Why does it feel like the cost of living is not going to go down anytime soon? Have you noticed that the price of everything is steadily going up?
The inflation rate has historically been around 3% in previous years. But as of this writing, the inflation rate in the United States is over 8%. So, if you live in a large and population-dense metropolitan city, your finances are getting hit hard.
What would you be willing to do to save more money in these financially perilous times? Would you be willing to downsize your life and move to a smaller city or town?
Moving to a smaller city has its benefits and drawbacks. The cost of living is lower and you will be able to save more money.
However, such a move may only be feasible if you are a remote worker and don’t mind small-town culture. Additionally, you should not get easily homesick for big city culture and events. After such a move, you may have to travel for 30 minutes or more to get to the largest large city.
Don’t make such a move on a whim. Consider your options. Make a one or multi-year plan to move to a small town for financial benefit.
I’m not suggesting that you move to a Mayberry-esque town for its own sake. But with the right plan, downsizing to a small town may help you improve your finances in the long term.
Here are three towns you can move to for a $2,500 monthly budget. Each town description will feature a generalized food budget of $250 monthly as interpreted for a single individual relative to USDA’s food budgeting recommendations.
Each general rent quote will be hyperlinked to listings in that town as advertised on Rent.com.
Downsizing Your Life
It is important to note that this list was made for nomadic workers looking to move to low-cost of living towns on a small budget. These suggestions are made in consideration for a single working professional who works remotely or a retiree on a fixed income.
You could limit yourself to a $2,500 monthly budget after downsizing, but you should have an emergency fund or make more than $30,000 annually budget before making such a move.
This article is about downsizing your life for financial gain to improve your finances, not just financially sacrificing for its own sake.
If you are married, have children, and need to drive and buy gas often, then a $2,500 monthly budget won’t work. Adjust your budget and cost of living expectations accordingly as you peruse this list.
Please note that these estimates are very basic and conservative. You will have to adjust for any miscellaneous expenses you incur. Look at these basic expenses as a starting point budget for a telecommuting and entrepreneurial professional who wishes to move to a smaller city to downsize and save more money.
Parma Heights, Ohio
Parma Heights is a small city of 20,000 people situated about half an hour south of Cleveland.
A former car manufacturing hub, Parma Heights is now a small city that is optimal for raising children and living quietly.
A one-bedroom apartment will run you for less than $800.
General Annual Budget:
Food – $3,000
Rent – $9,600
Utilities – $1,284
Transportation/Gas – $1,524
Total: $15,408
Ohio generated over $19 billion for the American economy in 2019. There are business opportunities there if you know what you are looking for. The summer and winters are extreme.
Hopkins, Minnesota
Hopkins is a town with over 18,000 people that is situated 30 minutes west of Minneapolis and near the border with Wisconsin.
Hopkins was once a major vehicle manufacturing hub in the 1960 but is now a sleepy small town with some tourist attractions. St. Paul and Minneapolis are nearby if you crave larger city action.
A studio apartment will run you for less than $900. And a one-bedroom will cost a little more.
General Annual Budget:
Food – $3,000
Rent – $10,800
Utilities – $1,740
Transportation/Gas – $1,380
Total: $16,920
Minnesota is a state with plentiful work opportunities for those with the right mindset. There are more jobs than applicants and increased consumer demand with fewer workers to facilitate it. If you have a mind for economics and starting new entrepreneurial opportunities, this may be the place for you, just watch your budget. Also, be prepared for brutally cold winters.
Seabrook, Texas
Seabrook is a very small town of 14,000 people that is located about half an hour southeast of Houston. The town is situated on Galveston Bay, which empties into the Gulf of Mexico.
This small town is surrounded by swampland but has an amazing and consistently stocked seafood market. You will never want for fresh fish and seafood in Seabrook.
And if you miss big cities, Galveston and Houston are only about 30 minutes away.
You can get a studio apartment for $900.
General Annual Budget:
Food – $3,000
Rent – $10,800
Utilities – $1,980
Transportation/Gas – $1,608
Total: $17,388
Texas has no personal income tax. You should consider moving living to Seabrook if you like seafood and living by the bay. You will have to get used to being near the path of hurricanes during hurricane season.
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Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.