California may be one of the most expensive places to live in the United States, but raising a family in the Golden State could cost relatively less than living alone, according to a recent study conducted by SmartAsset, a financial technology company.
The study used the 50/30/20 budget rule and the MIT Living Wage Calculator to determine the cost of living “comfortably” in each state across the country, using the most recent data from February to analyze the cost of necessities, transportation and other miscellaneous items.
The 50/30/20 rule means setting aside 50 percent of your income for basic needs like housing, healthcare, and groceries, 30 percent on “wants” like travel expenses or shopping, and 20 percent on savings or bills.
According to SmartAsset and using the budget rule, the income needed for two working adults to raise two children in California comfortably is $276,723. This ranks fifth on the list of most expensive states.
However, California ranks third on the list of most expensive states for a single adult to live comfortably. SmartAsset says a single working adult must earn at least $114,000, or about $55 an hour, to support themselves in the Golden State.
When it comes to a basic “living wage,” MIT says a single adult in California needs to earn $27.32 per hour or $56,800 per year. Two working adults with two children must earn $138,361 per year, or $33.26 per hour each.
In Los Angeles County, the living wage for two working adults with two kids is $138,000 per year, or $33.24 per hour for each adult. For a single adult with no children, the Living Wage is $26.63 per hour, or $55,300 per year.
Massachusetts and Hawaii were the top two most expensive states to live in as a single working adult, the study found, whereas West Virginia and Arkansas were the least costly.
The data used in this study reflects hourly wages for a full-time job or 2,080 hours per year.
FAQs
SmartAsset says a single working adult must earn at least $114,000, or about $55 an hour, to support themselves in the Golden State. When it comes to a basic “living wage,” MIT says a single adult in California needs to earn $27.32 per hour or $56,800 per year.
How much income to live comfortably in California? ›
While California ranks third-most expensive for a single adult to live comfortably at $113,652, it only ranks fifth-most expensive for two working adults raising two children. The total family income should be at least $276,724 in the latter case.
What is a salary that would be considered comfortable? ›
To live "comfortably" as a single person in 99 of the largest U.S. metro areas, you'll need a median income of $93,933, according to a recent SmartAsset analysis.
Is $28 an hour good pay in California? ›
As of May 24, 2024, the average hourly pay for a 28 Dollars An Hour in California is $27.66 an hour. While ZipRecruiter is seeing salaries as high as $41.28 and as low as $13.05, the majority of 28 Dollars An Hour salaries currently range between $18.03 (25th percentile) to $29.42 (75th percentile) in California.
How much money should you make to live comfortably? ›
Key Findings. On average, an individual needs $96,500 for sustainable comfort in a major U.S. city. This includes being able to pay off debt and invest for the future.
What is the salary to be happy in California? ›
A study from Purdue University and GoBankingRates.com found that you need a minimum annual salary of $143,220 to be happy in California, citing "California's notoriously high cost of living."
What is a comfortable middle class salary? ›
Key Findings. In a large U.S. city, a middle-class income averages between $52,000 and $155,000. The median household income across all 345 cities is $77,345, making middle-class income limits fall between $51,558 and $154,590.
How much do you have to make to live comfortably in 2024? ›
The findings are eye-opening: to lead a comfortable life in a major U.S. city, an individual needs to earn, on average, an annual pre-tax salary of $96,500. This takes into account necessities, debt obligations, and investments for the future.
What is the happiest salary range? ›
What do studies say about money and happiness? Purdue University found the ideal average income for people worldwide is $95,000 and $105,000 in the U.S. Beyond that, satisfaction with life deteriorates, it said.
How much is 100K a year hourly in California? ›
To get this figure, divide your annual salary ($100,000) by the total number of hours you work in a year (2,080 if you work a consistent 40-hour week). The result? You're making $48.08 per hour. So, $100k a year is roughly $48 an hour.
As of May 25, 2024, the average hourly pay for a $70000 in California is $21.94 an hour. While ZipRecruiter is seeing salaries as high as $35.35 and as low as $15.42, the majority of $70000 salaries currently range between $18.99 (25th percentile) to $22.79 (75th percentile) in California.
Is $50 an hour good in California? ›
California ranks number 4 out of 50 states nationwide for 50 An Hour job salaries. To estimate the most accurate annual salary range for 50 An Hour jobs, ZipRecruiter continuously scans its database of millions of active jobs published locally throughout America.
What is a livable salary in California? ›
Here, a single person needs $110,781 annually or $53.26 in hourly wages to be comfortable, according to the data. For a family of two working adults with two children, a salary of $276,557 is needed.
What is a good income for a single person? ›
But just how much does a single person in California need to make to live comfortably? A new study from Smart Asset determined that a person must make at least $ 89,190 to get by comfortably.
What is a livable hourly wage? ›
According to research from MIT, the living wage in the United States was $25.02 per hour ($104,077.70 per year) before taxes per year in 2022 for a family of four (two working adults with two children). That's an increase from $24.16 ($100,498.60 per year) in 2021.
Can you live in California making 100K a year? ›
If you're working in the Golden State, you need to earn $153,700 to actually $100,000 in California, according to the report. That means people with a $100,000 gross income actually take home just 65% of that after taxes.
Is 80k livable in California? ›
A single person needs upwards of $80,000 a year to live comfortably in California, survey data shows.
Is 75k salary good in California? ›
California ranks number 13 out of 50 states nationwide for $75000 salaries. To estimate the most accurate annual salary range for $75000 jobs, ZipRecruiter continuously scans its database of millions of active jobs published locally throughout America. Find your next high paying job as a $75000 on ZipRecruiter today.
Is 50K a year good in California? ›
A good salary for a single person in California varies widely depending on location and industry: $50K may be enough in some areas, $100K in others.
