How Will My Expenses Change in a High Cost of Living Area?

If you’re moving to a higher cost-of-living (HCOL) area from a lower cost-of-living area (LCOL), you’re probably anticipating higher prices for housing and food.

Have you also thought about other expenses likely to increase, like childcare, transportation, and utilities?

Moving to a more expensive city or state can drastically increase your expenses so you need to plan and prepare.

Many times, however, you can increase your income in a HCOL area because salaries are higher, so there are tradeoffs.

The cost of living can vary wildly from region to region. Within the US, cities like New York and San Francisco have overall costs of living 129% and 80% higher than the national average, respectively, according to Payscale.

But if you move to an area with higher costs than you’re currently used to, there are ways to manage your move so you can still achieve your savings goals.

First off, preparation is key. You need to arm yourself with information on housing, daycare, transportation, and food. Then you’ll have a better idea of your costs and budget once you move.

Second, you need to be ready to make adjustments to your style of living.