How much does it take to ‘live comfortably’ in Wichita? Less than most other cities
How much money do you set aside every month?
Budgeting depends on a lot of factors — your job, lifestyle and location, to name a few. But if you live in Wichita, you’re in luck. That’s because a new study released by GOBankingRates says that Wichita is one of the top U.S. cities for stretching your budget.
The personal finance site compiled the ranking by looking at data from the Zillow Home Value Index, the Bureau of Labor Statistics Consumer Expenditure Survey and the Federal Reserve. Through that data, the company compared the United States’ 50 largest cities by mandatory expenses.
The 50/30/20 budget was used to see how much was needed in each city to live comfortably. That budgeting advice says that 50% of your income should go toward necessary expenses, 30% toward savings and 20% toward wants.
“The idea is to prioritize necessary spending and savings while still allowing for some guilt-free discretionary spending,” GOBanking Rates website reads.
The study reported that the average cost of living in Wichita is $36,220 annually. GoBanking Rates says that in order to live comfortably in Wichita, the average household would need double that, or $72,440 a year.
The website broke down residents’ expenses, showing $3,080 spent on mandatory bills, like housing, health care and groceries. While the cost of living may be low comparing to other cities, utilities in Wichita are high compared to most, at $392 per month.
Here are the top five cities for stretching your budget, according to GOBankingRates:
- Detroit
- Memphis, Tennessee
- Wichita
- Tulsa, Oklahoma
- Oklahoma City
GOBankingRates reports that you would need to make at least $64,725 to be able to live comfortably in the 50/30/20 budget in any of those five states.
Tips for budgeting
While the 50/30/20 budget may work for some, budgeting is more often decided on a case-by-case basis. Here are some tips for budgeting, from usa.gov:
- Keep track of your income
- Set financial goals for yourself
- Prioritize certain expenses
- Keep track of your spending
- Set aside money for the unexpected
- Review budget on a regular basis and change as needed
