According to studies conducted by the US Census Bureau, Nashville ranks highest in the list of priciest cities to live in Tennessee. For those looking to call the Music City home, developing a budgeting plan to estimate your cost of living in Nashville can help ensure a comfortable lifestyle.
Cost of Living Estimates
Those in the process of moving to Nashville can determine an estimate for the city’s cost of living by accessing the right resources. Though the cost of living may differ based on lifestyles and family sizes, data derived from national reports can give a general overview of what can be expected.
According to a GOBankingRates report published in September 2020, homeowners in Nashville need an average annual income of $84,787, while renters require an average income of $87,115. Various areas of expenditure are factored into cost estimates and generally cover:
- Child care
- Health care
- Any other necessities
Tailor the Cost of Living to Your Situation
For those looking to determine their cost of living estimate, the Economic Policy Institute’s family budget calculator breaks down approximate costs for each of the noted necessities. For example, the monthly estimated expenditure for a family of four living in Nashville requires a monthly income of $6,602, which translates to an average annual income of $79,228. However, the cost of living for one person in Nashville is drastically lower than that of a family. A single person living in Nashville can expect expenditures around $3,074 a month, with an annual estimate of approximately $36,893.
Determine Your Budgeting Plan
While exact estimates may vary depending on the location and size of your real estate property, the budgeting process begins with assessing the overall quality of life you anticipate living. For those who make below the median annual average of $52,858, such a process may include calculating how much deficit you may need to cover with supplementary income or cushion with cost reduction strategies.
As a rule of thumb, think of your income in terms of the 50-30-20 rule that recommends:
- 50% be used on basic needs (food, housing, clothing, healthcare, education, etc.)
- 20% be stored in a savings account.
- 30% be used for recreational affairs.
By tracking your expenditures and setting rigid thresholds for each of your living necessities, you can gain a greater understanding of your finances.
How HND Realty LLC Can Assist
Looking for an apartment realtor in Nashville, TN? Contact HND Realty LLC for more info. As natives of Nashville, the owners of HND Realty LLC are familiar with local community developments, making our realtors valuable resources for those looking to move to the Music City. Whether you need realtor guidance to help land your next home or a personal financial advisor to assist with estimating costs, learn more today from our Nashville apartment realtor experts.