Monday, July 22, 2024
Hawai'i Free Press

Current Articles | Archives

Tuesday, May 2, 2023
Honolulu: Where You Can Earn Six Figures and Still Be Broke
By Selected News Articles @ 12:00 PM :: 2190 Views :: Hawaii Statistics, Cost of Living
Rank 4
Metro Honolulu, HI
Monthly income $8,333
Monthly expenditure $9,198
Net monthly income ($865)

 

Where You Can Earn Six Figures and Still Be Broke

Written by MAGGIE DAVIS

Edited by NAOMI BARR and XIOMARA MARTINEZ-WHITE

Lending Tree, April 24th, 2023

…Are six-figure earners really financially stable? According to our latest study, not necessarily — in fact, a family of three that earns $100,000 annually may still struggle to make ends meet in 16 of the 100 largest U.S. metros.

In 16 of the 100 largest U.S. metros, monthly spending on the basics is higher than the monthly income for a family of three that earns $100,000 annually. Of the 16 metros, eight are in California.

In San Jose, Calif., a family of three that earns $100,000 would be $1,493 in the red monthly after spending on the basics — the highest on our list. San Jose takes this spot by having the highest housing (an average of $2,536 a month for a two-bedroom rental) and transportation (an average of $1,448 a month) costs among the 100 metros. Next on the list are San Francisco ($1,163 in the red) and Oxnard, Calif. ($904).

(Honolulu is fourth--$865 in the red)

Jackson, Miss., tops the list for affordability, with a family of three that earns $100,000 annually having $1,394 left over after spending. Mississippi as a state has the lowest child care costs across the U.S. at $772 a month. Meanwhile, the cost of living in the Jackson metro is about 11% cheaper than the national average. Next on the list are Birmingham, Ala. ($1,307 in the black), and Little Rock, Ark. ($1,294).

How did we determine where six-figure earners can still be broke?

We based our calculations on a family of three (two adults and a child) that earns a gross income of $8,333 monthly. To determine in which of the 100 largest metros these consumers could struggle to make ends meet, LendingTree researchers then analyzed several spending categories commonly considered as “basic” needs. That includes:

Housing: We assumed our family of three is renting a two-bedroom apartment in their area.

Child care: We assumed the family paid for weekly child care. Calculations are at the state level.

Transportation: We measured the total cost of local transportation, including car ownership, travel and transit costs.

Health care: This is the monthly employee contribution amount based on the average annual family premium for employer-based health insurance. Calculations are at the state level.

Student loans: Based on the most recent data, we assumed a couple is making an average monthly student loan payment of $250. (While payments on federally held student loans have been suspended since the beginning of the coronavirus pandemic, those with private student loans have had to continue payments, so we chose not to set the payment at $0.)

Food, entertainment and utilities: We assumed our family of three made average national expenditures for someone earning $100,000 to $149,999 annually. We then applied a cost-of-living multiplier based on the metro.

Taxes: We assumed our family of three files jointly and invests $6,000 yearly into their 401(k). Taxes are measured at the federal level but not state or local.

Savings: We assumed our family of three put away $500 in savings monthly.

read … FULL REPORT

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

MentalIllnessPolicy.org

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii

Obookiah

OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

RailRipoff.com

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

SenatorFong.com

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii