OT - the cost to live comfortably as a single person in every state

[mstateglfr]

Since SPS loves charts, numbers, and methodology behind numbers, I offer up the article below.


Some info on the numbers, per the article...
- SmartAsset calculated the income needed using the cost of necessities sourced from the MIT Living Wage Calculator, last updated on Feb. 14, 2024.
- In this case, “comfortable” was defined as the annual income required to cover a 50/30/20 budget, allocating 50% of earnings to necessities such as housing and utility costs, 30% to discretionary spending, and 20% to savings or investments.

$116k is the highest. $79k is the lowest.
MS is 42nd at $82,700.

https://www.visualcapitalist.com/mapped-the-income-needed-to-live-comfortably-in-every-u-s-state/

This is for living 'comfortably' as a single person. Not a family, not a household, not a living wage, etc etc.

 

[pseudonym]

For families, Mississippi is the lowest: $177,798

https://www.visualcapitalist.com/mapped-the-income-a-family-needs-to-live-comfortably-in-every-u-s-state/

 

[57stratdawg]

Kind of surprising Georgia is the highest SEC state. I know ATL has grown a lot. Real Estate in North GA and Savannah / Coast probably driving up their numbers.

 

[TrueMaroonGrind]

That’s a pretty high income to “live comfortably” in Mississippi. It seems to be inflated with current interest rates and housing prices. No doubt it’s a tough time to buy. Based on people starting from scratch it’s hard right now.

 

[thatsbaseball]

"For families, Mississippi is the lowest: $177,798"

Houston we have a problem !

Mississippi Income Statistics | Current Census Data for Mississippi Zip Codes

Access current US Census income data for Mississippi ZIP codes. Compare stats with neighboring ZIP codes, counties, and cities today.

www.incomebyzipcode.com

 

[ckDOG]

Only skimmed. Do they publish the detailed model? Would be great to know the various cost assumptions, savings rates, etc.

 

[maroontide06]

If that's the cost to live comfortably, then I must be living like a caveman LOL.

 

[pseudonym]

 

[pseudonym]

Have we tried raising the minimum wage to $40/hour?

 

[Shane of Pisgah]

This goes to show that you can put anything into a graph and people will believe it. It's in a graph!

 

[GloryDawg]

This is one of those lists I am happy Miss is last.

 

[IBleedMaroonDawg]

 

[jethreauxdawg]

Did they define “comfortably”?

 

[dorndawg]

Did they define “comfortably”?

 

[Irondawg]

20% savings is nice but pretty aggressive. Or am I behind the time?

 

[dorndawg]

20% savings is nice but pretty aggressive. Or am I behind the time?

That's on the high side especially for younger folks. It's certainly driving up the "comfortably" number.

 

[dgsmith15]

20% savings is nice but pretty aggressive. Or am I behind the time?

Aggressive? More like savage... (in this economy)

 

[jethreauxdawg]

View attachment 590215

Sorry, is there more detail on “necessary” besides “housing and utilities”? Because $89k/year can get a lot housing and utilities around here and still have some walking around money. And I’d like to know what all they lump into discretionary.

 

[Tall Dawg]

Most folks don’t save 20% being more like 7-8%. So, I just made everyone an extra 12-13% to go blow on other items!

 

[onewoof]

50/30/20 is broken down below, the family breakout looks a bit high...

Single per month ($82.7K before taxes)
$2038 mortgage/rent and utils
$1,222 car, gas, food, entertainment, misc
$407 into savings

Family (2 parents, 2 kids) per month ($178K before taxes)
$3945 mortage/rent and utils
$2366 cars, gas, food, entertainment, tuition
$789 into savings

 

[Shane of Pisgah]

It would literally take 5 minutes to speak to anyone actually living in MS to realize the numbers are BS. Or, let's see, the cost of living in MS is $32,000, but another $50,000 is needed to live "comfortably?" Sure.

 

[jethreauxdawg]

50/30/20 is broken down below, the family breakout looks a bit high...
Family (2 parents, 2 kids) per month ($178K before taxes)
$3945 mortage/rent and utils
$2366 cars, gas, food, entertainment, tuition
$789 into savings

That family plan comes out to $85,200 per year. What am I missing? How do they get to $178k?

 

[ckDOG]

Wouldn't a list of what's left over from the median paycheck after deducting median necessary expenses be more useful? Where is your best bang for buck on generating income for discretionary spending / saving? Everybody lives differently. Just give me the difference we get to direct based on personal choices. Of course "median necessary expenses" is subjective as well but if they keep it to housing, food, medical, and some other necessities it should serve its purpose.

 

[mstateglfr]

Did they define “comfortably”?

They did. I even provided it in the first post for experts that wouldnt click the link but wanted to respond.
^just joking.

 

[She Mate Me]

Those are ridiculous numbers. That is all.

 

[GloryDawg]

One thing about high inflation, social security payments go up.

 

[johnson86-1]

20% savings is nice but pretty aggressive. Or am I behind the time?

If you save 20% and earn a real return of 5%, it will take about 37 years to generate enough savings to retire.

That basically assumes you will have the same inflation adjusted wage for 37 years, which is obviously not realistic for most. But it also assumes saving 20% every year without fail, which is also probably not realistic for most people unless they are extremely blessed to not have a hiccup over 37 years.

And that ignores social security, which is a pretty big safety cushion .

And if you are getting insurance through work, that's potentially a pretty big income and expenditure that doesn't show clearly show up that could affect your savings rate.

So all that to say, I wouldn't freak out if I wasn't hitting 20% by any means, but definitely it's not crazy aggressive. You save 20%, have some hiccups because of job or health or just big kids expenses, you get some of that supplemented by whats left of social security, but maybe health expense claws it back, and hopefully you end up comfortable.

 

[DawgieDust]

I know housing cost have about doubled in last 5 years. Vehicle, insurance, food, electricity, water, gas, medical cost have shot up through the roof too. Not so sure it's pretty close to accurate. Savings, necessities, repairs, and take you a week vacation trip down to Destin or anywhere for that matter. Alot of money.
What we have done to this country the last 5 years is amazing to me!

 

[horshack.sixpack]

Since SPS loves charts, numbers, and methodology behind numbers, I offer up the article below.


Some info on the numbers, per the article...
- SmartAsset calculated the income needed using the cost of necessities sourced from the MIT Living Wage Calculator, last updated on Feb. 14, 2024.
- In this case, “comfortable” was defined as the annual income required to cover a 50/30/20 budget, allocating 50% of earnings to necessities such as housing and utility costs, 30% to discretionary spending, and 20% to savings or investments.

$116k is the highest. $79k is the lowest.
MS is 42nd at $82,700.

https://www.visualcapitalist.com/mapped-the-income-needed-to-live-comfortably-in-every-u-s-state/

This is for living 'comfortably' as a single person. Not a family, not a household, not a living wage, etc etc.

I saw that. It seems to me that we need a cost to live in a place you'd actually want to live map. TN for example, statewide is too deceptive of an average, at least compared to the Nashville, Chattanooga or Knoxville metros.

 

[turkish]

I saw that. It seems to me that we need a cost to live in a place you'd actually want to live map. TN for example, statewide is too deceptive of an average, at least compared to the Nashville, Chattanooga or Knoxville metros.

Agree. I tell everyone that we don’t have a deficit of affordable housing. We have a deficit of desirable housing.

 

[The Cooterpoot]

I've been to college, I can live a damn fine single life on far less than the average. The single women run those numbers up.

 

[Boom Boom]

20% savings is nice but pretty aggressive. Or am I behind the time?

Depends on your situation and goals. If your income is lower, low debt at a younger age, and you don't mind working until 65, and backstop that with proper insurance, it can be enough. If you want to retire younger or vacation and such, you'll need more.

I would say prioritize a 20% savings rate (more really, max out 401k and roth, which would be around 30% for a 100k income) before having an Escalade and 2500sf home and such. Most don't. If you're paying down debt, just taking the 401k match can be wise. A 6 or 7% mortgage is probably worth paying down before unadvantaged savings right now (textbook amswer is no, but it assumes 8% returns, which I doubt for savings put in at this moment).

 

[Leeshouldveflanked]

That family plan comes out to $85,200 per year. What am I missing? How do they get to $178k?

Taxes, SS, Medical, and more Taxes.

 

[Maroon13]

I see why our NIL and attendance is so poor.*

Seriously, $85k/$177k seems about right to me. Young adults wanting a house, car and to eat, and any kind of social life, will need that much.

$177k (gross) would be just getting by for a family in Desoto county. That's assuming they bought a house 5-15 years ago and have a mortgage under $2000/month. Stuff adds up. Groceries. Insurance. Kid expenses. I don't know how any family could do it under $150k per year.

 

[jethreauxdawg]

I see why our NIL and attendance is so poor.*

Seriously, $85k/$177k seems about right to me. Young adults wanting a house, car and to eat, and any kind of social life, will need that much.

$177k (gross) would be just getting by for a family in Desoto county. That's assuming they bought a house 5-15 years ago and have a mortgage under $2000/month. Stuff adds up. Groceries. Insurance. Kid expenses. I don't know how any family could do it under $150k per year.

I really struggle to wrap my ahead around this. I think people have a jacked up view of living “comfortably”. Affluenza is killing people.

 

[onewoof]

What the hell is going on with health care in America? You have to prepay now to get diagnostics, I know we have arguably the best health care but my intent is to avoid all hospitals and medical procedures no matter what.

 

[PooPopsBaldHead]

I really struggle to wrap my ahead around this. I think people have a jacked up view of living “comfortably”. Affluenza is killing people.

I think the big caveat is if you bought a house today vs 2+ years ago... And spending 50% on discretionary stuff and investments.

Let's look at the $178k for a family of 4:

A "comfortable home" ($300-$400k purchase price) bought today in Mississippi at current rates, taxes and insurance is likely pushing $2800k or more for the monthly mortgage payment. Add in $600-$700 a month for utilities (electric, gas, water, trash, sewer, internet, & mobile phones) and $1500 a month for groceries... That's $5k right there. Add in cars and gas, vacations, possibly private school, clothes, entertainment, 401k, etc and $10k per month goes fast... Not to mention 20-25% of that income is going to taxes right off the top.

Tough sledding out there. Those stimmy checks, enhanced unemployment, mortgage/student loan forbearance, and PPP were a real kick in the dìck. Owning a home on a fixed mortgage prior to mid 2022 is one of the great inflation hedges ever afforded a population.

 

[TrueMaroonGrind]

I think the big caveat is if you bought a house today vs 2+ years ago... And spending 50% on discretionary stuff and investments.

Let's look at the $178k for a family of 4:

A "comfortable home" ($300-$400k purchase price) bought today in Mississippi at current rates, taxes and insurance is likely pushing $2800k or more for the monthly mortgage payment. Add in $600-$700 a month for utilities (electric, gas, water, trash, sewer, internet, & mobile phones) and $1500 a month for groceries... That's $5k right there. Add in cars and gas, vacations, possibly private school, clothes, entertainment, 401k, etc and $10k per month goes fast... Not to mention 20-25% of that income is going to taxes right off the top.

Tough sledding out there. Those stimmy checks, enhanced unemployment, mortgage/student loan forbearance, and PPP were a real kick in the dìck. Owning a home on a fixed mortgage prior to mid 2022 is one of the great inflation hedges ever afforded a population.

Yes it is and that is why no one is moving. In the current market downsizing, which is what some older folks want to do, could possibly increase their mortgage payment due to interest rates.

Ideally if you are close to retirement age you have paid your house off and the interest rates wouldn’t matter, but that is not reality for a lot of people.

You would think this would be a wake up call for those in lots of debt. Looking at the consumer debt numbers that isn’t the case. The next few years will be a tough ride for us all especially those just starting out.

 

[Maroon13]

I think the big caveat is if you bought a house today vs 2+ years ago... And spending 50% on discretionary stuff and investments.

Let's look at the $178k for a family of 4:

A "comfortable home" ($300-$400k purchase price) bought today in Mississippi at current rates, taxes and insurance is likely pushing $2800k or more for the monthly mortgage payment. Add in $600-$700 a month for utilities (electric, gas, water, trash, sewer, internet, & mobile phones) and $1500 a month for groceries... That's $5k right there. Add in cars and gas, vacations, possibly private school, clothes, entertainment, 401k, etc and $10k per month goes fast... Not to mention 20-25% of that income is going to taxes right off the top.

Tough sledding out there. Those stimmy checks, enhanced unemployment, mortgage/student loan forbearance, and PPP were a real kick in the dìck. Owning a home on a fixed mortgage prior to mid 2022 is one of the great inflation hedges ever afforded a population.

Pops nails it.

Then if you want to really be honest. Cell phone plans are $100-200 month depending. TV is over $100 regardless of satellite or steaming. (They did say comfortable.). Car insurance $200-500 (if you have 3-4 people driving and young adults). Then let's say your car has 150-200k and you want a new one or even slight used, new to you, $600-900 a month.

oh you want to go to a MSU football or baseball game? $500-1000. You want to go to all msu games and live +2 hours away.... $2000-5000. Any type of entertainment is expensive now.

Oh your kid wants to do middle school cheer or baseball...... or volleyball.....like every other kid in the school..... $1000-3000.

I could go on and on.

 

[horshack.sixpack]

Depends on your situation and goals. If your income is lower, low debt at a younger age, and you don't mind working until 65, and backstop that with proper insurance, it can be enough. If you want to retire younger or vacation and such, you'll need more.

I would say prioritize a 20% savings rate (more really, max out 401k and roth, which would be around 30% for a 100k income) before having an Escalade and 2500sf home and such. Most don't. If you're paying down debt, just taking the 401k match can be wise. A 6 or 7% mortgage is probably worth paying down before unadvantaged savings right now (textbook amswer is no, but it assumes 8% returns, which I doubt for savings put in at this moment).

I think that the relatively recent idea of retiring between 55 and 65 is not healthy. I expect a reverse in that trend. I don't think it's healthy to retire that early, even if you could financially. I plan to work until I'm not able to contribute either/both mentally or/and physically. I am keenly aware that I have a rare case in that I like my job. Also, I'm in my 50's, so I cannot say what my attitude might be like in my 60's and am not judging anyone who has chosen a different path.