28 Comments

This post helped me understand comparing living expenses in different states. Trevor’s decision between Houston and Boston shows how choosing where to live involves more than just salary — it’s about balancing income, taxes, and living expenses with personal preferences. States like Texas may have no income tax but higher property taxes, which some might still prefer. Climate and environment also play a big role, as living in a place that fits your lifestyle can be just as important as financial factors.

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I had never really considered the idea of also comparing the cost of goods when deciding on a move. I knew that the largest contributing factors would be housing costs and income differences. However, the other costs of living were something I never though would have a notable deciding factor on moving or not.

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True, estimating cost differences for as many items as possible helps, and the worksheet is a helpful guide.

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This article was extremely helpful for me as I am nearing graduation in the Spring and narrowing down my job search based on location; this gave me a lot of things to consider. As much as I love Dallas, the jobs I’ve looked at in Arkansas pay more, and the cost of living is much lower. My living standard would also increase because some of my closest friends live there. This article made it apparent to me that beyond the financial benefits, listing out my priorities and picking the location that best supports them will drive my standard of living. 

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This example of a person's decision between Houston and Boston highlights the importance of considering both financial and personal factors when choosing where to live. While Boston offers a higher salary and better retirement benefits, its significantly higher cost of living could outweigh those advantages. Using tools like life-cycle modeling helps balance the long-term financial impact of income, taxes, and expenses with personal needs. Trevor’s case highlights that a thoughtful analysis of both economics and lifestyle is key to making the best choice.

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I find it interesting how choosing the best place to live involves much more than cost of living of the city. While these costs and expenses are important, I didn’t realize a comprehensive approach requires life-cycle modeling to evaluate long-term effects on earnings, retirement savings, and living standards.

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Running a baseline “what-if” plan can be very helpful to understanding the benefit of moving.

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This article made me realize how relocation decisions are more complex than simply comparing living costs. The idea of using life-cycle modeling to understand the bigger picture makes a lot of sense. It’s not just about immediate costs or income; it’s about how these choices impact future financial security, including savings and retirement. A higher salary can offset higher living costs if it leads to greater financial stability over time. Personally, I think that living standard and cost of living are important factors, but there are definitely other factors that go into play, like personal preference, being close to family, etc... How can life-cycle modeling help balance financial considerations with personal preferences when deciding where to live?

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See Chapter 4 of our book….That specific question is handled via a case study.

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I liked this post because I think it is something that we all have had to or will have to consider at some point in our lives. The example of Trevor's decision making process highlights the biggest things to look at. I have been thinking about where to live after college and have noticed in states like Texas, where there is no income tax, the property taxes are higher, but I still would prefer that to a state with both of them. However, I also think that a big part of choosing where to live has a lot to do with the environment that you are in. Personally, I do not enjoy the cold and having it rain all the time, so even if I had a better job offer in a place like that, I still would prefer a place with weather that better suits me.

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Thank you for sharing.

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I enjoyed reading this post, it raises a number of good points to consider where you are going to live. Growing up in Texas there is high property tax and higher sales tax, but there are many ways to lower your property tax bill when owning land (ag exemption) along with not having a state income Tax. I think it should be a consideration moving somewhere allowing you to make more money, then retiring to where you would like to stay.

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Appreciate you sharing how you think about the "where to live" question.

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Trevor’s decision-making process really highlights the importance of considering both economic and noneconomic factors when relocating. I especially liked how the life-cycle modeling provides a clear picture of long term financial impacts

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I really enjoyed this article! As I am soon to be graduated and looking for a job this was quite relevant to me. This really made me think about the complexities of geographic choices, like how cost of living and salary differences affect long-term financial well-being. For someone who is just starting to look at places to move, what resources do you need to make an informed decision on where to live.

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You got 'em...Meld together Bestplaces and the cost of living estimates with the job opportunity in a specific location, then measure the living standard effects.

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This is super interesting and relevant for me, especially as someone from Boston deciding whether I want to pursue a career in a place like Dallas, where the cost of living is drastically different. This will definitely be something I take into account when looking at job offers etc.

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And, you may decide you must return to Boston. If Boston is worse financially, then the living standard loss from not choosing Dallas would measure how much you love Boston.

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As someone who has lives in Dallas my entire life, I found this article to be very insightful. I have been struggling to decide if I should stay in Dallas or move to a new city after graduation however this gave me some perspective on how to make this decision. One thing that stood out to me in particular was how you described the importance of taking the geographic living standard into account when deciding where to live. Although living somewhere where you would receive a higher salary may seem appealing, that may not be your best option in the long run.

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Thank you for sharing....Yes, both income and cost-of-living net out for different living standards in different parts of the country.

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I've lived in three different states: New York, Florida, and now Texas. I remember when I was younger I felt very hurt that my family decided to move to a new state, and I didn't understand the reasoning behind it. However, with what I've learned about living standards, and all the other factors that go into choosing a place to live, I know that they made very careful and important decisions in this process to provide a better life for my sister and me. I've grown to understand much more about the large and small differences that each new place provides and how crucial it is to have all of the information before making a decision. I'm hoping to be able to use this information to my advantage when I myself, in the future, have to decide where I'll live after college. This information has been extremely useful and I'm grateful to be learning it.

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Thank you for sharing!!

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I found this to be a very interesting read as I will be assessing different locations as I go through the job search post grad. It was very helpful that you broke down the different factors that go into deciding where to live. It gives a comprehensive explanation to see how life-cycle modeling, goes beyond just cost-of-living estimators, and can better inform us on long-term living standards. I also appreciate your focus on balancing economic and non-economic preferences in terms of deciding between different cities and is very relevant as I consider post-grad opportunities!

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Awesome. We can estimate the numbers, but personal preference plays the deciding role.

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How would hybrid or remote work option change the dynamics? If Trevor could work remotely, he could choose to live in a lower-cost area while still earning a high salary, potentially maximizing his living standard. How does lifecycle modeling address this flexibility?

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So, life-cycle modeling cares about your income independent of where and how it is earned, except to the extent state and local income taxes apply. If a WFH option exists it is the case that one can get both a higher income and a better lifestyle. I know of a couple who WFH living in the wilderness of Colorado, even though their employers are located near very expensive metro areas. I am pretty sure they think they have the best life, ever!

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This was a very interesting lesson beacuse it teaches that when your deciding between two places to live, it's not always based on housing costs, transportation costs, or tax considerations. Often times, your living standard can be elevated if your making more money working in a city that has a is significantly higher cost of living compared to a previous city.

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It can! Thank you for commenting.

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