Choosing Your Financial Oasis

It’s 2016 and there are more remote employees and freelancers than ever. Are you one of them? Even if you’re not, would you consider relocating?

 

We all want to be rich. Even someone like myself. I have few material wants but having the power to control a good portion of money is enticing.

 

In order to get rich, we must optimize pretty much every area of our lives. Being rich is a lifestyle. That’s probably why people don’t get rich working a 9-5.

 

It only makes sense we look at where we live. Let’s discover the optimal place to live in order to get rich. It takes some effort to move at first. But pretty soon, the extra money will stack up without you really even realizing it’s because of where you live. Let’s get started.

 

Is Your Financial Oasis Abroad?

When I first asked myself this question, I thought the answer was obviously to move abroad. The US has pretty high taxes. Federal taxes. And state taxes where I live. Sending off 30% of my income and not seeing the effects in a direct way doesn’t feel the best all the time.

 

So I considered going abroad. Why? Some countries don’t even have income tax! Good countries too! But there’s a problem.

 

You cannot escape US taxes even if you move abroad and take up residency. The only way you can stop paying the US tax is if you renounce your citizenship. I spoke with a tax planner for expatriates and he strongly discouraged anyone choosing that option.

 

Finding a Low Cost of Living State

This is a more practical option. Consider going to a state with a low cost of living. Housing, groceries, things like that are cheap there. This will help keep your expenses low and your benjamin’s stacking.

 

A State with No Income Tax

There are currently 7 states with no income tax: Alaska, Washington, Texas, Florida, Nevada, North Dakota and Wyoming. This is helpful but make sure you won’t want to be flying to your home state too often. That may eat your savings. Check to see how much you’ll save by not paying state income tax. Then see how much it’ll cost to fly/drive home. Consider how often you’d want to go back each year. See if it pencils out.

 

The Exact Location

It’s nice to find a location where you can use a bicycle or public transportation the majority of the time. This will bring your transportation costs to near zero. Just make sure you’re not spending a ton to live downtown just to save $15 on transportation.

 

Keep in Mind Opportunity

There’s one thing you mustn’t forget and it’s opportunity. Because on the face of this piece, you may think you should move to somewhere like Wyoming since it’s dirt cheap living. But would you be happy living there? Would you be able to meet like-minded people? Would you be surrounded by other people who can inspire and motivate you to work hard and make more money? Would you be willing to make it a long-term situation? Whenever thinking about money, you must look at income as well as expenses. You want to live in a place with a thriving economy. And yes, it is hard to find low cost of living and a thriving economy. But there are some areas much better than others. The point of this post is to help you identify those areas.

 

Family

Having family close is handy. Don’t undervalue this. If you have children, your family may be able to help you watch the children. If you need help painting a bedroom, bingo. I’m not saying they are free labor. Far from it. But if your parents want to watch your kids, it’ll really help slash the daycare costs.

 

Where will you move?

After reading this post, what areas would you consider? Where can you find the balance between opportunity and savings? Texas if perhaps the greatest state for finding this balance. But ultimately, the best place to live is up to you.

Join our newsletter

If you like Critical Financial, subscribe and get our latest content via email.

Powered by ConvertKit

Share this post:

Recent Posts

Leave a Comment

*

May the 4th Be with You: Star Wars Swag on Amazon

May the 4th Be With You: Star Wars Day Swag

It began as the punniest holiday ever but quickly grew into an earnest (if somewhat random) celebration of the long-running (and still... more →
People count the money to buy a house in future success.

Avoiding Mortgage Scams: Don’t Fall for Unreasonable Promises

If it sounds too good to be true, it probably is. That’s sound advice for almost all aspects of life, including the search for... more →
Eat for free for a whole month via the meal kit companies discounts for new customers.

How To Get a Month of Free Food: 9 Meal Kit Companies Offering Discounts to New Customers

Play your cards right and you might be able to line up a month’s worth of free meals if you were to try out all nine of the meal... more →
Generate extra cashflow -- here are 97 ways.

96 Awesome Ways to Generate Extra Cashflow

Who doesn’t want more money nowadays? We’ve got you covered on that front. Here comes a long list of different ideas on... more →
Valentine's Day gifts that won't destroy your budget

Valentine’s Day Crafts Are Romantic Rescue from Crazy Inflation

Fall for the hype this week and you’re out an average of $143.56 for Valentine’s Day. Crafts and other do-it-yourself tactics... more →

Ultimate Guide to Bitcoin — FREE Ebook!

Have we got something for you: a free ebook about bitcoin! more →
Get a flu vaccine.

Why You Need To Get a Flu Vaccine Right Now

Flu vaccines aren’t just for the elderly  anymore. Here are 25 reasons you should go get vaccinated. more →
Financially successful

Acquire the Trait All Financially Successful People Have

Financially successful people tend to all have a lot of self-discipline. Improving your discipline in one area of your life often spills... more →

What’s the Best Free Recipe App?

The Apple Store and Google Play together offer more digital cookbooks than you probably have room for on your mobile device. So which... more →
New tax law might slow down housing market.

What Will the New Tax Law Do to the Housing Market?

The new tax law will have a profound impact on the housing market, although in ways that go beyond the deductibility of mortgage interest... more →

4 in 5 Households Will Get a Tax Cut in 2018

Four out of five U.S. households will get a tax cut as a result of the legislation that President Donald Trump signed into law today. more →
Will bitcoin reach $100,000?

When Will Bitcoin Reach $100,000?

Bitcoin has accelerated its pace of appreciation in recent months, and if the current levels between $15,000 and $19,000 make you itch... more →
The Dow Jones topped 24,000 -- now what?

The Dow Jones Crossed the 24,000 Threshold. Now What?

Stocks appear to be increasing in volatility, yet the markets closed on Monday, December 4 with the Dow Jones Industrial Average is... more →
Peer mortgage

Should You Get a Peer-to-Peer Mortgage?

If you can’t get approved for a home loan from a bank, you might want to look into applying for a peer-to-peer mortgage. more →
Investment gifting is awesome.

4 Things To Know Before You Donate an Investment

While donations of any kind are appreciated, gifting investments benefits both the giver and the receiver. Here are four key things... more →
Are you wondering: What's the Relationship Between the Stock Market and Federal Debt?

What’s the Relationship Between the Stock Market and Federal Debt?

Wouldn’t it be wonderful if gains in the stock market could actually reduce U.S. government indebtedness? If that were true,... more →

How to have a healthy financial relationship with your partner

With a new year comes, new bills and more headaches. This can be a tremendous strain on you and your significant other’s relationship.... more →