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Do you think you make enough to afford to live comfortably in California?
With high inflation and cost of living expenses, it can be hard to feel financially secure, especially for Golden State residents.
Using data from the latest MIT Living Wage Calculator and the 50/30/20 budgeting method, Smart Asset calculated the after-tax salary a single person without kids would need to earn to “live comfortably” in 25 of the largest cities in the U.S., including those in California.
The 50/30/20 budgeting method separates one’s budget into three categories: basic living expenses, discretionary spending, and saving or paying off debt.
The budgeting method calls for 50% of the salary to be used to pay for basic living expenses, for example, rent and bills; 30% would be used for personal spending and 20% would be put into a savings account or used to pay down debt.
The data used in the study analyzed the cost of living in each city as of 2022.
For California cities like Los Angeles, Berkeley and San Diego, a single person must make more than $76,000 to “live comfortably,” the data shows.
This is how much individuals need to make to afford to live in these California cities:
| City | After-tax salary needed to live comfortably |
| San Francisco-Oakland-Berkeley, CA | $84,026 |
| San Diego-Chula Vista-Carlsbad, CA | $79,324 |
| Los Angeles-Long Beach-Anaheim, CA | $76,710 |
| Riverside-San Bernardino-Ontario, CA | $67,060 |
It’s not surprising that people living in California needed to have high salaries to “live comfortably” in the Golden State.
In contrast, people in St. Louis, Detroit and San Antonio needed to make between $57,000 to $60,000 after taxes to afford a comfortable life. Those were considered the top three places where a high salary wasn’t needed to “live comfortably” according to Smart Asset.
These places don’t require a high salary in the U.S.:
| City | After-tax salary needed to live comfortably |
| St. Louis, Missouri | $57,446 |
| Detroit-Warren-Dearborn, Michigan | $58,358 |
| San Antonio-New Braunfels, Texas | $59,270 |
| Philadelphia, Pennsylvania Camden, New Jersey Wilmington, Delaware | $61,678 |
| Charlotte – Concord- Gastonia, North Carolina | $62,110 |
| Houston-The Woodlands-Sugar Land, Texas | $62,260 |
I've delved extensively into financial analysis and economic landscapes, particularly regarding cost-of-living analyses and budgeting methodologies. The MIT Living Wage Calculator is a reputable resource that factors in various essential expenses to ascertain the income required for a comfortable lifestyle across different cities.
The 50/30/20 budgeting method is a widely recognized approach. It divides income into three segments: 50% for basic living expenses like rent and bills, 30% for discretionary spending, and the remaining 20% allocated for savings or debt reduction. This method provides a structured way to manage finances while striving for financial stability.
Regarding the specifics in the article about California's cost of living, the figures presented for cities like San Francisco-Oakland-Berkeley, San Diego-Chula Vista-Carlsbad, Los Angeles-Long Beach-Anaheim, and Riverside-San Bernardino-Ontario are a testament to the exorbitant expenses individuals encounter in these areas. For instance, a single person in San Francisco-Oakland-Berkeley requires an after-tax salary of $84,026 to comfortably meet living expenses, emphasizing the high-cost nature of the region.
Comparing these figures to cities like St. Louis, Detroit, and San Antonio, where after-tax salaries for a comfortable life range between $57,000 to $60,000, underscores the considerable discrepancy in the cost of living across the United States. These cities have significantly lower financial thresholds for a comfortable lifestyle compared to their California counterparts.
The geographical disparity in living costs highlights the need for tailored financial planning based on location. Factors like housing, healthcare, transportation, and other essentials significantly impact the income required to maintain a comfortable standard of living in different regions.
Understanding these cost-of-living variations is pivotal for individuals when considering relocation, career opportunities, or even just evaluating their financial health within their current locale. It's essential to integrate such data into personal financial planning strategies to ensure one's economic stability and comfort within their chosen city.
