It is not a secret that there are many financially friendly places that attract people. Some of them are more friendly in the meaning of financial freedom, others less. But before we dive into the list of our top 5 best cities for reaching financial independence, let’s discuss what it is and why people aim to get there.
Financial independence is the ability to fully cover your current life. It includes your expenses for all little extras and the basic demands for your everyday life. They could be trips, your favorite coffee every morning in a café, expensive clothes, your favorite car, and much more that you can afford without an issue.
Before compiling the list, we considered it important to mention some, but not all factors that many people accept as the proven signs of financial independence. Here are they are:
- Quality of public transportation
- State and local taxes
- Access to higher education
- Cost of living
- Median household income
It is worth noting that it’s possible to achieve financial independence regardless of your location. However, there is one requirement: you need to save and invest the majority of your income. Usually, it is 50%. Often people desire to move to a place with a low cost of living and in this case, there is no need for a huge amount of money. All they need is stability, low or almost low living cost, and the ability to save money or increase an income. Such financial independence should be a part of a childhood motivation that helps improve financial literacy long before. We have gathered our top 5 best places for financial independence all over the world and here they are.
Puerto Vallarta, México
This amazing city is located on the coast and has unbelievable views. Compared to other cities in the United States, the cost of living here is low. If you are doing any remote work or get your main income from freelancing this is the right place for you and your family. A family will need only $2000 to have a comfortable life in Puerto Vallarta.
It is a steadily growing city. People often choose Dallas for a lower cost of living. Comparing living in Dallas to the national average, groceries and health care here are lower. Speaking about transportation and utilities it is worth noting that they are higher. Despite the fact that in Dallas the housing cost is higher than the national median housing price this city is more affordable for living than any other. By living in Texas you will not be required to file a state income tax return. You will have several benefits by getting an education in this state. The state has a huge number of colleges and universities. So, you will save a lot of money since the quality of education increases over years here.
Panama City, Panama
Panama is a perfect choice for those who want to retire early and live abroad at the same time. There is no need to speak Spanish since 15% of the local population speaks English. The warm climate and low cost of living make Panama one of the attractive places. $2000-$ 2 500 will be enough to live and enjoy all the benefits of the country. Additionally, business uses US dollars that makes living in Panama even better. Retiring here is truly the second, more fulfilling life. If you are ready to move to Panama, be ready to retire 5 years earlier. The country offers low-cost but high-quality health care.
Sebring is the leader of financially independent cities in the United States. The cost of living here is 18% lower if compared to the national average across the US. This city is loved by early retirees due to its warm climate, amazing lakes, and perfect golf courses. This is heaven for those who love to rent a house or buy it as well. The median home value here reaches only $134, 600 while an apartment rental will cost you only $724 per month. Florida hasn’t income tax that makes it more attractive for living and business.
Grand Rapids, Michigan
Due to the 69th fastest growing economy in the world, this state is out of any competition from the financial independence’s point of view. People save the majority of their income here because this state has a low cost of living. Living here will cost you 12.2 % less compared to the national average. For example, the price of a new house in Grand Rapids is only $143, 400 while an apartment rental will cost you $925.
Followers of the Fire movement (financial independence, retire early) usually save and later invest huge portions of their income in certain countries that offer benefits of financial independence. Taking into account the top-notch online management of financial workflow people can benefit from them even being abroad. They will still need to send invoices, voided checks, pay bills, and much more. Whatever is your relocation, retirement, or a move for a better living you need to use online financial tools for the improvement of your financial routine.
Early retirement becomes a choice when you have a ready plan for the best relocation.