Hawaii is the state where Americans are most likely to live paycheck to paycheck, whereas residents of Minnesota are least likely, according to a new ranking by leading personal finance website GOBankingRates.com.
States were evaluated and ranked according to the percentage of the median paycheck that was left over after subtracting the following:
- Housing costs
- Food expenditures
- Transportation expenses
“Living paycheck to paycheck isn’t necessarily a function of income,” says Cameron Huddleston, GOBankingRates’ Life + Money columnist. “Plenty of upper-income households live hand to mouth because of poor financial habits. In fact, a separate GOBankingRates’ survey found that people earning $100,000 or more were more likely to fear always living paycheck to paycheck than those earning less.”
The 10 States Where Americans Are Most Likely to Live Paycheck to Paycheck
- New York
- New Jersey
- Rhode Island
The 10 States Where Americans Are Least Likely to Live Paycheck to Paycheck
- North Dakota
To see where your state ranked, click here.
- Even though Hawaii has the third-highest median household income in the U.S., it still ranks as the No. 1 state where people are most likely to live paycheck to paycheck due to high cost-of-living factors.
- Seven states in the top 10 list of states where people are most likely to live paycheck to paycheck also are in the top 10 for median household income.
- Minnesota is the No. 1 state where people are least likely to live paycheck to paycheck due to its relatively high median household income ― No. 6 in the U.S. ― and low cost of living.
- Nevada is the only landlocked state to rank in the top states where people are most likely to live paycheck to paycheck due to its high cost of living and relatively low median household income.
For more information visit http://www.gobankingrates.com.