A study by Smart Asset reveals what a person needs to earn to comfortably meet their needs in the United States.
Smart Asset, the financial technology company, released the results of “Salary Needed to Live Comfortably – 2024 Study,” which shows what a person needs to earn in the U.S. to live well.
Key findings from the study:
- On average, a person needs $96,500 to enjoy sustainable comfort in a major U.S. city. This includes being able to pay off debts and invest for the future. It’s even more expensive for families, who need to generate a combined average income of around $235,000 to support two adults and two children without the stress of living paycheck to paycheck.
- A family must earn over $300,000 to comfortably raise two children in six cities, to cover their needs, wants, and savings. Two working adults need a particularly high combined income in:
San Francisco, $339,123
San Jose, $334,547
Boston, $319,738
Arlington, Virginia, $318,573
New York City, $318,406
Oakland, $316,243
- The highest amount of money is needed 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 basic needs as a single person in New York City, you’ll need an estimated salary of $70,000.
“While cost-of-living premiums and inflation metrics capture price increases for goods and services, they don’t necessarily account for all the additional costs required to live comfortably, such as a buffer against the stress of living paycheck to paycheck,” the report states.
Smart Asset notes that the 50/30/20 budget recommends that for sustainable comfort, 50% of your salary should go toward your needs, such as housing, groceries, and transportation; 30% toward wants like entertainment and hobbies; and 20% for paying off debt, saving, or investing.
For more details on the report and its methodology, click here.
Image: DiarioNY
