4 US Cities Where You Can Live Comfortably on $40K a Year
Your dream city, the one where you will feel most at home, might not be the most affordable city. For Americans looking to stay within the United States and only having an annual salary of $40,000, it can be hard to make ends meet while living in a city you love.
However, there are at least four cities in the U.S. where you can live comfortably for only $40,000 a year. If you don’t already live in one of these destinations, perhaps it's time to consider a move.
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Tulsa, Oklahoma
The best place to rent your first apartment is in Tulsa, Oklahoma, according to Cody Schuiteboer, the president and CEO of Best Interest Financial.
“Rent runs around $839 and the entire cost of living is decently below the national average, resulting in many $40,000 earners being able to afford rent and living expenses comfortably,” Schuiteboer said.
Schuiteboer explained that cities like Tulsa with low cost of living have flat, buildable land that provide adequate housing supply, keeping rents and prices grounded.
“However, in these areas, the costs drop faster than the pay rates,” Schuiteboer said. “The result is that housing is affordable due to greater supply rather than due to a stagnant rental market.”
Memphis, Tennessee
Memphis is the next top pick for Schuiteboer, due to the average rent hovering around $915 and the cost of living about 14% less on average. Another added bonus that Schuiteboer pointed out: Tennessee's lack of a state income tax.
“In a no-income tax state like Tennessee or Texas, you see a few more hundred dollars in your paycheck as opposed to an income tax state with the same salary. Ensure you won’t then pay more in property or sales taxes,” he said.
Des Moines, Iowa
Schuiteboer noted that on one hand, Des Moines does have a slightly higher rent at $1,025 and a cost of living around 15% below average. On the other hand, he said, “Des Moines has a booming economy in comparison to other cities its size due to the presence of financial, insurance and healthcare industries.”
“Things like cost of living are only worth moving to a new city if they are desirable places to live,” Schuiteboer said. “Des Moines has a fun culinary scene and robust arts for a city of its size. Don't get sucked into renting a cheap apartment in a city with a weak economy. There are many affordable cities with no job opportunities.”
Fort Wayne, Indiana
Schuiteboer highlighted Fort Wayne due to the fact that it has the lowest housing costs in the Midwest. However, Schuiteboer cautioned anyone looking to make a move to do some research first and make sure the financial numbers make sense.
“Don't move somewhere cheaper until you feel confident you can make money there,” Schuiteboer said. “This is especially true if you can make good money doing a remote or hybrid job. This is what brings your cost of living to $40,000 down while retaining a $60,000 lifestyle.”
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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