A six-figure salary generally allows you to live a comfortable life, but it depends on where you are in the U.S. Big cities like Los Angeles and New York City require more than this amount.
Homeowners in New York should earn an annual income of around $148,448 to live comfortably, while renters should earn $128,552 per year for the same reason, according to a study. In Los Angeles, homeowners and renters should earn at least $138,698 and $124,706, respectively. If you have been thinking about relocating to either of these two cities, you should think carefully whether your income will be enough based on a 50/30/20 rule.
Planning A Relocation
The 50/30/20 rule applies to half of your income and is spent on necessities like food, utilities, transportation and rent, if applicable. At least 30% of this amount should go to your savings and investment fund, while the remainder should be spent on leisure. Most of us know that this isn’t realistic, especially when you live in a place with a high cost of living.
This is the reason many New Yorkers prefer to live outside the Big Apple, although some people relocate to as far as Florida where there are no personal income taxes. It doesn’t help that the average salary in New York City only costs $57,782, while the median salary in Los Angeles is slightly higher at $58,314.
If you have been thinking about a cross-country move, you should ask quotes from professional moving companies for long-distance relocation before making a decision. Some cities like Oklahoma City only have a small gap between the median salary and the ideal income for homeowners.
Homeowners in Oklahoma City should earn $68,419 for a comfortable life. The gap is quite small compared to the actual average income of $51,581. There’s a bigger gap if you plan to rent in the city unless you earn at least $74,275. Otherwise, it would be difficult to make ends meet.
Oklahoma City’s cost of living also ranks among the lowest in the U.S. This is a key reason that drives interstate migration regardless of where people live in the country. The Council for Community and Economic Research’s Cost of Living Index showed that Oklahoma City’s living expenses are 15.4% cheaper than the national average.
The city’s jobless rate is quite small at 3.2%, while home prices are relatively cheap at $148,500 on average. In fact, the median price could be lower than a down payment for a house in San Jose, California where homes cost at least $1 million. San Jose residents also need a higher income than in Los Angeles for a comfortable life, amounting to $197,502 for homeowners and $143,670 for renters, respectively.
Whether you plan to move into or outside Los Angeles or New York, it requires careful planning since you don’t just pack your stuff and leave your home. Once you decide on a new place, you should ease the burden and stress of moving by hiring a professional service provider.