Here’s how much money you need to live comfortably in California and save, study says
Everything from groceries to gas has gotten more expensive in the last year. So has what it takes to live comfortably in California — a state already known for its high costs.
A 2023 GoBankingRates analysis, using data from the U.S. Bureau of Labor Statistics and the Missouri Economic Research and Information Center, found that the median annual living wage in the U.S. is $53,327. The median income for single, full-time workers is $57,200, CNBC reported.
GoBankingRates is an online personal finance resource.
Researchers determined the amount a bit differently than a typical living wage calculator — they based it on a 50/30/20 budget, where you allot half of your income to necessities, a third for wants and 20% for savings.
Prices have increased 3.2% over the last year, according to the July Consumer Price Index (The release of August data is scheduled for Sept. 13).
The most expensive and least expensive states vary by more than $66,000.
In Hawaii, you need to earn $112,411 to have what GoBankingRates considers a living wage. In Mississippi, you need $45,906.
In California, you need to earn $80,013, the study states.
In Sacramento County, the low income limit is around $60,000, which would qualify individuals for income-driven programs, according to the California Department of Housing and Community Development Division.
As of January, California’s minimum wage is $15.50 an hour. If you work a 40-hour week, that comes out to roughly $31,200, which is lower than what MIT Living Wage Calculator estimates an individual would need to meet basic needs, such as child care, housing and food.
It’s difficult to pinpoint the exact median income in California. Based on calculations for one person from the California housing division, the median income limit is $66,600.
Where does your state land?
GoBankingRates collected data for this story up to Aug. 15, 2023. Here’s what it determined was a livable wage in each state:
- Mississippi — $45,906
- Oklahoma — $46,024
- Alabama — $46,577
- Arkansas — $47,111
- Kentucky — $47,318
- Kansas — $47,379
- West Virginia — $47,732
- Missouri — $47,771
- Iowa — $48,518
- Tennessee — $48,774
- Nebraska — $49,009
- Georgia — $49,051
- Illinois — $49,372
- Wyoming — $49,666
- Indiana — $49,855
- Michigan — $50,049
- Louisiana — $50,087
- Ohio — $50,157
- Texas — $50,497
- New Mexico — $51,214
- Minnesota — $51,668
- South Dakota — $52,095
- South Carolina — $52,222
- North Dakota — $52,807
- Wisconsin — $53,122
- North Carolina — $53,531
- Pennsylvania — $53,838
- Utah — $55,293
- Delaware — $56,571
- Montana — $57,056
- Florida — $57,064
- Virginia — $57,293
- Nevada — $58,580
- Idaho — $58,634
- Colorado — $59,218
- Rhode Island — $59,936
- Arizona — $60,026
- Maine — $60,862
- New Hampshire — $62,935
- Connecticut — $63,078
- New Jersey — $64,463
- Washington — $65,640
- Oregon — $65,763
- Vermont — $65,923
- Maryland — $67,915
- Alaska — $71,570
- New York — $73,226
- California — $80,013
- Massachusetts — $87,909
- Hawaii — $112,411
What is The Sum?
The Sum is your friendly guide to personal finance and economic news.
We’re a team of McClatchy journalists cutting through the financial jargon so you know how these issues impact your life. We verify information from diverse sources and keep the facts front-and-center, making finance and economic news add up for you.
Ready to take the first step to getting your finances under control? You can sign up for our five-week budgeting newsletter at thesum.news.
This story was originally published September 8, 2023 at 7:00 AM.
