Cost of Living in United States: The thought of moving to the United States is an exciting prospect for many South Africans looking for new opportunities and adventures abroad. With its seemingly endless cultural and geographic diversity, the U.S. offers something for everyone – bustling big city life, sandy beaches, rugged mountains and wide open heartland.
But before you start packing your bags, it’s important to understand the true cost of living in the States. Because while the American Dream is alive and well, it doesn’t come cheap!
So to help you get a realistic sense of expected expenses, I’ve put together this in-depth look at what it takes to live comfortably in the U.S. We’ll go through average costs for essentials like housing, healthcare, food and transport across different locations. Sound good? Let’s dive in!
Finding the Right Place to Live
No surprise, the biggest monthly expense for most folks is housing. The cost of renting or buying property can vary tremendously depending on where you choose to settle down.
In major metropolitan areas like New York City and San Francisco, brace yourself for sky-high rates. We’re talking averages of $3,500+ per month for a modest 1-bedroom apartment in the city center. And buying a small starter home? That’ll set you back around $1 million in mortgage payments.
Yikes! But it’s not all bad news…
There are plenty of more affordable areas around the country too. For example, mid-sized cities in states like Ohio and Illinois offer nice 2-bed apartments starting around $1,000 per month. And suburban neighborhoods outside bigger cities have single-family homes selling for $250,000 to $375,000.
The most budget-friendly regions tend to be in America’s heartland – think Iowa, Kansas, Missouri. You can easily find basic but comfortable accommodation for under $800 per month or mortgages under $150,000. The trade-off is being located away from major job centers and amenities.
So first decide what lifestyle suits you. Do you prefer being in the thick of an energetic urban area with dining, arts and nightlife? Or are you happy in a quieter small community setting? This choice will guide your housing search and budget tremendously.
Navigating America’s Complex Healthcare
One huge difference from South Africa is navigating the complex healthcare system in the U.S. The government doesn’t provide universal public coverage to all citizens. So you have to either pay for private medical insurance or qualify for government-assisted programs.
Most working professionals get medical benefits through their employer. Average monthly premiums range from $300 to $600 per person for decent PPO or HMO plans. Then you still have copays, deductibles and prescription costs per visit or procedure. Having a major health issue can get very expensive, very quickly.
If you don’t have workplace insurance, private plans cost $500 to $1,000+ monthly. Ouch! Alternatives like Medicare and Medicaid help low-income folks, but often have limited provider choice.
Bottom line – healthcare costs are unavoidably high in America, even with insurance. So when budgeting, be sure to account for maximum out-of-pocket costs should an emergency occur. Having at least $5,000 – $10,000 available for unexpected medical fees is smart.
Fueling Up on Food, Drink and Groceries
Of course you gotta eat! Food costs are relatively reasonable in most parts of America. Plan on $300 to $600 per month for a single person’s grocery bill. The usual suspects like meat, produce, dairy, bread and snacks add up. Eating organic and fresh definitely increases costs over pre-packaged and frozen convenience foods.
Dining out 3-5 times per week at restaurants can tally another $300 to $500 typically. This covers a mix of fast casual spots for lunch and nicer sit-down places for dinner. And don’t forget the obligatory weekend brunch!
Alcohol purchased at the grocery store or liquor shop is pretty affordable. But glass of wine or cocktail at bars and restaurants bumps costs up considerably.
Saving on groceries by shopping sales, buying generics and meal prepping helps cut dining bills. But there’s no way around it – Americans love to eat out! Just be strategic when choosing where.
Getting Around by Car, Public Transit and Plane
America is huge, so getting around takes effort. In most cities outside the Northeast, having your own vehicle is essential. Used cars can be purchased for $5,000 to $10,000 easily. Then tack on $100 to $300 per month for car insurance.
Gas averages $3 to $5 per gallon depending on location. All said, expect to budget $300 or more for transportation when including parking, maintenance and registration fees.
Public transit like buses, subways and commuter trains connect major areas in population dense regions like Chicago, D.C. and New York City. Fares cost around $100 monthly for unlimited rides. Systems are limited elsewhere, so mass transit isn’t always realistic coast-to-coast.
And of course, domestic flights are an option when traveling longer distances within the States. Regional Budget airlines like Spirit and Frontier offer crazy cheap fares under $50 one-way if booked well in advance.
Owning a car is the most convenient option. But if living and working in a major hub, you can potentially rely on public transit only at significant savings.
Utilities, Internet and Other Necessary Expenses
Housing and food may be the big budget dominators. But smaller recurring bills still take their toll:
– Utilities like electricity, gas, water, sewage and trash pickup run $150 to $350 per month depending on size of residence.
– Cell phone service starts around $40 per line monthly plus data fees.
– Home internet costs $50 to $150 monthly depending on speed.
– Renter’s insurance is wise for contents protection at around $15 to $30 per month.
– Gym membership for fitness and recreation averages $40 to $75 monthly.
Discretionary costs like travel, entertainment, clothes, debt payments and children’s activities also quickly add up. Building room into your budget for these “extras” ensures they don’t break the bank.
Budgeting for Taxes
Ah, taxes – definitely not my favorite part of living in the U.S! But certainly a necessary one.
Federal tax rates range from 10% to 37% depending on income level and marital status. State taxes add another 0% to 13% typically. Some cities levy local taxes too.
For example, a single filer earning $75,000 per year pays 22% federal and 5% state taxes for an effective rate around 25%. Not terrible, but it still eats into take-home pay significantly. Just be sure not to underestimate tax withholding to avoid penalties.
Most American employers automatically deduct taxes from each paycheck. As a self-employed worker, you make quarterly estimated payments. An accountant can help ensure you get deductions and credits you deserve.
Saving Up for Big Moving Expenses
Let’s not forget the substantial one-time costs that come with an international relocation. You’ll need to budget for:
– Visa fees ranging from $50 for tourists to $1,500+ for green cards.
– Immigration attorney costs can tally $5,000+ for assistance navigating the bureaucratic process.
– International moving company fees often amount to $10,000+ for full-service.
– Flights for yourself, family members and even pets add another few thousand.
And don’t forget small but critical setup costs like a rental deposit, new furniture, utility activation charges and more. Easily another few thousand dollars.
All said, have $15,000 to $20,000 minimum set aside for a smooth Stateside transition. Deep breaths – you got this!
Choosing a Place to Call Home
As you’ve seen, America is a big, diverse place with equally wide-ranging costs of living. You can always find ways to trim spending through smart choices. But a few key factors typically determine overall affordability:
– Location – Smaller Midwest, Southern or Southwestern cities offer the best bang for the buck over coastal metros.
– Housing Type – Get more space for your dollar by living farther from urban cores in suburban or rural locales.
– Lifestyle Expectations – Managing expectations for dining, entertainment, travel and amenities controls budgets.
– Income Levels – Higher salaries in expensive areas help offset steeper costs, while lower incomes may force frugal living.
There you have it – a comprehensive insider overview of what to expect when moving your life to the United States. I hope reviewing average costs for essentials like housing, healthcare, food, transport and taxes helps you make this life-changing decision with greater confidence and clarity.
While not exactly “cheap,” the American Dream is still highly attainable for South Africans who budget smartly and carefully target affordable locations that best support their lifestyle. Trust me, with the right prep work and expectations, you CAN absolutely make it work financially!
So what questions come to mind after reading this? Any areas you need help estimating costs for your situation? Moving to the States is a huge step, so I’m here to help as much as I can. Just drop your questions in the comments below. Let’s continue the conversation!