Here’s How Much You Need to Budget To Live Comfortably in America’s Largest Cities
Written by
Daria Uhlig
Edited by
Elizabeth Constantineau
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The best way to get a handle on your finances is to create a budget. But with so many budgeting methods to choose from, it can be hard to know where to start.
One method is the 50/30/20 budget, which breaks down your income into mandatory expenses (50% of your income), savings (30%) and wants (20%). The idea is to prioritize necessary spending and savings while still allowing for some guilt-free discretionary spending.
But how realistic is that allocation?
GOBankingRates looked at data from the Zillow Home Value Index, the Federal Reserve, the Bureau of Labor Statistics Consumer Expenditure Survey and other sources to find out how much people living in America’s 50 largest cities spend on mandatory expenses like housing, groceries, healthcare, transportation and miscellaneous necessities. That amount was doubled to indicate how much you’d have to earn to live comfortably using the 50/30/20 budget.
Key Findings
Here are some important takeaways from the study:
- Your budget goes furthest in the South and Midwest. All of the cities within the top five for budget-friendliness are located in those regions, and two are located in the same state: Oklahoma.
- You’ll need a big budget to live comfortably in large California cities. The five least-budget-friendly cities are located there: San Jose, where you’ll get the least mileage out of your budget, followed by San Francisco, San Diego, Los Angeles and Long Beach.
- The gap between the lowest and highest incomes needed to live comfortably is huge. In Detroit, you need $64,725, while in San Jose, it’s $258,255 — nearly four times more than in Detroit.
Top 5 Large Cities for Stretching Your Budget
Your budget stretches furthest in cities with lower housing and essential living costs. In these five cities, housing costs are affordable whether you rent or own, and other essential expenses like groceries and utilities are generally on the lower end. To live comfortably in these cities while sticking to the 50/30/20 budget rule, you’ll need a minimum of $64,725.
Detroit
- Total annual cost of living: $32,363
- Total cost of living comfortably: $64,725
Your budget goes furthest in Detroit, where you can still buy a home for under $75,000 and pay less than $500 per month on a mortgage, not including property tax and homeowners insurance. Other living costs are also quite low: $423 per month for groceries and $340 for utilities, for example. But transportation is pricey, averaging $1,033 per month.
Memphis, Tennessee
- Total annual cost of living: $32,720
- Total cost of living comfortably: $65,440
Memphis rates near the bottom of the list of 50 largest cities when it comes to livability, which considers things like crime, amenities, employment and schools, but it’s the second most budget-friendly. Monthly expenses average $2,727.
Wichita, Kansas
- Total annual cost of living: $36,220
- Total cost of living comfortably: $72,440
Wichita residents spend just over $3,080 on mandatory expenses, including about $666 for housing and $502 for healthcare. Their utilities are among the highest of the largest cities: $392 per month.
Tulsa, Oklahoma
- Total annual cost of living: $36,949
- Total cost of living comfortably: $73,897
Also in the top five cities where your budget goes furthest is Tulsa, where you can cover your essential expenses for $3,079 per month. If you’re an average Tulsa homeowner, you can expect a mortgage payment of $1,157 per month.
Oklahoma City, Oklahoma
- Total annual cost of living: $37,226
- Total cost of living comfortably: $74,452
With average home values sitting at $205,000, middle-income households should have a relatively easy time budgeting for mortgage payments. Healthcare costs, on the other hand, are among the highest in the country.
How Far Does Your Budget Go in Other Large Cities?
Here’s a look at living costs in the other 45 cities GOBankingRates researched.
El Paso, Texas
- Total annual cost of living: $37,360
- Total cost of living comfortably: $74,721
Milwaukee
- Total annual cost of living: $37,389
- Total cost of living comfortably: $74,777
Baltimore
- Total annual cost of living: $37,419
- Total cost of living comfortably: $74,838
Indianapolis
- Total annual cost of living: $38,003
- Total cost of living comfortably: $76,005
Kansas City, Missouri
- Total annual cost of living: $39,061
- Total cost of living comfortably: $78,123
Louisville, Kentucky
- Total annual cost of living: $39,826
- Total cost of living comfortably: $79,653
San Antonio
- Total annual cost of living: $40,087
- Total cost of living comfortably: $80,175
Columbus, Ohio
- Total annual cost of living: $40,171
- Total cost of living comfortably: $80,343
Philadelphia
- Total annual cost of living: $42,103
- Total cost of living comfortably: $84,207
Omaha, Nebraska
- Total annual cost of living: $42,287
- Total cost of living comfortably: $84,574
Houston
- Total annual cost of living: $42,902
- Total cost of living comfortably: $85,804
Albuquerque, New Mexico
- Total annual cost of living: $43,950
- Total cost of living comfortably: $87,900
Jacksonville, Florida
- Total annual cost of living: $44,588
- Total cost of living comfortably: $89,177
Fort Worth, Texas
- Total annual cost of living: $45,022
- Total cost of living comfortably: $90,043
Tucson, Arizona
- Total annual cost of living: $45,217
- Total cost of living comfortably: $90,434
Arlington, Texas
- Total annual cost of living: $46,048
- Total cost of living comfortably: $92,096
Minneapolis
- Total annual cost of living: $46,061
- Total cost of living comfortably: $92,121
Chicago
- Total annual cost of living: $46,466
- Total cost of living comfortably: $92,932
Dallas
- Total annual cost of living: $46,741
- Total cost of living comfortably: $93,482
Fresno, California
- Total annual cost of living: $50,300
- Total cost of living comfortably: $100,599
Bakersfield, California
- Total annual cost of living: $50,359
- Total cost of living comfortably: $100,719
Charlotte, North Carolina
- Total annual cost of living: $50,455
- Total cost of living comfortably: $100,911
Virginia Beach, Virginia
- Total annual cost of living: $52,072
- Total cost of living comfortably: $104,145
Raleigh, North Carolina
- Total annual cost of living: $52,774
- Total cost of living comfortably: $105,549
Colorado Springs, Colorado
- Total annual cost of living: $52,956
- Total cost of living comfortably: $105,912
Phoenix
- Total annual cost of living: $53,220
- Total cost of living comfortably: $106,440
Nashville, Tennessee
- Total annual cost of living: $53,541
- Total cost of living comfortably: $107,081
Mesa, Arizona
- Total annual cost of living: $54,206
- Total cost of living comfortably: $108,412
Atlanta
- Total annual cost of living: $54,992
- Total cost of living comfortably: $109,845
Las Vegas
- Total annual cost of living: $55,708
- Total cost of living comfortably: $111,416
Sacramento, California
- Total annual cost of living: $58,403
- Total cost of living comfortably: $116,807
Austin, Texas
- Total annual cost of living: $61,115
- Total cost of living comfortably: $122,229
Portland, Oregon
- Total annual cost of living: $61,649
- Total cost of living comfortably: $123,299
Denver
- Total annual cost of living: $64,511
- Total cost of living comfortably: $129,021
Miami
- Total annual cost of living: $70,744
- Total cost of living comfortably: $141,489
Washington
- Total annual cost of living: $75,028
- Total cost of living comfortably: $150,056
Boston
- Total annual cost of living: $80,669
- Total cost of living comfortably: $161,338
Oakland, California
- Total annual cost of living: $82,721
- Total cost of living comfortably: $165,441
New York
- Total annual cost of living: $86,699
- Total cost of living comfortably: $173,397
Seattle
- Total annual cost of living: $87,152
- Total cost of living comfortably: $174,304
Long Beach, California
- Total annual cost of living: $87,219
- Total cost of living comfortably: $174,439
Los Angeles
- Total annual cost of living: $94,962
- Total cost of living comfortably: $189,923
San Diego
- Total annual cost of living: $101,310
- Total cost of living comfortably: $202,621
San Francisco
- Total annual cost of living: $122,764
- Total cost of living comfortably: $245,527
San Jose, California
- Total annual cost of living: $129,127
- Total cost of living comfortably: $258,255
FAQ
Here's what people are asking about budgets and how to budget your money.- What is the definition of a budget?
- A budget is an accounting of income and expenses. You use it to track how much money you bring in and how you spend it.
- What are the three types of budgets?
- Three of the most popular budgets are the following:
- The 50/30/20 budget allocates 50% of your income to needs, 30% to saving and 20% to wants.
- The "pay yourself first" budget which prioritizes saving and investing.
- The zero-based budget allocates every penny that comes in to a specific purpose.
- Three of the most popular budgets are the following:
- How do you make a budget?
- After you've selected a budgeting method, list all of your income and all of your expenses. Then allocate some of your income for each expense, according to the rules of the method you chose.
Methodology: GOBankingRates analyzed the top 50 cities by population across the U.S. The most populated cities were found in the US Census American Community Survey. For each city, a number of factors were sourced from the US Census American Community Survey including the total population, population ages, total households and household median income. The cost of living indexes were sourced from Sperlings BestPlaces, the livability index was sourced from AreaVibes and the average single family home value from August 2024 was sourced from the Zillow Home Value Index. Using the average home value, assuming a 10% down payment, and using the national average 30-year fixed mortgage rate as sourced from the Federal Reserve Economic Data, the average mortgage can be calculated. Using the cost of living indexes and the national average expenditure costs for all residents as sourced from the Bureau of Labor Statistics Consumer Expenditure Survey, the average expenditure costs can be calculated. Using the expenditures and mortgage, the total cost of living can be calculated. Using the 50/30/20 rule that states needs should not exceed 50% of income, the total cost of living was doubled to find the income needed to live comfortably in the most populated U.S. cities to determine if the budget would fall within. The cities were sorted to show the cheapest cost of living first. The data is accurate and up to date as of Sept. 17, 2024.
