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Why the Midwest Is America's Best-Kept Wealth-Building Secret

Family Finances Financial Plan

Why the Midwest Is America's Best-Kept Wealth-Building Secret

What if the smartest financial move you could make had less to do with the stock market and more to do with your zip code? The twelve states that comprise the geographic Midwest (Illinois, Ohio, Michigan, Minnesota, Indiana, Wisconsin, Missouri, Iowa, Kansas, Nebraska, North Dakota, and South Dakota) are home to over 1.6 million households with investable assets of over $1 million as of 2020, according to Kiplinger's "Millionaires in America 2020: All 50 States Ranked." Once considered flyover states, millionaires now seek to relocate to the Midwest for its affordable cost of living, work-life balance, and humble, friendly neighbors.  

Reasonable Cost of Living
Using the calculator created by the Indiana Business Research Center at Indiana University's Kelley School of Business,comparing the cost of living in Alexandria, Virginia, to Bloomington, Indiana, reveals that a dollar spent in Bloomington has 38% more purchasing power than the same dollar spent in Alexandria. In other words, if you earn approximately $145,000 in Bloomington, Indiana, you would need to earn at least $200,000 to have the same lifestyle in Northern Virginia. 

If you compare your dollars from parts of the West Coast to the Midwest, the numbers are even more striking. A dollar spent in Indianapolis, IN has 82% more purchasing power than the same dollar spent in San Francisco, CA. If you earn $110,000 in Indianapolis, you would need to earn at least $200,000 to have the same lifestyle in San Francisco. Indianapolis has 15% lower grocery costs, almost 30% lower housing costs, 8.5% lower utility costs, 8.7% lower transportation costs, and 4.8% lower health care costs than San Francisco. 

Work-Life Balance
72% of workers consider work-life balance an important factor when evaluating a job, and 57% of job-seekers say poor work-life balance is a dealbreaker, as reported by Zippia.com. Commuting to and from work can take hours, adding up to days away from family and friends. The average one-way commute to New York City is 40.6 minutes, compared to the Midwest's best average commute, Omaha, Nebraska, at 20 minutes. Even commuting to large midwestern cities will save you time, like Detroit (22.9 minutes), Minneapolis (22.8 minutes), and Chicago (33.5 minutes). 

Having a balance in life means you work diligently at your job, but then have time to coach your kids' soccer teams or go fishing on a Saturday morning. You live in a community where you know your neighbors by name because you have time to work in your yard, go for a walk through your neighborhood, or invite friends over for a backyard barbecue.

Nice People
Residents of Indiana have a reputation for Hoosier Hospitality, but is there really a difference in demeanor? Actually, yes. Researchers at the University of Cambridge studied five different personality traits (neuroticism, agreeableness, openness, conscientiousness, and extraversion) of nearly 1.6 million people across the United States and organized the results into three clusters. The map of the United States below clearly shows the Midwest as the Cluster 1 region "Friendly & Conventional," and the West Coast was predominantly saturated with Cluster 2, "Relaxed & Creative." Whereas New Englanders were most likely to fall into Cluster 3, "Temperamental & Uninhibited." 

In addition to this research, the Environmental Literacy Council found that Minnesota emerged as a frontrunner for being the nicest state in the Union, but Indiana wasn't far behind, known for its down-to-earth people and friendly atmosphere. 

Become a Midwest Millionaire
How do you put a price on your time? Midwest Millionaires are not defined by a flashy lifestyle, but by living well, saving and investing for decades in a disciplined, purposeful way. If you are already in the Midwest or looking to relocate and are unsure whether your current financial plan is on track, the fiduciary advisors at Hurlow Wealth Management Group are here to help.

For over two decades, the advisors at Hurlow Wealth Management Group have helped Midwest Millionaires in 28 states find clarity, make decisions with confidence, and achieve comfort in retirement. 

Whether you are building wealth in Bloomington, relocating a business to Indianapolis, navigating a major financial transition, or looking to protect the wealth you have already built, we're here to help. Call 812-333-4726 or click here to schedule your complimentary introductory call with an advisor today.

Sources

Services offered through Hurlow Wealth Management Group, Inc., a Registered Investment Adviser. Hurlow Wealth Management Group, Inc. does not provide tax, legal or accounting advice.  Advisory services are only offered to clients or prospective clients where Hurlow Wealth Management Group, Inc. and its representatives are properly licensed or exempt from licensure.  Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Hurlow Wealth Management Group, Inc. unless a client service agreement is in place.


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