Living Paycheck to Paycheck: The Best and Worst Texas Cities for Your Finances
Written by
John Csiszar
Edited by
Chris Cluff
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Texas is a state of many contrasts. While many areas are low income, others are quite well off. When it comes to your finances, the ratio of income to expenses is what matters most. Even though the cost of living is usually higher in wealthier cities, the gap between income and expenses is also generally larger as well.
To determine which are the best and worst cities for your finances in Texas, GOBankingRates used data points such as average single-family home value, median household income and average cost of living sourced from Zillow and the U.S. Census Bureau. Cities were ranked based on the amount of positive savings per month, determined by the difference between the household median income and the average total annual cost of living. The best and worst Texas cities by this metric are presented below.
Also see the salary a single person needs to live comfortably in Texas.
Most Likely City To Live Paycheck to Paycheck: Nacogdoches
- Household median income: $37,612
- Average total annual cost of living: $36,635
- Average leftover savings: $977
Nacogdoches is a tough place to get by if you’re looking to save some money. The spread between the household median income and the average total annual cost of living is less than $1,000, or about $80 per month.
Costs in Nacogdoches aren’t particularly high, running about 20% below the national average. But for a city with an income roughly 37% below the national average, according to data from the U.S. Bureau of Labor Statistics, a 20% reduction in overall costs can still be a burden. Healthcare in particular is a costly endeavor in Nacogdoches, running about 6% above the national average, while utility expenses are right in line with national norms.
According to online job search site Zippia, Nacogdoches is actually the fifth-most “stressed-out” city in America, thanks to an average 44-hour work week and an 11.49% income-to-home-price ratio. Major industries in the east Texas town — the oldest in the state of Texas — include education, healthcare and manufacturing.
Least Likely City To Live Paycheck to Paycheck: Lantana
- Household median income: $205,412
- Average total annual cost of living: $69,415
- Average leftover savings: $135,997
If you’re a resident of Lantana, life is likely quite a bit different than if you live in Nacogdoches. With a household median income breaking the $200,000 mark, the average leftover savings is nearly four times what the average Nacogdoches resident earns for the entire year — or more than $11,000 per month.
Life isn’t necessarily cheap in Lantana, running roughly double what the average Nacogdoches family spends per year. In fact, in every measured category — from housing and healthcare to utilities, groceries, transportation and miscellaneous costs — Lantana residents pay above the national average. But the margin between income and expenses is the largest in the entire state of Texas, meaning residents are the least likely to have to live paycheck to paycheck.
Housing is particularly expensive in Lantana, running about 67% above the national average. According to Zillow, the average Lantana home price is $623,069. The primary industries in Lantana, a north Texas town situated about 35 miles east of Fort Worth, are finance and manufacturing.
The Bottom Line
Although Nacogdoches residents don’t have much money left from their paychecks — and those living in Lantana do — these cities aren’t at the top and bottom on a nationwide basis. Those titles go to Hickory Flat, Mississippi, and New Albany, Ohio, respectively. Residents of Hickory Flat have only $6 in leftover savings per year, spending $33,213 vs. a median income of $33,219. New Albany residents, on the other hand, have it made in the shade, pulling in a median income of $224,824 vs. average annual expenses of just $72,021.
In Texas, however, Lantana and Nacogdoches represent the extremes. The two cities lie about 3.5 hours apart by car, but they are worlds apart in terms of affordability for residents.
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