California ranks among most expensive states for single people, families. Who is No. 1?
California is one of the most expensive states in the country to live comfortably, even if you’re single, according to a new SmartAsset study.
The Golden State ranked No. 3 on the financial tech company’s list of the most expensive states in the United States for single adults, based on income.
It’s also the fifth most expensive state to raise a family, SmartAsset said.
In order to live in sustainable comfort in California, a single adult would need an annual salary of $113,651, SmartAsset said. A family would need to earn $276,723 a year.
Massachusetts was the most expensive place for single people and families to live comfortably, the SmartAsset study found, requiring an annual income of $116,022 for singles and $301,184 for families.
“Outside of the big cities, life can be cheaper for many Americans,” SmartAsset finance editor Jaclyn DeJohn wrote in an April 10 article titled “Here’s the Income It Takes to Live Comfortably in Each U.S. State.“ Though, after years of high inflation, cost increases have affected almost everyone.”
How did SmartAsset study come up with rankings?
SmartAsset applied the 50/30/20 budgeting rule to cost of living data in each state to determine the most and least expensive states that offer sustainable comfort.
The popular budgeting technique divides your monthly income into needs (50%), wants (30%), and savings (20%). The most important portion is savings, according to Nerd Wallet, an online financial advice website.
SmartAsset used Massachusetts Institute of Technology’s Living Wage Calculator to determine the basic cost of living for an adult with no children as well as for two working adults with two children.
MIT’s living wage covers necessities or 50% of an individual’s budget.
The data includes:
Housing
Food
Transportation
Income taxes
Miscellaneous items
The costs were then applied to the 50/30/20 budget for each state to determine its total wage for single adults and families.
What’s the most expensive state in US to live comfortably?
Overall, Massachusetts is the most expensive state to live comfortably, according to the SmartAsset study.
A single working adult must make $116,022 per year or $55.78 per hour. A household of two working adults and two children must make $301,184 to experience the same comfort.
In California, it’s less expensive to raise a family than to live comfortably alone. The difference in annual income is $163,072.
Raising a family in Connecticut and New York is more expensive than in the Golden State, according to data compiled from SmartAsset.
West Virginia is the cheapest state for a single adult, who needs to make $78,790 per year to live comfortably. It’s also the third-least expensive state for a family, which can enjoy a comfortably living on $189,364 per year.
Mississippi is the cheapest state to raise a family, requring an income of $177,798 per year.
What are the top 10 most expensive states for singles? Families?
Here are the top 10 most expensive states for single adults to live comfortably, according to SmartAsset:
Massachusetts
Hawaii
California
New York
Washington
Colorado
New Jersey
Maryland
Oregon
Rhode Island
The top 10 most expensive states for families are:
Massachusetts
Hawaii
Connecticut
New York
California
Colorado
Washington
Oregon
New Jersey
Rhode Island
What are the top 10 cheapest states for singles and families?
Here are the top 10 cheapest states for single adults to live comfortably, according to SmartAsset:
West Virginia
Arkansas
Oklahoma
North Dakota
Kentucky
Ohio
South Dakota
Louisiana
Mississippi
Iowa
The top 10 least expensive states for families are:
Mississippi
Arkansas
West Virginia
Louisiana
Kentucky
South Dakota
Washington
Oklahoma
New Jersey
Rhode Island
What do you want to know about life in Sacramento? Ask our service journalism team your top-of-mind questions in the module below or email servicejournalists@sacbee.com.
