Folks living in GA need to spend this much money to live comfortably, new report says
The concept of “living comfortably” means something different to everyone, but new research suggests Georgia’s cost of living makes it possible compared to other states.
According to data analyzed by GOBankingRates, Georgia’s cost of living is $70,557, making it the 12th most affordable state in the US. However, there are many other factors that contribute to the quality of living for most individuals.
What does it mean to live comfortably?
SmartAsset, the financial organization responsible for this latest study, based the idea of “comfortability” on the 50/30/20 economic paradigm.
This formula suggests wage-earners seeking a higher comfort level should spend 50% of their income on basic necessities, 30% of their wages on things they want and have enough to put 20% away for savings.
Although these categories can vary wildly, depending on the individual, there are some universal items in each of these buckets.
Basic necessities: this usually includes housing, utilities, food or transportation.
Things you want: this covers discretionary spending on things like eating out at restaurants, entertainment, hobbies, beauty and self-care, or travel.
Savings: this is the amount of money you put away to save or pay down debts.
What contributes to Georgia’s cost of living?
Although the median national income needed to be middle class in the US is roughly between $56,600 and $169,800, according to Pew Research, Georgia’s number is higher.
Georgia is no.15 in the rankings of comfort-seekers. According SmartAsset, a single person who wants to live comfortably here needs to draw a salary of $96,886 a year, or $46.58 an hour.
This study examines several key daily living areas, in which Georgia is below the national average:
Housing: 21-22% lower
Utility: 5-13% lower
Groceries and food: 2-4% lower
Healthcare: At the national average or slightly below
Transportation: Near or slightly below
On the other hand, goods and services like entertainment and personal care tend to be higher in cost by around 32%.
What does it take to live comfortably in Georgia?
The average annual cost-of-living for a single adult here aligns closely with the $70,557 figure, which, compared to more expensive states, seems like a deal. Other states, such as Hawaii and Massachusetts, require a six-figure income for comfort.
The US Federal Reserve predicts Georgia’s median household income will be about $72,000 in 2025, suggesting that many residents can meet the comfortability threshold.
Living costs differ from city to city, compared the the state average:
Columbus: 4% lower
Atlanta: 7% lower
Savannah: 9% lower
Macon: 17% lower
Albany 26% lower
All these cities, with the exception of Columbus, fall under the national average as well. Columbus is about equal with the other states.
How does Georgia’s cost of living compare to other states?
Researchers pulled data from the Bureau of Labor Statistics and the Missouri Economic Research and Information Center to figure out how much it actually costs to live in each state compared to the national average. They looked at six key spending categories: housing, utilities, groceries, healthcare, transportation, and other everyday expenses.
States with the highest cost of living:
Hawaii: $144,436
Massachusetts: $112,752
California: $111,901
Alaska: $95,673
New York: $95,286
States with the lowest cost of living:
West Virginia: $64,992
Oklahoma: $66,229
Kansas: $67,234
Mississippi: $67,929
Alabama: $68,006
How do these numbers feel to you? Let me know if this seems accurate. Email me at srose@ledger-enquirer.com or find me on social media.
