most expensive US cities

Have you heard about “50-30-20 rule” of personal finance? It means that 50% of after tax should be used to pay the necessary expenses (food, healthcare and childcare, transportation and housing expenses).

30% are intended to cover discretionary spending and 20% of you monthly income you should save otherwise you may need loans for people with bad credit in case of financial emergency.

Economic Policy Institute has used this rule to calculate how much it costs to live in 10 major US cities comfortably – cover the necessary expenses and save money. Please, note that these numbers are suggestions and meant for four-person family (2 parents and 2 kids). Also, they suggest a significant amount of yearly savings which is not possible for some families.

Continue reading to get to know the suggested income for 10 major US areas!

1. New York

Needless saying, living in New York is expensive! Thus, living there you’ll need approximately $85,000 for yearly necessities, $51,000 for yearly discretionary spending and $34,000 is suggested yearly savings. Suggested yearly income is $170,000. Also, it’s worth noticing that New York takes the 3d place in the list of the cities with the most expensive car insurance (auto insurance premium rates are 42 percent above the national average). That’s why check how to save on car insurance before making a decision to live in NYC.

Approximate monthly cost of living in New York City:

how much is living in NY?Housing: $1,490

Healthcare: $1,646

Childcare: $2,000

Food and transportation: $1,344

2. Washington, DC

To live comfortably in Washington, you’ll need approximately $80,200 for yearly necessities and $48,132 for yearly discretionary spending. An amount of suggested annual savings is $32,000 and suggested yearly income is $160,400.

Approximate monthly cost of living in Washington:

how much is to live in DC?Housing: $1,420

Healthcare: $1,600

Childcare: $1,730

Food and transportation: $1,374

3. Boston

Approximate cost of yearly necessities in Boston is $78,250. Suggested amount for yearly discretionary spending is $46,950 and $31,300 for annual savings. Proposed yearly income is $156,500.

What about an approximate monthly cost of living in Boston?

top expensive citiesHousing: $1,460

Healthcare: $1,600

Childcare: $1,520

Food and Transportation: $1,374

4. San-Francisco

It’s another city where you’ll need to make good money to cover the basic needs and build savings. Thus, approximate cost of yearly necessities in San-Francisco is $76,680. Suggested yearly discretionary spending is $46,000 and suggested amount for yearly savings is $30,700. Thus, to live happily in this city you’ll need to make approximately $153,550 a year.

Now it’s time to see an approximate monthly cost of living in Boston:

gate bridgeHousing: $1,800

Healthcare: $1,590

Childcare: $960

Food and Transportation: $1,374

5. Philadelphia

Approximate amount of money to cover annual necessities in Philadelphia is $71,410. Suggested yearly discretionary spending is $42,850 and suggested amount for yearly savings is $28,570. Suggested yearly income to take home is $142,820.

Estimated monthly cost of living in Philadelphia:

philadelphia cost of livingHousing: $1,130

Healthcare: $1,690

Childcare: $1,270

Food and transportation: $1,374

6. Baltimore

Approximate cost of yearly necessities in Baltimore is $71,200 when suggested amount for discretionary spending is $42,720 and $28,480 for yearly savings. To meet expenses living in Baltimore, it’s suggested to have $142,400 of annual income.

Estimated monthly cost of living in Baltimore:

costs of living in BaltimoreHousing: $1,265

Healthcare: $1,530

Childcare: $1,245

Food and transportation: $1,374

7. Los Angeles

To live in a city of angels it’s suggested to take home $141,400 of annual income. Approximate cost of annual necessities is $70,700 and suggested discretionary spending is $42,420. Recommended yearly savings’ amount is $28,280.

Estimated monthly cost of living in Los Angeles:

LA cost of livingHousing: $1,435

Healthcare: $1,590

Childcare: $965

Food and transportation: $1,344

8. San Diego

You’re suggested to make $135,600 yearly to live comfortably in San Diego. As for approximate cost of annual necessities, it’s $67,820 and $40,695 is suggested yearly discretionary spending. Suggested yearly savings’ amount is $27,120.

Estimated monthly cost of living in San Diego:

cost of living in San DiegoHousing: $1,395

Healthcare: $1,367

Childcare: $963

Food and transportation: $1,374

9. Seattle

Approximate cost of yearly necessities is $66,660. Suggested yearly discretionary spending is $40,000 and suggested yearly savings’ amount is $26,665. Suggested yearly income is $133,330.

Estimated monthly cost of living in Seattle:

cost of living in SeattleHousing: $1,115

Healthcare: $1,455

Childcare: $1,130

Food and transportation: $1,374

10. Denver

To live in Denver comfortably it’s suggested to take home $131,400 of annual income. Approximate cost of annual necessities is $65,700 and suggested discretionary spending is $39,420. Recommended yearly savings’ amount is $28,280.

Estimated monthly cost of living in Denver:

living in Denver costsHousing: $950

Healthcare: $1,465

Childcare: $1,245

Food and transportation: $1,374

So, to live in one of those cities, be ready to work really hard to make sure your family has everything it needs!