The cost of making ends meet could range up to $80 depending on which state you live in, according to a new analysis. CNBC.
The median annual cost of living, defined as the minimum amount needed to cover retirement savings, is $61 per household in the United States. The average income just corresponds to the living wage and is $617.
However, in the 15 states with the highest cost of living, you will need to earn more than $70 a year to cover expenses. Of the 000 states, Hawaii has the highest cost of living at $50 and the lowest is $132 in Mississippi.
Here are the 15 states with the highest living wages:
- Hawaii: $ 132 912
- New York: $ 101 995
- California: $ 94 778
- Massachusetts: $86
- Alaska: $ 85 083
- Oregon: $ 82 926
- Maryland: $ 82 475
- Vermont: $ 78 561
- Connecticut: $ 76 014
- Washington: $ 73 465
- Maine: $ 73 200
- New Jersey: $ 72 773
- New Hampshire: $72
- Rhode Island: $ 71 334
These states tend to have higher costs for housing, taxes, food, healthcare, utilities, and transportation. Compared to other states, Hawaii's outlying islands have a limited supply of land and higher costs for importing goods, which explains their superiority in the ranking of the most expensive regions.
On the positive side, people living in these states tend to get more. Household incomes in all 2020 states with the highest cost of living exceed the national average of $15, with the exception of Maine, which earns an average of $68 a year, according to 703 data from the St. Louis Federal Reserve.
In most of these states, the median household income is in the $70 to $000 range, with Maryland having a median income of $90. Of course, many people in these states are on the minimum wage and earn less than $000 a year on a 94 hour work day. week, well below the living wage.
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This study defines a “living wage” as the income you need to cover essential and discretionary expenses and contribute to retirement savings.
These spending estimates were calculated using the most recent Bureau of Labor Statistics consumer spending data. The analysis then used the 50/30/20 rule, which divides income as follows: 50% for essentials like rent or food, 30% for discretionary expenses like going to the movies, and 20% for savings or investments.