A recent SmartAsset analysis reveals that in order to live comfortably in the most expensive U.S. states, single individuals will need to earn over six figures. This analysis defines “comfortable” as the monthly income required to cover a 50/30/20 budget, with 50% going towards necessities, 30% towards discretionary spending, and 20% towards savings or investments. The income needed for each state was determined based on the cost of necessities using data from the MIT Living Wage Calculator. The five most expensive states for single workers were found to be Massachusetts, Hawaii, California, New York, and Washington, with annual incomes needed ranging from $106,496 to $116,022. These figures are nearly double the U.S. median income for single full-time workers, which stands at around $60,000.
Living alone in these states can come with added costs, often referred to as the “singles tax,” as single individuals typically incur higher expenses for housing, groceries, travel, transportation, and entertainment compared to those living with others. To afford living alone, individuals may need to make adjustments in their budget, such as opting for a smaller living space or cutting back on discretionary purchases like travel. The national median income required to live comfortably alone is $89,461, indicating that the 50/30/20 budget may not be feasible for many single individuals.
The income needed to live comfortably in each state varies widely. For example, Alabama requires an annual income of $83,824, while in Hawaii, an individual would need $113,693 to cover their costs. These figures reflect the different costs of living across the country and underscore the financial challenges that single individuals face in high-cost states. Making ends meet while living alone may necessitate finding ways to reduce expenses or increase income, such as taking on a side hustle or seeking higher-paying job opportunities.
The analysis also highlights the disparities in income needed between states, with some states requiring significantly higher annual earnings to maintain a comfortable lifestyle compared to others. For instance, in North Dakota, the annual income needed is $52,807, while in Connecticut, it is $100,381. These differences emphasize the importance of considering cost of living factors when determining where to live and how to manage personal finances. Individuals may need to carefully evaluate their financial situation and make strategic decisions to ensure they can afford their desired lifestyle and achieve their long-term financial goals.
Overall, the SmartAsset analysis underscores the financial challenges that single individuals face in high-cost states, where the income needed to live comfortably can be significantly higher than the national average. By understanding the cost of living in different states and making informed decisions about budgeting and spending, individuals can better navigate the financial landscape and work towards achieving financial security and stability. Ultimately, managing personal finances is a key aspect of maintaining a comfortable lifestyle and planning for future financial needs, regardless of individual circumstances or location.
