A recent report by SmartAsset highlights the rising cost of living across the United States, indicating that single adults earning less than $80,000 a year struggle to live comfortably in any state. The study utilized data from MIT’s Living Wage Calculator, considering essential expenses like housing, transportation, and taxes, and applied the 50/30/20 budgeting rule to define a comfortable lifestyle. This rule allocates 50% of income for necessities, 30% for discretionary spending, and 20% for savings, debt, or investments.
West Virginia emerged as the most affordable state for single adults, requiring an income of $80,829 to live comfortably. In contrast, Hawaii was the most expensive, with a required income of $124,467. The report also noted that individuals need to earn approximately $5,844 more this year compared to last year to maintain a comfortable living.
For families of four, Mississippi was deemed the most affordable state, with a necessary income of $186,618. On the other end, Massachusetts topped the list as the most expensive state for such families, requiring an income of $313,747. Overall, families need to earn around $9,360 more than the previous year to sustain a comfortable lifestyle.
This analysis underscores the significant financial pressures on both single adults and families across the U.S., with many states requiring high incomes to maintain a reasonable standard of living.