Families Struggle If They Make Less Than $275,000
By CaraLynn Caulfield
As rent, grocery prices and other everyday expenses keep climbing, a recent study finds New Yorkers need to make more than $100,000 a year to live comfortably — and families need nearly triple that.
According to SmartAsset, a single adult in New York must earn $114,691 annually before taxes to maintain a comfortable lifestyle. For a family of four with two working adults, that number jumps to $276,973 — placing New York among the 10 most expensive states for both individuals and families.
These estimates are based on the widely used 50/30/20 budgeting rule, which allocates 50% of income to needs, 30% to wants, and 20% to savings or debt repayment.
“As cost of living increases seem to permanently make their way to important budget items, individuals and families increasingly need more income to support a comfortable lifestyle over the long term,” said Jaclyn DeJohn, CFP®, Director of Economic Analysis at SmartAsset. “This means being able to afford hobbies, vacations, retirement savings, education funds, and the occasional emergency – in addition to necessities like housing, groceries, transportation and medical expenses.”
SmartAsset’s data show the average American needs $5,844 more than last year to sustain that comfort as a single adult. For families, the gap has grown even wider — requiring an additional $9,360 to keep up with cost-of-living demands.
New York vs. the Nation
Only Hawaii, Massachusetts, and California outpace New York when it comes to income needed for individuals to live comfortably. Massachusetts topped the list for families, with a staggering $313,747 required for a comfortable household budget — nearly $37,000 more than in New York.
At the other end of the spectrum, West Virginia is the least expensive state for single adults at $80,829, while Mississippi ranks lowest for families at $186,618.
Cost of Comfort Keeps Rising
While New York saw only a modest 2.64% year-over-year increase in required income for individuals, other states experienced sharp jumps. Montana topped the list with a 9.57% increase for individuals and 11.14% for families. In New Jersey, families saw a 12.55% increase — the second-largest in the country.
With rising costs touching nearly every aspect of daily life, SmartAsset’s findings underscore a simple but sobering truth: comfort now comes at a much steeper price.