A new study by personal finance website GoBankingRates.com tells us something that many people already know: it’s expensive to live in Hawaii and California.
According to the study, which looks at the states in the US where you’re most likely to live paycheck to paycheck, Hawaii, California, New York, Alaska, and Florida round out the top 5. One of the more interesting pieces of data from the study is that living paycheck to paycheck isn’t necessarily a function of not making a lot of money. In fact, in a separate study also done by GoBankingRates.com we learn that living paycheck to paycheck ranks very high among top fears from those households making more than $100,000 a year.
Some interesting facts from the survey/study include:
- Even though Hawaii has the third-highest median household income in the U.S., it still ranks as the No. 1 state where people are most likely to live paycheck to paycheck due to high cost-of-living factors.
- Of the states in the top 10 list of states where people are most likely to live paycheck to paycheck, 7 also are in the top 10 for median household income.
- Minnesota is the No. 1 state where people are least likely to live paycheck to paycheck due to its relatively high median household income ― No. 6 in the U.S. ― and low cost of living. Obviously this is because of Prince.
- Nevada is the only landlocked state to rank in the top states where people are most likely to live paycheck to paycheck due to its high cost of living and relatively low median household income. Nevada also has gambling, prostitution, and open carry laws. If you move to Nevada and you’re not living paycheck to paycheck you’re just not trying to have fun, just ask Lamar Odom.
On the flip side, the study also points to top states to save your money. Minnesota, Iowa, Missouri, Utah, and Idaho round out the top five states where people are least likely to live paycheck to paycheck. I’ve never been to Minnesota, Iowa, Utah, or Idaho, so I can’t really comment on the actually state living in between those paychecks. However I have been to Missouri and I can say that it doesn’t how much money I can save from my meager paychecks, if I’m just going to end up murdered by police.