Securing employment in a large American metropolis typically accompanies a substantial paycheck However, these major metropolitan areas also generally come with a higher cost of living.
Actually, an individual adult would require secure at least $85,197 annually for a comfortable lifestyle In any of the top 100 largest cities in the U.S., as reported by a recent SmartAsset analysis .
This figure represents the sum required to meet essential expenses such as accommodation, meals, and healthcare, along with additional non-essential spending and savings for the future, in Indianapolis—the most affordable city mentioned here. Conversely, in San Francisco, one would have to earn more than $120,000 annually.
SmartAsset utilized estimations provided by the Massachusetts Institute of Technology. Living Wage Calculator and the common 50/30/20 budget guideline To establish what "financially comfortable" means and find out the lowest salary a single adult requires in different areas. Following the 50/30/20 rule for budgets, you should allocate half of your earnings towards necessities, thirty percent on desires, and twenty percent into saving and investing funds.
Nevertheless, these baseline figures do not necessarily align with the average earnings of individuals residing in each respective city. For instance, in Indianapolis, the local median household income stands at approximately $66,629, as reported by the U.S. Census Bureau’s American Community Survey. An individual making this salary might struggle to save for the future unless they manage to reduce their expenses effectively.
According to Census Bureau information, the median income aligns with SmartAsset’s estimation of what singles require to live comfortably in only nine out of the nation’s top 100 metropolitan areas. Below are these locations along with the amount remaining once their comfort criteria have been satisfied by SmartAsset.
1. Fremont, California
- Yearly income required for an individualadult: $124,592
- Median household income: $170,934
- Difference: $46,342
2. Frisco, Texas
- Yearly income required for an individual adult: $107,994
- Median household income: $141,129
- Difference: $33,135
3. Gilbert, Arizona
- Yearly income required for an individual adult: $107,037
- Median household income: $122,445
- Difference: $15,408
4. Arlington, Virginia
- Yearly income required for an individualadult: $127,046
- Median household income: $140,219
- Difference: $13,173
5. McKinney, Texas
- Yearly income required for an individualadult: $107,994
- Median household income: $116,654
- Difference: $8,660
6. San Francisco
- Yearly income required for an individual adult: $121,930
- Median household income: $126,730
- Remaining amount post fulfilling necessities: $4,800
7. Santa Clarita, California
- Yearly income required for an individualadult: $115,690
- Median household income: $118,489
- Difference: $2,799
8. Plano, Texas
- Yearly income required for an individual adult: $107,994
- Median household income: $108,594
- Difference: $600
9. Washington, D.C.
- Yearly income required for an individual adult: $108,077
- Median household income: $108,210
- Difference: $133
Ease might still be more accessible in expensive urban centers.
In numerous urban areas, though, it's considerably more difficult to follow a 50/30/20 budget on a median income.
For instance, in New York City, a single adult requires an annual salary of $136,656 to live comfortably, as stated by SmartAsset, whereas the median income stands at only $76,577.
Nevertheless, a decent salary might still be more achievable in places such as New York compared to areas with cheaper cost of living. Larger metropolitan areas often host a greater number of opportunities. higher-paying jobs Than in rural areas, a situation referred to as the urban wage premium. Research has shown This can be attributed to larger cities offering a broader range of job opportunities, including more specialized roles, compared to their smaller counterparts.
Generally, my clients from high-cost areas with higher salaries tend to accumulate greater savings and disposable income despite the expense of living in the specific city mentioned,” says Jen Swindler, a certified financial planner located in Salt Lake City, Utah. previously told DIWIDAMake It The employment prospects typically compensate for the discrepancy.
Furthermore, since 1980, wage growth has been significantly more rapid in major U.S. urban centers compared to smaller locales, as reported. Federal Reserve research In 1980, workers in the most densely populated U.S. commuting zones made 32% more money on average compared to those in the least populous regions, with this disparity increasing significantly to 71% by 2015. Fed analysis According to Census Bureau data revealed.
Certainly, you should follow what aligns best with your individual circumstances. This might involve tailoring a 50/30/20 budget plan to match your actual needs or even thinking about moving to another location. What feels comfortable varies from person to person too. Some individuals find it acceptable to share their home with roommates or use public transit instead of having a private vehicle; however, these options might not work for everyone else.
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