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After 10 years in the Northeast, I considered myself a lifer and couldn't see myself living anywhere else. That changed six years ago when my family relocated to Florida for new career opportunities.
Moving to the suburbs in a cheaper state had its perks — most of them on my wallet. Here's how moving from an expensive city to the suburbs completely changed my money situation.
It's no secret that living in the Northeast can be expensive. Just this year, the average cost of living increased 3.5%, largely thanks to rising housing, food, and energy costs.
We moved from southern New Jersey, part of the Philadelphia metropolitan area, to a suburb in Florida. While the cost of living in Florida is a bit higher than the national average, moving from the city to the suburbs is what really made a financial difference.
For example, we were able to buy a home that was 1,000 square feet larger than our home in New Jersey
for roughly the same mortgage payment. Our food costs went down — as did the price of commuting since we both transitioned to remote positions.
Besides the weather, proximity to beaches, and laid-back lifestyle, one of the biggest perks of living in Florida is the absence of state income taxes. The Sunshine State is one of just seven states in the US with no income taxes. Not paying income taxes has made a huge difference in our bottom line.
We moved from southern New Jersey, which boasts a state income tax as high as 10.75%. New Jersey also has one of the highest property-tax rates in the country, at over 2%, while Florida falls in the middle of the pack, at around 0.8%. All in all, Florida has one of the lowest tax burdens in the country, at just 6.05%.
Moving from a state with a substantial tax burden to a more moderate one was essentially like getting a raise, and it freed up a lot of cash in our budget.
Moving for a new job often means a bigger paycheck, and we were no exception. When we moved to Florida, my husband received a new title and a raise, while I was at the point in my freelance career where I could bump up my rates.
Earning a higher income with no income taxes was like getting a raise twice, and it was one of the best (financial) parts about moving from the city to the suburbs.
A big reason we moved to the area we did in Florida is that the public schools are very, very highly ranked, significantly higher than the high school our kids would have attended had we stayed in New Jersey. Based on factors like college readiness, standardized test scores, and graduation rate, these rankings aren't foolproof, but we've had a great experience at our public school thus far, so I'm calling it a win.
Had we stayed in New Jersey, we would have explored private schools, which cost an average of $15,000 to $21,000 a year. With the average cost of private school in Florida ranging from $11,000 to over $12,000 a year compared to the nominal cost of sending your kids to a public school, this one's a no-brainer.
Unsurprisingly, moving from an expensive city to the suburbs had a major impact on our bottom line. For one, we were able to pay off debt, including a good chunk of our student loans. Since much more of our cash was freed up because of lower tax burdens, great public schools, and a lower cost of living, we started contributing regularly to our retirement and investment portfolios.
We were also able to simply worry less about money. As a mom of two with an unpredictable freelance income, this was what I appreciated most. That and being able to send my kids outside to play unsupervised without worrying, but that's another story.
But don't pack your bags just yet. We moved to the suburbs of Florida just over six years ago, when it still ranked fairly high in terms of affordability. But the cost of living in our home state has been steadily increasing.
And it's worth noting that our homeowner's insurance increased dramatically once we moved to Florida. Remember, we live in a state prone to hurricanes and natural disasters. Our car insurance also went up. Did you know Florida has one of the highest rates of uninsured drivers in the country?
Moving from a major metropolitan city to the suburbs has its drawbacks. For example, we have far fewer museums, cultural exhibits, and multicultural eateries. There's a stark lack of diversity, both racial and socioeconomic. But we find the financial benefits outweigh the cons — for now, anyway.
