Finding ways to make your paycheck stretch is at the forefront of most Americans' minds. In 2022, inflation started to eat away at more and more of our incomes, leaving many figuring out whether to pay for gas or groceries, two areas where inflation hit hard and fast initially.
After rising to a 40-year high quickly, inflation cooled off in 2023. However, it hasn't dropped to the Federal Reserve'sregular 2% inflation rate. If you're looking to lower your cost of living with a move, you're not alone. These 15 statescan help you stretch your budget further with lower taxes and generally a lower cost of living.
1. Mississippi
The Magnolia State has a lot to offer anyone looking to lower their cost of living. Ranking number two in affordability, Mississippi allows residents to live comfortably on less than the national average for prices on items like gas, electricity, propane, groceries, and necessities.
As part of the Gulf Coast, Mississippi has more than 200 days of sun every year. These fair weather months make tourism a big part of Mississippi's economy and lend a hand to making prices easier on your wallet. If you're looking for a winter layover or working on a move, Mississippi might be a good place to land.
2. Kansas
While some might know Kansas as the Jayhawk State, those who live there prefer the Sunflower State. Kansas grows most of the US staple crops, including wheat. It has also enjoyed many fictional references, including The Wizard of Oz (1900).
Like much of the US, Kansas has suffered from rising inflation, making it difficult for people to cover the cost of groceries, gas, and other basic needs. Thankfully, they've managed to keep their basic expenses low enough to become a hub for affordable living. Sitting at number 12 in housing affordability and seven in opportunity, Kansas is poised to explode if enough people decide that moving is worthwhile.
3. Oklahoma
I went to college in the Sooner State. Tulsa is a hub for education and art if you're into either subject. You can also get great food there if you know where to look. The dollar theater was also a cost-effective way to enjoy a night out.
Several great colleges are located close to Tulsa and Oklahoma City, so a move would definitely cut your costs if you want to attend a notable university here. As of April 2023, Oklahoma's monthly expenses were $3,221 per person, below the national average of $3,446 per capita.
4. West Virginia
West Virginia sits in the heart of the Appalachian Mountains and offers some of the prettiest mountain views. It's also a great place to live if you're struggling to sustain your normal quality of life.
West Virginia ranks among the top fifteen lowest-cost-of-living states in the union at the time of writing. As a single person, you can easily get away with $1566 for your average monthly expenses. The average salary after taxes is $3239. Keeping your costs low might allow you to save enough to invest and build an emergency fund.
5. Alabama
In high school, my track team traveled to Gulf Shores, Alabama, for spring break. They'd catch a little sun, train, and return with sun-kissed skin that I always envied. If you're looking to invest any portion of your paycheck while inflation is up, living in Alabama can help you out.
The cost of living in Yellowhammer State is considerably cheaper than the national average in 2024. The average housing price in Alabama alone is nearly half the median home price across the nation, and food costs an average of $3,261 annually. According to the USDA, monthly costs for a family of four on a low-income food plan would average $11,700 annually in May 2024.
6. Missouri
Like most of the states on this list, Missouri came in lower than the top ten states for housing, food, healthcare, and tax expenses. Missouri is a nice place to start for those looking to move to an area with a lower cost of living.
Located solidly in the Midwest, Missouri offers lots of sun for those who want to escape the frigid cold of the more Northern states. Overall, Missouri's living cost requires $1957 monthly to cover basic expenses like food, housing, and healthcare. That's 1.11 times less expensive than the national average.
7. Arkansas
If you like your weather hot and humid, with an average summer temperature hovering around 90 degrees, Arkansas is open for business. At an annual monthly cost of $1868, Arkansas is 1.17 times cheaper than the US national cost of living.
Arkansas came in number one for affordability for cost of living and number two for housing costs. If you're looking to move south, Arkansas has a lot to offer in terms of financial gains, and you can't beat that moderate weather.
8. New Mexico
Coming in number 14 in affordability and seventeen for overall housing expenses, New Mexico offers a 1.07 cost ratio to the average monthly expense across the US. While it's not as cost-effective as other low-cost states, you'll only need an average of $2038 to cover your monthly necessities.
Named the Land of Enchantment, New Mexico has some of the most scenic views the American Southwest has to offer. With the Mojave, Sonoran, and Chihuahuan Deserts making up much of New Mexico's landscape, you'll have plenty of heat during those long summer days. Sun and fun are great if you are considering moving to this state.
9. Montana
Montana did pretty well-keeping costs down on housing, healthcare, and taxes. Sticking points for this low-population state are ranking seventh in average food prices and number ten for average housing prices, making food and shelter expensive in an otherwise low-cost area of the US.
Overall, Montana is 1.12 times more economical than the national average cost of living. With an annual monthly income of $1961, the average pay rate of $4192 will more than cover your monthly expenses.
10. Nebraska
Sliding just past New Mexico, the Cornhusker State is 1.05 times more affordable than the national average. You'll find the median income of $4051 is more than enough to cover the usual $2081 needed for monthly expenses.
As the sixth-best state in the union, Nebraska has a lot to offer anyone looking to move to this landlocked region. Full of museums, parks, and beautiful architecture, Nebraska offers plenty of fun activities for the whole family. A move in this direction would be a great one for anyone looking to lower their cost of living.
11. North Dakota
North Dakota is a rock star in the housing market race, with a cost ratio of 1.25 times less expensive than the average in the US. With a total monthly expenditure of $1751, the median salary of $4272 will more than cover the basic monthly costs.
Historic stops, parks, museums, art galleries, and forests are ready and waiting to be explored for those looking to have a robust experience with a move to this Canadian neighboring state. You'll also enjoy some of the prettiest winter scenes when the snow starts to fly.
12. Louisiana
With an average monthly cost of $1933 for basic necessities, Louisiana is 1.13 times cheaper than average USA. The median salary is $3453, meaning you'll get an extra eight months of necessity costs over the course of a year.
Living in the Pelican State can mean big fun with events like Mardi Gras and local crab boils and bakes. One of the best parts of moving to this beautiful Gulf Coast state is taking advantage of Louisiana's vast seafood fare.
13. Iowa
With an average income of $4050, Iowa can offer two and a half times the amount you'll need to pay for your basic needs. At an annual monthly charge of $1635, Iowa's average cost of living is 1.34 times lower in expense than the national standard.
Thankfully, there are lots of interesting ways to spend your time in Iowa with that extra income. From caving day trips to a visit to Dan and Debbie's Creamery and the Sleepy Hollow Sports Park, there's plenty of fun to enjoy. With the low cost of living, you'll have lots to keep you busy every month of the year.
14. Kentucky
The Bluegrass State boasts a monthly standard income of $4110 and median monthly expenditures of $1807. Thisdifference in income to costs gives Kentucky a discrepancy of 1.21 times the usual US cost of living.
In the heart of horse country, Kentucky is home to the first leg of the Triple Crown, the Kentucky Derby. If a thoroughbred wins here and also takes the Preakness Stakes and the Belmont Stakes, they garner the coveted Triple Crown and will retire as one of only 14 to accomplish this feat. However, this beautiful Southern state has lots ofactivities for the whole family if racing isn't up your alley. Enjoy getting to know all the fun Kentucky offers as you acquaint yourself with this gorgeous place.
15. South Dakota
Take a trip back in history with a move to South Dakota. Mt. Rushmore, completed in 1941, is just one historic site in this beautiful bit of country. You can take a hike through the Badlands or ride an ATV (all-terrain vehicle) through the Black Hills, sacred to six individual Native American tribes.
With an estimated median income of $3999, you'll have plenty left after your monthly median costs of $2033 to enjoy all the attractive, educational, and fun activities available in the Mount Rushmore State.
