Map Shows States Where It's Hardest to Survive on $120,000 Per Year
Summary
A report by SmartAsset shows that making $120,000 a year is not enough to live comfortably in many U.S. states, especially in places with a high cost of living like Hawaii, California, and New York. Rising prices for housing, food, and other essentials have made it harder for people to afford basic needs despite higher wages.Key Facts
- $120,000 a year used to be seen as a secure income but now often only provides limited financial comfort.
- Hawaii requires a single adult to earn about $129,000 and a family of four to earn $313,165 to live comfortably.
- Nearly half of U.S. states need a single adult to make more than $100,000 annually for a comfortable lifestyle.
- The report uses the 50/30/20 budgeting rule: 50% for needs, 30% for wants, 20% for savings and debt.
- Besides Hawaii, Massachusetts, California, and New York require the highest incomes to live comfortably.
- Housing costs are the main factor making living expenses high, worsened by pandemic-related price increases and higher mortgage rates.
- Other rising costs include food, healthcare, taxes, transportation, and utilities.
- Economists expect affordability to remain a major challenge for many Americans in the coming years.
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