For many millennials, attaining a Middle-American income isn’t always enough to ensure comfort in today’s economic climate. The relentless rise of inflation has made it increasingly challenging to bridge the gap between paychecks, leading to heightened financial stress.
Statistics show that a staggering 78% of Americans are living paycheck to paycheck, likely including you, the reader. To fall within the other 22% implies either not having a paycheck or enjoying a comfortable standard of living.
However, the concept of “living comfortably” is subjective, ranging from meeting basic bill payments to indulging in wants without compromising on necessities. It’s a spectrum where some may aspire to fulfill every need and desire instantly.
Every state maintains its unique cost and standard of living, influenced by individual circumstances such as marital status and family size.
SmartAsset adopts the 50/30/20 rule to define comfort, allocating 50% of income to essentials like housing and food, 30% to discretionary spending, and 20% to savings.
Michigan boasts a below-average cost of living, with housing expenses approximately 10% lower than the national average. Yet, adhering to the 50/30/20 rule still demands a substantial income to achieve comfort in the “Mitten State.”
For a single working adult, achieving this level of comfort requires an annual income of $84,365, equivalent to $40.56 per hour. This places Michigan as the 15th least expensive state to live comfortably in the United States. Contrastingly, the average salary in Michigan stands at $49,560, indicating that most residents fall short of attaining a comfortable standard of living according to this benchmark.
For a family of four comprising two working adults and two children, the combined annual income must reach $214,490 to maintain comfort. However, only a minority (8.2%) of Michigan households earn above $200,000 annually, with the average household income at $92,835.
Unfortunately, living without financial worry remains a distant reality for many. Consequently, some may aim for just enough to get by, as detailed in the following gallery showcasing the minimum salaries required to sustain livelihoods across different states.
GOBankingRates.com data reveals that the median salary necessary for a single person to get by in the U.S. is $57,000 annually. However, considerable disparities exist among states.
The gallery illustrates the variances in required income across states, with some states like Mississippi, Oklahoma, and Alabama ranking among the least expensive, necessitating lower salaries for individuals to maintain a basic standard of living. Conversely, states like Hawaii, Massachusetts, and California are among the most expensive, demanding higher incomes to meet basic needs.