How “successful” is your state compared with others?
It’s a challenging question to answer, but GoBankingRates ranked all 50 states plus Washington, D.C., from most to least successful by weighing average incomes, poverty levels, class composition and the counts of millionaires and billionaires.
A few results were unexpected: Oregon landed down at No. 37, New York sits at No. 13 and California actually has more billionaires than the Empire State. Still, for the most part you probably won’t be surprised by where your state ranks.
Similar to our analysis of top 1% incomes by state, this success map highlights clear regional divides across the country.
Put plainly: This is yet another map showing that Southern states typically have lower incomes than others.
The bottom 10, listed from least to more successful, are mostly clustered in the Southeast and Southwest:
- Mississippi
- New Mexico
- West Virginia
- Arkansas
- Kentucky
- Alabama
- South Carolina
- Louisiana
- Tennessee
- Arizona
The top 10, starting with the most successful, are dominated by the Northeast:
- Connecticut
- Maryland
- New Jersey
- Massachusetts
- New Hampshire
- Washington, D.C.
- California
- Alaska
- North Dakota
- Virginia
How to Be More Successful
That ranking makes for something to brag about if your state places well. But what can you do if it doesn’t?
As GoBankingRates notes, relocating to a higher-ranked state doesn’t automatically make you wealthier. Moving from Mississippi to Connecticut won’t itself turn you into a rich person.
They suggest, “Residing in a state that offers families a richer lifestyle and includes a fair share of financially thriving people might help you chase the financial success you want.”
That’s a reasonable point. Being around more prosperous people can offer advantages. Even so, it’s not a guarantee.
Truthfully, changing your address isn’t a magic shortcut to financial success. More often, success comes from hard work and smart money choices, regardless of your zip code.
If you live in a state with high poverty, a sizable lower class and no billionaires to speak of, don’t panic. You can still build a wealthy life independent of your immediate community and its economy.
And if you’re lucky enough to live in a higher-ranked state, share these ideas with friends in lower-ranked regions:
1. Find an Employer That Lets You Work Remotely
Working remotely frees you from being tied to the local economy. You can tap into pay from employers based in other states.
Many firms now offer work-from-home roles — here’s a list of 125 such companies.
Look for a company based in a “more successful” state that hires remote staff. That way you can enjoy the lower living costs where you reside while earning pay tied to a stronger local economy elsewhere.
If you’ve never worked remotely, expect a learning curve. You’ll need to manage your time, cope without daily office camaraderie and fend off household distractions.
Check out these 12 blogs for guidance and communities that support remote work.
To find remote positions, follow these six Twitter accounts and browse these 13 job sites.
Also like The Penny Hoarder Jobs on Facebook to get early alerts about interesting remote opportunities.
2. Launch a Side Hustle
If you’d rather not switch employers — or you’re content with your current role — think about ways to earn extra income on the side.
Start a side business that complements your day job, or try some of these clever ideas for making money from home.
Running an online business or side gig is an effective path to building the career you want, no matter where you live.
It will require time to grow, but creating a blog can be a fun, creative route to passive income after attracting an audience. If you’re short on funds, launch a blog inexpensively with these 30 free or low-cost tools.
If writing isn’t your strength, consider other online ventures. Make and sell crafts on Etsy, flip merchandise using Fulfillment by Amazon, or leverage your area’s natural assets to sell plants and foliage!
With enough effort, you don’t need substantial capital to start a small enterprise. Read these stories of entrepreneurs who began with under $100, just $50, or even nothing at all.
Prefer non-digital work? Here’s how to be self-employed even if you’re not a fan of the internet.
3. Begin Investing Small Amounts
No matter the strength of your local economy, you can grow your wealth through investing — even with very little money to start.
First, if your employer offers a 401(k), we recommend contributing. It’s essentially a raise and helps build long-term security.
If that option isn’t available, consider these five retirement accounts you can use, and 12 strategies to boost your savings by up to $5,000 this year.
Beyond retirement accounts, there are many ways to invest even a few dollars.
The Clink app will automatically invest as little as $1 per day from your bank.
If you want to invest even smaller sums, Acorns rounds up card purchases to the nearest dollar and invests your change. I calculated that I could save about $420 in digital change over a year without thinking about it.
Here are some odd investments you can make for under $100 — from bands to treasure hunters to tiny plots of land — and tips if you prefer to put that cash into the stock market.
If you’re curious how far $100 can go in various investments, we’ve worked the numbers for you.
4. Live Modestly (Without Obsessing Over Coupons)
If you live in a less affluent area, frugality may already be familiar. But that doesn’t mean you have to miss out on a full, enjoyable life.
To save money while still enjoying life, here are some of our favorite frugal living suggestions:
- Use these cleaning tips to save cash without investing a lot of time or DIY supplies.
- Don’t skip travel — do it affordably with these easy hacks.
- Follow these steps to manage your finances in under 15 minutes a month.
- If you’re buying a home, use these 10 tactics to save on your mortgage — or buy outright with cash!
- Try these five approaches to cut costs when buying a car and explore vehicles that are cheapest to maintain.
- To lower utility bills, try these 23 creative tactics to trim your energy expenses.
- Reduce entertainment spending by dropping cable and use these tips to stream your favorite shows without it.
- Save on mobile service by getting a free plan through FreedomPop or the FCC’s Lifeline program.
Think it can’t be done? Read how a stay-at-home mom of four helps her household live well on a $36,000 annual budget.
5. Attend a Good College, Even If It’s Out of State
Worried you or your children will be stuck with substandard schooling because of where you live? Don’t assume that’s the case.
Thanks to need-based aid, elite schools like Princeton or Harvard could be more affordable than you expect. Aim high.
You can also seek scholarships to help pay for quality education. There are many options you might not have considered:
- Explore our list of 100 college scholarships…
- Don’t miss these 100 unusual college scholarships!
- These nine schools will even cover full tuition.
Your turn: Where does your state rank? What steps are you taking to create success where you are?
Alex Rivera is a staff writer at Savinly. He’s contributed to various publications, weaving humor into his work where appropriate.
