Where is the best place to settle down and grow your roots? An expensive, fast-paced city with endless opportunities? A slow and peaceful town deep in the country? Somewhere in-between?
For most people, it’s not just the scenery and entertainment that matter, but the cost of living as well. After all, you can’t live somewhere rent alone accounts for 80% of your take-home pay.
We’ve done a little data- and numbers-crunching to find five cities where you can make the most of your finances. These are the best cities to live in if you’re a budget.
Durham, North Carolina
Durham lies in the middle of North Carolina’s famed Research Triangle, a cluster of three cities with major educational institutions and technology companies. The town itself is home to Duke University. In addition to its bustling culinary scene, rich historical landmarks, and variety of green spaces and family attractions, Durham is also surprisingly affordable.
The average annual income in Durham is $74,401, the cost of annual necessities is less than $22,000. That leaves more than $50,000 a year to live a great life and stockpile savings.
Phoenix, Arizona
You wouldn’t expect to see a state capital here, but Phoenix is one of the best cities to live in on a budget. As the most populous city in Arizona, Phoenix allows families to strike a balance between high-paying work and rewarding quality of life. The beautiful year-round weather doesn’t hurt, either.
Expect an average annual income in Phoenix around $73,000 and annual necessities around $21,500. That leaves you plenty of room to take advantage of the countless cosmopolitan perks of Phoenix, like the arts, shopping, dining, and resort-style vacations.
Lexington, Kentucky
If you’ve heard of Lexington, Kentucky in the past, it might have been as the “Horse Capital of the World”. It’s surrounded by horse farms and stables, Keeneland Race Course, and the Kentucky Horse Park, but the town is more than the center for equine and equestrian activities. Home to the University of Kentucky, it’s known for having one of the nation’s most stable economies, including low unemployment rates and strong support for businesses and careers.
If you decide to move to Lexington, expect an average income of $77,827 and a price for necessities of $20,500. You can do a whole lost with a spare $57,000 each year, right?
Kansas City, Missouri
As the largest city in Missouri and a prime location on the Kansas and Missouri Rivers, Kansas City has a great deal to offer. That includes a stellar cost of living. The cost of housing in Kansas City is nearly 30% less than the United States average. The same home that might cost $219,700 in another metro area only costs $150,300 here.
Overall, you can enjoy an average annual income of $69,301 in Kansas City, while capping the cost of annual necessities around $20,000. This gives you the freedom to stretch every dollar and still enjoy the area’s famed arts, dining, and attractions.
Oklahoma City, Oklahoma
Don’t be a coastal snob and write Oklahoma off as the middle of nowhere. Oklahoma City is actually one of the best cities for your wallet. Offering an impressive annual income of $72,385 but only about $18,700 in annual necessities like housing, groceries, and utility bills, Oklahoma City helps you keep more of your money in your pocket (or your savings account).
Not that there isn’t plenty to spend a little discretionary income on, either. Oklahoma City is known for its festivals, horse shows, and real-live cowboys.
These five cities are some of the best to live in, but only a taste. But they prove it’s possible to find a safe, family-friendly city with excellent career choices, great schools, and a reasonable cost of living. Whoever said you couldn’t have it all?
Learn how to save now and retire early: Financial Independence Retire Early (FIRE) Explained.
*All income data courtesy of the US Census Bureau*
