![]() That’s because basic living expenses in the New York-Newark-Jersey City metro area of New York, New Jersey and Pennsylvania add up to $33,107 per year. In the nation’s largest metropolitan area, a person needs a biweekly take-home pay of at least $2,547 to live comfortably. After their basic living expenses are covered, an individual could spend $19,930 on wants and set $13,287 aside for savings or debt paydown. This means a single person needs to make at least $66,434 after taxes to live comfortably. As a result, a single person would allocate 30% of their take-home pay ($20,589) for discretionary spending and $13,726 for savings and debt payments.Īverage living expenses in the Seattle-Tacoma-Bellevue metro area in Washington total $33,217 per year, according to MIT calculations. Living expenses for an individual in this New England population hub add up to $34,315. The Boston-Cambridge-Newton metro area, which extends into New Hampshire, requires the second-highest after-tax income ($68,630) to live comfortably. Using the 50/30/20 budget, a person living comfortably in this part of California would allocate another $22,285 for discretionary spending and $14,856 on savings and debt paydown. According to the MIT Cost of Living Calculator, a single person in the San Francisco-Oakland-Berkeley area spends a minimum of $37,141 on living expenses annually. To live comfortably in the San Francisco-Oakland-Berkeley metro area, an individual needs to earn at least $74,282 after taxes, making it the most expensive of the nation’s 25 largest metro areas. metro areas is $57,013. It takes at least $2,193 in biweekly paychecks after taxes ($57,013 in annual after-tax income) to live comfortably across the 25 largest metro areas in the U.S.įive Places That Require the Highest Salaries The average salary needed to live comfortably across the 25 largest U.S.This is almost 37% lower than the salary ($74,282) Californians need to live comfortably in the San Francisco-Oakland-Berkeley metro area, which is ranked as the most expensive in our study. Louis metro area in Missouri and Illinois requires an annual post-tax salary of just $46,864 (or biweekly paychecks of $1,802) to live comfortably. Financial comfort is most affordable in St. ![]() Greater Denver is the only metro area not located on either coast that appears in the top 10. Metro areas on the coast require the highest salaries. Unsurprisingly, metro areas along the East and West coasts demand the most after-tax income to live comfortably, with nine out of the top 10 places located on the eastern and western seaboards.50% of one’s budget) and then calculated the total take-home pay that enables individuals to spend an additional 30% on wants and 20% on saving/paying off debt. ![]() We assumed the MIT cost of living figure for each metro area would cover needs (i.e. The online tool calculates the cost of living by adding together the average cost of housing, food, transportation, medical care and other expenses within each metro area. This rule is a budgeting strategy that allocates 50% of after-tax income to basic living expenses (needs), 30% to discretionary spending (wants) and 20% for savings or debt payments.įor the study, SmartAsset used the MIT Living Wage Calculator to gather the basic cost of living for an individual in each metro area. To find how much money is needed to live comfortably in different parts of the country, SmartAsset used the 50/30/20 rule to define that comfort level. In this study, SmartAsset analyzed data to identify how much Americans need to earn to live comfortably in the 25 largest metropolitan areas in the U.S. The huge difference in these figures indicates that financial comfort is ultimately a relative figure and depends on one’s household size, life stage and other personal factors.įor working individuals, however, the threshold for financial comfort in terms of salary may be easier to determine. ![]() Another survey by Personal Capital says that Americans believe that they need to save an average of $516,000 to maintain financial health. In a 2021 modern wealth survey, Americans told Charles Schwab that they need an average net worth of $934,000 to be financially comfortable. ![]()
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