The Savings Needed To Live On Your Own Across America

If you’re a recent — or not-so-recent — college graduate who’s still living at home, you’re not alone. A LendEDU survey found that 9% of millennials ages 23 to 38 live at home with their parents or guardian, and of those who live at home, 60% are doing so due to financial constraints. These financial constraints can include being burdened with student loans or simply not having enough saved to cover the basic costs of living on your own. Staying at home until you have enough of a financial cushion to live alone for the first time can be a smart idea, but you might need more money to live by yourself than you think.

To find out the savings you need before moving out on your own across America, GOBankingRates analyzed 50 major cities and calculated the savings needed based on four months’ rent (first and last months’ rent, plus a security deposit and an extra month cushion), plus two months’ worth of other necessary expenses — groceries, utilities and transportation. If you’re ready to make the move, take a look at the best and worst places for new college graduates to start a life.

• Required savings before moving out: $3,712
  
• Ideal savings per year going forward: $5,218
• Pretax salary needed to live comfortably: $31,369

Albuquerque is one of the places where you need the least saved to live comfortably on your own. It’s tied with one other city on this list for the most affordable groceries, with an average cost of $87 a month.

• Required savings before moving out: $4,382
  
• Ideal savings per year going forward: $6,152
• Pretax salary needed to live comfortably: $36,254

You’ll save on income taxes here compared to many other places in this study. The total income tax rate for those earning the pretax salary needed to live comfortably in Arlington is 15.15%, which is the third-lowest rate of the cities analyzed. If you earned $36,254, you would pay $5,493 in income taxes.

• Required savings before moving out: $7,292
  
• Ideal savings per year going forward: $9,678
• Pretax salary needed to live comfortably: $63,809

Of the cities analyzed, Atlanta is among the cities where you need to have the most saved to live on your own. The average annual cost of necessary expenditures totals $24,195 — $19,560 of which is the median annual rent for a one-bedroom apartment.

• Required savings before moving out: $5,833
  
• Ideal savings per year going forward: $7,861
• Pretax salary needed to live comfortably: $46,887

You can buy all of your groceries for a year for an average cost of $1,056 in Austin, which is tied with one other place on this list for the second-most affordable groceries. However, the city ranks toward the middle when it comes to the amount you need saved before moving out.

• Required savings before moving out: $6,212
  
• Ideal savings per year going forward: $8,405
• Pretax salary needed to live comfortably: $55,864

Baltimore is among the cities where you need the most saved before moving out. That figure includes $1,355 each for the first and last month’s rent based on the median rent for a one-bedroom apartment, $1,355 for a security deposit, an extra month of rent and $792 to cover the average monthly costs of groceries, utilities and transportation for two months.

• Required savings before moving out: $9,341
  
• Ideal savings per year going forward: $12,218
• Pretax salary needed to live comfortably: $83,013

When it comes to how to live on your own in Boston, you’ll need to have a lot saved compared to other places on this list. This is in part because of its expensive utilities, which cost the third-highest amount on average compared to other places on this list — $1,000 annually.

• Required savings before moving out: $5,950
  
• Ideal savings per year going forward: $7,945
• Pretax salary needed to live comfortably: $50,251

The amount you’ll need to have saved to live comfortably on your own in Charlotte ranks in the middle compared to the other cities analyzed. Expect to need $1,320 a month for rent, $93 a month for groceries, $70 a month for utilities and $172 a month for transportation.

• Required savings before moving out: $7,556
  
• Ideal savings per year going forward: $10,037
• Pretax salary needed to live comfortably: $66,338

The savings you need before moving out on your own in Chicago is more than what you need in most of the other cities analyzed in this study. The average monthly cost of necessities in the Windy City totals $2,091: $1,687 for rent, $93 for groceries, $66 for utilities and $245 for transportation.

• Required savings before moving out: $5,447
  
• Ideal savings per year going forward: $7,314
• Pretax salary needed to live comfortably: $46,143

The average annual cost of necessary expenditures in Colorado Springs is $18,285. Compared to the other places analyzed, the amount you need to have saved before moving out in this city is on the lower end.

• Required savings before moving out: $4,168
  
• Ideal savings per year going forward: $5,779
• Pretax salary needed to live comfortably: $35,863

Columbus is one of the places where the median monthly rent for a one-bedroom apartment is under $1,000. The median rent of $880 helps make Columbus one of the places where you need the least saved before moving out.

• Required savings before moving out: $6,260
  
• Ideal savings per year going forward: $8,414
• Pretax salary needed to live comfortably: $50,328

You’ll need more saved to live on your own in Dallas than most places in this study. The median monthly rent here is $1,377, and you’ll need an average of $21,034 to cover all necessary expenses for the year.

• Required savings before moving out: $7,090
  
• Ideal savings per year going forward: $9,394
• Pretax salary needed to live comfortably: $61,271

The amount you need saved before you live on your own in Denver is more than most other places on this list. Housing is a major expense in the city, with the median annual cost of rent for a one-bedroom apartment at $19,056.

• Required savings before moving out: $3,542
  
• Ideal savings per year going forward: $5,020
• Pretax salary needed to live comfortably: $29,209

You can move to El Paso with just over $3,500 saved — it’s the city with the third-lowest required savings before moving out of all the places on this list. It’s also the city with the third-lowest ideal savings per year going forward, which is based on the salary needed to cover expenses, with 20% of that going toward savings.

Housing is a major contributor to El Paso’s affordability — the median rent for a one-bedroom apartment is the third lowest here of all the places in this ranking at $725 a month. It’s also tied with Albuquerque for the most affordable groceries, with an average cost of $87 a month. Overall, the average annual cost for necessary expenditures is $12,550, the third-lowest cost in this study.

Plus, you get to keep more of your income here than any other place in this study — the total income tax rate for those earning the salary needed to live comfortably is 14.07%, so if you earn $29,209, you only have to pay $4,109 in income taxes.

• Required savings before moving out: $6,124
  
• Ideal savings per year going forward: $8,241
• Pretax salary needed to live comfortably: $49,250

You’ll need an average of $20,601 to cover the average annual cost of necessary expenditures in Fort Worth. The amount you need to have saved before moving out on your own in the Texas city falls roughly in the middle compared to the other places in this study.

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• Required savings before moving out: $3,908
  
• Ideal savings per year going forward: $5,515
• Pretax salary needed to live comfortably: $33,108

Many of the most expensive places to live are in California, but Fresno is an exception — it’s actually one of the most affordable places GOBankingRates analyzed, so you need comparatively little saved to move out on your own here. The median monthly rent for a one-bedroom apartment is $805, and the average monthly costs for groceries, utilities and transportation are $97, $80 and $166, respectively. And fortunately, there are ways to save on all your monthly expenses.

• Required savings before moving out: $7,964
  
• Ideal savings per year going forward: $10,713
• Pretax salary needed to live comfortably: $73,821

Groceries will set you back an average of $138 a month in Honolulu, which has the most expensive groceries in this study. The city also has the most expensive utilities, with an average monthly cost of $126.

• Required savings before moving out: $5,802
  
• Ideal savings per year going forward: $7,868
• Pretax salary needed to live comfortably: $46,933

The amount you need to have saved to live on your own in Houston falls toward the middle compared to the other places analyzed. The average annual cost of necessary expenditures in this city is $19,670.

• Required savings before moving out: $4,135
  
• Ideal savings per year going forward: $5,713
• Pretax salary needed to live comfortably: $35,613

You’ll need less saved to live on your own in Indianapolis than most other places in this study. One of the main factors in its affordability is its inexpensive rent — the median monthly rent for a one-bedroom apartment is $877.

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• Required savings before moving out: $5,373
  
• Ideal savings per year going forward: $7,285
• Pretax salary needed to live comfortably: $43,305

Overall, the amount you need to have saved to live on your own in Jacksonville falls toward the middle compared to other places in this study, but one perk of living here is that you get to keep more of your earnings than in most other places. The total income tax rate for those earning the salary needed to live comfortably is 15.89%.

• Required savings before moving out: $4,664
  
• Ideal savings per year going forward: $6,366
• Pretax salary needed to live comfortably: $39,596

Kansas City has the third-most-affordable transportation of any place in this study, with an average monthly cost of $156.

• Required savings before moving out: $4,800
  
• Ideal savings per year going forward: $6,695
• Pretax salary needed to live comfortably: $39,635

The amount you need saved to move out on your own in Las Vegas is on the lower end compared to the other places on this list — assuming you don’t gamble away those savings once you get there. The average annual cost of necessary expenditures in Sin City is $16,738.

• Required savings before moving out: $7,496
  
• Ideal savings per year going forward: $10,070
• Pretax salary needed to live comfortably: $66,332

Prepare to spend more of your earnings on transportation in Long Beach than in most other places. The average monthly cost is $279, which is the third highest of all the places in this study.

• Required savings before moving out: $10,317
  
• Ideal savings per year going forward: $13,480
• Pretax salary needed to live comfortably: $94,260

Los Angeles is one of the cities that requires the most savings to live on your own, and it has the second-most expensive transportation in this study with an average cost of $292 per month.

• Required savings before moving out: $4,174
  
• Ideal savings per year going forward: $5,819
• Pretax salary needed to live comfortably: $37,371

Compared to most of the other places analyzed, you don’t need that much saved to live on your own in Louisville. Affordable rent helps keep the overall living costs low in the home of the Kentucky Derby, with the median monthly rent for a one-bedroom apartment at $875.

• Required savings before moving out: $3,653
  
• Ideal savings per year going forward: $5,168
• Pretax salary needed to live comfortably: $30,131

Of the 50 cities included in this study, Memphis has the second-lowest total income tax rate for those earning the pretax salary needed to live comfortably at 14.24%. If you earn $30,131, you’ll only pay $4,290 in income taxes.

• Required savings before moving out: $4,525
  
• Ideal savings per year going forward: $6,309
• Pretax salary needed to live comfortably: $38,337

The amount you need saved to live on your own in Mesa is lower than in most of the other places in this study. The median monthly rent is particularly low, with a cost of $948 for a one-bedroom apartment. Overall, the average cost to cover necessities for the year totals $15,773.

• Required savings before moving out: $8,860
  
• Ideal savings per year going forward: $11,663
• Pretax salary needed to live comfortably: $73,371

Living costs are high in Miami, so you’ll need a relatively large financial cushion before being able to live on your own here. Rent, groceries and transportation cost more here than in most of the other places in this study, with the median monthly cost of rent alone at $2,000.

• Required savings before moving out: $3,984
  
• Ideal savings per year going forward: $5,601
• Pretax salary needed to live comfortably: $34,448

You need less than $4,000 saved to live in Milwaukee, which is one of the places you’ll need the least saved before moving out. Rent is more affordable here than in most places in the study, costing a median of $9,900 a year.

• Required savings before moving out: $6,815
  
• Ideal savings per year going forward: $9,035
• Pretax salary needed to live comfortably: $58,899

The amount you need to have saved before moving out is higher in Minneapolis than in most of the other cities analyzed. The median rent for a one-bedroom apartment in this Twin City is $1,525, and the average monthly cost for transportation is $194.

• Required savings before moving out: $6,636
  
• Ideal savings per year going forward: $8,774
• Pretax salary needed to live comfortably: $52,835

You need just slightly less saved to live on your own in Nashville than you do in Minneapolis. The average annual cost to cover necessities here is $21,935.

• Required savings before moving out: $5,864
  
• Ideal savings per year going forward: $7,976
• Pretax salary needed to live comfortably: $49,261

New Orleans ranks in the middle for overall affordability, but its utilities are among the cheapest. At an average cost of $62 a month, the Big Easy has the third-cheapest utilities of any place in this study.

• Required savings before moving out: $10,390
  
• Ideal savings per year going forward: $13,776
• Pretax salary needed to live comfortably: $101,587

Taking a bite out of a big apple in the Big Apple will cost you — New York has the second-highest grocery costs in this study, with an average cost of $114 a month. It also has the second-highest utilities cost, with an average cost of $107 a month, and the highest transportation cost, with an average cost of $324 a month. Making matters worse, it has the highest income tax rate for those earning the pretax salary needed to live comfortably at 32.20%, so if you make $101,587, you’ll end up paying $32,708 in income taxes.

• Required savings before moving out: $13,172
  
• Ideal savings per year going forward: $16,709
• Pretax salary needed to live comfortably: $121,588

Northern California is an expensive place to live, and Oakland is particularly pricey. Compared to the other cities in this study, you’ll need to have the second-highest amount of money saved to move. A big chunk of your income will go toward rent — the median monthly rent for a one-bedroom apartment is $3,105, the second-highest amount of any place on this study. Oakland also has the third-most expensive groceries, with the average monthly cost at $110. Just covering the necessities will cost you an average of $41,772 a year, the second-highest cost in this study.

To cover the high cost of living with enough left over to put 20% toward savings and have 30% for discretionary spending, you’ll need to make the second-highest pretax salary of any place analyzed. You’ll also pay high taxes on that salary — those earning $121,588 are taxed at a rate of 31.29%, which is the third-highest rate of the places in this study. That means you’ll pay $38,044 in income taxes annually.

• Required savings before moving out: $3,834
  
• Ideal savings per year going forward: $5,385
• Pretax salary needed to live comfortably: $32,833

The average monthly cost of groceries in Oklahoma City is $89 — tied with one other city for the third-lowest cost in this study.

• Required savings before moving out: $3,988
  
• Ideal savings per year going forward: $5,528
• Pretax salary needed to live comfortably: $33,647

Omaha is one of the places where you’ll need the least amount saved to live on your own, and it’s the cheapest to get around of the places in this study. The average monthly cost of transportation is $147.

• Required savings before moving out: $5,973
  
• Ideal savings per year going forward: $8,046
• Pretax salary needed to live comfortably: $48,040

The amount you need saved to live on your own in Orlando falls toward the middle compared to the other places in this study. The average annual costs for groceries, utilities and transportation are $1,152, $876 and $2,368, respectively, and the median annual cost for rent for a one-bedroom apartment is $15,720.

• Required savings before moving out: $7,050
  
• Ideal savings per year going forward: $9,479
• Pretax salary needed to live comfortably: $64,231

You’ll need more saved to live on your own in Philadelphia than most other places in this study. In addition to having high living expenses, the City of Brotherly Love also has a relatively high total income tax rate for those earning the salary needed to live comfortably — 26.21%.

• Required savings before moving out: $4,964
  
• Ideal savings per year going forward: $6,850
• Pretax salary needed to live comfortably: $41,848

You only need to have around $5,000 saved to live on your own in Phoenix, which is less than most of the other places in this study. The average annual cost of necessary expenditures in the city is $17,125.

• Required savings before moving out: $6,961
  
• Ideal savings per year going forward: $9,270
• Pretax salary needed to live comfortably: $62,904

At an average of $57 a month, Portland has the second-most affordable utilities of any place on this list.

• Required savings before moving out: $4,969
  
• Ideal savings per year going forward: $6,723
• Pretax salary needed to live comfortably: $42,089

Raleigh is among the places where you’ll need the least amount saved to live on your own, with relatively low living costs. Transportation is particularly affordable — with an average cost of $153 per month, it has the second-lowest transportation cost of the cities in this study.

• Required savings before moving out: $5,913
  
• Ideal savings per year going forward: $7,999
• Pretax salary needed to live comfortably: $49,750

Sacramento ranks toward the middle of the places in this study in terms of the amount you need saved to move out on your own. The median rent in this state capital is $1,290 a month, which adds up to an annual cost of $15,480.

• Required savings before moving out: $4,609
  
• Ideal savings per year going forward: $6,334
• Pretax salary needed to live comfortably: $37,389

San Antonio is tied with Austin for the second-most affordable groceries in this ranking. The average monthly cost is $88.

• Required savings before moving out: $8,743
  
• Ideal savings per year going forward: $11,407
• Pretax salary needed to live comfortably: $77,277

Rent is expensive in San Diego — the median monthly rent for a one-bedroom apartment is $1,995. Because housing is so costly, the savings you need to have before moving out is higher here than in most other places in this study.

• Required savings before moving out: $14,900
  
• Ideal savings per year going forward: $18,961
• Pretax salary needed to live comfortably: $139,493

It might take you a while to save up the amount of money needed to move out in San Francisco. It’s the city that requires the largest amount of money saved of all the places in this study, and it also has the highest ideal savings per year going forward based on the salary needed to live there. Rent here costs more than many mortgages, with the median rent for a one-bedroom apartment at $3,500 — the highest of any place analyzed. Overall, expect to spend an average of $47,402 on necessary expenditures — the most of any place in this study.

Because of its high cost of living, you need the highest pretax salary to live comfortably here — and you’ll have to pay a lot of income tax on it. The income tax rate for those earning $139,493 is 32.04% — the second-highest rate of any place on this list — so you’ll pay $44,689 in income taxes if you earn that.

• Required savings before moving out: $11,249
  
• Ideal savings per year going forward: $14,555
• Pretax salary needed to live comfortably: $103,352

San Jose is in the heart of Silicon Valley, so you can expect an inflated cost of living here — especially when it comes to housing. The median monthly rent for a one-bedroom is $2,592, the third-highest amount of any place on this list. And it’s also tied for the third-most expensive groceries, with an average annual cost of $1,320. Overall, necessities will cost an average of $36,388 a year, the third-highest amount in this study.

Given that, it’s no surprise that the amount you’ll need to have saved before moving out is the third-highest of all the places analyzed. You’ll also need the third-highest pretax salary to live comfortably here compared to the other cities in this study, so San Jose also has the third-highest ideal savings per year going forward.

• Required savings before moving out: $8,917
  
• Ideal savings per year going forward: $11,631
• Pretax salary needed to live comfortably: $73,148

Seattle is among the least affordable places to live on your own, but it does have the cheapest utilities of any city in this study. The average monthly cost of utilities here is $49.

• Required savings before moving out: $3,298
  
• Ideal savings per year going forward: $4,760
• Pretax salary needed to live comfortably: $28,308

You’ll need just over $3,000 saved to move out on your own in Tucson, which is the place with the second-lowest amount of money you need saved up to move out. A major factor in Tucson’s affordability is its housing — the median monthly rent for a one-bedroom apartment is $658, the second-lowest amount of all the places in this study. The average overall cost of necessary expenditures in Tucson is $11,901 a year, the second lowest in this study. Tucson also has the second-lowest pretax salary needed to live comfortably.

• Required savings before moving out: $3,157
  
• Ideal savings per year going forward: $4,552
• Pretax salary needed to live comfortably: $27,302

If you don’t have much saved, head to Tulsa — it’s the city with the lowest required savings before moving out. One reason Tulsa is so affordable is that its housing costs are low, and housing is typically the biggest living expense. The median monthly rent for a one-bedroom apartment is $630, which is the lowest amount in this study. It’s also tied with one other city for the third-most affordable groceries, with an average monthly cost of $89. Overall, it has the lowest annual cost of necessary expenditures, with an average of $11,380 per year, and it has the lowest pretax salary needed to live comfortably.

• Required savings before moving out: $4,769
  
• Ideal savings per year going forward: $6,535
• Pretax salary needed to live comfortably: $40,968

The amount you need to save before moving out in Virginia Beach is less than in most places. The average monthly cost of groceries here is $93, the average monthly cost of utilities is $69 and the average monthly cost of transportation is $177.

• Required savings before moving out: $10,212
  
• Ideal savings per year going forward: $13,276
• Pretax salary needed to live comfortably: $92,440

You’ll need to have over $10,000 saved before living on your own in the U.S. capital — more than in most other places in this study. The overall average annual cost to cover necessities is $33,190, with $28,090 of that going toward rent.

Overall, the U.S. cities analyzed that require the least amount saved to move out on your own are:

1. Tulsa, Oklahoma
2. Tucson, Arizona
3. El Paso, Texas
4. Memphis, Tennessee
5. Albuquerque, New Mexico
6. Oklahoma City
7. Fresno, California
8. Milwaukee
9. Omaha, Nebraska
10. Indianapolis

It’s worth noting that none of these cities are located in the Northeast or Southeast. The Southwest and Mountain States generally have the most affordable cities to start out on your own, with Oklahoma having two of the top 10 cities.

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Methodology: GOBankingRates analyzed 50 major cities across the United States to find the amount of savings a recent graduate/young adult would need to live on their own. GOBankingRates used the following criteria: 1) median rent for a single-bedroom apartment, sourced from Zillow’s March 2019 rental index; 2) monthly grocery cost, based on the “Food at home” annual expenditure for a person under 25 years, sourced from the 2017 Bureau of Labor Statistics Consumer Expenditure Survey; this cost was then adjusted to each city’s local cost of living using Sperling’s Best Places grocery index; 3) monthly utilities cost, based on the “Utilities, fuels and public services” annual expenditure for a person under 25 years, sourced from the 2017 Bureau of Labor Statistics Consumer Expenditure Survey; this cost was then adjusted to each city’s local cost of living using Sperling’s Best Places utilities index; 4) monthly transportation cost, based on the “Gasoline, other fuels and motor oil” plus “Other vehicle expenses” plus “Public and other transportation” annual expenditures for a person under 25 years, sourced from the 2017 Bureau of Labor Statistics Consumer Expenditure Survey; this cost was then adjusted to each city’s local cost of living using Sperling’s Best Places transportation index. These four factors were used to calculate the “Required savings before moving out”: Defined as four months of rent [(1) first month’s rent; (2) last month’s rent; (3) security deposit, generally equivalent to a month’s rent; (4) plus a month cushion] and two months worth of the other living expenditures (groceries, utilities and transportation required). These figures were calculated and combined to give each city a unique savings requirement for individuals seeking to live on their own.

The study also calculated the “ideal savings per year” you should accumulate when living in these cities based on the 50/30/20 budget rule, which allocates 50% of your income to necessities, 30% of your income to discretionary spending and 20% of your income to savings. To determine, the cost of necessities, annual rent, annual utilities, annual transportation and annual groceries were calculated and summed up; since this cost of necessities should be equivalent to 50% of your income, it was multiplied by two to give the “after-tax income you need to live comfortably.” This income figure was then used to determine the 20% put toward savings each year, i.e., the “ideal savings per year.” Before-tax income and total income taxes paid were also calculated for each city. All data is accurate as of April 22, 2019.