If you’re considering making the move to Austin, here might be another reason to make the plunge: saving money. Not sure what we mean? Read on for Tips on Life & Love’s take on moving to save money from Tony Robbins interpreted specifically for Austin.
Texas has no state income tax, so if you are living in a state with one, you will automatically save money by moving to the Lone Star State. Depending on the tax rate in your home state, the savings could be huge. The tax rate for California’s median income of $61,094 is 9.3 percent. So if you move to Texas, which has no income tax, you have automatically saved $5,681.74 a year.
Another cost savings in Austin over many other cities: cost of housing. Say you are coming from California, which has the 2nd highest rent in the nation. In Los Angeles, the average rent for a one bedroom is $1,814 a month. In Austin, theaverage rent for a one bedroom is $940 a month. Just by switching cities, you have already saved $874 a month, which translates to $10,488 annually.
Need more proof? Cost of living is way lower in Austin than many other US cities. Let’s continue with our LA example. Cost of living in Los Angeles is 50 percent more than the national average. By contrast, Austin’s cost of living is 3 percentbelow the national average. That equals more money that you get to keep in your pocket rather than spending it on living expenses.
What will you do with all the savings? You can put it into a 401k or Roth IRA and start building up savings for retirement. So by moving now, you may be able to retire early in the future. You can also set some of it aside to visit your friends and family in your old city and gloat over how much money you’re saving in your new home.