I thought about including this in my post on housing but decided this topic deserves its own post since it concerns more than just housing.
Where you live greatly influences your living expenses. Some areas are simply more expensive to live in than others. I’m lucky to live in one of the lowest cost areas of the U.S. One of the drawbacks of living in an area with a low cost of living is that wages are usually lower than average also. If you can manage to make an above average salary in an area with a low cost of living than you are doing well. If you live in a high cost of living area and you are not making an above average salary you should consider moving.
Of course the cost of living isn’t the only thing to consider when determining when to live. You don’t want to move to a low cost of living area if you wouldn’t enjoy living there. Or you might have obligations that require you to live in a high cost of living area. If this is the case your location can still save you money. If you are able to find a location close to your work and other places you regularly visit you should save money. If you are renting you can use a tool such as Rentometer to make sure you are paying a fair price for your neighborhood.
Whatever your location if you put a little thought into where you choose to live you can save a lot of money.