I am going to tell you about Austin cost of living in Texas in a few sentences. I think Austin is a great and affordable place to live, especially if you have a family. Still, you have to plan for these things. The last thing you should do is grab a hobo stick, lick the end of your finger, put it in the air, and go where the wind takes you. You must plan these things out for you and your family’s sake.
Thinking about moving? I can think of no better place than Austin, Texas. Still, you must weigh your options.
Life is about to get harder for many Americans. As of this writing, over 55 million Americans have applied for unemployment since March 2020. The $600 weekly unemployment benefits ended for many.
Tens of millions of Americans are grappling with food insecurity and stressing national food banks. And, legislative eviction protections will end this month.
It isn’t a full-blown exodus yet, but many Americans are leaving big cities to save money and escape COVID-19.
Many rich and middle-class workers are also fleeing London for more frugal lifestyles in the wake of COVID-19.
Downsizing your life and living in an affordable city is a great idea in the best of times.
It may be your best option right now. However, if you do it irresponsibly, you might as well have an emergency hobo stick nearby.
San Francisco Dreaming
In 1997, I was a junior in college getting ready to enter the real world. I didn’t have a clue what I wanted to do with my life.
After chatting with a friend, I thought about relocating from New York City to San Francisco. I had spent a few weeks there the previous summer and enjoyed it.
As I mentioned before, I was clueless. The cost of living, or the everyday cost of expenses required to live somewhere in New York City was too much for me. I was still living with my family.
San Francisco is an unaffordable place to live in any era. The current minimum wage is $12, or $15.59 for state jobs.
In 1997, the minimum wage was $5, or about $8 when adjusted for inflation.
As of July 2020, the average monthly rent in San Francisco was $3,585 for a 1-bedroom apartment. It cost $3,800 in 2019, so I guess that is progress? It costs $4,300 to rent a 2-bedroom apartment in San Francisco.
Just as important as knowing the minimum wage in San Francisco is understanding the cost of living.
When it comes to cost of living, you need to make a lot of money in San Francisco, whatever your status.
Have no kids? You must make $37,500 annually to survive. If you have 3 kids, you must make at least $104,600.
I couldn’t afford to live in San Francisco in 1997 or now. The city is now bracing for a wave of catastrophic evictions.
Austin, Texas, however?
Maybe.
Austin Cost of Living
So, are you considering a move in these uncertain times? Want to save money and cut down on your expenses?
The cost of living in Austin, Texas could work for you. To start with, the minimum wage is $7.25. No, doesn’t sound like a lot, does it?
The thing to keep mind is that the cost of living is a lot lower than in New York City or San Francisco. If you live below your means and save more than you earn, you will do well.
You will need to make at least $51,600 to live comfortably with 2 children in Austin, Texas.
If you are a single adult, you must make at least $21, 470 to live comfortably in Austin.
Two adults, with one working and one staying at home, with 3 children need to make at least $52,000 to maintain a realistic cost of living.
The median rent for a 2-bedroom apartment in Austin, Texas is $1,520. So, that means you will have to budget $18,240 annually to pay your rent.
Or, you can buy a home for about $350,000. You can probably buy one for less outside Austin.
Crunch the Numbers
Austin, Texas has a great music and restaurant scene. The city also has incredible sightseeing attractions.
It is truly a beautiful place to live.
Whether it is right for you depends on you.
Consider your personal finances. Are you single, married, or have children? I have given you the resources to consider your cost of living needs.
Here is a directory of Zillow listings for apartments in Austin, Texas for rent priced between $780 and $1,500.
Would it be financially sensible for you to make the move?
Crunch the numbers and think more than twice.
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Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.