If you are just starting out on how to simplify your life and save money, or even if you have been living a frugal life for awhile, the tips in the Saving 101 series are foundational tips meant to help you think about how to save money, and give practical examples, in each area of life.
#1 – Move to a Less Expensive Area – Housing
Savings: $100’s to 1000’s
By moving just 30 to 60 miles / minutes from a major city, one may be able to save $100’s of dollars a month for rent or $1000’s of dollars off of the price for a house.
Example 1: A family moved from an upscale suburb of a major city to a lower scale suburb of the same city, about 30 minutes further from the city. The rent there is $300 a month less on average. The commute cost increase was $60 to $80 per month
Example 2: Another family moved from a very large metropolitan area to a smaller, but still metro area. The commute is about the same (cost wise) and the wage is about the same. However, a comparative house is about $300,000 less in the smaller metro area. This is our example from moving from Seattle to Boise. You can purchase a good house in Boise suburbs for $100,00 / $150,000. Houses in Seattle don’t come under $300,000.
#2 – Move to a Less Expensive Area – Utilities
One lessor know way to save money in utilities is to simply move to a sub-burb from a major city or to move to a less expensive state. There are maps available (just Google or Bing) that show the average cost of utilities by major metropolitan areas.
Example 1: The family that moved from the upscale suburb to the lower-scale suburb saw about a 50% decrease in Water, Sewer, and Garbage. They also saw about a 25% decrease in Power & Heating.
#3 – Move to a Less Expensive Area – Food, Gas, Necessities
Generally, the cost of food, gas and necessities goes down as one moves farther from the city centers and moves more into the rural parts of the country. However, savings can also be achieved, for those who want to stay in the major cities, by making planned day trips to the further out areas and stocking up at the markets in the rural areas. Also, there are many things that may also be purchased online for less than found in the stores in the cities.
Example 1: While still living in a major city on the coast, plan a day trip to do the bulk of the shopping for the month. This could include driving two hours to the local farming community to pick up meat, grains, produce, honey, etc… then driving back towards town 1 hour and stopping at a Costco, Walmart, Discount Grocery Stores, etc… for the needed non-perishable items for the month.
Have you ever moved to save money? Share your story with us!
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