As the cost of living soars, the gap between the average worker’s earnings and what it takes to live comfortably in America widens, according to a new survey.
See the tweet below!
The median annual income, reported at just below $62,000, pales compared to what’s needed across the country.
Despite wage growth, many Americans remain in financial distress, raising concerns about rising economic challenges.
Across the United States, the income required to maintain a comfortable lifestyle varies greatly, shedding light on economic disparities that challenge many Americans.
SmartAsset’s recent assessment outlines the stark contrasts in salary requirements across the 50 states, indicating that even the most budget-friendly areas demand salaries significantly higher than the average earnings of $62,000.
West Virginia, the most affordable state for a single resident, still requires an $80,829 salary to ensure comfort, revealing a troubling gap between worker income and living costs.
This gap highlights a complex picture of differing living expenses and economic necessities across geographically diverse areas.
Analyzing data from SmartAsset using the 50/30/20 budget rule provides insights into why income disparities are growing.
Necessities account for 50%; discretionary spending, 30%; and long-term goals, 20%.
In 2025, individuals will need an additional $5,844, while families require $9,360 more to maintain comfortable living conditions.
Hawaii tops the list as the most expensive state for single adults, with a whopping $124,467 required, marking a 9.48% increase over the previous year.
The cost of living isn’t the only factor affecting these rates.
Families in Massachusetts face the highest financial burdens, needing a collective household income of $313,747.
“About 7 in 10 Americans feel stressed about their finances, according to a CNBC/SurveyMonkey online poll conducted in April,” CNBC reports.
The financial strain isn’t limited to costs alone. States like Vermont and New Jersey have experienced significant income requirement hikes for families, with Vermont facing a 15.48% rise.
Montana reports the highest increase for singles at 9.57%. This alarming upward trend makes financial planning more complex for citizens across states.
In stark contrast, Mississippi helps families keep relative financial stability, being the least expensive at $186,618.
The MIT Living Wage Calculator sheds further light, consolidating data from housing, food, transportation, income taxes, and necessities, all updated to 2025.
As prices continue to climb, individuals and families must seek additional income streams or consider cheaper living locations to ease financial burdens.
See the full list of states according to the study findings here.
Salary, a single adult needs to live comfortably in all 50 U.S. states https://t.co/wB61U7ZVfQ
— Ife (@peacelily1121) June 7, 2025
