Trying to live on a budget? It’s no secret that your dollar will go further in states with a lower cost of living, where the price of housing, food, and other goods and services clock in at the lower end of the scale.
Using data from the Bureau of Economic Analysis, 24/7 Wall St. calculated the purchasing power of a dollar in each state. It’s good information to have on hand before you relocate or retire to another locale.
Highest cost of living states
States with the highest cost of living, which you’ll want to avoid if you need to make your resources stretch farther, are California, New York and Hawaii. In fact, your $1.00 will buy you only $0.85 worth of goods and services in Hawaii (the most expensive state) and only $0.87 in California. That’s due in part to very high real estate prices that make it hard to afford a home.
Lowest cost of living states
At the other extreme, your $1.00 will buy you goods and services worth up to $1.17 if you live in the least expensive states like Alabama, Mississippi, or Arkansas. If you’re still working, however, just be aware that salaries tend to be lower as well.
And back in the Sunshine State …
Our home state of Florida is close to average. Your $1.00 will buy you $0.99 of goods and services in the Sunshine State. As a state with no state income taxes, it’s still a great choice for retirees.