Do You Know What Salary It Takes To Live 'Comfortably'? Here's A Hint – It's Much Higher Than The Average Household Income

Living comfortably in the U.S. is more than just covering your basic needs. According to a recent survey by SmartAsset, while the cost of living and inflation stats help highlight price increases in goods and services, they don't always cover the extra costs that keep you from stressing about money all the time. This is where the 50/30/20 budget rule comes in handy. 

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The 50/30/20 rule suggests that to live comfortably and sustainably, you should spend 50% of your income on needs like housing, groceries, and transportation, 30% on wants like entertainment and hobbies, and 20% on paying off debt, saving, or investing. Using this rule, SmartAsset looked at the cost of living in 99 U.S. cities to determine how much you'd need to earn before taxes to live without financial stress.

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Here's what they found:

On average, a single person must make about $96,500 a year to live comfortably in a major U.S. city. This income allows for paying off debt and saving for the future. For families, the number is much higher – they need a combined income of around $235,000 to support two adults and two kids without the constant worry of living paycheck to paycheck. Keep in mind, the median household income is $74,580, according to the U.S. Census Bureau. By the end of 2023, the average single-person salary was $59,384 per year.

In some cities, the numbers are even steeper. For example, in San Francisco, a family of four must make over $300,000 a year to live comfortably. Other cities with similar requirements include San Jose, Boston, Arlington (VA), New York City, and Oakland. These places require two working adults to pull in a combined income ranging from about $316,000 to $339,000 to cover their needs, wants, and savings.

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For single folks, New York City is the most expensive place to live comfortably. You'd need to earn about $138,570 a year or $66.62 an hour to get by without financial stress. Even covering necessities in NYC would set you back around $70,000 a year.

On the flip side, there are cities where living comfortably is more affordable. In Houston, Texas, a single person needs to make about $75,088 annually, or $36.10 an hour. The combined income needed for a family of four is around $175,219. El Paso, Lubbock, and Toledo also made the list of more affordable cities, with single adults needing salaries in the $75,000 to $81,000 range.

Ultimately, the amount you need to live comfortably varies widely depending on where you live. Whether in a major city like New York or a more affordable place like Houston, understanding these numbers can help you plan your finances better.

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