Frugal living specific to certain states?

[sarah4554]

Does the state you live in directly affect your spending/savings habits? For instance because I live in NH am I more frugal by nature than if I lived in CA? I ask this question because recently I have heard responses like; in this part of the country we just spend more on birthdays it is just the norm, or I couldn't possibly spend $150 on groceries a week the groceries are a lot more expensive here, or everything cost more where I live that is why I am in debt. Are these just excuses or is there more to this?

Is your debt to savings ratio directly effected by where you live?

[pearlieq]

Yes and no. There are certain costs that are higher in particular regions (housing in SoCal, consumer goods in AK and HI, etc.) but I think a frugal spirit can thrive anywhere.

[LuxLiving]

I agree with perlieq BECAUSE while not all of us can choose where we live we do still have choices!

[wai98007]

My wife and I recently move from an urban area in one state to a very very very small town in another state. While our housing cost are considerably less, other costs like groceries are much higher due to the fact that there is only one grocery store. We also have to commute to other towns to go to the dentist or things like that so we spend more on gas. We have found that people here in the country are in general less materialistic and therefore some of the pressure of dressing as well as our peers is less. I guess in conclusion, we found from our experience that our cost of living roughly balanced out. I agree with the other posts that most of it comes down to choices.

[Staceyy]

According to USA Today, Pittsburgh, PA has some of the most undervalued real estate in the country so our housing prices are low. We do however have high property taxes, which seems to even things out. Our grocery prices used to be low but they're risen to be more in line with the rest of the country. Our grocery stores own gas pumps and for each $50 we spend in groceries, we get .10 off a gallon of gas. The average wage in Pittsburgh is very low. Most ads in the Sunday paper list jobs paying between $8 and $10 an hour. Of course professionals are paid higher.

[kealina]

Originally Posted by sarah4554

Does the state you live in directly affect your spending/savings habits? I ask this question because recently I have heard responses like; in this part of the country we just spend more on birthdays it is just the norm, or I couldn't possibly spend $150 on groceries a week the groceries are a lot more expensive here, or everything cost more where I live that is why I am in debt. Are these just excuses or is there more to this?

Is your debt to savings ratio directly effected by where you live?

i also agree with the pearl about having a choice... there are always trade-offs... we love living in hawaii with all it the perks including being where we grew up and being near our families in a location that we love...

unfortunately hawaii is not the greatest place to be young and poor... it isn't what i would call financially friendly... the housing is expensive, groceries are expensive, consumer goods are expensive... basically most things are more expensive here... partly this has to do with our isolation as an island... things from other places cost more because they have to be shipped here and local products can cost more because the cost of production (land, etc) is higher here... also, prices are higher because we are a contained market... we can't simply drive somewhere else and get something cheaper... buying online doesn't always help either as they sometimes either refuse to ship to hawaii or charge extra... there is no coupon doubling and we don't have any aldi's or many other stores... and land cost so much that people can rarely afford extra space for more than an herb garden.... our choices are limited...

does that mean we can't be frugal? heck no... there are just some extra challenges...
just because stuff cost more doesn't mean you can use that as an excuse to spend more as i am sure some people do... things cost more here and we aren't in debt and are in fact building our savings... DH and I work very hard and sacrafice a lot to save our money despite the cost of living in hawaii... we could easily say that "it is the norm" to spend a certain way and spend our money like some of those around us who have a "live for now" mentality but we don't because it goes against our grain...

i'm just thankful for this board because for awhile there i felt surrounded by spenders who were pitying us because we don't go out to eat and do all the other "fun stuff while we're young"... nobody seemed to understand that it's more fun to see our money grow and to plan and anticipate our future goals instead of just spending it away $20 at a time and seeing our future home, dreams of travel, etc slip away into the mist of "someday"....

i know plenty of people that spend $100+ a week on food yet DH and i managed to eat healthy on $150-$200 a month simply by shopping the loss leaders, stocking up wisely being flexible, cooking at home, using any availabe resource like nearby bread thrift stores and farmers markets etc...
one of the other perks to living in hawaii is the cheaper tropical produce... buying local fruits in season can be very affordable compared to the price of grapes and other fruits that are shipped here... strawberries, grapes, etc. are a luxury here and mangos, pineapples, etc aren't... no matter what we eat though we always buy in season and usually buy the cheapest we can find... we don't buy a lot of consumer goods either... most of what we buy is used from yard sales or similar sources... we also sell things from around the house to pay for the items we buy... occassionally we will buy something new or used from a store but that is usually for work or school...

unfortunately, unlike many high COL (cost of living) areas, the average wage is also rather low, so much so that we have trouble keeping/bringing in professionals because we don't have a competitive wage... many of our young college or high school graduates end up moving away looking for opportunites because it is difficult to get ahead in hawaii... we are also contemplating a move to a different location so that we can get ahead and come back here on a better footing someday...

sorry for the rambling and the long post but this is a very personal subject that has been getting a lot of thought as we think about our future...

[sarah4554]

Thanks everyone especially Kealina for all your insight on your situation. I am a very frugal person but I often get well that is just not possible for me to do because.......you name it I think I have heard it. So today I have decided to do a little research on the subject and see if there isn't something behind the excuses. I will let me know my findings.

My gut has always told me that the excuses where just that excuses but it will be interesting to see if region plays a part in frugalness.

[Ima saver]

I would have a very hard time living somewhere where the property taxes are real high. Where we live, they are not too bad! However property has tripled in price here the past few years!

[MonkeyMama]

I agree that a frugal spirit can thrive anywhere.

I have been on this board just a couple of days and I think I pointed out I live in Cali and it is expensive 10 times (I can not even imagine trying to make it in Hawaii!!).

But at the same time I put myself through college with no debt in one of the most expensive areas of the states. I had roommates to help with costs, worked 3-4 jobs, etc., etc. There are always options.

On the flip side I truly do feel we could live way more comfortably by moving to another area. We have done it once, and have considered doing it again. We could semi-retire if we moved to many areas in the U.S.

I know the frugal choices we have made have gotten us ahead while many around us just whine whine whine and never get ahead. Put your mind to it and you can be successful anywhere. Some regions have bigger advantages/disadvantages than others. But making excuses doesn't get youanywhere. I Say try harder or move - LOL. Totally in a nice way becomes sometimes moving is an overlooked choice. Good Luck!

[Bookie]

There are regional factors that make a difference in living costs and opportunities for frugality.

Because of geography, I'm able to go for about six months out of the year making very little use of either heat or air conditioning. The savings in utility costs are formidable over the course of my budget year.

Living in an agricultural region of small farms that grow produce, I benefit from the local farmers markets for seasonal vegetables, fruits, and even eggs.

The region is a manufacturing center for a variety of consumer goods, and factory discounts are only a couple of hours away.

My city is large enough to support a variety of grocery chains discount and department stores. This ensures sufficient consumer options to promote price competition among vendors.

The same city has an inadequate public transportation system. Access to a car is virtually a necessity for normal living. Auto insurance runs high.

A thriving cultural life provides low or no-cost entertainment much of the year round. This is complemented by ready access to public recreational areas, parks, and faciliies.

Housing is relatively inexpensive, but sales taxes are among the highest in the nation. Eating out is ridiculously expensive in this town.

So I can save on utilities, food, housing and entertainment. I get killed on transportation and taxes. Not a bad trade-off for a frugal lifestyle.

[meaghanchan]

I think there are always trade-offs. A person living in a big city might pay more for housing and less for transportation. A person living in the suburbs might pay more for gas and less for groceries.

I think the key is taking advantage of the savings opportunities you have, while trying to minimize the budget-breakers in your area. Some big-city examples (since that's where I live):

-Transportation- I save money by not owning a car and using public transportation. This saves me the car payment, insurance, gas, and repairs.

-Housing- which is probably the most expensive thing in my area, I minimize expenses by having 3 roommates, who share the cost of rent, utilities, internet, and Netflix.

-Groceries- Because of not having a car, I can't really shop around, so I use all the other tricks- I don't buy processed food, I buy produce in season, I eat a lot of meatless meals, I buy and freeze when stuff's on sale, etc.

-Entertainment- In a big city, you can get a lot of entertainment for free- stuff like Opera in the Park, free or pay-what-you-wish nights at museums, free day at the zoo, art galleries (free food and wine, too, during gallery receptions!), and I'm sure more I can't think of at the moment.

I think the key is thinking outside the box, no matter where you live. Thinking that we all 'deserve' a certain quality of life (or certain things in life, esp. where owning stuff is concerned) is what gets people in debt. I know people in my area making what I do who are barely getting by because they are unwilling to challenge American cultural assumptions about what is necessary in life. Not that that's a problem on this board, generally- just a general comment.

[pmsst20]

I used to live in Pittsburgh before - Pittsburgh does have cheap housing but property taxes is a big killer. That's why I moved out down South (near Atlanta, GA) - the salaries are more competetitve here than Pittsburgh. My property taxes are much much lower than Pittsburgh..

Example: I paid 3200/per year in property taxes in Pittsburgh. Now I pay 430/per year near Atlanta, GA. Both of my houses are about the same value.

Gas is cheaper down here in Georgia as well; I don't know about groceries - they are about the same as well.

[melissalt]

While my frugality (frugalness? :-)) hasn't changed, my ability to save certainly has since moving to a new area. I moved from southern NH to mid-Maine, took a pay cut of about 2/3 to do so, and have been able to save far more money than I was able to before I moved. While groceries seem to be more expensive here, gas is less expensive, housing is so much cheaper it is scary, and property taxes are minimal. They say Maine has one of the highest tax burdens and NH one of the lowest, but in my everyday life I don't find that at all. The houses we are looking at have property taxes of about $1200-$1500, while our property taxes in NH were about $5000 for a smaller house.

So, basically, I found that yes, where I live has a great impact on my debt to savings ratio.

[mom-from-missouri]

I am in Northern MO. My winters are more expensive than a friend I have in Arkansas, because we have more severe winters. She can get by with no heat on nights when ours will be on.

[Gruntina]

When I visit my family in Montana, I tend to do my clothing shopping done there. once a year I save some money for items or clothes (Something that I can take back with me on the plane) since there are no sales tax on items purchased in stores in MT. In California where I live, sales tax is at 8.25%.

[sarah4554]

Here are my findings:

Looks like most everyone uses coupons ( I am sure so more regularly than others).

Coupon Facts
76% of the United States population uses coupons.
Shoppers saved nearly $3 billion last year by using coupons.
The typical coupon was worth $1.00 savings in 2005.
Coupon users report an average of 11.5% savings on their grocery bill with coupons.
Manufacturers offered more than $300 billion in coupon savings in 2005.

Coupon Use by Geographic Region for 2000
New England 82%
East Central 81.2%
West Central 82.1%
Southeast 76.2%
Middle Atlantic 75.4%
Pacific 73.5%
West Central 82.1%

Income---% using coupons

under $25,000 74%

$25-50,000 80%

$50-$75,000 77%

$75,000+ 76%


NOTE: Coupon shoppers are consumers who report that they either always, sometimes or rarely use manufacturer’s coupons for grocery, household and healthcare items at supermarkets, mass merchants and drug chains.
Information from: Coupon Council

It varies from state to state but the national per capita personal income is $33,050. To check out your state's it can be found at http://www.bea.gov/bea/regional/bearfacts/statebf.cfm

If you compare the national average with your own state's I think you will most find there is not much difference. To then compare from state to state you can use the US Census Bureau to see some of the cost of living expenses. http://quickfacts.census.gov/qfd/index.html

Then you can go a step further an use a cost of living calculator to compare two states/cities side by side.
http://www.bestplaces.net/col/

All very interesting and I am not sure if proves or disproves my point.