Cheapest Cost of Living

If you want to determine the cheapest cost of living, you're not alone. With the economy seeming to get worse by the day, many people find themselves in search of a more affordable place to live. Luckily, LoveToKnow Save is here to help. Our slideshow will give you an idea of some factors to consider when planning your move.

Housing is the most significant factor in an area's cost of living, whether you plan to rent or buy your home. The West Coast continues to have some of the most expensive cities to live in largely because of high housing costs.

Taxes, including both state income taxes and local property taxes, also have a significant impact on an area's cost of living. Income tax free states such as Nevada, Florida, and Texas are surprisingly affordable.

Employers can impact an area's living costs. Microsoft is based in Seattle, one of the most expensive cities in the United States. Most people in the city don't work at Microsoft, but the company's high salaries help to inflate the overall cost of living.

Housing, taxes, and job opportunities are the most important factors in determining the cheapest cost of living, but other expenses can vary by location as well. For example, did you know New York and Louisiana have some of the most expensive auto insurance rates in the US? For cheap car insurance, try Wisconsin or Ohio. Factors such as parking, theft rates, and the number of uninsured drivers in an area all play a role in determining these rates.

If you have a child, don't forget to factor educational opportunities into your decision on where to live. California, Texas, and New York have very reasonable public college tuition -- a huge chance to save money if you have more than one child who will be in need of higher education assistance.

For more advice on planning your next move, check out the LoveToKnow Save articles Cheapest States to Live In and Cheap Places to Live: David Savageau Interview, as well as our slideshow on Cheap Living tricks.

As a final note, remember that finances should never be the only factor you consider when deciding where to live. While cost of living is certainly important, variables such as the crime rate, availability of public services, cultural opportunities, and ambiance can all affect your happiness within a certain location.