Have you ever wondered how many people are living “comfortably?” Are you yourself financially comfortable? A recent GOBankingRates study showed some shocking news regarding Americans’ financial comfort: only 11 of the 50 biggest U.S. cities have a median income high enough to cover what's needed to live comfortably.
The study used the 50-30-20 budgeting rule when determining the income required for a comfortable living in each city. This rule divides income into three buckets: 50 percent is expected to go toward necessities, 30 percent towards discretionary items and 20 percent towards savings.
Top 5 Cities Where People Struggle to Live Comfortably:
- Miami: $44,840 deficit income
- New York: $33,073 deficit income
- San Francisco: $29,063 deficit income
- Los Angeles: $25,842 deficit income
- Oakland, Calif.: $25,820 deficit income
Top 5 Cities Where People Can Easily Afford to Live Comfortably:
- Virginia Beach, Va.: $13,985 surplus income
- Arlington, Texas: $6,906 surplus income
- Colorado Springs, Colo.: $5,112 surplus income
- Albuquerque, N.M.: $4,585 surplus income
Austin, Texas: $3,058 surplus income
- Texas is the state that boasts the most cities in which the median income is enough for a comfortable living (Five out of the seven cities on this list).
- All of the nine Californian cities on this list have median incomes below what is needed to live comfortably.
- Almost 40 percent of the biggest U.S. cities face a deficit of $10,000 or more between average income and what is needed to live comfortably.
- Kansas City, Mesa and Omaha had surplus income last year, but now have average incomes below what is needed for a comfortable living.
- While San Francisco still faces one of the largest deficits in the country, the city's deficit has dropped from $41,192 last year to $33,073 this year.
Published with permission from RISMedia.