States Where the Average Salary Isn’t Enough to Get By
Making the average salary in these 42 states won't cut it.
by Gabrielle Olya, GoBankingRates, October 17, 2018
Can you afford to get by on the average salary in your state? According to the 50-30-20 budgeting rule, 50 percent of your income should be dedicated to necessities such as rent and groceries, 30 percent should be dedicated toward discretionary spending and “splurges” and 20 percent should be put toward savings. But depending on where you live and how much you make, living by this expert-approved budgeting strategy might not actually be realistic.
GOBankingRates determined the states where the average salary isn’t enough to get by — comparing the annual expenditures using the 50-30-20 rule based on the cost of living by state to the state’s median household income — and in all but eight states, you wouldn’t earn enough to stick to this budget.
Click through to find out if you make enough to get by in your state….
1. Hawaii -- Difference between income needed vs. actual income: $39,915
Hawaii is the most expensive state to live in: The average annual expenditures total $111,892, with $55,946 needed to cover necessities and $33,568 needed for discretionary spending. The median household income of $71,977 — the fourth highest in the U.S. — isn’t enough to cover those two costs, even without putting anything away for savings.
read … Full Report
|