Do You Save A Lot More Money Moving To Indiana From California

There is no one answer to how much money you need to make to live comfortably, merely one oft-used rule of thumb in budgeting is the l/xxx/20 dominion — which calls for one-half your income to get to necessities, 20% to savings and investments and 30% for splurges and fun.

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For well-nigh Americans, that's a pretty sensible approach to defining a living wage, but enough of residents living in America's largest cities are probably reading that and thinking "Are you insane? Half my income doesn't even cover my rent, and I live in a converted dumbwaiter."

And it'south true: how much money you demand to live comfortably is typically much higher in the big city, putting the 50/thirty/20 dominion out of reach for nearly of its residents. That's why a new GOBankingRates report lays out but how much you need to earn to live comfortably in each of America's 50 largest metropolises based on the price of living by urban center.

Using Zillow to calculate housing costs in each locale and Sperling's Best Places to guess the price of other necessities like transportation, groceries and healthcare, the end effect is a clear sense of only how much you would need to exist bringing in to stick to the l/30/20 rule at boilerplate levels of spending in each category.

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With the average salary in each major U.S. city falling significantly brusque of what's needed to live comfortably at that place, the study should make it articulate that a lot of America'southward urbanites probably have to make cuts elsewhere to beget living in the big urban center. So if you lot're thinking about living in a major city, keep reading to see the platonic bacon and cost of living in America'southward biggest cities.

Albuquerque, New United mexican states

Median income: $53,936
Income needed if you're a homeowner: $69,778.62
Income needed if you're a renter: $64,954.62

Albuquerque isn't going to height any salary comparing by urban center with the median earner pulling down just over $53,000, which is below the average bacon in the U.S. But, with "only" $11,018.62 separating a median earner who rents from the toll to live comfortably in Albuquerque, it'southward actually among the more affordable major cities in the country.

Arlington, Texas

Median income: $63,351
Income needed if you're a homeowner: $83,533.47
Income needed if you're a renter: $73,717.47

Arlington residents are likely struggling a little to get by with a little over $xx,000 separating a median earner from what they would need as a homeowner in the metropolis. Homeowners are paying more in almanac necessities than renters, as well, past almost $10,000.

Atlanta, Georgia

Median income: $64,179
Income needed if you're a homeowner: $92,691.45
Income needed if you're a renter: $74,163.45

Information technology's really cheaper to hire in Atlanta by a significant amount, well-nigh $19,000 less. However, renters are falling short past almost $x,000 in terms of the median bacon and income needed to pay for annual expenditures.

Austin, Texas

Median income: $75,752
Income needed if you lot're a homeowner: $132,584.88
Income needed if you're a renter: $79,520.88

If you're not earning six figures, yous should reconsider living in the Texas capital based on just how costly it tin can be. However, if you're dead set on enjoying the city's renowned music scene on a nightly basis — role of why it'south often no stranger to lists of the best places to live in the U.S. — consider renting. Renters pay a whopping $53,064 less than homeowners here.

Baltimore, Maryland

Median income: $52,164
Income needed if you're a homeowner: $65,839.60
Income needed if you're a renter: $71,911.threescore

To live in Baltimore, ironically you can more comfortably afford to buy a home than rent 1, with income needed for home owning existence virtually $six,000 less than renting. Almanac expenditures are also college for renters, and so maybe Baltimore is the place to make your home owning dreams come true.

Boston, Massachusetts

Median income: $76,298
Income needed if you're a homeowner: $137,849.90
Income needed if you're a renter: $93,401.90

Living in Beantown might require an particularly talented edible bean counter to be sure you can pay all your bills. In Boston you lot need to brand well over $130,000 to alive comfortably while owning, and over $93,000 to live comfortably while renting.

Charlotte, Due north Carolina

Median income: $65,359
Income needed if y'all're a homeowner: $84,691.76
Income needed if yous're a renter: $74,155.76

While needing $84,000 a year to go by is a chip pricey, the salubrious $65,359 a year that the median earner in Charlotte is making ways residents are likely struggling less than they would elsewhere. Homeowners are nearly $xx,000 short of what they would need, putting them among the cities with the smallest gaps between what most people are earning and what it costs to live at that place.

Chicago, Illinois

Median income: $62,097
Income needed if you lot're a homeowner: $84,487.25
Income needed if you lot're a renter: $74,311.25

The Windy City isn't especially expensive when stacked up confronting other urban areas that are among the five largest, but its relatively modest median income means many residents are likely even so struggling to make ends meet. The median earner in Chi-town is more than $22,000 short of what it costs to live comfortably if they ain. Every bit for renters, they'll need a bit more than $12,000 more.

Colorado Springs, Colorado

Median income: $67,719
Income needed if you're a homeowner: $92,352.67
Income needed if you're a renter: $72,480.67

Whether you're renting or owning, you tin expect to spend under $17,000 a year on housing in Colorado Springs. Still, the income needed to live comfortably differs pretty significantly; homeowners need to earn almost $20,000 more per year.

Columbus, Ohio

Median income: $54,902
Income needed if you're a homeowner: $69,710.87
Income needed if you're a renter: $62,534.87

Ohio's capital is 1 of the more than affordable large cities to live in, with the income needed to live comfortably falling under $seventy,000 for homeowners. Renters will need to make about $8,500 more than the city's median income to live comfortably, however.

Dallas, Texas

Median income: $54,747
Income needed if you're a homeowner: $84,165.14
Income needed if y'all're a renter: $70,821.fourteen

The median income below $55,000 a yr probable makes the costs of Dallas significantly more difficult to handle than in other cities. Average earners who rent could be particularly squeezed, with their income coming upwardly over $25,000 short.

Denver, Colorado

Median income: $72,661
Income needed if you're a homeowner: $116,797.80
Income needed if you're a renter: $79,501.fourscore

Denver another of the cities where you need to clear 6 figures to live comfortably if you plan to own a home, and nigh $80,000 if you hope to rent. That leaves the median homeowner and renter $44,136 and $half-dozen,840 short of what they demand each year, respectively.

Detroit, Michigan

Median income: $32,498
Income needed if you're a homeowner: $51,281.71
Income needed if y'all're a renter: $65,753.71

Detroit is some other of the cities on this listing where you pay more than to rent than to own. Fifty-fifty all the same, with such a low median income of less than $33,000 per year, that leaves the median homeowner and renter $18,783 and $33,255 short of what they need each year, respectively.

El Paso, Texas

Median income: $48,866
Income needed if you're a homeowner: $61,014.72
Income needed if you're a renter: $62,814.72

While incomes in El Paso are relatively low, the income needed to live comfortably is also amidst the lowest of the nation's l largest cities. With homeowners needing to make less than $61, 000 a yr — and renters under $63,000 — the gap from a median income to a comfortable 1 is between $12,000 and $14,000 for both renters and buyers.

Fort Worth, Texas

Median income: $64,567
Income needed if you're a homeowner: $82,288.97
Income needed if you're a renter: $72,712.97

Residents of Fort Worth have a median income that'south almost exactly $10,000 a year higher than that of neighboring Dallas. That's particularly good news for renters. And it'due south even ameliorate news for homeowners as the toll to live comfortably is about $2,000 a yr less in Fort Worth than it is in Dallas despite the higher incomes.

Fresno, California

Median income: $53,368
Income needed if you're a homeowner: $83,086.xvi
Income needed if you're a renter: $71,902.sixteen

Fresno is ane of the cities where the income needed to live comfortably falls under $83,000 a year for owners and under $72,000 for renters. Still, with median incomes falling under $54,000 a year, owners and renters alike are about $30,000 and $19,000 short of what they need to alive comfortably.

Houston, Texas

Median income: $53,600
Income needed if yous're a homeowner: $74,945.06
Income needed if you're a renter: $67,145.06

The country'south fourth-largest city is pricier for buyers than renters. You lot'll need to make over $7,800 a year more to live comfortably while owning than renting. Either way, though, with median incomes at just over $53,000, the average Houston resident is coming up well short of that level.

Indianapolis, Indiana

Median income: $50,813
Income needed if y'all're a homeowner: $61,434.55
Income needed if you're a renter: $61,458.55

The cost of living in the Upper Midwest trends on the lower side and Indianapolis isn't outside that trend. While it'due south notwithstanding much higher than the median income of $50,813 a year, the income needed to alive comfortably while owning a domicile is just over $61,000 a yr.

Jacksonville, Florida

Median income: $55,531
Income needed if you're a homeowner: $74,674.threescore
Income needed if you're a renter: $74,218.lx

Another i of the cities where the salary needed to live comfortably is under $eighty,000 for both renters and buyers, Jacksonville could be a relatively affordable mode to enjoy both metropolis life and the sunny Florida climate. And with the income needed to live comfortably most $20,000 over the median wage for homeowners, it's as well i where the costs are improve aligned with people's earnings.

Kansas City, Missouri

Median income: $56,179
Income needed if you're a homeowner: $64,251.85
Income needed if you're a renter: $64,587.85

The gap between the income needed to live comfortably and the $56,179 a year that a median earner makes in Kansas City is amid the lowest in this report for both renters and homeowners. The typical homeowner is just $8,079 short what they need to live comfortably while the typical renter is $eight,408 below that level.

Las Vegas, Nevada

Median income: $58,377
Income needed if you're a homeowner: $92,342.52
Income needed if you lot're a renter: $80,030.52

The income needed to live comfortably in Las Vegas is below the average level for the fifty cities included here. Just, with a median income of $58,377, homeowners with average earnings are short of what they would need to maintain a 50/30/twenty budget assuming average costs.

Long Beach, California

Median income: $66,410
Income needed if you're a homeowner: $145,556.27
Income needed if yous're a renter: $86,276.27

Located to the southeast of Los Angeles, Long Embankment is another of the cities where the income needed to live comfortably exceeds $100,000 for homeowners. It'due south non much better for renters, who need to earn over $86,000. It'southward likewise a urban center where that level is much lower for renters — with those choosing non to buy needing most $59,280 a year less than their counterparts shouldering a mortgage.

Los Angeles, California

Median income: $65,290
Income needed if you're a homeowner: $166,444.75
Income needed if you're a renter: $91,876.75

The state's 2nd-largest city is well-known for its sunny climate, palm trees and entertainment industry, but it'southward possible that its loftier price of living should be amid its most notable traits. If you have a mortgage in Los Angeles, you'll need over $166,000 in income to comfortably fit into the 50/xxx/xx budget.

Louisville, Kentucky

Median income: $54,929
Income needed if yous're a homeowner: $64,089.66
Income needed if you're a renter: $62,217.66

Louisville's relatively minor toll of living helps contribute to incomes needed to live comfortably that are under $65,000 for both renters and buyers.

Memphis, Tennessee

Median income: $41,864
Income needed if you're a homeowner: $53,910.13
Income needed if yous're a renter: $65,790.thirteen

Memphis is another city where residents aren't making enough to really accept advantage of the low cost of living the style one would promise. While you would need less than $66,000 a yr to alive comfortably there, the median earner in the city is making less than $42,000 a year.

Mesa, Arizona

Median income: $61,640
Income needed if you're a homeowner: $89,054.87
Income needed if you're a renter: $79,454.87

The income needed for a comfortable lifestyle in Mesa is only a $10,000 departure for renters and buyers. However, that'southward $27,000 more than than the median earner can afford for homeowners, and more than $17,000 for renters.

Miami, Florida

Median income: $44,268
Income needed if you're a homeowner: $111,043.77
Income needed if you're a renter: $xc,019.77

Miami has the unfortunate distinction of being both one of the thirteen cities where the income necessary to live comfortably exceeds $100,000 for buyers and over $90,000 for renters, and yet the median income is under $45,000 a twelvemonth. That leaves a huge $50,000 to $seventy,000-plus gap betwixt what people are making and what they need to earn to live comfortably whether you own your home or rent it.

Milwaukee, Wisconsin

Median income: $43,125
Income needed if you're a homeowner: $62,539.12
Income needed if you're a renter: $62,755.12

While the cost of living is relatively modest in Milwaukee, so is the median income. With one-half of the city making $43,125 or less, fifty-fifty that $62,539.12 a year needed to alive comfortably while paying a mortgage is most $20,000 more than residents who own are making.

Minneapolis, Minnesota

Median income: $66,068
Income needed if yous're a homeowner: $81,012,18
Income needed if you're a renter: $67,236.18

Minneapolis is a relatively affluent city, particularly when compared to other major urban areas in the Upper Midwest. All the same, despite a stronger median income, the cost of living is also relatively high. That leaves a median earner in Minneapolis $xiv,944 short of what they need to live comfortably if they ain only only $1,168 short if they rent.

Nashville, Tennessee

Median income: $62,087
Income needed if you're a homeowner: $89,932.33
Income needed if you're a renter: $74,164.33

Music Urban center'due south high cost of living ways the 50/30/20 budget rule is likely not possible for many to most of its residents. Owners are over $27,000 curt of what they need to live comfortably based on the median income of $62,087 and renters are over $12,000 brusk.

New Orleans, Louisiana

Median income: $43,258
Income needed if you're a homeowner: $69,695.75
Income needed if you're a renter: $67,175.75

The Big Easy is anything merely for its residents who are earning less — and there are probable plenty with a median income under $twoscore,000 a year. It's much worse if you lot're renting, though, as median earners who don't ain are around $49,000 a twelvemonth curt of the income necessary to alive comfortably.

New York City, New York

Median income: $67,046
Income needed if you're a homeowner: $151,390.19
Income needed if you're a renter: $105,742.nineteen

While New York has long been synonymous with sky-high cost of living, it'south really short of the priciest city in this study. That fact, though, won't offer much solace to residents struggling to make ends meet. If you want to live comfortably in the Big Apple, y'all'll need to earn at least $151,000 a year if y'all're looking to own where y'all live and over $100,000 just to rent.

Oakland, California

Median income: $lxxx,143
Income needed if you're a homeowner: $172,632.75
Income needed if yous're a renter: $85,464.75

The first of 3 cities in the San Francisco Bay Expanse, Oakland is an extremely costly place to alive. Despite a relatively strong median income of $80,143 a yr, residents hoping to own their ain domicile need to increment their income by more than $100,000 a yr if they want to hitting the 50/30/20 rule while paying average costs.

Oklahoma City, Oklahoma

Median income: $56,456
Income needed if you're a homeowner: $62,306.36
Income needed if you're a renter: $66,842.36

Oklahoma City has relatively pocket-sized costs compared to most major cities. Pair that with a median income over $56,000 a twelvemonth and the gap to a comfortable income if you own your home is simply over $five,800 a twelvemonth, one of the lowest levels in the study. However it's a bigger gap if you want to rent, at $10,386 more than than the median income.

Omaha, Nebraska

Median income: $62,213
Income needed if you're a homeowner: $75,376.51
Income needed if yous're a renter: $65,920.51

Another urban center where homeowners are probable coming very shut to earning what they would need, Omaha'due south $62,213 median income is over $13,000 a year curt of what you would demand to live comfortably while covering a mortgage. But, in one case again, this is a city where at that place's a clear financial argument for buying over renting.

Philadelphia, Pennsylvania

Median income: $49,127
Income needed if you're a homeowner: $73,480.45
Income needed if you're a renter: $72,640.45

Brotherly dearest might non cost a affair, just living in Philadelphia sure does. Despite a median income at almost $50,000 a year, the salary necessary to live comfortably while satisfying the 50/30/xx rule is over double what the typical homeowner is actually earning and leaves renters more than than $23,000 shy of what they need.

Phoenix, Arizona

Median income: $sixty,914
Income needed if you're a homeowner: $88,687.17
Income needed if you're a renter: $76,447.17

The nation's fifth-about populous city has a median income over $sixty,000 a year. That's a decent wage compared to many of the cities in this written report, just it's also nearly $28,000 curt of what you demand to live comfortably for buyers and almost $sixteen,000 short of what renters need.

Portland, Oregon

Median income: $73,159
Income needed if y'all're a homeowner: $115,175.60
Income needed if you're a renter: $71,783.60

While a median income of around $73,000 a year is relatively rare among the land's biggest cities — Portland'south loftier toll of living might mean it won't go nearly as far. If you are dead assail moving to Portland, though, it could pay to rent instead of buying as the income needed to live comfortably is more than $42,000 a yr college for homeowners.

Raleigh, North Carolina

Median income: $69,720
Income needed if you're a homeowner: $89,899.50
Income needed if you're a renter: $74,059.50

Raleigh achieves the goal of having its income needed to live comfortably falling inside $21,000 of its median income for both renters and buyers. Non only is the median resident making more than $69,000 per twelvemonth, only its price of living is below the average for these 50 cities.

Sacramento, California

Median income: $65,847
Income needed if yous're a homeowner: $100,940.07
Income needed if yous're a renter: $84,068.07

California'south upper-case letter urban center is northeast of San Francisco, Oakland and the rest of the high-cost Bay Area. Notwithstanding, it does seem every bit though some of the costs have migrated there, equally you'll need to make over $100,000 a year to live comfortably.

San Antonio, Texas

Median income: $53,420
Income needed if you're a homeowner: $76,097.60
Income needed if you're a renter: $65,921.lx

San Antonio is a relatively affordable identify to alive, with the income needed to alive comfortably while paying a mortgage at simply over $76,000 a yr. Unfortunately, that's still quite a bit more than nigh residents are making with a median income just over $l,000.

San Diego, California

Median income: $83,454
Income needed if you're a homeowner: $168,520.41
Income needed if you're a renter: $97,432.41

San Diego might be a smashing place to take in the Southern California sun, merely you lot're likely to pay dearly for the privilege. You'll demand to earn half-dozen figures to live comfortably in the city. But, go on in listen that it'due south much cheaper to hire — with a comfy income coming in at a whopping $71,000 lower for renters than homeowners.

San Francisco, California

Median income: $119,136
Income needed if you lot're a homeowner: $249,793.30
Income needed if you lot're a renter: $101,905.30

San Francisco is the most affluent city in this report, with a median income of over six figures. Despite that, median earners there who own their own home are further from the income necessary to live comfortably than residents of any other urban center on this listing. Even a six-figure income is less than half what y'all demand to own your home and still spend just half your income on necessities in The City.

San Jose, California

Median income: $117,324
Income needed if you lot're a homeowner: $230,695.55
Income needed if you're a renter: $102,223.55

Of course, right next door in San Jose, incomes are almost every bit high. Yet, the median income remains over $100,000 short of what you demand to live comfortably while owning your own home, but it'southward about $19,000 closer than it is in nearby San Francisco.

Seattle, Washington

Median income: $97,185
Income needed if you're a homeowner: $163,752.17
Income needed if you're a renter: $83,304.17

Median earners in Seattle are pulling down near $100,000 a year, only that doesn't get nearly as far as they might similar. Once over again, anyone planning to movement there should seriously consider renting instead of buying: The income needed to alive comfortably is a staggering $lxxx,000 lower if you don't have a mortgage.

Tampa, FL

Median income: $55,634
Income needed if you're a homeowner: $88,852.52
Income needed if you're a renter: $82,636.52

Median earners in Florida are earning only a little more than than $55,000 per yr, but that doesn't get very far for buyers or renters. Buyers volition find themselves over $33,000 brusk of the income needed to alive comfortably, and renters, $27,000 short.

Tucson, Arizona

Median income: $45,227
Income needed if you're a homeowner: $72,983.18
Income needed if you lot're a renter: $67,799.eighteen

The income needed to alive comfortably in Tucson is between high $60,000s and depression $70,000s for renters and owners alike, which is on the lower finish for the cities in this study. Unfortunately, given that Tucson is among those cities where the median income only cracks $45,000 a year, both those levels autumn brusque of what is needed to live comfortably by $20,000 or more.

Tulsa, Oklahoma

Median income: $49,474
Income needed if you lot're a homeowner: $59,451.61
Income needed if you're a renter: $62,859.61

Tulsa's ane of the more than affordable cities in this study, with the income needed to live comfortably coming in nether $63,000 for both homeowners and renters. And while the median income of $49,474 is relatively low, it's still within about $21,100 of what you need to cover a mortgage and other basic necessities with half your salary.

Virginia Embankment, Virgina

Median income: $78,136
Income needed if you're a homeowner: $84,658.08
Income needed if you're a renter: $81,322.08

No metropolis in this study is closer to having its median income meet the salary necessary to live comfortably than Virginia Beach, though that has more to do with the over $78,000 a year earned by the median resident. Renters are just under $three,200 shy of what they need while homeowners are within $6,500.

Washington, D.C.

Median Income: $90,842
Income needed if y'all're a homeowner: $138,229.78
Income needed if yous're a renter: $87,325.78

The nation's majuscule has one of the higher median incomes of a major American metropolis, but it also has some of the highest costs. The income needed to live comfortably there while owning your home is just over $47,000 more what the average resident earns.

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Jordan Rosenfeld contributed to the reporting for this article.

^{Methodology: GOBankingRates constitute the cost of living in America'due south 50 biggest cities by analyzing the post-obit factors: (1) Cost of living Index for groceries, utilities, transportation and healthcare sourced from Sperling's Best Places. Each index was multiplied past the annual expenditure corporeality in each category from Agency Labor of Statistics' 2020 Consumer Expenditure Survey, which measures household annual mean expenditures to determine the almanac mean spending for each category; (2) Rent costs were sourced from ApartmentList's rental data for March 2022, and were multiplied past 12 to obtain an annualized yearly spending on rent; (3) Mortgage payments were based on a 30-year stock-still charge per unit mortgage, using an average mortgage rate 5.eleven%, which was the current boilerplate national rate at the time the study was conducted, according to the Federal Reserve Bank of St. Louis; the city'southward median home value for a unmarried-family residence, according to Zillow'due south March 2022 home value index, and 20% downwards payment; (iv) Median household income was sourced from Demography Agency's 2020 American Customs Survey (this is income prior to being taxed). In one case all the information was establish, the almanac expenditure corporeality was calculated by calculation together the annual spending for each category. GOBankingRates plant the almanac expenditures for both people paying a mortgage payment and for people who are paying rent separately and the median income is subtracted by almanac expenditures for those paying a mortgage and those renting to see how much money is needed or left over for each city. GOBankingRates then used the 50-20-30 dominion which assumes that 50% of income should go towards necessities, 30% should get towards discretionary spending and 20% should go towards savings. All data was collected and is up to date as of Apr 25, 2022.}

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