Salary Needed to Live Comfortably – 2024 Study?

The findings are eye-opening: to lead a comfortable life in a major U.S. city, an individual needs to earn, on average, an annual pre-tax salary of $96,500 . This takes into account necessities, debt obligations, and investments for the future. For families, the financial requirements are even more substantial.

How much money do you think you need to make per year to live comfortably?

Person needs nearly six figures to live comfortably The study found that a person needs an average of $96,500 for sustainable comfort in a major U.S. city.

What is a livable wage in the US?

According to research from MIT, the living wage in the United States was $25.02 per hour ($104,077.70 per year) before taxes per year in 2022 for a family of four (two working adults with two children) . That's an increase from $24.16 ($100,498.60 per year) in 2021.

What salary do I need to be comfortable?

On average, an individual needs $96,500 for sustainable comfort in a major U.S. city. This includes being able to pay off debt and invest for the future.

What is a good salary for a single person in Florida?

Florida can be an expensive place, mostly because the cost of renting or owning a home has gone up so much. But with a good salary — by one definition at least $69,000 for a single, childless person — and a solid spending plan, you can enjoy the laid-back Florida lifestyle. Take control of your finances with SoFi.

Is $130 000 a good salary?

$130,000 is the 75th percentile . Salaries above this are outliers. $143,000 is the 90th percentile.

How much is $80000 a year per hour?

If you make $80,000 a year, your hourly salary would be $38.46 .

Is 25k a livable wage?

One of you could lose your job or you're just starting your career and working for minimum wage. The quick answer to this question is yes— two people can live on $25,000 a year . But it would be very difficult if you had a mortgage, auto loan, credit card debt or student debt.

How much money does a family of 4 need to live comfortably?

Out of all 99 cities SmartAsset examined, a family of four would need a median of $226,886 to live comfortably.

What is a good salary in US per month?

According to the latest figures by the Bureau of Labor and Statistics, the average salary in USA per month is $5,677 or $68,124 per year. As of 2023, the gross minimum salary in the USA is $32.75 per hour. Salaries range from $32,916 to $112,268 per year and include housing, transport, and other benefits.

Is $20 an hour enough to live on?

At $20 an hour, a full-time worker earns a little more than $40,000 a year — it's not a lavish lifestyle, but enough to support a family , Wartzman says. And higher wages are not unheard of: In Denmark, McDonald's workers earn $20 an hour, which is working well for management and the corporation.

How much money do you need to live comfortably and not work?

To account for this, experts suggest you multiply your desired retirement income by 25 times . So if you want to retire on $20,000 a year, you would need $500,000 saved to live comfortably and never have to work again.

Generally speaking, $60,000 per year is considered a modest income in California , especially in areas like San Francisco or Los Angeles where the cost of living is high. However, it is possible to live a comfortable lifestyle in California with this salary if you manage your expenses carefully.

While $15,000 per month may not seem like a lot of money to some, it is actually more than enough to live a comfortable and fulfilling life, as long as you have a solid financial plan in place . The key is to be mindful of your spending and to make intentional choices about where you allocate your resources.

Salary Needed to Live Comfortably

While cost of living premiums and inflation metrics capture the price increases in goods and services, they do not necessarily account for all the additional costs needed to live comfortably – such as a buffer from the stress of living paycheck to paycheck.

The 50/30/20 budget recommends that for sustainable comfort, 50% of your salary should be allocated to your needs, such as housing, groceries and transportation; 30% toward wants like entertainment and hobbies; and 20% toward paying off debt, saving or investing. Applying the local cost of necessities and taxes to this rule, we can derive the pre-tax salary needed to live comfortably in 99 U.S. cities.

Key Findings

On average, an individual needs $96,500 for sustainable comfort in a major U.S. city. This includes being able to pay off debt and invest for the future. It’s even more expensive for families, who need to make an average combined income of about $235,000 to support two adults and two children without the pressure of living paycheck to paycheck.
A family must make over $300k to raise two kids comfortably in six cities. Two working adults need to make a particularly high combined income in San Francisco ($339,123); San Jose ($334,547); Boston ($319,738); Arlington, VA ($318,573); New York City ($318,406); and Oakland, CA ($316,243) to raise two children with enough money for needs, wants and savings.
It takes the most money to live comfortably as a single person in New York City. This breaks down to $66.62 in hourly wages, or an annual salary of $138,570. To cover necessities as a single person in New York City, you’ll need an estimated $70,000 in wages.

Top 10 Cities With the Lowest Salaries Needed to Live Comfortably

1. Houston, Texas
Hourly wage needed for a single adult: $36.10
Annual salary needed for a single adult to live comfortably: $75,088
Combined salaries for two working adults with two children needed: $175,219

2. El Paso, Texas
Hourly wage needed for a single adult: $36.18
Annual salary needed for a single adult to live comfortably: $75,254
Combined salaries for two working adults with two children needed: $180,461

3. Lubbock, Texas
Hourly wage needed for a single adult: $36.24
Annual salary needed for a single adult to live comfortably: $75,379
Combined salaries for two working adults with two children needed: $181,043

Top 10 Cities With the Highest Salaries Needed to Live Comfortably

1. New York City, New York
Hourly wage needed for a single adult: $66.62
Annual salary needed for a single adult to live comfortably: $138,570
Combined salaries for two working adults with two children needed: $318,406

2. San Jose, California
Hourly wage needed for a single adult: $65.74
Annual salary needed for a single adult to live comfortably: $136,739
Combined salaries for two working adults with two children needed: $334,547

3. Irvine, California
Hourly wage needed for a single adult: $60.96
Annual salary needed for a single adult to live comfortably: $126,797
Combined salaries for two working adults with two children needed: $291,450

4. Santa Ana, California
Hourly wage needed for a single adult: $60.96
Annual salary needed for a single adult to live comfortably: $126,797
Combined salaries for two working adults with two children needed: $291,450

5. Boston, Massachusetts
Hourly wage needed for a single adult: $60.08
Annual salary needed for a single adult to live comfortably: $124,966
Combined salaries for two working adults with two children needed: $319,738

6. San Diego, California
Hourly wage needed for a single adult: $59.04
Annual salary needed for a single adult to live comfortably: $122,803
Combined salaries for two working adults with two children needed: $289,453

7. Chula Vista, California
Hourly wage needed for a single adult: $59.04
Annual salary needed for a single adult to live comfortably: $122,803
Combined salaries for two working adults with two children needed: $289,453

8. San Francisco, California
Hourly wage needed for a single adult: $57.48
Annual salary needed for a single adult to live comfortably: $119,558
Combined salaries for two working adults with two children needed: $339,123

9. Seattle, Washington
Hourly wage needed for a single adult: $57.40
Annual salary needed for a single adult to live comfortably: $119,392
Combined salaries for two working adults with two children needed: $283,712

10. Oakland, California
Hourly wage needed for a single adult: $57.10
Annual salary needed for a single adult to live comfortably: $118,768
Combined salaries for two working adults with two children needed: $316,243

Data and Methodology

SmartAsset used MIT Living Wage Calculator data to gather the basic cost of living for an individual with no children and for two working adults with two children. Data includes cost of necessities including housing, food, transportation and income taxes. It was last updated to reflect the most recent data available on Feb. 14, 2024.

Applying these costs to the 50/30/20 budget for 99 of the largest U.S. cities, MIT’s living wage is assumed to cover needs (i.e. 50% of one’s budget). From there the total wage was extrapolated for individuals and families to spend 30% of the total on wants and 20% on savings or debt payments.

Salary Needed to Live Comfortably – 2024 Study (2024)

Key Findings

Top 10 Cities With the Lowest Salaries Needed to Live Comfortably

Top 10 Cities With the Highest Salaries Needed to Live Comfortably

Data and Methodology

Questions about our study? Contact us at press@smartasset.com

FAQs

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