By: De’Jah Seabrooks, Follow South Jersey Intern
SOUTH JERSEY – It’s no shock that today’s economy is not the same as generations before us. Increases to almost every essential from groceries, gas and a place to live have all gone up significantly.
Almost 65% of Americans are living paycheck to paycheck according to CNBC. With this new reality, it’s not an uncommon thought to wonder how much is needed nowadays to be above water. Which poses the question how much does one need to make to not live check to check.
Living comfortably as a single person in the United States can vary significantly depending on location. While some areas offer a relatively affordable lifestyle, others require a substantially higher income to maintain a comfortable standard of living. To add some perspective to this question we first have to determine the baseline of what Americans are making.
According to the Bureau of Labor Statistics, the median weekly earnings for full-time wage and salary workers in the United States were $1,061 in 2023. Assuming a 52-week work year, this translates to an annual income of approximately $55,172. Which when compared to the monthly average expenses from a single person averaging an estimate of $4,337 a month according to Ramsey Solutions means that there should be around $3,000 a year saved.
However this doesn’t account for reality and unforeseen events, from car trouble to hospital bills, or even a major life event (wedding or funeral alike). These numbers might be sufficient for basic living expenses in some parts of the country, but it may not be enough to live comfortably in high-cost areas like major cities or coastal regions. To maintain a comfortable lifestyle, many single individuals in the United States may need to earn significantly more than the median income. The median income for a comfortable lifestyle in America is estimated to be about $186,000, almost three times what the average salary is according to Bankrate.
New Jersey is known for its high cost of living, and this is especially true for single individuals. The median household income in the state was $88,237 in 2021, which is significantly higher than the national average. However, even this income may not be enough to cover all expenses in certain areas of New Jersey.
Housing costs are particularly high in the state, with the median home price in 2023 being $430,000. Additionally, the cost of utilities, transportation, and other goods and services is also higher than the national average. Gloucester County offers a more affordable cost of living compared to other parts of the state. The median household income in the county was $75,110 in 2021, which is lower than the state average but still higher than the national average.
Housing costs in Gloucester County are also more affordable than in other parts of New Jersey, with the median home price being $285,000 in 2023.
Additionally, the cost of utilities, transportation, and other goods and services is generally lower in South Jersey than in other parts of the state.
A deeper look compared to these estimates are determining what’s affecting people’s expenses and the cost of living. The following is a consensus of factors experts believe are affecting people’s cost of living and expenses.
- Location: The cost of living varies significantly depending on the city, state, and region. Major cities and coastal areas tend to have higher costs of living compared to smaller cities and rural areas.
- Housing: Housing costs are typically the largest expense for most individuals. The cost of housing can vary depending on the type of housing (e.g., apartment, house), location, and size.
- Transportation: The cost of transportation can vary depending on whether you own a car, use public transportation, or walk or bike. From gas prices to insurance prices and car notes ,if applicable, this may be another heavy hitter in terms of expenses every month. Most areas cars are essential to get around and more importantly get to work.
- Food: The cost of food can vary depending on your dietary choices and whether you eat out or cook at home.
- Utilities: The cost of utilities (e.g., electricity, gas, water) can vary depending on your location and usage.
- Entertainment and Leisure: The cost of entertainment and leisure activities can vary depending on your interests and how often you participate.
- Debt: Other factors include things like student loan debt, credit card debit and simply a lack of savings.
The cost of living for a single person in the United States can vary significantly depending on location. While some areas offer a relatively affordable lifestyle, others require a substantially higher income to maintain a comfortable standard of living.
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