The Salary Half of West Coast Residents Say They Need To Prosper — Most Aren't Making It
Has $100,000 become subsistence-level income? That certainly appears to be the case on the West Coast.
According to a recent report published by ResumeGenius, nearly 50% of U.S. West Coasters surveyed say they need to make at least $100,000 to get by. That's compared to 40% in the Northeast, 29% in the South and 22% in the Midwest.
The report, which measured how "earnings translate into everyday living costs, savings habits and additional income streams," surveyed 1,000 full-time employees throughout the United States.
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Why Are Workers in the West Feeling the Pinch More Than Any Other Region?
Workers in the West are struggling more than other areas of the country due to higher costs of living — particularly as it pertains to housing. In fact, according to the report, half of all full-time employees in the region say their mortgage and rent payments exceed the traditional affordability benchmark of 30%.
Ryan Wright, real estate investor and CEO at The Investor's Edge, said home prices and rents are rising so quickly because of "land limitations in the Western region, restrictive zoning laws and a concentration of high-paying jobs [which] raise costs further due to property taxes, insurance, utility and commuting expenses."
What Can Workers Do To Improve Their Financial Situation?
Embrace the Side Hustle
Side hustles have become somewhat essential for keeping up with rising costs. Among those supplementing their income, ResumeGenius reported 23% are making money from crypto and stocks; 21% are making money from gig services like Uber and DoorDash; 17% are making money from freelance work like writing and design; 13% are making money from social media; 8% are making money from subscription-based adult content; 6% are making money from private tutoring. Workers should find something with minimal startup costs that matches their existing skill sets.
Consider Shared Housing
Since housing takes up so much of one's budget, Adam Spigelman, senior vice president at Planet Home Lending, recommended finding ways to offset them. For instance, renting a room in your home can generate more income to help offset your mortgage. Purchasing a multi-unit property "where you live in one unit and rent the rest," is another way to offset your mortgage, utilities and other housing expenses.
Proactively Build a Network
"Get a higher-paying job" feels like obvious advice. If it were that easy, everyone would be millionaires. The real savvy lies in finding higher paying jobs and then convincing HR to hire you for them. ... Which often comes down to who you know. That's why insurance and finance expert at Clearsurance.com, Melanie Musson, suggested building your network so you can get promotions or have an "in" with other employers should lucrative opportunities present themselves. Money is frequently a game of relationships — don't forget it.
Control Costs (Where Possible)
Income growth and cost control should happen in tandem, said Wright. So, to improve finances, aim to control the few the variables you can.
"Lock in whatever you can: fixed-rate housing, refinancing high-interest debt and exterior upgrades that will permanently lower utilities and maintenance," he said. The savings will feel like extra money in your pocket.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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