I know it sounds crazy or impossible but what would happen, if just for a moment, you considered picking up and moving to another city?
There are tons of reasons why you might say there's no way
this can happen -- from family to current work arrangements.
This post was posted in: Entrepreneur
But if there were a way that you could save 10 percent to 20
percent or more of your current costs and invest them to bring financial
freedom a decade closer -- and perhaps have an even greater quality of life --
wouldn’t you owe it to yourself to push beyond the obvious obstacles and
consider your options?
Could you be living large in a magnificent community like
Boulder, Colo., for what you’re paying in rent alone in New York City or San
Francisco? The cost of homes, food and taxes differs wildly depending on where
you live.
Our country -- and even the world -- has boundless
opportunities waiting for you to explore. So why not take off the blinders just
for a moment to consider what life could be like if you lived in a new city or
town?
Are you freezing your butt off during Midwest winters or
battling the summer heat in Atlanta, wondering year after year why you don’t
hoof it to a better climate? As a native of Southern California, I am always
amazed by people who spend their lives freezing to death in the arctic tundra
of Minneapolis or Chicago.
And even if you don’t care about the weather, you must be
concerned about your cost of living. A million-dollar home in Washington, D.C.,
costs a fraction of that in Raleigh, N.C., a city considered business-friendly
-- not to mention a high-tech and educational hub (with great weather).
It’s one thing to be tax efficient in your investments. It's
another to be tax efficient with your life. You’re trying to save 5 percent
here, 10 percent there so you can achieve financial security and eventually a
great retirement.
What would moving to a less expensive city and saving 10
percent or 15 percent do to the tempo of your achieving your financial goals?
Think about the additional money you’d have to invest, share
or put into a new business if it didn’t go straight to rent, food or
transportation. One single move could give you a 10 percent to 30 percent
increase in your income. And if you’re already saving 10 percent, you could
relocate and then save 20 percent to 40 percent without spending an additional
dime.
This would put some rocket fuel into your money machine and
would massively improve the pace by which you’re able to pursue your entrepreneurial
dreams.
I know you’re likely still thinking, Move to a new city?
You’ve got to be crazy, Tony. I can’t just pick up and move! Again, I have a
job, I have family, I have friends. I’ve lived my whole life in Dallas (or
Seattle, Miami or Denver).
But if you saw that you could start your dream business a
decade sooner, might it be worth it?
Generations of Americans have looked at retirement as a time
to pick up and move to a warmer climate, a less-expensive city or a beautiful,
low-key place like Boise, Idaho, or Greenville, S.C. -- to breathe clean air
and enjoy the outdoors.
But why wait till then? Why not change your zip code today?
Why not find a place to raise your family that lets you reduce your cost of
living and elevate your quality of life at the same time, while you’re young
enough for you and your children to reap the rewards?
If you’re still shaking your head and saying no, I get it. I
was with you on this until recently. I grew up in California and never imagined
living anywhere else. Even when I started traveling extensively and buying
homes and properties all over the world, California was always my base. I never
imagined leaving.
That changed in 2012 when California raised taxes on the
highest-income earners more than 30 percent, to 13.3 percent. After a lifetime
of paying through the nose on state income taxes (California's are among the
country's most punishing), I found my tax situation had worsened.
I had played by the rules, and the rules had come to bite
me. But instead of feeling sorry for myself, I voted with my conscience -- or
my feet, I should say.
My wife, Sage, and I decided to take the plunge and look for
a new place to live.
We turned it into a treasure hunt. We looked at places like
Lake Tahoe, where we really liked the mountains, the mix of seasons and the
small-town vibe; and Austin, Texas, where music, energy and high tech come
together to create the fabric of an innovative and connected community.
We looked at Florida, too, but reluctantly. All I knew about
Florida was alligators -- and that retirees lived there. But that’s the
stereotype, not the reality. What we found instead was the paradise of Palm
Beach.
After looking at 88 properties in three states in three
weeks, we found a brand-new home on the water in Palm Beach. It has 2 acres,
nearly 200 feet of ocean frontage on one side and the Intracoastal Waterway on
the other, with a 50-foot boat dock.
Sage has everything she wants close by: world-class
restaurants, shopping, easy access to the entire East Coast and all the privacy
and serenity of living on an island, right here in the United States.
Of course, the price tag was way higher than I imagined I
would have to pay for a home. But Florida has no state income tax.
We went from a 13.3 percent state income tax in California
to nothing -- nada, zip, no state income tax in Florida. So with the taxes
we’re saving every year as residents of the Sunshine State instead of the
Golden State, we hope to pay off our entire new home in six years.
Now granted, Palm Beach is expensive but we’ve massively
improved our quality of life in the bargain. Every day we pinch ourselves as we
wake up with magnificent weather -- 78 degrees with a cool breeze off the ocean
and water so warm you can melt into it.
In fact, Sage and I have become almost evangelical in our
enthusiasm for our new home. We tell friends and family to think about moving
and joining us. My youngest son has already moved here. Two of my dearest
friends in the world are on their way down from Connecticut and New York.
So whether you decide to join us in Palm Beach, there’s a
zip code out there that might be just right for you. You don’t have to wait for
retirement to get there. From Portland, Ore., to Augusta, Maine, there are
scores of affordable havens for young and old alike -- for young professionals
aiming to jump-start or reimagine their careers
to retirees looking to stretch their savings and continue to enjoy a
rich, rewarding lifestyle.
Check out the U.S. News & World Report's 2013 list of
the best places to retire for as little as $75 a day. Also seriously consider
the seven states with no state income tax at all: Alaska, Florida, Nevada,
South Dakota, Texas, Washington and Wyoming. Or try New Hampshire and
Tennessee, where only a resident's dividend and interest income are taxed at
the state level: Just imagine the Memphis and Nashville music scenes and more
money in your pocket. How bad does that sound?
It’s all about being more efficient and effective with your
earnings and savings and speeding up your path to financial freedom. You can
find a way to finally pursue your entrepreneurial dreams while simultaneously
improving the quality of your life. It’s the ultimate win-win. At the end of
the day, the best investment you can make is the one you make in yourself and
your family's lifestyle.
This piece was adapted from Tony Robbins' new book, MoneyMaster the Game: 7 Simple Steps to Financial Freedom.
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