How much money is needed to live comfortably in US? Recent inflation figures revealing a 3.5% increase in consumer goods prices in the US have sparked a reevaluation of the income needed to maintain a comfortable lifestyle, according to a report by CNBC.
The surge in the Consumer Price Index (CPI) has eroded purchasing power, leading individuals to question the financial requirements for a satisfactory standard of living.
Analysis Points to Six-Figure Salaries for Comfortable Living:
A recent analysis by SmartAsset suggests that achieving a comfortable life in the US now requires earning a six-figure salary.
This assessment is based on the framework of a 50/30/20 budget, where 50% of income is allocated to housing and utilities, 30% to other expenditures, and 20% to savings.
How much money is needed to live comfortably in US?
CNBC’s calculations highlight the significant disparity in living costs across different states. The report identifies five states where the cost of living for single workers is particularly high:
- Massachusetts: $116,022
- Hawaii: $113,693
- California: $113,651
- New York: $111,738
- Washington: $106,496
These figures starkly contrast with the median income of around $60,000 for single full-time employees, as reported by the Labor Bureau.
In these states, attaining a comfortable lifestyle often necessitates an income double the median.
National Median Income Falls Short of Comfortable Living Threshold:
The national median income of $89,461 highlights the challenges of adhering to a 50/30/20 budget for many individuals across the country.
Also read: How California’s new wage law creates problem for low-paid workers
Living Alone vs. Living with a Partner:
The report also emphasizes the financial benefits of living with a partner, as shared expenses can significantly reduce the overall cost of living.
In contrast, maintaining a budget while living alone requires meticulous planning and careful allocation of resources to cover living expenses, transportation, and discretionary spending.
