The ongoing Covid-19 pandemic has affected millions of Americans financially. Although the government has approved fiscal aid, it’s not sufficient for many households. It’s still a struggle to make ends meet for those who live in states with a high cost of living.
The Social Security Agency’s announcement regarding the cost-of-living adjustment (COLA) in 2021 didn’t bring much relief. Benefits for approximately 70 million citizens will only increase by 1.3 percent in 2021.
How will this situation affect Texans in terms of their quality of life in 2021?
You may think it’s more expensive because everything’s bigger in Texas, but you’ll be surprised that it’s very affordable to live there.
Overall Cost of Living in Texas
Based on a US index of 100, the Lone Star State scored 93.9, which means staying there costs less than the national average.
The low cost of living is just one of the reasons why many people are moving there. The other key incentive is that corporations and individuals don’t pay state income tax.
Transportation is the only sector in which Texas is more expensive. It performed better in all the other indices such as housing, health, and groceries.
Energy Costs
The cost of utilities is something that Texans need to pay attention to because of its high temperatures in the summer months. The use of air-conditioners can lead to an increase in your energy expenditure.
However, before you think of switching power suppliers, it’s advisable to exercise due diligence.
The Power to Choose Texas page on the EnergyBot website advises you always to read the Energy Facts Label when considering new plans. Then you won’t be caught unaware by the complicated terms and conditions that many providers impose. These tricky stipulations and usage thresholds can cause you to incur excessive bills instead of saving money.
No Taxes
If you work in Texas, you’ll have more disposable cash because there’s no state income tax. Your quality of life is better because you have more money to spend on your cost of living purchases.
The state also attracts a massive influx of businesses and people because it has no corporate tax. Giant companies such as American Airlines, Dell, ExxonMobil, and Whole Foods have headquarters in The Lone Star State.
Housing
With an index score of 84.3, Texas’s housing costs are meager compared to the rest of the country.
For instance, based on statistics, in June 2020, the average price of homes was $310,000. That’s approximately 9% lower than the national median, which is $342,000.
Renting a two-bedroom apartment last year cost 11% less than the country’s figures.
Healthcare
Healthcare costs are, on average, lower, and the government is doing what it can to improve Texans’ wellbeing. The Texas Health and Human Services provide a broad range of services to those who qualify.
The agency helps residents get the care they require by working with local governments, federal-qualified clinics, community partners, and medical associations.
Is it Cheap to Live in Texas?
The cost-of-living stats show that it’s cheaper on average than most parts of America. However, before you pack up and move, you’ll need to compare the figures between the area you’re currently in with the numbers of the Texas location you have in mind.
The living expenses in every city in the state is different, so it’s best to see if your budget can afford it.
Financial reasons aside, you might want to consider other factors that offer you a better quality of life. Cleaner air, less traffic, and lower population density can provide you with more peace than merely saving money.
