The adage about the three most important things in real estate — location, location, location — speaks to more than where you live. It’s about how you live, too. From the size of your paycheck to how much your groceries will cost, your location plays a big role in your household finances.
In some cases, your home city might provide you with a lot more disposable income to save or invest after paying your bills each month. In other cases, where you live is possibly one of the main reasons why it feels like you’re fighting a losing battle with your budget every month.
That’s why GOBankingRates conducted a study to find out where residents are getting a deal on the cost of living — and where Americans are regularly forced to dig themselves out of a financial hole.
To see the regional differences in how much of the typical paycheck is left over after covering costs, the study took 50 of the most populated U.S. cities, according to the United States Census Bureau, and compared the average salary with the annual cost of necessities such as housing, groceries, healthcare, utilities and transportation. We pared the list to 25 cities where the cost to live “comfortably” outpaces the median income of a person residing in a nonfamily situation.
The definition of living “comfortably” can vary, but it generally follows the 50/30/20 rule, meaning half your income goes to necessities, 20% for savings and the remaining 30% for fun, such as vacations and entertainment. In some cities, the area’s median income barely covers the cost of necessities, with little — or nothing — left over. In others, it won’t even pay the rent.
The results of GOBankingRates’ study show how your home city plays a huge role in determining a budget that you can live with. Take a look, starting with the cities that are the most unaffordable on a median income.
