A report by the financial technology company SmartAsset shows the salary that you need to make to live comfortably in 25 of the largest metro areas in the U.S. – including Tampa Bay.
The company compiled data from the MIT Living Wage Calculator to gather the essential cost of living for an individual with no children in each metro area. The data covers the cost of living in each city as of 2022.
According to the report, the calculator estimates what residents need to make to cover living expenses such as housing, food, insurance and other essentials.
Nationally, salaries did increase by 5.1% between December 2021 and December 2022, but wage growth couldn't keep up with inflation, which averaged 8% in 2022 but has declined as of late.
This isn't the story in Tampa Bay, as the latest U.S. Bureau of Labor Statistics data indicate that the current inflation rate sits at 8.9%, which exceeds the national average of 6.4% this year.
The Tampa-St. Petersburg-Clearwater ranked within the top 25 cities requiring the highest salaries to live comfortably.
The study said a single person in Tampa Bay without a child must make $67,740 post-tax annually.
To determine how much money is needed to live comfortably in the largest metro areas, the study used the 50/30/20 rule.This rule is a budgeting strategy that allocates 50% of after-tax income to basic living expenses (needs), 30% to discretionary spending (wants), and 20% to savings or debt payments, according to the site.
"A budget is the bedrock of many people's financial plans. And it's especially essential to understand and track your spending when the cost of everyday items is rising," said Susannah Snider, a certified financial planner and SmartAsset's managing editor of financial education, in a statement.
The 50/30/20 budget rule for the area was broken down like this:
- Needs: $32,574
- Wants: $19,544
- Savings: $13,030
A report from Redfin highlighted that rents in Tampa Bay are averaging $2,189 monthly, a 4% increase compared to the national median of $1,937.
One thing to note is that living expenses are only averages — housing and rent prices, for example, might be more expensive where you live, which would require additional income.
San Francisco-Oakland-Berkeley topped the list, with $84,026 being the livable wage for residents in the area.
The full report can be found here.
