The amount of money needed to live as a single worker varies significantly depending on the state you reside in. In some regions, the salary required to cover basic expenses is considerably higher than in others.
Account CNBC, for example, in Hawaii, the minimum living wage for a single worker is $112,411 per year, making it the most expensive state in the United States to live in, according to an analysis by the personal finance website GOBankingRates.com. This calculation is based on the use of the 50/30/20 rule, which is outlined below.
The minimum living wage: a detailed analysis
To determine the minimum living wage in each state, GOBankingRates used the 50/30/20 budgeting method. This method suggests that 50% of income should go toward basic needs, such as housing and utilities, 30% toward discretionary spending, and the remaining 20% should be allocated to savings or investments. These calculations were made using data from the Bureau of Labor Statistics.
This approach highlights the disparity between income and the cost of living in different states. For example, while in Hawaii the minimum living wage is more than double the median income for a single worker in the U.S., which is $57,200, in Mississippi, the required figure is significantly lower, reaching only $45,906 annually.
The five most expensive states to live in
Here’s a list of the five most expensive states for single workers, based on the annual salary needed to cover basic expenses:
- Hawaii: $112,411
- Massachusetts: $87,909
- California: $80,013
- New York: $73,226
- Alaska: $71,570
It’s no surprise that Hawaii ranks first, given that the cost of living in Hawaii is known to be one of the highest in the country. Hawaii’s unique geography, an isolated archipelago, results in considerably high costs for shipping and consumer goods. Additionally, the limited availability of land has significantly driven up property prices.
Challenges for single workers
The study suggests that the 50/30/20 budget might not be a realistic measure for many people, especially due to the continued increase in housing costs. This mismatch often forces single workers to make sacrifices, such as reducing retirement contributions or forgoing certain expenses, like owning a car. In large and expensive cities, getting a roommate is sometimes the only way a single person can cover their expenses.
Unlike couples, who can share mortgage or rent costs, single people do not have this advantage, leading them to spend thousands of dollars more on housing each year compared to what married or partnered individuals pay.
Variation by location
Where you live also plays a crucial role in the cost of living. Those earning around $57,200 a year can live comfortably in more rural states in the southern and midwestern United States, where living costs are much lower. The median home prices in these regions are also significantly lower than the national average, making it more accessible for singles to stay afloat.
List of living costs by state
Below is a detailed list of the annual living wage for a single person in each state, listed in alphabetical order:
- Alabama: $46,577
- Alaska: $71,570
- Arizona: $60,026
- Arkansas: $47,111
- California: $80,013
- Colorado: $59,218
- Connecticut: $63,078
- Delaware: $56,571
- Florida: $57,064
- Georgia: $49,051
- Hawaii: $112,411
- Idaho: $58,634
- Illinois: $49,372
- Indiana: $49,855
- Iowa: $48,518
- Kansas: $47,379
- Kentucky: $47,318
- Louisiana: $50,087
- Maine: $60,862
- Maryland: $67,915
- Massachusetts: $87,909
- Michigan: $50,049
- Minnesota: $51,668
- Mississippi: $45,906
- Missouri: $47,771
- Montana: $57,056
- Nebraska: $49,009
- Nevada: $58,580
- New Hampshire: $62,935
- New Jersey: $64,463
- New Mexico: $51,214
- New York: $73,226
- North Carolina: $53,531
- North Dakota: $52,807
- Ohio: $50,157
- Oklahoma: $46,024
- Oregon: $65,763
- Pennsylvania: $53,838
- Rhode Island: $59,936
- South Carolina: $52,222
- South Dakota: $52,095
- Tennessee: $48,774
- Texas: $50,497
- Utah: $55,293
- Vermont: $65,923
- Virginia: $57,293
- Washington: $65,640
- West Virginia: $47,732
- Wisconsin: $53,122
- Wyoming: $49,666
With this list, you can get a clear picture of how much you need to earn to live in each state, which can be crucial for planning your financial future.