15 States Where You Can Cover Basic Costs on $20 an Hour

In certain parts of the U.S., $20 per hour is a decent living wage compared to other areas. Knowing how to calculate your earnings by week, month and year is essential to budgeting your money and making intelligent financial decisions.

Living expenses typically include food, housing, transportation, healthcare, taxes and child care. Here’s a breakdown of the living costs in 15 states where a single person can live comfortably on about $20 an hour, working 40 hours per week for 52 weeks per year.

Also see the minimum wage in every state.

• Cost of living: $33,200
• Per hour: $16
• Per week: $638
• Per month: $2,767

Earning $33,200 annually in Wisconsin, you can experience many cultural activities, like fishing, canoeing, boating and visiting breweries.

Wisconsin’s cost of living is 10.1% lower than the national average, and a typical home purchase is about $244,100, 27.8% lower than the national average. Renting a two-bedroom apartment in Wisconsin costs about $1,030 per month, compared to the national average of $1,430. Therefore, Wisconsin is generally considered affordable compared to other Midwestern states. 

• Cost of living: $30,800
• Per hour: $15
• Per week: $592
• Per month: $2,567

On an annual salary of $30,800, you can enjoy Missouri’s natural wonders, such as the Ozarks and national forests.

The cost of living in Missouri is about 14% lower than the national average. Buying a home will generally cost $212,300, while renting a two-bedroom apartment costs about $950 monthly. So consider Missouri if you want to buy an affordable home with potential appreciation value. 

• Cost of living: $30,800
• Per hour: $14.81
• Per week: $592
• Per month: $2,567

Alabama’s cost of living is relatively low, on par with Missouri’s. You can settle down in Alabama on an annual salary of $30,800. Although the job market has decreased over the past year by 3.2%, prospects are encouraging, with expected growth of 17.2%. 

The U.S. Census Bureau reported that Alabama households spend $270 average per week on groceries, the 16th-highest amount in the country. 

• Cost of living: $31,200
• Per hour: $15
• Per week: $600
• Per month: $2,600

Nebraska’s cost of living is 12.2% lower than the national average, so an annual salary of $31,200 can go a long way. At $15 per hour, you’ll be making more than the poverty and minimum wage, which are $7.24 and $12 for a single adult with no children. However, the living wage in Nebraska is $20.12 per hour. 

What kinds of jobs can you get for $20 an hour in Nebraska? If you’re an experienced caulker, waterproofer or tuck-pointer, you could make between $18 and $28 an hour in Omaha at a building services company. Front-desk receptionists in Omaha can earn an average of $20 per hour scheduling appointments in places like dental offices.

• Cost of living: $34,000
• Per hour: $16
• Per week: $654
• Per month: $2,833

New Mexico is rich in mouthwatering Mexican, Spanish and Pueblo Native American cuisine. You can immerse yourself in Native American culture and art on an annual salary of $34,000. To live comfortably in New Mexico, you must earn $18 per hour. 

Among the cities in New Mexico with the highest-paying “comfortable” jobs are Roswell, Santa Fe and Las Cruces. New Mexico’s low cost of living helps compensate for the limited opportunities for economic advancement in the so-called comfortable-jobs category.

• Cost of living: $29,600
• Per hour: $14
• Per week: $569
• Per month: $2,467

Iowa’s comfortably affordable annual salary is $29,600 for a single adult. Although the cost of living in Iowa is 19.9% lower than the national average, you might need more money to live comfortably and enjoy a thriving lifestyle with amenities such as excellent healthcare facilities, top-notch schools and an array of entertainment options. 

Compared to neighboring Midwestern states such as Nebraska, Missouri, Minnesota and Illinois, Iowa has a more comfortable cost of living.

• Cost of living: $29,600
• Per hour: $14
• Per week: $569
• Per month: $2,467

Running neck and neck with Iowa, Mississippi’s minimum comfortable annual income is $29,600. The state’s housing, transportation and grocery costs are below the national average. Since temperatures are mostly mild year round, utility costs are also affordable. 

The state attracts many retirees because of its nature and slower lifestyle. At $20 per hour, you can live a basic lifestyle in Mississippi; however, if you enjoy amenities such as dining out, paid video and music streaming services, hobbies and gym memberships, your salary might not stretch as far as you’d like.

• Cost of living: $33,200
• Per hour: $16
• Per week: $638
• Per month: $2,767

Louisiana is one of the cheapest U.S. states to live in: A two-bedroom apartment costs about $1,000 a month. One of Louisiana’s most attractive economic features is that it doesn’t have a state income tax. Louisiana’s gas prices are comparable to the national average. 

A single adult can expect to pay more than $5,400 per year in transportation costs. The charming Bayou state could be a good choice if you’d like to spend some time at jazz festivals and still keep some of your $20 per hour.

• Cost of living: $28,800
• Per hour: $14
• Per week: $554
• Per month: $2,400

South Dakota is known for Mount Rushmore and Badlands National Park. Although you can cover your basic costs in South Dakota by making $20 per hour, a single adult could live more comfortably by earning around $25 per hour. 

Housing costs are 20.7% less than the national average, with a median home purchase at $268,000.

• Cost of living: $31,200
• Per hour: $15
• Per week: $600
• Per month: $2,600

Ohio is a diverse state with thriving metropolitan cities, national parks and wildlife for outdoor enthusiasts. A typical two-bedroom apartment in Ohio rents for approximately $980 monthly, about 37% of a $15-per-hour salary. 

Some advantages of living in Ohio include its many theme parks, stunning lake-surrounded landscapes and various entertainment options. Some disadvantages are the freezing, snowy winters and limited public transportation.

• Cost of living: $29,600
• Per hour: $14
• Per week: $569
• Per month: $2,467

Home of the historic Churchill Downs racetrack and the Kentucky Derby, Kentucky’s cost of living is 17.7% lower than the national average. Compared to other states, you can live a comfortable lifestyle on a modest budget. 

If you’re looking for budget-friendly Kentucky cities, consider Williamsburg or Middlesborough. A home in these smaller cities can cost $100,000 less than in larger cities in the Bluegrass State, like Louisville.

• Cost of living: $30,000
• Per hour: $14
• Per week: $577
• Per month: $2,500

With groceries 8% cheaper than the national average, you can get great deals on food items in North Dakota. To get the most bang for your $14.42 per hour, consider moving from a more expensive state to North Dakota. Some pros to living in North Dakota include some of the lowest income taxes in the country, a low unemployment rate and competitive wages. 

• Cost of living: $29,600
• Per hour: $14
• Per week: $569
• Per month: $2,467

Oklahoma’s cost of living is 17.8% lower than the national average. With a reputation as one of the cheapest states to live in, Oklahoma has low housing, groceries and utilities costs. 

The Great Plains state has low property tax rates and no state income tax. However, Oklahoma is challenged with a low median household income and a high poverty rate. Despite these challenges, Oklahoma is still a good state to live in on $14.23 an hour, as there are plenty of low-cost outdoor and cultural attractions to enjoy.

• Cost of living: $27,600
• Per hour: $13
• Per week: $531
• Per month: $2,300

Arkansas’ cost of living is 22.5% lower than the national average. Budgeting a $13.27-per-hour salary is easier in a state with lower-than-average housing, transportation and grocery costs. There’s also no state income tax, and healthcare is affordable. 

Before moving to Arkansas to save money, consider the pros and cons. In addition to a low cost of living, the state has lots of natural beauty to explore for free. You can hike trails, tour caves and view spectacular waterfalls. A downside is that job opportunities are limited in industries like finance and technology. 

• Cost of living: $28,000
• Per hour: $13
• Per week: $538
• Per month: $2,333

West Virginia’s cost of living is 20.6% lower than the national average. In addition to lower housing costs than other states, West Virginia has more affordable utility, healthcare and food than other states. 

One drawback is the inadequate and sometimes nonexistent public transportation. You’ll find it challenging to get around without a car.