Comments on: Moving to a cheaper city might not save you money

By: Until debt do Us part

Until debt do Us part — Mon, 26 May 2008 16:40:17 +0000

Interesting topic. I suppose it comes down to the fact that people have become accustomed to a certain lifestyle and as result find it hard to break that pattern of spending even if they do move to another low cost area. From my own personal experience when I moved to a lower cost area the money I was saving on rent just seemed to disappear on non essentials.

By: KMC

KMC — Mon, 12 May 2008 11:28:30 +0000

@ Mrs. Micah - I think you’re exactly right. Being conscious about it can allow you to avoid the trap of anchoring.

@ Danny - Good luck with the new place!

@ Bret - You’re correct, of course. But I think most people can find a place they like in a variety of places - some with a higher cost of living than others.

By: Monty Loree

Monty Loree — Sun, 11 May 2008 18:03:10 +0000

I’m excited that I’ve lived in the same house for 16 years, it’s paid off, and I have no aspirations to move ever.

I’ve found that staying put is a really much cheaper over the long run. Compared to people moving every 3-5 years trying to get that better house.

By: No Load Mutual Funds Vanguard

No Load Mutual Funds Vanguard — Sun, 11 May 2008 17:45:35 +0000

Interesting post I never thought about this till recently. A friend of mine moved a few months ago to a lower cost of living area and when I talked to him if it helped him save money he said no. He had gone with the plan that he would be able to save more up but said that his finances were in the same state as they were before the move.

It is odd that this happens but the “anchoring” concept does make sense. It kind of goes along with the idea of people being creatures of habit. We get used to costs and get used to living a certain way. Theres a good chance we will shift that thinking with out evening knowing it when we move to a lower lost of living location.

By: Danny Tsang

Danny Tsang — Sat, 10 May 2008 20:58:21 +0000

I wrote several posts about my move from San Francisco to Houston (sugarland, tx). It all depends on your mentality, your current situation and the location. In my case the price of housing in SF is dramatically higher than Texas so I’m able to move from my 400k 650sqft 1 bedroom condo to a 3200sqft 4 bedroom home for half the cost. I’m leaving CA at the end of the month.

But I know what you’re saying, I experienced it myself during my home search. It was hard to fight the urges to splurge on a 300k house with a pool and a lake behind you. But my girlfriend and I remember what we’re trying to do, and thats building wealth for the future. Funny thing is we can get away with a smaller house for 150k, so I still feel kinda bad buying more space than we need…although we’ll have family over all the time.

By: Bret Frohlich

Bret Frohlich — Sat, 10 May 2008 20:04:57 +0000

Having grown up in “the hood” and then moving to paradise at the age of 19, I can confidently say all of the following:

1. We love where we live and it’s well worth the money.
2. I probably earn a lot more money by living here.
3. Commuting to here would almost be as expensive.
4. It was incredibly expensive and difficult to buy a house.
5. The house is now worth a lot of money and won’t crash.
6. Our happiness is way more important than financial factors.

Live where you love and love where you live.

Bret - from sunny San Clemente, CA

By: Mrs. Micah

Mrs. Micah — Fri, 09 May 2008 21:52:41 +0000

I suppose they do. Perhaps we could look at it as—moving to a new city can save you money, but only if you’re intentional about it and know the psychology of what might often happen. Which makes this post quite useful, otherwise people might not have even thought of it.