States with no Income Tax - make use of them

If you lived in one of the states with no income tax, how much money would you save? When I moved to Wyoming, it was like living free. I deposited my entire "California" paycheck in the bank and lived very well on just the "California tax money" that wasn't being taken out anymore.

My rent, phone, food and fuel was all paid for by that "tax money" that I wasn't giving up to California. It seemed like one of the better money saving ideas when I first thought about it, and it just kept looking better and better as I lived in the state and paid no income tax.

This idea can be implemented in almost a dozen states including Florida, Texas, Washington, Wyoming and Tennessee. And, I'll bet that you can put that avoided "tax money" to much better use than any state government can.

Remember, tax evasion is illegal, but tax avoidance is perfectly legal, and one of the best ideas for saving money because taxes are recurring and they can be hefty. Keep in mind that where you live is all up to you, and you can choose one of the states with no income tax.

Also, be mindful that some states make up for a lack of income tax with other taxes. Some have higher real estate taxes, sales taxes and other ways to squeeze wealth out of you. As far as I'm concerned, just about all of the major taxes are upside down. In other words, they don't make any sense to me and often they serve as a penalty for being successful.

So, before you move to one of the states with no income tax, be sure to evaluate the total tax burden associated with that state. Here in Wyoming our total tax burden is quite low, often scraping the bottom in nearly all categories of taxes. I like it that way, but I'd also like to see some of the taxes and fees disappear altogether and reappear as user fees so those who use the service or facility are the ones who pay for it. That would allow us to keep more of our money based on our own frugality and lifestyle choices.

Just as a few data points about state taxes based on my observations. Nebraska and Michigan seem to have very high real estate taxes plus income taxes. California real estate taxes aren't bad, but their income and sales taxes are quite high. Do your research well before picking up and moving, and if your move is associated with a job offer, make certain there is an increase in pay commensurate with the increased tax burden associated with relocating to another state. Remember that Tax-a-chusetts didn't get it's nickname because it's famous for taxidermy.

Done with States with no Income Tax, take me back to Money Saving Ideas

There certainly is a broad scope of topics here at Frugal Living Freedom. When you think about it, money permeates so very many activities in our lives, therefore, being frugal encompasses a wide range of interests, from being employed to taking a vacation, and just about everything in between. Enjoy the variety, pick up some new ideas, and start making frugality a part of your signature.

I'm a big proponent of being debt-free, and I mean entirely debt-free - no mortgage payment. It's not essential for financial freedom, but you'll love the feeling once you get there. If you didn't have a rent or mortgage payment, how much more could you do for yourself with your current level of income? I suspect plenty.

If you ever hope to see an abundance of wealth, you need to plug the hole in your boat. The wealthy don't necessarily make lots of money, instead, they know how to hang onto what they make, and make it work for them.