Is It Easier To Be Financially Successful In California?

While reading a post called “East Coast Living – Is It Really That Bad?” at the ever popular pf (personal finance) blog site: Financial Samurai, Sam pretends to try and justify the reasons that people would choose to live on the East Coast instead of the West Coast (and in particular San Fran), all the while really identifying why the West Coast is a superior place to live.

Like most articles Sam writes, it was a cleverly controversial piece and is designed to make you think hard about the reasons you do live anywhere else other than California (or the West Coast).  While reading it, my mind wandered like it sometimes does… and I started thinking perhaps the Sunshine state really does have a financial advantage over the other states on the East Coast (and the midwestern states too for that matter).

Advantages of the perfect weather in California (in particular San Francisco):

  • More sunlight during winter months which may induce a more pleasant state of being.  There has been studies that promote the idea that winter blahs are caused by the reduced sunlight, which leads to a form of temporary depression.
  • They have less rainy days, so the residents can be more active and get more done.
  • Reduced heating and cooling utility bills, since they have perfect weather.
  • A consistent temperature!  Since San Francisco has the optimal weather, logic would dictate that the people living there would also be operating optimally.

Or maybe I’m wrong, perhaps this environment is so pleasant that the perfect state of being is a distraction with all of the great things to be done in such a perfect, consistent climate?  Perhaps it’s easy to forgo doing work and instead go out and enjoy the endless supply of perfect days?

Since California has the most millionaires of all the states, I’d would say that the theory that the perfect weather aids in your financial success might be plausible!  Or is it a spurious correlation?

Without the seasons, I wonder if time seems to slip by more quickly for those living in a perfect climate?  I hope it’s not like you move to Cali when you are in your 20s, and then the next day your are in your 60s and retired?  Maybe life isn’t as fulfilling without a bit of hardships (or nasty weather) to overcome?  Or perhaps people work harder to create their own challenges?

Does this make sense or am I way out in left field?

-MR

18 thoughts on “Is It Easier To Be Financially Successful In California?

  1. Good weather conditions does not always support you financially. For example; during winters, you might use heaters which will definitely increase electricity bills. Other than this, whatever the weather may be like, it won’t make you successful financially to a greater extent.

  2. @Personal finance
    I beg to differ!
    1.) You attitude makes a huge difference in not only your creativity, but also you desire to work at all!
    2.) If you work outside, you may have 50% more time to do the type of outside work that you may do! For example, construction, landscaper, etc.
    3.) if It’s too hot, then you get lazy (or at least I do), so to perform optimally your environment should be optimal too.

    I’m just saying that if you live in a perfect environment, you might perform optimally!

  3. Don-san,

    Fun post! I’m thinking of writing a follow up post on why the West Coast is better, but isn’t it obvious already? 🙂

    Seriously, the list would be VERY long, and sunshine as the zeigeiber for happiness is just one of them!

    I so clearly remember the grey skies of the east coast weighing down my soul. But, who knows, I’m trying to fight for the EC residents, but I can only come up with 6. A lot of the comments from the post start highlighting some very weak arguments, so I think the 6 reasons is all the entire community can come up with!

    Best,

    Sam

  4. @Financial Samurai
    As someone that lives in a mid-eastern state that has always wanted to move out to the west coast, my opinion is baised…

    But I do think the perfect weather and positive effect from so much sunlight can have an effect on people’s financial success and even their level of happiness!

    I’m stuck where I’m at because my wife wants to be close to family… Oh well…

    Great article, I’d love to see a list of all the positives of living on the West Coast. I’ve visited, but I’m sure I’m still missing some of the positive aspects!

  5. I find it hard to really know if there are more millinoaires in California than everywhere else because you will inherently make more living in California to support the high cost of living. I wonder if there is an adjusted list somewhere that bring every region of the country to an even level, and compare from there. (Does that make any sense?) (Not to mention California has a large population compared to most other states. Or does it have a higher percentage of millionaires?

    Anyway, I love visiting California but I could never live there. I hate the traffic, I hate how it is foggy until noon, and I would miss the seasons. But I have family that live there and they would never want to live anywhere else. What is fun about California is the variety of climates you can experience. You can see snow in the mountains, Northern California is cooler than southern, etc.

    Maybe I am saying I don’t want to live there because I have to stay in Michigan for family reasons…

  6. Hello!

    I’m very partial to the East Coast (live in VA!), but, to each their own, right? I’ve had the pleasure of knowing a lot of CA transplants and it’s obvious CA is the magic land because everyone I know from CA wants nothing more than to move back to CA.

    However, I’m a little unclear as to why you think CA is better, financially, than the East Coast states. CA may have the most millionaires per state but the East Coast states (especially VA) dominates in the list of highest-income counties in the US (https://en.wikipedia.org/wiki/Highest-income_counties_in_the_United_States)

    One of the main, consistent complaints from CA transplants is our attitude towards life. They say we’re too focused on, and defined by, our careers, all we care about is work, and we’re always rushing rushing rushing. Well, yes, working through the summer doesn’t seem that bad when your alternative is “enjoying” that sweet 90 percent humidity weather. And yes, all we talk about is work (and traffic!) but we call it networking. So, working long and hard + constant networking + unusually low unemployment rate (thank you Fed. Govt!) = lots of households making well over 6 figures.

    Our sales tax is only 5% vs CA’s almost 10%. Our houses are still very overpriced but it’s on par with (maybe less than) CA’s housing prices. And, I don’t know the details of CA’s state budget but, from what I heard, they’re having a lot of trouble with it.

    I don’t doubt for a second that CA is a great place to live. My friend moved their a few years ago and I am absolutely jealous of the weather. Plus, every Californian I’ve ever met have always been really happy and kind and easy going- even in the East Coast! But, if we’re discussing who’s more financially successful, I’m going to have to go with the East Coast. We make more money, our jobs are more stable, and we pay less in taxes.

  7. The stats that I looked at stated that Hawaii has the highest percentage of millionaires per population.

    California is bigger and has a higher population, I think they were 9th in the percentage of millionaires per population. But they do have the highest number of raw millionaire.

    If it weren’t for my family, I’d live in Cali, and maybe even Seattle or Portland for a few years (yeah, it’s colder at the last 2 locations, but it also sounds like a fun place to live for a year or 2 🙂 )

  8. @Jin6655321
    I agree! I was wondering if the nicer consistent weather (esp. in San Fran), would be more conducive toward financial success. I’m trying to determine if the two variable may be correlate. On the surface, it would appear that there may exist such a correlation. I’m sure there is a correlation, but to what degree vs any other state.

    That said, the East coast is awesome place too! Personally, every year I go down to Hilton Head because it’s so great! I’m sure in either location it’s possible to become very rich. I was just suggesting that it might be the slightest bit easier in Cali. Although as you mention, such a high Tax structure in California does make it a bit hard to be financial successful too.

    Heck, practically any state in the United States is a great place to live, with ample opportunities to get ahead financially…. Especially in the internet age!

    I’m suggesting that with the perfect temperate conditions of San Fran, it would be the best place for financial success because of the city’s consistent perfect temperature.

    As a counter argument, I was wondering if a perfect environment temperature would hinder financial success because everyone is having too much fun, all year round…

    East coast, west coast, middle… we all have great possibilities to prosper if we try hard enough!

  9. Completely ignoring the financial part of this, Texas rules!!!

    Okay, now back to the task at hand. Even with perfect weather and more millionaires, obviously it can’t be perfect or we wouldn’t have so many California transplants in Houston. 🙂

    Plus, being married to a teacher and hearing the awful stories about California teachers…um, let’s just say that it wouldn’t be financially beneficial for us to move to the big CA. 🙂

  10. @Budgeting in the Fun Stuff
    Based on just your header picture at your side, I thought you would think that (beautiful picture) 😉

    High CA taxes are probably one reasons you are getting transplants! I’ve read on Sam’s site that the taxes are much more reasonable in Texas!

  11. I live in Southern CA and I would definitely agree that our weather rocks most of the year. I’m not so sure that time flies by faster, it just is less dictated by the seasonal changes.

    As for more millionaires living here, it makes sense. Our population is pushing 40 million people so it would be interesting to know if our percentages of millionaires are higher.

    And…if you are seriously thinking of moving to CA, you should visit the city you are fond of for a week or so and investigate the cost of living. It’s quite high, ya know!

  12. @Little House
    Yeah, I’ve been to San Fracisco before! By square footage, half of the house I have now goes for almost a million out in San Fran. Very expensive!!!

    I wanted to move out to the west coast when I was a kid in college, but I got married and my wife wants to stay close to the her family…

    Thanks for the tip about the costs!!!

  13. I have family living out in the SF area, and I can tell you that their quality of life is fantastic. Really, really good. Plus, they have microclimates there, so while it might be 55 degrees in SF, it could be 75 a short drive away.

    Great area, great outdoor living, many smart, ambitious people there, and a healthy living vibe as well.

    All that said…it’s costly to live there. Especially if you’re trying to move in from the outside. I had that opportunity a few times many years ago with job offers there, but when I looked at the cost of living I balked.

    I’m in the Chicago area, and have many very cool things here – though the weather leaves something to be desired for half the year! That’s ok, I’ll take it for now, and will spend less for housing. Fine with me!

  14. @Squirrelers
    I’m pretty sure I couldn’t afford to live in Cali either now. But when I was younger, definitely! When you’re younger and without a family, you can always split the housing costs with roommates!

    I only have half of the year that’s good too! I think if I had a full year of good weather, I might be able to accomplish more.

    Hard to say, but I’m content enough where I am. My family is happy, and that’s important to me.

  15. @Bucksome Boomer
    Is sounds pretty nice over there! We are fortunate in that we are close to the great lakes, but we also get a winter effect from being so close to them. Meaning that we get more snow that typically the rest of the state.

    I think your location may be the best of all, great weather and lower expenses/housing!

  16. @iamtheworkingpoor
    Most likely, college graduates from the top schools probably flocked there when the economy was booming, and were offered great jobs. The of couse you have a lot of employees that got rich because of stock options.

    That is a given… But I’m wondering if the perfect weather enables them to think more clearly and positively since they have perfect weather and a high degree of sunlight…

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