The income a family of 4 needs to live comfortably in 20 major U.S. cities (2024)

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The income a family of 4 needs to live comfortably in 20 major U.S. cities? ›

The income a family of 4 needs to live comfortably in 20 major U.S. cities. A family of four needs to make more than $275,000 to live comfortably in some of the most expensive U.S. cities, a recent SmartAsset analysis reveals.

A family of four needs to earn at least $106,903 a year to cover their necessities in most U.S. states, a recent SmartAsset study reveals. The findings are based on cost estimates for housing, child care, transportation, health care, taxes and other common expenses, as tracked by the MIT Living Wage calculator.

Real median household income was $74,580 in 2022, a 2.3 percent decline from the 2021 estimate of $76,330 (Figure 1 and Table A-1).

Average Expenses for a Family of Four

According to the most recent data, U.S. households that consist of four people spent an average of $8,640 per month in 2022. In 2021, the average four-person household spent $7749 per month. This works out to average annual expenditures of $101,514 in 2022, up from $92,989 in 2021.

Again, living expenses vary significantly by location, but we can use some average numbers. The average monthly living expenses for a single person in the USA are $3,189, which is $38,266 per year. The average cost for a family of four is $7,095 per month, which is $85,139 per year.

An analysis of the living wage (as calculated in December 2022 and reflecting a compensation being offered to an individual in 2023), compiling geographically specific expenditure data for food, childcare, health care, housing, transportation, and other necessities, finds that: The living wage in the United States is ...

Basic Needs: A family of four might survive on a combined annual pre-tax household income of around $80,000 (increased from $72,000 in 2023). This covers necessities like rent, food, and utilities in a smaller town or with roommates in a bigger city. However, childcare costs might not be included in this estimate.

At least 20% of your income should go towards savings. Meanwhile, another 50% (maximum) should go toward necessities, while 30% goes toward discretionary items. This is called the 50/30/20 rule of thumb, and it provides a quick and easy way for you to budget your money.

Summary of cost of living in Philippines: A family of four estimated monthly costs are 1,850.7$ (108,763.5₱) without rent. A single person estimated monthly costs are 535.9$ (31,495.6₱) without rent. Cost of living in Philippines is, on average, 56.2% lower than in United States.

What is a comfortable household income? ›

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.

According to several studies on cost of living, Hawaii is the most expensive U.S. state to live in. Prices are typically double in Hawaii compared to those on the mainland, and the continued rise in inflation is making costs ranging from housing to health care much more expensive.

What is the average cost of living in Australia in 2024? There is no exact figure for the cost of living in Australia. However, Expatistan estimates the current cost of living in Australia is roughly AU $4,312 per month for a single person or AU $7,786 per month for a family of four.

Using the BLS study of household earnings from 2021-2022, we found that an average household of 4 people spends approximately $97,000 per year. With a $150,000 salary, this would be sufficient to cover all your expenses and save $15,000 annually.

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.