In These Cities, Even a $100K Salary Can Feel Tight
Achieving a six-figure salary in America sounds like the kind of financial goal that would have you primed for success – it provides enough money to afford a lovely home, keeps the bills paid and builds a robust savings for emergencies and retirement. However, as FODMAP Everyday has noted, there are a number of U.S. cities in which the cost of living is so stratospheric that even $100,000 annually can feel not only tight, but like poverty.
In fact, in more than one American metropolis, a $100,000 salary can feel like an almost unaffordable wage thanks to extreme cost factors like extreme rent, constant inflation and high tax burdens – so much so that earning six figures can still leave you on a razor-thin budget. Consider that before moving to one of the following cities; if you already happen to live in one, though, be prepared to tighten your spending if you haven’t already.
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Honolulu
Life in Honolulu can be beautiful – and financially brutal.
According to a breakdown by SmartAsset (which subtracted federal, state and local taxes from $100,000 and then divided that amount by a cost-of-living index from the Council for Community and Economic Research), earning $100,000 in that tropical metro means feeling like you earn just under $36,000 per year.
As FODMAP reported, not only is the real estate there extraordinarily expensive, but as it’s an island city, almost all goods have to be imported there from the mainland, which makes nearly all products far more expensive.
San Jose, California
San Jose might not be the most famous city in California, but it certainly attracts a type: specifically, billionaires. Many tech giants have made San Jose their home base, which means $100,000 jobs abound – but so does very costly living.
Most of a $100,000 paycheck in this city goes directly toward home or apartment costs, and what little is left over has to cover bills and basic expenditures. Plan on loading up on ramen if you plan on moving here.
San Francisco
Like San Jose, San Francisco benefitted from becoming a major city for the technology industry, but has suffered as well, in that “The City by the Bay” became something of a real estate nightmare for those who can’t afford to spend at least $1 million on a home.
New York City
Frank Sinatra once sang that if you can make it in New York City, you can make it anywhere -- and while that may still be true, it’s getting harder with each passing year. Per SmartAsset, to earn $100,000 in the Big Apple is the equivalent of making only $37,791. That’s a perilously low amount of money in any part of the country, but it’s the price of living in some of the most expensive and limited real estate in America. Whether or not the perks of NYC (culture, opportunities, living in one of the great cities of the world) make that trade-off worth it will depend on how much you’re willing to sacrifice.
Los Angeles
Los Angeles has so much going for it – sunshine, perfect weather, the entertainment industry, proximity to beautiful beachfronts, a vibrant blend of international cultures – that it can be a shock once you move to the city and discover nearly all of your salary will go towards a tiny apartment and expensive groceries. Add to that the fact that the city’s sprawl almost invariably requires a lot of driving (and thus paying a lot at the gas pump), and La La Land might leave you wishing for the low prices of the Midwest.
San Diego
As FODMAP has noted, the San Diego real estate market has been booming of late, leaving renters to pay double the national average in rent. It’s an absolutely gorgeous oceanside city, but you may wish to make closer to $500,000 yearly in order to live there comfortably.
Boston
One of America’s oldest cities, Boston holds a lot of history – and a tight grip on the wallets of its population. Great views, great food and great sports can all be found here, but it will literally cut your $100,000 salary in half.
Washington, D.C.
A lot of voters blame the nation’s cost-of-living woes on the goings-on of its capital city, so it makes a kind of sense that D.C. cost of living would be high enough to make $100,000 feel like only half that amount. The population there is suffused with wealth thanks to a great deal of politicians and lawyers, so much so that the average worker can struggle to afford housing and basic bills.
Seattle
This rainy city is yet another tech hub in which the booming local industry has increased prices on all aspects of living. Seattle has many perks: great coffee, abundant culture, delicious seafood and it’s never too hot – but to live there on $100,000 a year takes a lot of scrimping and saving. Don’t plan on splurging on Starbucks often.
Miami
Before you even get a chance to pay for flashy evenings out at a local nightclub, or take the day off to chill at the beach, Miami will bleed your $100,000 salary in half just to cover rent and food. That said, Florida has no state income tax. However, it may be hard to appreciate that when paying nearly $3,000 per month on a small apartment with a palm tree view.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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