Family of 5 Living on 34,000 a Year

There is no one respond to how much money you need to make to live comfortably, but one oft-used rule of thumb in budgeting is the 50/30/xx rule — which calls for half your income to go to necessities, 20% to savings and investments and 30% for splurges and fun. For most Americans, that's a pretty sensible approach to defining a living wage, but plenty of residents living in America'south largest cities are probably reading that and thinking "Are you insane? Half my income doesn't fifty-fifty cover my rent and I live in a converted dumbwaiter."

See: States Where Your Retirement Will Cost Less Than $45,000 a Yr
Bank check Out: 35 Surprising Cities With Low Costs of Living

And it's true: How much money you need to live comfortably is just much higher in the big metropolis, putting the l/30/xx rule out of attain for well-nigh of its residents. That's why a new GOBankingRates study lays out just how much you need to earn to live comfortably in each of America's 50 largest metropolises based on the cost of living by metropolis. Using Zillow to calculate housing costs in each locale and Sperling'southward Best Places to gauge the price of other necessities like transportation, groceries and healthcare, the end result is a clear sense of just how much yous would need to be bringing in to stick to the 50/30/20 dominion at average levels of spending in each category.

Don't Motion: fifty Cities With the Most Overpriced Homes

With the average bacon in each major U.Southward. urban center falling well short of what'southward needed to live comfortably there, the study should brand it clear that a lot of America'southward urbanites probably have to make cuts elsewhere to beget living in the big city. So if you're thinking near living in a major city, keep reading to run into the ideal salary and toll of living in America'southward biggest cities.

Albuquerque, New Mexico

Median income: $49,878
Income needed if you're a homeowner: $72,631
Income needed if you're a renter: $73,879

Albuquerque isn't going to top any salary comparing past urban center with the median earner pulling down under $50,000, which is below the average salary in the U.Due south. But, with "just" $22,753 separating a median earner from the cost to live comfortably in Albuquerque, it'south actually amongst the more affordable major cities in the country.

Cyberbanking: These Are the Best Banks of 2021 – Did Yours Make the Cut?

Arlington, Texas

Median income: $55,562
Income needed if yous're a homeowner: $80,650
Income needed if you lot're a renter: $89,050

Arlington residents are likely struggling a petty to go by with a picayune over $25,000 separating a median earner from what they would need as a homeowner in the metropolis. However, the situation is likely significantly harder if you're renting as the annual toll for necessities is over $four,000 higher when yous don't own.

Everything You Need To Know About Budgeting:How To Create a Upkeep You Can Live With

Atlanta

Median income: $51,701
Income needed if yous're a homeowner: $88,607
Income needed if you're a renter: $88,151

It's actually cheaper to rent in Atlanta, though by the smallest of margins — under $500 separates the income needed to live comfortably in each situation. That said, the average resident is falling over $35,000 a year curt of what they need to fit into the 50/30/20 budget.

Check It Out: How Far a $100,000 Bacon Goes in America's fifty Largest Cities

Austin, Texas

Median income: $63,717
Income needed if you're a homeowner: $98,007
Income needed if you lot're a renter: $94,455

If y'all're not earning six figures, you should reconsider living in the Texas capital based on just how costly it can be. Still, if you lot're expressionless set up on enjoying the urban center's renowned music scene on a nightly basis — role of why it's often no stranger to lists of the best places to live in the U.S. — you will need almost $3,500 less each year when you're renting rather than owning.

Boston

Median income: $62,021
Income needed if you're a homeowner: $129,389
Income needed if yous're a renter: $120,413

Living in Beantown might require an especially talented bean counter to be sure you lot can pay all your bills. Boston is one of merely thirteen cities where you'll need to make at least $100,000 a year to alive comfortably whether you're renting or owning.

Charlotte, North Carolina

Median income: $58,202
Income needed if you're a homeowner: $80,071
Income needed if yous're a renter: $82,999

While needing $80,000 a year to become past is a scrap pricey, the good for you $58,202 a twelvemonth that the median earner in Charlotte is making means residents are likely struggling less than they would elsewhere. Homeowners are nearly $22,000 brusk of what they would need, putting them among the cities with the smallest gaps between what nearly people are earning and what it costs to alive at that place.

Chicago

Median income: $52,497
Income needed if you're a homeowner: $84,765
Income needed if you're a renter: $94,917

The Windy Urban center isn't peculiarly expensive when stacked up against other urban areas that are amidst the five largest, just its relatively modest median income means many residents are likely still struggling to brand ends see. The median earner in Chi-town is more than $32,000 brusk of what it costs to alive comfortably if they ain. Equally for renters, they'll need over $42,000 more.

Cleveland

Median income: $27,854
Income needed if you're a homeowner: $55,139
Income needed if you're a renter: $64,883

No urban center among the fifty largest is cheaper to alive in than Cleveland. Unfortunately for residents, no city has a lower median income, either. The typical Cleveland resident is pulling downwardly just nether $28,000 a year, meaning that even the relatively modest $55,000 a year needed for homeowners is well out of accomplish. And it'south significantly worse for renters, who are around $37,000 below what they need to live comfortably.

Colorado Springs, Colorado

Median income: $58,158
Income needed if you're a homeowner: $84,800
Income needed if you're a renter: $83,072

Whether you lot're renting or owning, you can expect to spend a little under $twenty,000 a year on housing in Colorado Springs. The two are very close, though, with just under $2,000 separating the income needed to live comfortably for renters and owners.

Columbus, Ohio

Median income: $49,478
Income needed if yous're a homeowner: $68,775
Income needed if you're a renter: $75,063

Ohio's capital is one of the more than affordable big cities to live in, with the income needed to live comfortably falling under $70,000 for homeowners. Information technology does get significantly more difficult if you lot're renting, though, as yous'll demand to make over $75,000 a year — over $25,000 more than the city's median income.

Dallas

Median income: $47,285
Income needed if y'all're a homeowner: $83,140
Income needed if you're a renter: $87,964

The median income beneath $l,000 a year probable makes the costs of Dallas significantly more difficult to handle than in other cities. Average earners who rent could exist particularly squeezed, with their income coming upward over $xl,000 curt.

Discover Out: 35 Cities Where Yous Tin Afford To Live on Less Than $50,000

Denver

Median income: $38,991
Income needed if you're a homeowner: $109,020
Income needed if yous're a renter: $103,236

Not only is Denver another of the cities where yous need to clear six figures to live comfortably, it's likewise i of just seven cities in the report where median income are nether $forty,000 a year. That leaves the median homeowner and renter $70,029 and $64,245 short of what they need each year, respectively.

El Paso, Texas

Median income: $44,431
Income needed if y'all're a homeowner: $64,593
Income needed if you're a renter: $68,961

While incomes in El Paso are relatively depression, the income needed to live comfortably is likewise among the lowest of the nation'south 50 largest cities. With homeowners needing to make less than $65,000 a year — and renters under $seventy,000 — the gap from a median income to a comfortable one is between $20,000 and $25,000 for both renters and buyers.

Fort Worth, Texas

Median income: $57,309
Income needed if you're a homeowner: $79,287
Income needed if you're a renter: $87,135

Residents of Fort Worth take a median income that'south almost exactly $10,000 a year higher than that of neighboring Dallas. That's especially good news for renters, with the cost of living at that place coming in at nigh the same as it does in Dallas. And information technology's even better news for homeowners every bit the cost to live comfortably is about $four,000 a yr less in Fort Worth than it is in Dallas despite the higher incomes.

Fresno, California

Median income: $44,853
Income needed if you're a homeowner: $79,757
Income needed if you're a renter: $79,061

Fresno is i of the cities where the income needed to live comfortably falls under $lxxx,000 a year for both renters and owners. And, with just $700 a year separating the ii, there might be significantly less reason to agonize over the determination than in other places. Still, with median incomes falling under $45,000 a yr, renters and owners alike are virtually $35,000 short of what they need to live comfortably.

Honolulu

Median income: $80,078
Income needed if you're a homeowner: $190,201
Income needed if you're a renter: $125,329

At over $lxxx,000, the median income in Honolulu is college than anywhere outside of the swanky San Francisco Bay Area. But, unfortunately for residents, and then is the toll of living. Homeowners with average earnings are going to come up over $100,000 short of what they need to live comfortably. And while renting is significantly less expensive, flat dwellers are still over $45,000 below what they need.

Houston

Median income: $49,399
Income needed if you're a homeowner: $79,378
Income needed if you're a renter: $87,658

The country's fourth-largest metropolis also has a significantly pricier rental market than it does buyers' marketplace. You'll need to make over $8,000 a year more to live comfortably while renting than y'all would if y'all take a mortgage. Either way, though, with median incomes under $50,000, the average Houston resident is coming up well short of that level.

Indianapolis

Median income: $44,709
Income needed if you're a homeowner: $65,250
Income needed if you lot're a renter: $70,962

The toll of living in the Upper Midwest trends on the lower side and Indianapolis isn't outside that trend. While it's still much college than the median income of $44,709 a year, the income needed to live comfortably while owning a dwelling house is but over $65,000 a year — lower than every other city in the report salvage iii.

Jacksonville, Florida

Median income: $50,555
Income needed if y'all're a homeowner: $74,615
Income needed if y'all're a renter: $79,055

Another i of the cities where the salary needed to live comfortably is nether $lxxx,000 for both renters and buyers, Jacksonville could be a relatively affordable way to enjoy both city life and the sunny Florida climate. And with the income needed to live comfortably about $24,000 of the median wage for homeowners, it's also ane where the costs are amend aligned with people's earnings.

Kansas Urban center, Missouri

Median income: $l,136
Income needed if yous're a homeowner: $67,647
Income needed if yous're a renter: $72,303

The gap between the income needed to alive comfortably and the $50,136 a year that a median earner makes in Kansas City is amongst the lowest in this study for both renters and homeowners. The typical homeowner is just $17,511 brusk what they need to live comfortably while the typical renter is $22,167 below that level.

Las Vegas

Median income: $53,159
Income needed if you're a homeowner: $91,684
Income needed if you're a renter: $87,796

The income needed to live comfortably in Las Vegas is college than many but nevertheless beneath the average level for the 50 cities included here. Only, with a median income of $53,159, homeowners with average earnings are $38,500 short of what they would need to maintain a 50/30/20 budget assuming average costs.

Long Embankment, California

Median income: $58,314
Income needed if you're a homeowner: $138,698
Income needed if you're a renter: $124,706

Located to the southeast of Los Angeles, Long Beach is another of the bakery's dozen where the income needed to live comfortably exceeds $100,000 for both renters and homeowners. Information technology's likewise a urban center where that level is much lower for renters — with those choosing not to buy needing about $14,000 a twelvemonth less than their counterparts shouldering a mortgage.

Los Angeles

Median income: $54,501
Income needed if you're a homeowner: $150,392
Income needed if you're a renter: $136,208

The country's second-largest urban center is well-known for its sunny climate, palm trees and entertainment manufacture, but it's possible that its loftier cost of living should be among its about notable traits. If you accept a mortgage in Los Angeles, you'll need over $150,000 in income to comfortably fit into the 50/thirty/20 budget, over $lxxx,000 a year than the median earner makes.

Ouch: In Less Than a Decade, Y'all Won't Exist Able To Beget a Home in These Cities

Louisville, Kentucky

Median income: $49,439
Income needed if you're a homeowner: $seventy,383
Income needed if you're a renter: $71,535

Louisville's relatively modest price of living helps contribute to incomes needed to alive comfortably that are only over $70,000 for both renters and buyers. That ways the gap to the median income — at just nether $50,000 a twelvemonth — is only about $xx,000 lower than needed in both scenarios.

Memphis, Tennessee

Median income: $38,230
Income needed if you're a homeowner: $63,595
Income needed if you lot're a renter: $69,331

Memphis is some other city where residents aren't making enough to really take advantage of the low cost of living the fashion one would hope. While you would demand less than $70,000 a year to live comfortably at that place, the median earner in the metropolis is making less than $forty,000 a year.

Mesa, Arizona

Median income: $52,155
Income needed if y'all're a homeowner: $86,351
Income needed if you're a renter: $86,087

The income needed for a comfortable lifestyle in Mesa is virtually identical for renters and buyers, with just under $300 a twelvemonth separating the ii. Even so, that'south more than $33,000 the median earner tin afford in both cases.

Miami

Median income: $33,999
Income needed if you lot're a homeowner: $104,965
Income needed if y'all're a renter: $109,525

Miami has the unfortunate distinction of being both ane of the xiii cities where the income necessary to live comfortably exceeds $100,000 for both renters and buyers and being on of the list of cities where median income is under $forty,000 a year. That leaves a huge $lxx,000-plus gap between what people are making and what they need to earn to live comfortably whether yous own your domicile or rent it.

Milwaukee

Median income: $38,289
Income needed if you're a homeowner: $67,670
Income needed if y'all're a renter: $76,022

While the cost of living is relatively modest in Milwaukee, so is the median income. With one-half of the city making $38,289 or less, even that $67,670 a year needed to alive comfortably while paying a mortgage is almost $thirty,000 more than residents are making. That said, with the cost to alive comfortably while renting is almost $10,000 a year college — information technology could exist worse.

Minneapolis

Median income: $55,720
Income needed if you're a homeowner: $84,373
Income needed if you lot're a renter: $90,277

Minneapolis is a relatively flush city, peculiarly when compared to other major urban areas in the Upper Midwest. However, despite a stronger median income, the cost of living is also relatively high. That leaves a median earner in Minneapolis $28,653 short of what they need to live comfortably if they own and $34,557 short if they rent.

Nashville, Tennessee

Median income: $52,858
Income needed if you're a homeowner: $84,787
Income needed if you're a renter: $87,115

Music City's high cost of living ways the 50/30/xx budget dominion is likely not possible for many to almost of its residents. Renters and owners akin are over $31,000 short of what they need to live comfortably based on the median income of $52,858.

New Orleans

Median income: $38,721
Income needed if you're a homeowner: $77,989
Income needed if you're a renter: $87,925

The Big Piece of cake is anything but for its residents who are earning less — and there are probable plenty with a median income under $forty,000 a year. It's much worse if you're renting, though, as median earners who don't own are around $49,000 a twelvemonth short of the income necessary to alive comfortably.

New York

Median income: $57,782
Income needed if you're a homeowner: $148,448
Income needed if you're a renter: $128,552

While New York has long been synonymous with heaven-high cost of living, information technology's really well short of the priciest metropolis in this report. That fact, though, won't offer much solace to residents struggling to make ends run into. If you want to live comfortably in the Big Apple tree, you'll need to earn at to the lowest degree $128,552 a twelvemonth — and about $150,000 if you're looking to own where y'all live.

Oakland, California

Median income: $63,251
Income needed if yous're a homeowner: $145,274
Income needed if you're a renter: $128,282

The first of iii cities in the San Francisco Bay Area, Oakland is an extremely costly place to live. Despite a relatively strong median income of $63,251 a yr, residents hoping to own their own abode need to increase their income by more than $81,000 a year if they want to hit the 50/xxx/twenty rule while paying average costs.

Oklahoma Urban center

Median income: $51,581
Income needed if you're a homeowner: $68,419
Income needed if yous're a renter: $74,275

Oklahoma City has relatively small costs compared to most major cities. Pair that with a median income over $51,000 a twelvemonth and the gap to a comfy income if you ain your home is simply over $sixteen,000 a yr, one of the lowest levels in the report. It'southward even so relatively low for renters at a little under $24,000 a year, merely significantly higher than information technology is if y'all have a mortgage.

Omaha, Nebraska

Median income: $53,789
Income needed if you're a homeowner: $71,712
Income needed if you lot're a renter: $78,648

Some other city where homeowners are probable coming very close to earning what they would need, Omaha'due south $53,789 median income is just well-nigh $xviii,000 a year short of what you would need to live comfortably while covering a mortgage. Merely, once again, this is a metropolis where there's a clear fiscal statement for buying over renting.

Orlando, Florida

Median income: $45,436
Income needed if yous're a homeowner: $85,935
Income needed if you're a renter: $89,127

Living and so close to Disney World must be highly-seasoned, but with a toll of living that's relatively high, it might be out of reach for many. Once you factor in the median income, the median homeowner in Orlando is a whopping $40,000 a yr short of what they need to live comfortably.

Related: The Cost To Retire in America's Sunniest Cities

Philadelphia

Median income: $40,649
Income needed if you're a homeowner: $82,439
Income needed if you're a renter: $92,639

Brotherly love might not cost a thing, but living in Philadelphia sure does. Despite a median income just over $xl,000 a year, the bacon necessary to live comfortably while satisfying the 50/30/twenty rule is over double what the typical homeowner is really earning and leaves renters around $52,000 shy of what they demand.

Phoenix

Median income: $52,080
Income needed if y'all're a homeowner: $86,407
Income needed if you're a renter: $86,143

The nation'southward fifth-almost populous urban center has a median income a little over $52,000 a twelvemonth. That'south a decent wage compared to many of the cities in this study, just information technology's besides nearly $34,000 short of what you need to live comfortably for both renters and buyers.

Portland, Oregon

Median income: $61,532
Income needed if yous're a homeowner: $106,256
Income needed if you lot're a renter: $97,568

While a median income of around $61,000 a year is relatively rare among the country's biggest cities — there are just 12 cities in this study at that level or higher — Portland's high cost of living might mean it won't go nigh every bit far. If you are expressionless assault moving to Portland, though, it could pay to rent instead of buying as the income needed to live comfortably is virtually $9,000 a year higher for homeowners.

Raleigh, Due north Carolina

Median income: $61,505
Income needed if you lot're a homeowner: $81,542
Income needed if you're a renter: $fourscore,486

Raleigh comes very close to having its income needed to live comfortably falling within $21,000 of its median income for both renters and buyers. Not but is the median resident making more than $60,000 a year, but its cost of living is well below the average for these 50 cities.

Sacramento, California

Median income: $54,615
Income needed if you're a homeowner: $94,160
Income needed if you're a renter: $92,336

California's capital city is northeast of San Francisco, Oakland and the residual of the high-cost Bay Expanse. However, it does seem every bit though some of the costs have migrated at that place, as you'll need to brand over $90,000 a yr to live comfortably.

San Antonio

Median income: $49,711
Income needed if you're a homeowner: $71,943
Income needed if y'all're a renter: $77,871

San Antonio is a relatively affordable identify to live, with the income needed to live comfortably while paying a mortgage at just over $70,000 a year. Unfortunately, that's still quite a fleck more than most residents are making with a median income just nether $fifty,000.

San Diego

Median income: $71,535
Income needed if you're a homeowner: $137,826
Income needed if yous're a renter: $120,786

San Diego might exist a peachy place to have in the Southern California dominicus, but you're likely to pay dearly for the privilege. You'll need to earn 6 figures to live comfortably in the metropolis. But, keep in mind that it'southward much cheaper to rent — with a comfy income coming in around $17,000 lower for renters than homeowners.

San Francisco

Median income: $96,265
Income needed if y'all're a homeowner: $230,286
Income needed if you're a renter: $164,214

San Francisco is the most affluent urban center in this study, with a median income of virtually vi figures. Despite that, median earners at that place who own their own home are further from the income necessary to live comfortably than residents of whatsoever other urban center on this list. Even a six-figure income is less than one-half what you demand to own your home and nonetheless spend simply half your income on necessities in The City.

Acquire More: What Does Earning a Half-dozen-Effigy Salary Mean and Do You Need One To Build Wealth?

San Jose, California

Median income: $96,662
Income needed if you're a homeowner: $197,502
Income needed if you're a renter: $143,670

Of form, correct next door in San Jose, incomes are even college. Still, the median income remains over $100,000 short of what you need to live comfortably while owning your ain habitation, but it's over $30,000 closer than it is in nearby San Francisco.

Seattle

Median income: $79,565
Income needed if you lot're a homeowner: $144,786
Income needed if you're a renter: $115,722

Median earners in Seattle are pulling downwardly just under $80,000 a year, but that doesn't go nearly as far as they might like. Once again, anyone planning to motility at that place should seriously consider renting instead of buying: The income needed to alive comfortably is about $thirty,000 lower if you don't take a mortgage.

Tucson, Arizona

Median income: $39,617
Income needed if you're a homeowner: $72,870
Income needed if you're a renter: $74,070

The income needed to live comfortably in Tucson is in the low-$seventy,000s for renters and owners alike, which is on the lower end for the cities in this study. Unfortunately, given that Tucson is amidst those cities where the median income doesn't crack $twoscore,000 a yr, both those levels are over $33,000 more than what the typical resident is making.

Tulsa, Oklahoma

Median income: $44,577
Income needed if you're a homeowner: $65,660
Income needed if you're a renter: $69,740

Tulsa's one of the more affordable cities in this study, with the income needed to live comfortably coming in nether $70,000 for both homeowners and renters. And while the median income of $44,577 is relatively low, it'southward still within well-nigh $21,100 of what y'all demand to cover a mortgage and other bones necessities with half your salary.

Virginia Beach, Virgina

Median income: $lxx,500
Income needed if you lot're a homeowner: $83,176
Income needed if you're a renter: $87,328

No city in this study is closer to having its median income meet the salary necessary to live comfortably than Virginia Beach, though that has more than to exercise with the over $70,000 a year earned by the median resident. Renters are just nether $17,000 shy of what they demand while homeowners are within $12,700.

Washington, D.C.

Median Income: $77,649
Income needed if you're a homeowner: $142,230
Income needed if you're a renter: $122,934

The nation's capital letter has one of the highest median incomes of a major American city, but information technology also has some of the highest costs. The income needed to alive comfortably in that location while owning your home is simply under $65,000 more than than what the average resident earns.

Is Your Cost of Living Also High?

The results of this report should brand information technology clear that — based on median costs and the fifty/30/20 rule — many of America's city-dwellers are most likely coming upward well brusk of what they need to cover expenses. That has to mean that many urbanites are having to find other means to make ends meet and stretch their budget equally far as possible.

However, there are at to the lowest degree a few cities that would announced to offer a chance to get by on less. The urban center with the smallest gap betwixt its median earnings and cost of living — Virginia Beach — gets at that place largely by having a very flush populace that drives the median income up over $70,000. 4 cities, though, have a median income of about $50,000 a yr and all the same fall within $20,000 of the income needed to become past for homeowners: Oklahoma City, Kansas City, Omaha and Columbus. So, if y'all're looking for city life that'southward notwithstanding affordable for the center class, your all-time bet appears to be on the loftier plains.

More From GOBankingRates

5 Things Most Americans Don't Know About Social Security
Social Security Benefits Might Get Cut Early — What Does Information technology Mean for Y'all?
Navy Federal cashRewards Review: With Cracking Benefits Come Great Rewards
fifteen Mortgage Questions To Ask Your Lender

GOBankingRates found the cost of living in America'south fifty biggest cities by analyzing the following factors: (1) Cost of living index for groceries, utilities, transportation and healthcare sourced from Sperling's Best Places. Each index was multiplied past the annual expenditure amount in each category from Bureau of Labor Statistics' 2017 Consumer Expenditure Survey, which measures household annual hateful expenditures to decide the almanac mean spending for each category; (2) Rent costs were sourced from Zillow'due south February 2019 rental value index for single-family residences, and were multiplied past 12 to obtain an annualized yearly spending on rent; (3) Mortgage rates were based off Zillow'due south February 2019's median home value, and Zillow's mortgage Calculator was used to determine the monthly mortgage payment for each given city based off the cities home value and a 30-yr fixed loan. Mortgage payments were multiplied by 12 to obtain an annualized corporeality; (iv) Median household income was sourced from Census Bureau's 2017 American Customs Survey (this is income prior to being taxed). Once all the information was found, the almanac expenditure amount was calculated by adding together the annual spending for each category. GOBankingRates institute the annual expenditures for both people paying a mortgage payment and for people who are paying rent separately and the median income is subtracted by annual expenditures for those paying a mortgage and those renting to meet how much money is needed or left over for each city. GOBankingRates and then used the l/20/30 dominion which assumes that 50% of income should go towards necessities, 30% should get towards discretionary spending and 20% should go towards savings. The l% income is the cities annual expenditure and that amount is used to find the additional income needed for splurges and savings.

Data is accurate as of Apr 4, 2019.

Almost the Author

geigerbeeks1972.blogspot.com

Source: https://www.gobankingrates.com/money/economy/cost-to-live-comfortably-biggest-cities-us/