auto and renter’s insurance.
- Our health insurance is a bit cheaper, but we’re still waiting on the underwriters final approval to determine by how much.
- Gas. This is a significant savings in price per gallon, yet we are driving more so it probably evens out.
- Phone- State taxes and fees are cheaper on our current phone plan by an estimated $10-$15 a month.
- Groceries- groceries are cheaper, yet we now pay a tax on food.
Cost of Living Calculators
Before you decide to relocate, determine your cost of living using several of these calculators:
- NerdWallet’s Cost of Living Calculator
- Bank Rate Cost of Living Comparison
- CNN: Cost of Living Calculator
- Best Places Comparison
- Salary.com Cost of Living Wizard
- For worldwide moves use Numbeo- (requires registration for multiple searches) or Expatistan
- Payscale Cost of Living Calculator
How does cost of living and purchasing power impact your finances?