Cost of Living in the US?

[Earlybird]

It was suggested that this topic should have its' own thread, so here goes:

We are preparing to relocate to the US this summer and I would appreciate some practical advice about the cost of living there....which I am assuming (perhaps naively), is significantly less than in the UK.

Obviously, the biggest part of most everyone's budget is housing and that will vary greatly according to where you live. So, should probably take that aspect out of the question - unless someone particularly wants to comment.

But, what I'm asking about is the cost of day to day life - food, utilities, owning/maintaining a car, petrol, clothes, etc. Would appreciate some perspective on what to expect - I'm hoping we'll have more disposable income. Am I in for a shock?

It depends hugely which part of the USA you move to. Because housing costs vary so much.

And how high a standard of living you want, of course.

midwest small town or manhattan?

We'll be in Tennessee, so not one of the most expensive parts of the country. We've already got the house, and the mortgage is less per month than our little London flat!

As far as standard of living - well, suppose middle class/upper middle.

As I said, I am under the impression that day to day activities/expenses will be far less. Can anyone offer any perspective/experiences?

I'm American, but live in England now. TN will be much less expensive than the UK so you should have more disposable income. Also, lots of discounts available. Have fun

I don't think you will be in for a shock, certainly not a negative one, anyway. I am taking my girls to the US for the summer (the way I used to when I was a child) and I know it will be cheaper than staying the summer in England. My friend who lives in the suburbs of LA is often complaining about how much money he spends on healthcare and in tax (wife & 2 DCs)......but he earns about $7,000 per month, which I don't think is too bad (Plus he lives in LA, FGS, not Tenessee). An equivalent job in the UK would probably earn him about £20,000 per annum and he would find the cost of living wiped out his salary completely. His wife does not work, but one UK salary couldn't come close to providing the lifestyle they have in the US - it wouldn't even stretch to the basics. Oh I am envious of you. We will eventually move to the US too, that is our long-term plan.

I'm orginally from OH (my sister and Mom & Dad still live there) so not that far (in US terms) away. You will find most consumables cheaper than here. Though there is the odd thing that is more expensive (e.g. Brio). And fashion seems to run about a year behind what it is here (only really matters if you are into the latest styles).

If you live in a small town you might find that you don't get the variety of food. As I am always shocked when I go back home, all I want is a piece of cheddar which isn't bright orange and all I can find in my hometown is 70 varieties of bright orange cheese. At last the opened a farmer's market in town and now can get "normal" colored cheese there.

I think most of the "negative" differences are in things like medical care (paying for it), universities (again paying for it), the number of holidays I used to get (10 days!!) and the long hours we worked there.

Use the warehouse clubs, they are great. Also sales are good there (but don't forget to add in the Sales tax as that isn't on the price) e.g. my Mother often gets me current season Gap at 50% - 70% off.

Have fun.

Thanks for sharing that information SittingBull - it's alot to digest, but I'm sure I will benefit greatly from your experience and will follow up when I'm stateside.

Grumpy and expat - thanks for your views. Obviously, at this point anyone in the UK would benefit tremendously because of the exchange rate £ - $. But, once I get there it will be a different story as my income will be in $.

I came across this list of the 2007 Most Expensive cities in the world yesterday which makes for interesting reading:

1. Moscow
2. London
3. Seoul
4. Tokyo
5. Hong Kong
6. Copenhagen
7. Geneva
8. Osaka
9. Zurich
10. Oslo
11. Milan
12. St. Petersburg (Russia)
13. Paris
14. Singapore
15. New York City
16. Dublin
17. Tel Aviv
18. Rome
19. Vienna
20. Beijing

No idea what factors they used to determine the rankings, but as London is #2, seems safe to say that most anywhere in the world would be significantly less expensive!

I posted on the other thread but, day to day activities are relatively cheap, I think.

You will need to check out these places:

Netflix

Old Navy

Target

Eating out is definitely cheaper but remember to leave 15 - 20% tip.

Electrical type things are cheap too (cameras, computers etc). Have a look at Best buy and Circuit City.

USAUK mum had some very good points. The Cheese thing drives me nuts. For good grocery stores, have a look at Whole Foods & Trader Joes to see if there is one near you. Whole foods is relatively expensive but great for good, imported cheese. (Never buy domestic Brie. Please)

I never ate cheese until I moved to the UK

As you buying, do you know how much your property tax is? WHere we are, they are enormous. This is not an issue for us as our relocation package paid our rent, so we have kept our house in the UK.

Just thought that that was something that needs factoring into your budget. We only relocated a couple of weeks ago, but so far most things seem to be cheaper. Toys are amazingly cheap...which is good as we have had 2 of the children's birthdays in the last week!!

mamama - thanks for all those tips. Will keep my eyes peeled for the places you suggest.

Yesthereare4 - good point about property taxes.

Don't forget that although the tax rates are ostensibly the same, the income level at which you start paying in the usa is much much higher because everything is deductible (mortgage being most notable thing). A family of 4 with a mortgage probably isn't going to pay much income tax on the first $50,000 of income.
In general you will find the cost of living much lower and standard of living much higher.
You can always get your cheese online.

Can I nominate Sofia's last line for QOTW?

Interesting about comparing the tax rates between the two countries Sofia. I hadn't realised the difference.

It's probably worth remembering that at first it will seem like you are spending a fortune because that is what you do when you move to a new place anywhere. But, once you are settled I have to agree that it is a higher and cheaper standard of living. Medical bills are probably our biggest expense (we live rent free thanks to company relocation) that we weren't used to. I will never in a million years understand the system and despite the fact that my kids aren't exactly sickly, routine medical expenses tend to set us back quite a lot. I assume you will have medical coverage with work?

Will someone prepare your taxes for you come April next year? I know you can deduct UK mortgage payments etc. It would be worth thinking about getting someone who specialises in expatriate taxes.

Toys are a very good comparison, virtually pound for dollar with everything, we are thinking of doing our xmas shopping before we return to the UK next month!

Clothes are way cheaper, trainers especially. Eating out is very reasonable even with a tip - which is usually worth it for the better standard of service and better meals that you get.

I live in an area of USA which is comparable to TN and I think you are going to be quids in!

Car insurance, at least initially is extortionate

We had to begin with State Farm and once we had our US driving licenses, we were able to move to Geico who were much cheaper.