How much money do you need for the American dream and what is your Plan B? With sky rocketing taxation, people earning even $100,000 a year in the US aren’t in the position to get the US citizenship easily. The benchmark of earning a six-figure salary is no more applicable in 2024. Its now the tipping point that states a disposable income that can get you to what you want, not just your needs.
What is the American Dream?
The American dream is what makes a middle-class lifestyle, i.e., you are able to make payments for your bills, to buy food, provide shelter to your family along with some additional savings for unforeseen times and a portion for retirement. This was achievable for a person earning $100,000 annually some time ago, however now people are earning well over this benchmark but living from paycheck to paycheck. What was known as financial independence is now about a depressing situation where people struggle for end meets.
Difference Between Cost of Living and Wages is Growing
CNBC, an American business news channel YouTube video report states that 26% of people highlight the need for a more robust salary package in the range of $100K-$149K to manage their financial matters comfortably. The video states that wages haven’t kept up with the cost of living during last 5 decades and thus the dream of living in the US is hard especially for middle class, said Jessica Dickler, a renowned Personal Finance Writer at CNBC Business News.
According to the United for ALICE (Asset Limited, Income Constrained, Employed) program, 29% of the US population which is around 40 million are financially vulnerable. This is not limited to middle class only as the US elite class with an empire of wealth is considering alternate options. Statistics shows that the US elite class is moving away from the US or even renouncing their US citizenship status to avoid taxes.
5 USA States with Least Cost of American Dream
*Image Source: GoBankingRates
As per GOBankingRates, the 5 cheapest US States with least cost of American Dream covers 11 points and their cost. This includes the following:
1: American Dream in Mississippi
Mississippi is the cheapest state where the annual cost of American dream in 2024 is $109,516. As per GOBankingRates, the median home price in Mississippi is $170,810.
Here is the analysis of for Mississippi:
| KPIs | Cost of Each KPI |
| Total Annual Cost | $54758 |
| Annual Grocery Cost | $8076 |
| Pet Care Cost | $1096 |
| Annual Car Cost | $8741 |
| Annual Mortgage | $11911 |
| Annual Healthcare | $7272 |
| Utility Cost | $5123 |
| Education Cost | $2319 |
| Child Care | $10220 |
2: American Dream in Arkansas
Arkansas is ranked second cheapest state where the annual cost in 2024 is $116,511. As per GOBankingRates, the median home price in Arkansas is $198,530. Here is the financial analysis of American Dream in Arkansas:
| KPIs | Cost of Each KPI |
| Total Annual Cost | $58256 |
| Annual Grocery Cost | $7918 |
| Pet Care Cost | $1130 |
| Annual Car Cost | $8740 |
| Annual Mortgage | $13785 |
| Annual Healthcare | $6466 |
| Utility Cost | $5457 |
| Education Cost | $2391 |
| Child Care | $12368 |
3: American Dream in Kentucky
Kentucky holds 3rd position in terms of affordability where the annual cost of American dream. The average annual cost in Kentucky is $116,815. As per GOBankingRates, the median home price in Kentucky is $196,576. Here is the financial requirements in Kentucky:
| KPIs | Cost of Each KPI |
| Total Annual Cost | $58407 |
| Annual Grocery Cost | $8417 |
| Pet Care Cost | $1168 |
| Annual Car Cost | $8738 |
| Annual Mortgage | $14022 |
| Annual Healthcare | $6185 |
| Utility Cost | $6219 |
| Education Cost | $2472 |
| Child Care | $11185 |
4: American Dream in Alabama
Alabama is at 4th in terms of low cost for living and owning a house in America. The average annual cost in Alabama is $117,924. As per GOBankingRates, the median home price in Alabama is $217,961. Here is the cost analysis in Alabama:
| KPIs | Cost of Each KPI |
| Total Annual Cost | $58962 |
| Annual Grocery Cost | $7985 |
| Pet Care Cost | $1121 |
| Annual Car Cost | $8739 |
| Annual Mortgage | $14611 |
| Annual Healthcare | $6429 |
| Utility Cost | $6100 |
| Education Cost | $2373 |
| Child Care | $11604 |
5: American Dream in West Virginia
West Virginia holds 5th position for its affordable cost of American dream. The average annual cost of in West Virginia is $120,559. As per GOBankingRates, the median home price in West Virginia is $155,333 which is the lowest among 5 states, however the cost of American dream is still the highest. Here is the cost analysis in Alabama:
| KPIs | Cost of Each KPI |
| Total Annual Cost | $60279 |
| Annual Grocery Cost | $8176 |
| Pet Care Cost | $1114 |
| Annual Car Cost | $8737 |
| Annual Mortgage | $10677 |
| Annual Healthcare | $7139 |
| Utility Cost | $5701 |
| Education Cost | $2356 |
| Child Care | $16380 |
What is the Alternate to American Dream?
The annual true cost of American dream can get you to citizenship of a country where you can do more for yourself and for your family. With the least cost of American dream is $109516 for Mississippi state, you can get citizenship of a Caribbean country. Other than Caribbean citizenship, though there are European residency options leading to citizenship, visa free access and better lifestyle, however you have to pay the higher cost which is still affordable for majority of the Americans.
Dominica Citizenship by Investment
Dominica is a tourist haven, known for its picturesque views, tourism activities including scuba diving, forest hiking, visiting water falls, surfing and walking on beaches. This creates the demand for tourist accommodations. Dominica citizenship by investment in real estate is not only most affordable option but also offer a high ROI for investors.
You can invest in government approved real estate projects including villas, residential apartments, hotel complex, or shares of an object.
Tax Benefits in Dominica
Dominica citizens are exempt from paying income tax, tax on capital gains and tax on inheritance, while there is also no tax on international income including dividends and royalties.
Cost of Dominica Citizenship
Dominica citizenship by investment is one of the cheapest options in world that starts from donation of $100,000 or $200,000 Real Estate Investment. Apart from donation or investment, there are certain other fees including $1000 processing fee per application, $250 for certificate of naturalization fee, $7500 for Dominica due diligence fee for main applicant, and $4000 for the due diligence of dependent aged 16 or above.
Dominica Family Citizenship
If you are applying for the citizenship of Dominica with family (main applicant, spouse, child, mother and siblings 25 or younger) through real estate investment, you need to pay additional $85,000 as government fees.
Grenada Citizenship by Investment
The required amount of investment for Grenada citizenship starts from $150,000 via National Transformation Fund for a single applicant. Real estate option starts from share purchase with a minimum $220,000 investment in government approved projects. You can also purchase independent property with an investment of $350,000 or more.
Applicant need to pay the $50,000 as government fee for a family of 4 and an additional $25000 for subsequent family member. Grenada is a tax haven where low tax rates and no tax on international income is exempt from taxation.
Key Features of Grenada Citizenship
Grenada citizenship holder get access to visa free travel to 150+ countries including Schengen states, the UK, China, Hong Kong, Singapore and others. There is no visit requirement or need to clear the language test while the country allow dual citizenship.
St. Lucia Citizenship by Investment
St. Lucia is known as a paradise Island known for its pristine beach life, tropical cuisine, rainforests and a vibrant living style. The St. Lucia citizenship by investment includes two options, i.e., by donation and by real estate investment. First option requires one-time non-refundable donation of $100,000 with no ROI and thus is an expensive option to consider. Second option include real estate investment starting from $220,000.
St. Lucia is Family and Tax Friendly
St. Lucia citizenship program is known as the family friendly option as it allows inclusion of spouse, children upto age of 30 years, parents and unmarried siblings. Further, the country is also famous due to its tax friendly policies, allowing you to build and grown your financial empire. You are free from the obligations to pay taxes on your international income from capital gains and inheritance etc.
Portugal Residency by Investment
Though the Portugal has vanished the real estate investment stream, the country has other options to attract foreign investment. Portugal residency is a bit different than the citizenship by investment programs. Like other European countries, the country offers Golden Visa that allow investors to reside for 5 years and then can apply for Portugal citizenship. The Portugal residency permit require an investment for a period of 5 years in government approved plans.
Portugal Residency Investment Routes
These plans include either Capital transfer or business venture. Available options include
- Purchase of investment funds unit of worth €500,000 or more investment for 5 years
- Supporting arts and restoration of culture heritage sites with a contribution of €250,000
- Investment in research activities worth €500,000 or more
- Business Investment of worth €500,000 or more
- Company formation that employed 10 jobs for locals
Hungary Residency by Investment
In the time when European countries are limiting the residency by investment options, the new Hungary residency by investment is a fresh breeze for investors. The program is improved and offer the best ROI which is key attraction for investors, while they can live in the country and can enjoy the travel freedom. Further, the quick processing time and investment in real estate means you got a powerful passport and a sustainable income stream for you and your family.
Hungary Golden Visa is officially known as the Guest Investor Visa allows investment in the booming real estate market of country. The affordable real estate prices mean you can get benefit from the property price rise with timely investment.
10 Years Residency Plan
Hungary Golden Visa allows a residency of 10 years which is renewable for next 10 years as well, while you can apply for EU citizenship and a valid EU passport after living 8 years in Hungary. The world class education, best healthcare, quality of life and low cost of living are the key attractions
Cost of Hungary Golden Visa
Hungary Golden Visa require purchasing residential property worth €500,000 or more. You can also invest €250,000 or more in Real Estate Investment Funds to qualify for the Hungary residency permit. The government has set the threshold for donation to €1 million which can be made for educational, scientific and art institute institutes.
Conclusion
Being the person with shattered American dream, you can choose from any of the mentioned citizenship or residency program that suits to your needs. It is worth mentioning that Caribbean countries have agreed to set the minimum investment threshold to $200,000. This price hike is slated for implementation from 30th June 2024. Still, the $200K starting price is under control for people who didn’t consider the US as a dream homeland.