Geographic Arbitrage: How One Family’s Move to Florida Boosted Their Financial Future
Staff Editor Family Finds Financial Freedom in Florida Move
In a recent development that highlights the economic disparities between regions, a family’s relocation from Philadelphia to the Florida suburbs has resulted in significant financial benefits. This story, part of the “Milestone Moments” series on financial planning for major life events, underscores the potential advantages of geographic arbitrage.
The family reported a substantial decrease in their cost of living after moving from southern New Jersey to Florida. Despite purchasing a larger home, their mortgage payments remained similar, while food and commuting costs dropped due to remote work arrangements.
One of the most notable advantages of the move was Florida’s lack of state income tax. Compared to New Jersey’s high state income and property taxes, the family experienced a considerable reduction in their tax burden, freeing up resources for other financial priorities.
The relocation also brought unexpected career advancements. The husband secured a new position with a higher title and salary, while the wife’s freelance career allowed for increased rates. Combined with the absence of state income tax, these changes significantly improved the family’s financial situation.
Education costs were another area of savings. The family chose Florida for its highly ranked public schools, which they found superior to those in New Jersey. By avoiding private school expenses, which are typically higher in the Northeast, they further reduced their financial outlay.
The cumulative effect of these changes has been transformative. With a lower cost of living and reduced tax obligations, the family has been able to accelerate debt repayment and increase investment contributions. This has led to reduced financial stress, particularly beneficial for a household with variable freelance income.
However, the family acknowledges that their situation may not be permanent. They’ve observed rising living costs in Florida over the past six years, including increased homeowners and car insurance rates due to the state’s natural disaster risks. Additionally, they note fewer cultural amenities and less diversity compared to a major city.
Despite these considerations, the family currently finds that the financial benefits of their move outweigh the drawbacks, illustrating the potential advantages of strategic relocation in today’s economic landscape.
