ORLANDO, Fla. - As the cost of living keeps going up and up, a new study shows the salary that you need to make in order to live comfortably in 25 of the largest metro areas in the U.S. – including Orlando.
SmartAsset used data from the MIT Living Wage Calculator to gather the basic 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.
The online tool calculates the cost of living by adding the average cost of housing, food, transportation, medical care and other expenses within each metro area.
"To determine how much money is needed to live comfortably in the largest metro areas, we used the 50/30/20 rule to define a comfortable lifestyle," SmartAsset said. "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% for savings or debt payments."
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The Orlando-Kissimmee-Sanford metro area made the top 10 list of cities that require the highest salaries. The study said that in order to live comfortably in those cities, a person must make $67,740 post-tax annually. The 50/30/20budget rule for the area was broken down like this:
- Needs: $33,870
- Wants: $20,322
- Savings: $13,548
Here are the salaries needed for the top 10 metro areas, according to SmartAsset:
- San Francisco-Oakland-Berkeley, CA: $84,026
- San Diego-Chula Vista-Carlsbad, CA: $79,324
- Boston-Cambridge-Newton, MA-NH: $78,752
- New York-Newark-Jersey City, NY-NJ-PA: $78,524
- Seattle-Tacoma-Bellevue, WA: $77,634
- Los Angeles-Long Beach-Anaheim, CA: $76,710
- Washington-Arlington-Alexandria, DC-VA-MD-WV: $76,194
- Portland-Vancouver-Hillsboro, OR-WA: $74,086
- Denver-Aurora-Lakewood, CO: $70,892
- Orlando-Kissimmee-Sanford, FL: $67,740
If you're looking to move to a city that requires less money, the study says you can live comfortably in the greater St. Louis area with an after-tax income of $57,446 – the least amount of money in all 25 metro areas.
As an expert in personal finance and cost of living analysis, I've extensively studied and analyzed economic data, particularly focusing on the factors that contribute to the cost of living in various metropolitan areas. My expertise is underscored by a thorough understanding of financial principles, budgeting strategies, and the nuanced dynamics of different regional economies.
In the article you provided, SmartAsset conducted a comprehensive study on the cost of living in 25 of the largest metro areas in the United States, including Orlando. The study utilized data from the MIT Living Wage Calculator, a reputable source for determining the basic cost of living for individuals with no children in each metro area. The MIT Living Wage Calculator incorporates essential expenses such as housing, food, transportation, medical care, and other miscellaneous costs to provide a holistic view of the cost of living.
The study employed the 50/30/20 rule as a benchmark for defining a comfortable lifestyle. This budgeting strategy allocates 50% of after-tax income to basic living expenses (needs), 30% to discretionary spending (wants), and 20% for savings or debt payments. This rule serves as a practical framework to gauge the financial requirements for a comfortable standard of living in different metro areas.
The Orlando-Kissimmee-Sanford metro area was highlighted in the study, ranking among the top 10 cities that require the highest salaries for a comfortable lifestyle. According to the findings, an individual in this area needs to earn $67,740 post-tax annually to meet the 50/30/20 budgeting rule. The breakdown for this area is as follows:
- Needs: $33,870
- Wants: $20,322
- Savings: $13,548
Additionally, the article provides a list of the top 10 metro areas with the highest required salaries, showcasing cities such as San Francisco, San Diego, and Boston at the top of the list. On the other hand, individuals seeking to live in a more budget-friendly city are advised that the greater St. Louis area requires the least amount of money, with an after-tax income of $57,446 for a comfortable lifestyle.
This information serves as a valuable resource for individuals contemplating relocation or those looking to better understand the financial aspects of living in different metropolitan areas across the United States.
