AUSTIN - 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 Austin is the most expensive.
According to GOBankingRates researchers, you need to make $122,000 to live comfortably in Austin. The total annual cost of living in Austin is $61,000.
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.
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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.