10 States Where Your Paycheck Will Cover Your Bills Despite Inflation
If you read the headlines, many Americans are feeling the financial pinch. Economic headwinds plague many households as they try to manage responsibilities and achieve financial goals. In fact, one in three six-figure earners says they're financially distressed, according to The Harris Poll.
Where you live plays a significant role in how far your paycheck goes toward meeting your needs. The cost of living is one of the key factors to consider when deciding where to live, according to Zillow. Americans living in expensive cities may want to consider moving to a less costly location.
Read More: 8 Easy Ways To Make an Extra $2K a Month
Find Out: Start Growing Your Net Worth With Smarter Tracking
Cost doesn't just include real estate costs, either. You want to consider factors such as taxes, utilities, food costs, healthcare and more. Lowering each lever can make it easier not only to pay for your necessities but also to achieve some goals. It's also important not to overlook the role of the local job market. If a state has lower costs and poor job prospects, it may not be a good fit.
No state is perfect, but some are better than others in helping Americans manage their financial responsibilities despite ongoing inflation. In a recent study, SensaPay identified the top 10 states where your paycheck will cover your bills despite inflation, based on median household income, cost of living and affordability for a family of four.
Here are the top 10 states where a paycheck will cover your bills, despite economic challenges.
1. North Dakota
Average Median Household Income for Family of Four: $129,900
Cost of Living: $142,800
Cost of Living Index by State: 91.90
Affordability Index: .91
Total Score: 96.15
2. Minnesota
Average Median Household Income for Family of Four: $138,700
Cost of Living: $166,000
Cost of Living Index by State: 95.10
Affordability Index: .84
Total Score: 93.25
3. South Dakota
Average Median Household Income for Family of Four: $116,600
Cost of Living: $147,400
Cost of Living Index by State: 92.20
Affordability Index: .79
Total Score: 90.15
4. Wisconsin
Average Median Household Income for Family of Four: $121,500
Cost of Living: $149,500
Cost of Living Index by State: 97
Affordability Index: .81
Total Score: 85.13
5. New Hampshire
Average Median Household Income for Family of Four: $148,400
Cost of Living: $182,300
Cost of Living Index by State: 112.60
Affordability Index: .81
Total Score: 82.13
6. Connecticut
Average Median Household Income for Family of Four: $155,600
Cost of Living: $187,600
Cost of Living Index by State: 112.30
Affordability Index: .83
Total Score: 78.52
7. Nebraska
Average Median Household Income for Family of Four: $117,000
Cost of Living: $150,100
Cost of Living Index by State: 93.10
Affordability Index: .78
Total Score: 74.90
8. Kansas
Average Median Household Income for Family of Four: $110,800
Cost of Living: $140,800
Cost of Living Index by State: 87
Affordability Index: .79
Total Score: 71.29
9. Virginia
Average Median Household Income for Family of Four: $136,900
Cost of Living: $172,300
Cost of Living Index by State: 100.70
Affordability Index: .79
Total Score: 64.10
10. Iowa
Average Median Household Income for Family of Four: $111,300
Cost of Living: $143,500
Cost of Living Index by State: 89.70
Affordability Index: .78
Total Score: 57.38
“Living costs keep climbing across America, and more families are finding themselves living paycheck to paycheck. Essential expenses like food and housing have grown much faster than wages: Food prices are up more than 25% since 2020, while most paychecks have increased only about 4% annually. The Federal Reserve reports that 40% of Americans couldn’t cover a $400 emergency, showing how little room families have left after paying for basics.
“What this study reveals is that some regions have managed to keep costs under control while others haven’t. The Midwest stands out because housing supply has kept rent from rising as quickly, which directly affects whether families can save or simply get through each month,” a SensaPay spokesperson said.
If you want to reduce your cost of living and can relocate, consider one of these places to cut expenses.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion:
