Since we love it here, we can think of many reasons you might want to move to the beautiful state of Texas. You could feel the seduction of the low taxes or be interested in getting a piece of the tremendous average wage of $105,000 per year. Whatever the case, your first question will be to ask what the cost of living in Texas is.
Read on to learn more about how you’ll have to divide your salary to enjoy living in Texas.
Rough Estimate for Your Salary
The first stage of budgeting for a new living arrangement should be looking at your expected salary. We can follow the so-called golden budgeting rule here and compare the rent multiplied by three against our monthly earnings.
This is almost always enough money to cover all of your needs. It even lets you have enough to get some enjoyment out of your free time. With that in mind, let’s look at the cost of rent and housing.
Rent and Housing Costs
The good news here is that Texas’s average rent in Texas is very middle-of-the-road compared to other states. The prices aren’t ridiculous and are more than affordable for somebody making the average wage. Part of this depends on which city you live in, however.
If we take Houston as an example of the lowest end of costs, you can expect to pay around $1,000 for a single-bedroom arrangement. That scales up to $1,500 in the most expensive city, Austin.
If you’re planning on buying and are interested in Texas real estate trends, then look no further. Texas real estate is booming, and all you need to do is decide the rough area you wish to live in and search for “investment properties near me” to find the best Texas real estate.
General Utility Costs in Texas
The average utility cost in the US is around $240 each month, a number you’ll be happy to hear is far lower in Texas. Unless you live in San Antonio, the cost of your utility bills combined will never even scratch the $200 mark.
For most cities, you can expect to pay anywhere between $140 and $160, except for San Antonio, costing around $210 per month.
The Cost of Food and Essentials
Expect a monthly grocery spend of around $250 while living in Texas, but don’t think that the only food you’re buying will be groceries. Texas has some of the most exquisite savory food in the US and is home to what we say is the best barbeque.
Put aside $70-$150 per month so you can afford a few visits to the many restaurants in Texas. You’ll thank us for it once you get a taste!
Texas doesn’t have the most exhaustive or complete public transport systems compared to some other states. This means you’ll be relying on owning a vehicle to get around, which also means you’ll be looking at a significant increase in living costs.
The average spending between vehicle maintenance and insurance for a Texas resident is around $5000. This isn’t much better or worse than any other state, other than the fact that you’ll have to rely on your vehicle a little more.
Costs Related to Health and Fitness
The one place we can’t afford to skimp on costs is our health, but it’s also one of our most expensive costs. It’s no different in Texas than in any other state, and you can expect to pay around $2500 per head in your household.
If you have worries about not having health insurance as you move states, inquire with your healthcare provider if they offer cross-state coverage. If they don’t, you should be able to find other insurers, such as on the federal healthcare page.
In any self-respecting city or developed area, you can expect to find plenty of gyms available for your fitness, all of which offer competitive pricing. A monthly membership will cost you around $45 on average, a small price to pay in your budget for staying on top of your health!
Taxes and Other Expenses
Generally speaking, Texas is a tax-friendly state, no matter what level of income you are making. It also boasts the accolade of being one of the eight states with zero income tax. That alone makes it an excellent prospect for many people trying to protect their assets.
If you’re planning on owning some Texas real estate for business purposes, there is still some property tax. What you might find surprising to know, and pleasing if you are community-minded, is that the property tax collection is courtesy of your specific district and only used for needs in the local area.
The last expense to consider is insurance. The reason for this is that Texas’ position is in an area that is prone to natural disasters. Storms and tornadoes are common occurrences, which you’ll see in increased insurance costs.
Insurance against storms will cost around $1600 in your annual budget, which can be a sizable bite out of your budget.
Is the Cost of Living in Texas Right for You?
With how inexpensive the cost of living in Texas is, it’s a viable financial option whether you’re alone or have a family. Many of the averages are far lower than other states, and you’ll have plenty of opportunities for investing in property all around the state. Considering the fantastic salary on offer, it’s a perfect combination.
Whether it’s the lifestyle of living in Texas that interests you or you’re purely in it from an investment perspective, we can offer you even more advice on the blog, so keep reading!