Where Best to Stretch a $100,000 Salary
Submitted by S. F. Ehrlich Associates, Inc. on October 3rd, 2017
September 30, 2017
We don’t always get to choose where we want to live, either during our working life or later. Jobs may take us to cities with a high cost of living, and family, friends, and health may keep us in or near those same communities when we retire.
Wealth is relative. If you have a net worth of $5 million in Manhattan, you’ll likely do okay, but not nearly as well as if you were living in Hattiesburg, MS. To help figure out how far your dollars will go, FORTUNE Magazine1 used assorted analytical data to examine the cost of living in 381 US metropolitan areas. In their search to determine where families of three would do well with an income of $100,000, they discovered that “…in Johnson City, TN, routine expenses would eat up only 62% of that income (while) a family in DC…would spend 105% on just the basics.”
If you plot the 381 regions on a map, the least costly cities are primarily in the South and Midwest, while the costliest cities are on the coasts and upper Midwest (i.e. Northern IL to MN).
If you’re looking to relocate, especially for purposes of retirement, understanding the cost of living in prospective communities may be crucial to the success of your retirement. You may not find a Top 10, but you also don’t want to discover you relocated to a region that might crimp your lifestyle.
1 “Where a $100K Salary Will Take You The Farthest.” Fortune, 1 Aug. 2017.
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