Affordability is one of the most important factors to consider when choosing where to live – you want to be able to live comfortably in your new town or city, so you need to carefully look into the living standards of an area before moving there.
At first glance, it seems that moving to a cheaper place makes the most financial sense – the lower the cost of living, the less money you’re going to need and the more things you’ll be able to afford, right?
Yet, expensive places are expensive for a reason – they have a lot to offer, so they’re highly desirable and, therefore, costlier to live in. The greatest professional opportunities, the highest paying job, and the richest cultural scenes are in the highest cost of living areas. So, as hard to believe as it may be, moving to a more expensive city can actually make you richer – and happier.
Is living in an expensive city worth it, then? Let’s find out.
Benefits of moving to an expensive city
The biggest – and only – disadvantage of moving to an expensive city is the high cost of everything. Apart from that, it’s all sunshine and roses:
- More professional opportunities – Expensive cities boast prosperous economies and flourishing business environments. The job market is solid, employment options are plentiful, and occupations are easily available. There are lots of networking opportunities and sponsorship opportunities too. It is, therefore, quite easy to land a good job, advance in your career, improve your professional expertise, and even start a business of your own when living in an expensive city;
- Higher salaries – The only reason why prices in wealthier areas are so high is because incomes are high enough to afford such levels. There are more companies in prosperous cities and, thus, greater demand for skilled employees – which leads to higher wages. So, even though living and housing costs are very high, residents of expensive cities often spend a lower percentage of their income on rent and manage to save more money than people in more affordable areas;
- Great convenience – Premium cities offer great amenities and excellent services – from high-quality schools and good medical care facilities to large shopping centers and lovely restaurants. Whatever you need – or want – you can get it. And quite often – you can get it within walking distance. If not, you can avail of public transport – there are a few exceptions, of course, but living in an expensive city usually means access to cheap and efficient public transportation.
Having so many businesses around is not only convenient, but also very advantageous – greater choice makes for better service and competitive pricing.
- Plenty of recreational and entertainment options – Generally, expensive cities are lively cities with something for everyone:
- Restaurants, bars, night clubs, and other eating, drinking, and dancing establishments;
- Libraries, galleries, museums, and other cultural institutions;
- Movie theaters, music halls, amusement parks, and other entertainment venues;
- Sports centers, stadiums, tennis courts, ice rinks, and other sporting facilities;
- Hobby clubs and interest groups;
- Parks and green areas.
Whatever your interests and preferable pastimes, you’ll be able to pursue your passions and practice your favorite activities when living in a wealthy area.
- Rich cultural scene – If you’re craving cultural experiences, expensive cities are your best bet. You will be able to enjoy various musical and dance performances all year round; live concerts, plays, shows, art exhibitions, and other cultural events will take place every other day; famous musicians, comedians, and artists will come through town on a regular basis; etc.
- Things seem cheaper – If you live in an expensive city, you’ll be used to high living standards and high prices. So, when you look at the costs of anything else (car prices, college tuition fees, plane tickets, hotel stays, etc.), they will seem cheap compared to the rental costs and living costs in your city – and will be a small percent of your gross income, so you’ll be able to easily afford them;
- You learn how to be frugal – When you live in a high-cost area, you’ll become frugal out of necessity. You’ll learn not to waste your money and will find efficient ways to save funds. Having so many options to choose from will make it easier to live economically – you’ll be able to take advantage of competitive pricing, to enjoy leisure activities and entertainment events for free, etc.
Even though housing and living expenses will be costly, you’ll have a larger dollar value amount to save and will become wealthy with time.
Besides, the most expensive cities to live are usually the best cities to get ahead – living in a prosperous city will give you the chance to boost your career, to network and use those connections to your advantage, to improve your social and financial position, etc. It is a fact that high-cost metro areas have the highest upward mobility rates.
Last but not least, you’ll have a great choice of everything and will lead a vibrant lifestyle while enjoying numerous cultural and social activities.
Whether it’s their amazing culture, thriving economy, great educational opportunities, or wonderful surroundings, expensive cities have something truly appealing about them – and living there means that you get to benefit from those desirable features.
Related: What to know when moving to New York City; Top 3 mistakes people make when moving to San Francisco
How to save money when moving to an expensive city
Moving is always expensive. And moving to an expensive city may add quite a stress to your budget – and to your mind. Yet, it’s perfectly possible to perform a smooth and successful relocation – and to do it in a way that you’re financially comfortable with.
- Research the real estate market in your new area with great care – look for a property to buy or to rent in a more affordable part of the city, make sure the mortgage/rent of your new home won’t exceed 30% of your income, check on the included amenities, etc. Consider living with a roommate if you’re moving without a family (See also: How to find the right new home for you when moving to a new city);
- Make moving affordable:
- Pare down your possessions to decrease your relocation costs (moving costs are based on the weight of the shipment (long-distance moves) or on the time to complete the job (local moves) – the fewer items you have for moving, the lighter the load will be and the faster the movers will finish the job, so the cheaper your move will be);
- Choose a beneficial moving date – schedule your move for a weekday in off-peak season (between October and April) when moving services are in less demand and moving rates are lower;
- Find good, affordable movers – get free moving estimates to see what different moving companies have to offer, read moving reviews and check moving companies’ ratings to find out what to expect from different movers, request on-site binding estimates from three or four affordable professionals, compare the offers, and look for the best balance between quality and price;
- Avoid moving scams – learn to recognize the red flags of moving fraud and make sure you’re dealing with licensed and insured professionals;
- Ask for discounts and special offers – use your negotiation skills to strike the best deal possible;
- Book your chosen movers as early as possible;
- Avoid extra charges – pack your items yourself (use free packing supplies and alternative packing materials you already own), prepare well for the movers, get your new home ready in time, etc.;
- Organize a safe and efficient moving day.
- Ask for job relocation assistance (if applicable);
- Take care of the paperwork in due time (update documents, transfer utilities, change your address, etc.), so you don’t have to pay fees for missed deadlines, extra charges for setting up services in the last minute, etc.;
- Travel cheap:
- Drive to your new city, so you don’t need to pay for the shipment of your vehicle and can transport your pets and some of your belongings in your car (driving to your new home is especially beneficial if you’re moving with your family, as you will all travel together in the car (as opposed to buying plane tickets for everyone));
- Plan your route in advance so you know the most affordable places to eat, to stop for the night (make reservations in advance), to refill gas, etc. If possible, try to avoid toll roads.
- Be careful not to overspend after the move – buy only what you really need, find affordable stores to shop at, don’t eat out too often, take advantage of free events, use public transportation, walk or bike when you can, etc. Do your best to avoid spending temptations and focus on saving.
At the end of the day, moving to a more expensive city may turn out to be the financially-wiser choice. What do you think? Should you move to an expensive city? Or would you rather move to a cheaper city? Let us know what you decided – and how it worked out for you – in the comments below.
