A recent report by SmartAsset, updated as of February 14, 2024, has highlighted the income an individual needs to live comfortably in the U.S. across different states. The data offers a comprehensive look at how living expenses vary across the nation, shedding light on the required salary for a balanced, comfortable lifestyle.
Key Insights on the Income Needed to Live Comfortably in the U.S.
- Massachusetts requires the highest income, with a needed salary of $116,000 per year to live comfortably.
- West Virginia offers the most affordable living conditions, with an annual income requirement of $79,000.
- States like California and Hawaii have high costs of living, with $114,000 needed to maintain a comfortable lifestyle.
- New York residents need an income of $112,000 for a balanced lifestyle, while more affordable states like Florida and Texas require $93,000 and $87,000, respectively.
What Defines “Comfortable Living” in the U.S.?
The definition of “comfortable” in this study is based on the 50/30/20 budgeting rule:
- 50% of income is allocated to necessities like housing, food, and transportation.
- 30% is devoted to discretionary spending, including entertainment, dining, and travel.
- 20% of the income is reserved for savings.
This budgeting strategy provides a framework for individuals to ensure they can live comfortably in the U.S., with a balance between essential needs and discretionary desires.
A State-by-State Look at the Income Needed to Live Comfortably in the U.S.
Here’s a detailed breakdown of the income an individual needs to live comfortably in the U.S. across various states:
| State | Income Needed ($) |
|---|---|
| Alabama | 84,000 |
| Alaska | 97,000 |
| Arizona | 94,000 |
| Arkansas | 79,000 |
| California | 114,000 |
| Colorado | 103,000 |
| Connecticut | 100,000 |
| Delaware | 97,000 |
| Florida | 93,000 |
| Georgia | 97,000 |
| Hawaii | 114,000 |
| Idaho | 89,000 |
| Illinois | 95,000 |
| Indiana | 85,000 |
| Iowa | 85,000 |
| Kansas | 79,000 |
| Kentucky | 81,000 |
| Louisiana | 85,000 |
| Maine | 92,000 |
| Maryland | 106,000 |
| Massachusetts | 116,000 |
| Michigan | 90,000 |
| Minnesota | 89,000 |
| Mississippi | 85,000 |
| Missouri | 83,000 |
| Montana | 85,000 |
| Nebraska | 89,000 |
| Nevada | 95,000 |
| New Hampshire | 95,000 |
| New Jersey | 100,000 |
| New Mexico | 83,000 |
| New York | 112,000 |
| North Carolina | 88,000 |
| North Dakota | 88,000 |
| Ohio | 86,000 |
| Oklahoma | 80,000 |
| Oregon | 101,000 |
| Pennsylvania | 100,000 |
| Rhode Island | 106,000 |
| South Carolina | 84,000 |
| South Dakota | 83,000 |
| Tennessee | 84,000 |
| Texas | 87,000 |
| Utah | 87,000 |
| Vermont | 89,000 |
| Virginia | 95,000 |
| Washington | 106,000 |
| West Virginia | 79,000 |
| Wisconsin | 88,000 |
| Wyoming | 88,000 |
Regional variations
The income needed to live comfortably in the U.S. shows a significant variation between regions:
- Northeastern and Western states generally require higher incomes. For example, Washington and Rhode Island both require $106,000, while California stands at $114,000.
- Southern and Midwestern states often present more affordable living conditions, with Arkansas requiring $79,000 and Mississippi needing $85,000.
The income an individual needs to live comfortably in the U.S. varies significantly based on geographic location. Whether you’re evaluating a move, considering a new job, or simply planning your financial future, this information serves as a valuable resource. The 50/30/20 budgeting rule remains a useful guide, but the specific income required depends largely on the state in which you reside. Understanding these regional disparities helps individuals plan better for a balanced, comfortable life.
By considering these state-by-state breakdowns, you can make more informed decisions about your income needs and lifestyle expectations in different parts of the U.S.