ChatGPT Unveils: 6 Worst States to Live If You’re Frugal

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Living frugally is a lifestyle choice embraced by many to stretch their income and savings. However, your location can significantly impact your ability to live economically. While some states offer a low cost of living and ample savings opportunities, others can be a challenge for frugal living due to high costs of housing, healthcare, taxes, and daily expenses.

ChatGPT took a look at data and studies conducted on all fifty states to narrown down the six states that might pose a challenge if you’re trying to live frugally:

1. Hawaii

GoBankingRates conducted a study in 2023, discovering that you need a staggering salary of just under $200,000 to be fully happy in the state. Different reports have stated different numbers, and ‘happy’ is very fluctuating term, but many states still claim that you must be over the $100,000 salary to feel fully relaxed in a state you probably moved to to be relaxed. The average salary in Hawaii is $72,000, comparing that to the average salary in the U.S. which is $56,000, it’s no wonder why ChatGPT feels this is a state to not move to if you’re frugal.

• Why It’s Costly:
  • Hawaii tops many lists as the most expensive state in the U.S. due to its high cost of living, which includes food, utilities, and housing. Its remote location contributes to higher prices for goods, as most are imported.
• Considerations:
  • While the natural beauty is unmatched, the everyday expenses from groceries to property costs can be prohibitive for those looking to stretch a dollar.

2. California

While California’s staggering 16.3% unemployment rate at the height of the pandemic has come down, 4.1% is still among the highest in the nation. Unless you want to live in cities that are lower priced such as Stockton, Sacramento, and Bakersfield, you’ll have to struggle with what many Californians do everyday, which is lower average salary which is currently at $53,000 as of 2024, also the same number as the national average. Compare that with the high living cost of California and you have a recipe for a frugalist nightmare. ChatGPT says skip this state.

• High Expenses:
  • California is known for its high housing costs, especially in metropolitan areas like San Francisco and Los Angeles. Taxes are also relatively high.
• Lifestyle Note:
  • Despite its allure, including great weather, beaches, and industry opportunities, living frugally can be challenging, especially with the state’s high utility and transportation costs.

3. New York

The Empire State comes with some empire-sized costs of living, with the average New York resident shelling out over $37,000 more than the national average. And with an unemployment rate of 4.3%, times are tough for a lot of New Yorkers right now. However, one can still find happiness at $81,420 referring to the same study conducted before. But ChatGPT says if you’re a frugalist to definitely be looking at different states.

• Urban Living Costs:
  • The cost of living in New York City and its surroundings can be steep, with high rent, food prices, and transportation costs.
• Tax Burden:
  • New York state also has a high tax burden, affecting everything from income to property.

4. New Jersey

The Garden State has a high cost of living, 14% higher than the national average, though unemployment has come down to 3.4%. As well as housing cost being high with a whopping 31% higher than the national average.

• Property and Taxes:
  • New Jersey residents face some of the highest property taxes in the country, coupled with a high cost of living.
• Commuting Costs:
  • Many residents commute to nearby states for work, leading to additional transportation expenses.

5. Massachusetts

The cost of living is a giant $52,000 more than the national average declaring this state a red light zone for any frugalist to move there. The average salary in this state is $65,000 which is higher than usual. Therefore if you do want to live in The Bay State, make sure your salary is much higher than the average if you want to live as frugal as possible.

• Education and Healthcare:
  • While it offers top-notch education and healthcare, these come with high costs. Living expenses in areas around Boston and other cities are significantly above the national average.
• Housing:
  • Housing in Massachusetts, particularly in the Boston metropolitan area, can be very expensive, making it difficult for frugal living.

6. Alaska

It takes a pretty penny to achieve happiness in Alaska, and unemployment is 4.3%. To achieve emotional well-being takes a lot less: $75,300 according to same study referred to before. Sunlight won’t be your only issue in this state, especially if you’re a frugal person. ChatGPT says to pass on this state for the penny pinchers out there.

• Geographic Challenges:
  • Despite no state sales tax and receiving annual payments from the Permanent Fund Dividend, the remote location leads to higher costs for goods and heating.
• Utility Costs:
  • Harsh winters and transportation of goods contribute to higher utility and overall living costs.

Conclusion

Living frugally requires careful consideration of your living environment. The states listed here present particular challenges due to their high cost of living, taxes, and housing prices. While they offer unique benefits and attractions, they might not be the best choice for those strictly adhering to a frugal lifestyle. It’s crucial to weigh the pros and cons of each location and consider all aspects of cost, from housing to groceries, before making a move. If frugality is your goal, seeking states with a lower cost of living might be a wiser financial move.

Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.

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