Living location significantly influences the amount of disposable income one has each month, and this Calculator helps determine if you're above or below the average for your state.
In a recent study by CashNetUSA, it has been revealed that the disposable income of Americans varies significantly by state. The state with the highest average disposable income is Washington, where a single person has approximately $23,301 annually in expendable income. Following Washington, other states with some of the highest disposable incomes are New York, Connecticut, Minnesota, and Massachusetts, with averages ranging between $20,251 and $21,282 per year.
On the other end of the spectrum, Hawaii has the lowest average disposable income for single people, at just around $2,797 to $2,979 annually. Other states at the bottom include Mississippi, Idaho, South Carolina, Nevada, and Montana, with disposable incomes ranging from about $4,411 to $9,489 per year. Most other states have average disposable incomes exceeding $10,000 annually. For example, Colorado ranks 9th with nearly $19,000 in disposable income per person.
This disposable income is calculated by CashNetUSA using average salary data and cost of living figures from sources like the MIT Living Wage Calculator and Bureau of Labor Statistics, reflecting how much money remains after covering basic needs and typical expenses.
The study also found that in 26 states, a family of four must earn at least $100,000 annually to be considered "financially secure". In Hawaii, Massachusetts, California, and New York, a family of four must earn at least $150,000 annually to be considered "financially secure".
Nearly half of Americans (47%) cite the cost of living as their biggest obstacle to saving, according to a recent survey from Yahoo Finance and Marist Poll. One-third of Americans (33%) say they couldn't cover bills for even one month if they lost their income.
CashNetUSA provides a calculator to determine one's own disposable income and compare it. The 50/30/20 budget calculator from CashNetUSA helps determine how much monthly after-tax income can be spent on "wants" versus "needs" and "savings".
This data highlights the wide disparities in disposable income across the U.S., influenced heavily by local cost of living and average wages. The full disposable income breakdown by state can be found in the article.
Personal financial growth and success can significantly vary across states, with Washington leading the pack, boasting an annual disposable income of approximately $23,301 for single individuals. On the other hand, Hawaii, Mississippi, Idaho, South Carolina, Nevada, and Montana have the lowest disposable incomes, ranging from about $2,797 to $9,489 annually. To achieve and maintain financial security, a family of four may need to earn at least $100,000 annually in 26 states, while in Hawaii, Massachusetts, California, and New York, this figure rises to at least $150,000. Understanding one's own disposable income is crucial, and tools such as CashNetUSA's disposable income calculator and the 50/30/20 budget calculator can provide insight into personal financial management.
