It may be more difficult to save money in the northeast than in the south or midwest, revealed a recent analysis of a number of bank.
Bankrate has identified how easy it is to save money in the United States using household income growth, tax charges and other measures that can affect its ability to store money.
“The lower the tax rates, the more likely you are going to be saved and the ability to save is more important than your capacity to really gain in some of these monetary or CD markets,” Stephen Kates, Bankrate financial analyst, Business Insider told.
Bankrate found that Tennessee was the easiest to save, followed by Missouri and Texas. Tennessee and Texas have no income tax. Kates said Tennessee has also done well for its local economy and its employment growth rate.
“The southern states, the Midwest states, they have obtained the cost of lower living,” said Kates. “Some of them have lower taxes or no taxes, and it goes very far.”
You can fly over the card below to see how each state has been classified, where 50 means that it is the most difficult state to save. We have also included the figures used by the banking to determine the classification.
Many Americans have already migrated south to enjoy a cheaper cost of living. Ved Deleeuw moved from California to Memphis, Tennessee, and appreciated the live music scene, a more relaxed life and the affordability of the region.
“The grocery store, restaurants and even public services are cheaper and Tennessee has no state income tax,” Deleeuw told Business Insider. “Having a lower cost of living allows us to save much more every month compared to California, where we could barely save anything.”
Although it can be easier to save money in the South, Bankrate found that Hawaii was the most difficult state to save money. New Jersey and California were also difficult.
The high cost of life and California taxes can make money more difficult, found Bankrate. “It harms the growth rate of real income over time,” said Kates.
Fabiana Muñoz, writer and independent author, moved to Florida after having lived in different places in California, including San Francisco.
“While paying too much to rent a single room, I had trouble imagining myself to build a life here in the long term,” wrote Muñoz on San Francisco.
Danielle-Ann Kealohilani Rugg, who returned to Hawaii from Oregon, said at the cost of living the initiate of Business Insider Hawaii. She said that the rent in Oregon for a three -bedroom house and two bathrooms with a courtyard was $ 1,500, while her rent in Hawaii “for a slightly larger house” was $ 3,550.
“I can earn more money in Hawaii, but this is offset by the cost of living in Hawaii much larger than in Oregon,” she said.
Living in a state where it is more difficult to save does not mean that it is impossible to do so. However, Kates said that you have to prioritize savings in your budget. Kates said that having a direct deposit on your savings or investment account can help be disciplined and coherent.
Kates said there were other factors beyond savings that people think when choosing, such as the proximity of a location for the family or things that are important for someone’s lifestyle.
“If people think:” Where do I want to live? How should I live? “Is it important to think that you can get a job?
Do you have a moving story, costs life or saving money to share? Contact this journalist at mhoff@businessinsider.com.
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