With the Tax Cuts and Jobs Act pending approval in the Senate, it's reasonable to assume that your taxes are likely going up. (More about taxes, read my tax blog.) Since taxes are a part of expenses then your cash flow will get squeezed no matter how you look at it. If you work from home, or have a job that's flexible, it may be time to make a change that will serve to better your financial health.
The change I’m talking about is moving to Palm Springs, California. Besides the palm trees, pools, year-round amazing weather, and gorgeous mountainscape, Palm Springs happens to be one of the more affordable cities in California. The cost of living is 32% lower than San Francisco and 47% lower than New York City^1. Median home values are $309,800, compared to $1.2m in SF^2, $1.3m in NYC.
I don't think I need to sell you on Palm Springs but you'd be surprised to learn that by living here you could end up saving tens of thousands of dollars each year just from the reduced cost of living. Saving an additional $1,000/month would mean $163,473 more in your investment account in 10 years (assuming 6% rate of return.)
In Palm Springs, investment is being made into gigabit high speed internet^3 and there are an abundant number of direct flights to many major cities from Palm Springs International Airport. Also coming in December is the JetBlue Mint service for a first class only experience, direct to JFK^4.
If you’re in tech and can work from home, or starting a digital business, it’s a no-brainer. If you’re a startup that needs access to funding check out StartOut LA or network with peers. The desert also happens to be the California capital of the marijuana industry, attracting entrepreneurs in that space.^5^6
Moving or changing your lifestyle to encourage savings will significantly improve the prospects for a wealthier future. At Eureka Wealth Management, we will help you improve your financial situation that will increase your savings. We will map out your cash flow and strategize with you on financing and operating your business. I look forward to helping you with any transition that you’re facing and will crunch the numbers if you’re still on the fence about making the move.
Call us at (760) 537-0791 or online at eurekawealthmanagement.com or Facebook.