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"DOWNSIZE"
IN THE HOME YOU'VE GOT > WAYS
TO SAVE >
DIVESTMENT OF
MONEY-SINKS:
Taxes/Insurance and
Other Costs Associated with Where You Choose to Live:
Many types of living costs depend on where you
live - rural vs. urban vs. suburban, sometimes even down to the section of town
you live in. And it's entirely possible that if you add up a few of these
differentials, it could go a long way toward breaking a deadlock if you're
having trouble deciding between locations.
Minneapolis, or St. Paul? - they're right across the river
from each other, and they look the same to me. I suppose Kansas City,
Kansas and Kansas City, Missouri have even more differences, though they too
"feel" about the same. Likewise a small town right over the hill from
a major city would be a rich field for comparison.
In some circumstances, one can downsize without "trading down" in
size/value, simply by virtue of moving to a location where the cost of living is
lower. If this is an option for you, you might be able to relocate into a
similar home/acreage and save. Couple it with actually downsizing your property,
and you can save majorly.
There are so many factors that can mean higher or lower yearly outlay:
- property taxes; income taxes; sales taxes
- fire/flood/earthquake/tornado insurance zones
- auto insurance rates and air quality testing requirements
- commuting options; proximity of your shopping zone
- children’s private school fees; availability of a junior college or
local university
- proximity and cost of other services/facilities (e.g., where you’ll be
able to board your horse or berth your yacht or airplane!)
- cost of food and other supplies
- cost of utilities, which vary widely across the country
- telecommunications services available locally
- whether or not you’ll have to make a lot of phone calls to a nearby town
in a different area code
- cost of services (which tend to be higher in smaller towns, for instance)
and wages (which is generally the reverse – nice if you’re the wage
payer, not nice if you’re the wage earner)
- etcetera!
We often overlook many of these living costs when choosing a landing spot.
But whether you’re moving far away or just across a county line, the precise
spot you choose may considerably affect your pocketbook.
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