The Big Apple is apparently making it hard for its six-figure-earning inhabitants to keep their piece of the pie, or at least that’s what a new report is stating.
Financial education platform Smart Asset recently released findings from a wide-reaching survey on how far a $100,000 salary will go in several metro areas across the US. As the report shows, while the range was once regarded as a key pathway to a comfortable life, inflation has quickly wrecked that, in some cites at least.
According to the findings, $100K goes furthest in Memphis and comes up the shortest in New York City. There, the salary feels like $35,791 when taxes and the cost of living is factored in.
Conversely, it looks like Texas cities hit the sweet spot, with several of the state’s hot spots ranking in the report’s top 10. “Thanks to no state income tax and the low cost of living, the Lone Star State looms large in our study. Seven out of the 10 cities in our top 10 are located in Texas. After deducting taxes and adjusting for the cost of living, a $100,000 salary on average is worth $77,885 across the 10 Texas cities analyzed in the study,” the report stated.
Coming in with the lowest cost of living is Oklahoma City, where a $100,000 feels like $85K.
The cost of living is only projected to continue skyrocketing, and quickly according to economists.
As previously reported by ESSENCE, experts are saying you need to have at least $5,200 more on hand to keep up. In 2020 the Bureau of Labor Statistics said the average spending on food at home was $4,942 annually or about $412 per month for U.S. households.
Bloomberg recently reported that according to their economists, the inflated costs for everyday items has pushed US households to shell out thousands more just to maintain their normal way of life.
“Accelerated depletion of savings will increase the urgency for those staying on the sidelines to join the labor force, and the resulting increase in labor supply will likely dampen wage growth,” they said.