‘Living comfortably’ has taken on a different vibe with the skyrocketed cost of everything from groceries to insurance.
We are not only experiencing a decrease in the purchasing power of our paychecks, but we are also observing “shrinkflation,” a practice where manufacturers decrease the size of their products while maintaining the same price or increasing it.
Now, Fox 4 KDFW has reported what you need to make in DFW to live comfortably, and many do not fall into this category.
According to GOBankingRates researchers, you should have an annual income of $93,000 to live comfortably in DFW.
Ouch. Just seeing this number makes most feel uncomfortable, especially since the median salary in Dallas is $60,900, reported Gusto, and the average salary in Fort Worth is $65,146, per ZipRecruiter.
Here is more of what Fox 4 had to report on this story:
DALLAS – The income needed to live comfortably is rising in nearly all major cities. Of the 50 largest cities in America, five Texas cities make the list, and Dallas is in the middle of the pack. Arlington and Fort Worth are close behind.
According to GOBankingRates researchers, you need to make $93,000 to live comfortably in Dallas, $92,000 in Arlington, and $90,000 in Fort Worth.
To live comfortably in Austin will cost you significantly more. Houston is the least expensive of the Texas cities.
GOBankingRates looked at data to find out how much people living in America’s 50 largest cities spend on mandatory expenses like housing, groceries, healthcare, transportation and miscellaneous necessities. That amount was doubled to indicate how much you’d have to earn to live comfortably using the 50/30/20 budget.
Creating a budget is the best way to get a handle on your finances. One method is the 50/30/20 budget, which breaks down your income into mandatory expenses (50% of your income), savings (30%) and wants (20%). This could prioritize necessary spending and savings but still allow for some discretionary spending without guilt.
Your budget goes furthest in the South and Midwest. All the cities within the top five for budget-friendliness are located in those regions, and two are located in the same state: Oklahoma.
The gap between the lowest and highest incomes needed to live comfortably is huge. In Detroit, you need $64,725, while in San Jose, it’s $258,255 — nearly four times more than in Detroit.
Of the top 50 cities, your budget goes furthest in Detroit, where you can still buy a home for under $75,000 and pay less than $500 per month on a mortgage, not including property tax and homeowners insurance. Other living costs are also quite low: $423 per month for groceries and $340 for utilities, for example. But transportation is pricey, averaging $1,033 per month.