As one of the most expensive states in the USA, those moving to Colorado are often keen to save money in any way they can. While you will be surrounded by incredible natural beauty, you might feel the strain on your wallet. However, there are many things you can do to reduce the burden that an increased cost of living can have. Here are some tips to help you get started:
Know Your Taxes
If you’re self-employed or are starting a small business once you get to Colorado, you’ll need to familiarise yourself with local tax laws. You can get your Colorado state tax ID here, but you’ll also need to figure out how much tax you’re going to be paying to better plan your finances. Luckily, Colorado makes taxes a little easier by charging state income tax at a flat rate of 4.55%, which is a fairly average amount for the USA. This means you’ll never have to worry about being in a different tax band and paying the wrong amount to IRS.
Get the Best Deal You Can on Real Estate
One of the most significant factors that pushes up the cost of living in Colorado is the price of real estate. Houses can be up to 34% more costly than in other parts of the USA, which makes both renting and buying an expensive affair. Try to look for deals and pay attention to how the market fluctuates. You may even want to speak to a real estate agent about what time of year is likely to be the cheapest time to buy. Alternatively, you could get a good deal on a house that needs a bit of work done to it. If you’re happy to chip in and do some DIY, your home could increase in value over the years and you may be able to make money when the time comes to sell.
Move During the Off-Season
Not only might you get a better deal on real estate during the off-season, but removal companies are more likely to offer better rates as well. Typically, people move less from October to April, which goes for people moving to Colorado as well. While this might mean traveling in colder weather or having to work around childcare and employment commitments, it can be worth it to save a chunk of cash.
Bring Your Furniture With You
If removal costs to Colorado are high from the state you live in, it can be tempting to leave behind a lot of your furniture. However, chances are that furniture will be even more expensive in Colorado, so it’s better to keep what you have instead of buying a lot of it new. If you have clutter or junk you don’t need anymore, you should donate it or throw it away. There’s no sense in moving things that you don’t want in your new place.
Moving to Colorado will be an exciting new adventure, just make sure not to spend too much money in the process.