Many early retirees embrace a tough decision most people aren’t willing to make – Finance

  • Many early retirees to move away from expensive cities to reduce their cost of living and save money.
  • Recently, the New York Times has profiled several people who managed to seclude themselves comfortably in their 30-40 years.
  • Some of the people in the profile decided to move to cheaper places as part of their plans for financial independence.

Many early retirees make a pretty decisive decision to help save more money: moving to a much cheaper city or city.

New York Times recently interviewed several people who managed to seclude themselves comfortably in their 30s and 40s. One of the most common problems among several early retirees was to make a choice for moving to a place with a lower cost of living.

Scott Rickens, a filmmaker working on a documentary on early retirement, who was interviewed by The Times, recently moved with his family from the suburbs of San Diego in Coronado, California, to Bend, Oregon. Rickens told the Times that in Coronado he and his family "spent almost $ 3,000 a month on rent, and this was considered a good deal. "

But Rickens told The Times that Bend was significantly cheaper, which helped him on his way to early retirement. The article notes that Bend does not have a state sales tax, and gas and other expenses were much lower than in California.

Jason Long, a former pharmacist who retired at age 38 work that gave him nightmares that he "returned to work, arguing with morons, was another early retiree, interviewed by the Times. In his blog about his life after retirement, Long described how he "found a 28-acre crop, which currently costs $ 150,000 for just $ 85,000" in rural Tennessee, and made the most of the design and construction of his house with the help of his family.

Long noted another key financial advantage of Tennessee: the state has no income tax. Taxes vary widely in different states and cities, and, as Long wrote, "knowledge of the tax code gives huge financial differences."

The cost of living varies greatly throughout the United States. The Bureau of Economic Analysis showed that the most expensive places in the country include large megacities on the coast, while smaller cities and rural areas of the country that go beyond the metro are usually much cheaper.

It's not really a secret – most people know that living in a large city or around it is much more expensive. However, moving is a huge decision that many people do not want to do.

In 2015, the trainer for life and business, Tony Robbins defended the transition to a cheaper language to save money, indicating that "you [could] be alive big in a great community such as Boulder, Colorado, for paying only for rent in New York or San Francisco. "

Robbins himself grew up in California and never thought about quitting until California sharply raised the income tax for the highest brackets in 2012. He and his wife moved to Florida, and he wrote: "With taxes that we save every year as residents of the Sunshine state instead of the Golden State, we hope to pay our entire new home in six years."

He is "almost evangelistic" about his new home, he wrote, and he encourages others to follow him on his way – a lesson that some early retirees seem to be echoing.

"Our country – and even the world – has unlimited possibilities waiting for you to explore," Robbins wrote. "So why not take off the curtains for a moment to think about how life could have been if you lived in a new city or city?"

Read full story from The New York Times »

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