If you've ever wondered how much we really need to earn to live comfortably in the United States, the answer may surprise you. Today we'll explain why $53,000 a year is considered a necessary income and, more importantly, how much that represents per hour in your paycheck. According to an analysis by the financial platform MoneyLion, families living in 25 states need to earn around $30 per hour. That equates to approximately $53,000 annually after taxes to cover the basics. When we talk about "the basics," we mean housing, food, utilities, transportation, and healthcare. The calculation was made using data from the 2024 Consumer Spending Survey. The study considers a family of four. That is, a married couple with children, where the oldest is between 6 and 17 years old. Among the findings, it was concluded that in no state in the country can a family of four live on less than $20 per hour. This contrasts sharply with the federal minimum wage, which has remained at $7.25 per hour since 2009. According to data from the Federal Reserve Bank of St. Louis, the highest state minimum wage this year is in Washington, D.C., at $17.95 per hour. Even so, that figure falls far short of what many families need to cover essential expenses. “These figures highlight how challenging it can be for families earning the minimum wage or close to it in their state,” notes the MoneyLion study. States Where You Need to Earn More: If you live in Hawaii, the challenge is even greater. There, $69.43 per hour is required. That equates to $110,782 per year after taxes. Housing alone is estimated to cost $62,903 annually; groceries, $12,505; In healthcare, $10,321.

Massachusetts follows, where $54.25 per hour is needed, or $89,725 per year after taxes. Housing costs exceed $49,000 annually.

In California,You should earn $46.22 per hour, which represents $79,367 per year after taxes. Annual housing costs are around $38,298.

These numbers show how the cost of living changes radically depending on the state you live in.

States with the lowest required income

At the other end of the spectrum are Mississippi and Oklahoma. These are the only two states where the required income is in the range of $25 per hour. In Mississippi, you need $25.35 per hour, or $45,424 per year after taxes; In Oklahoma, the figure is $25.65 per hour, approximately $45,620 annually. While these figures are lower compared to other states, they are still well above the federal minimum wage. What can we do if we don't earn enough? If our income doesn't reach that level, we need to adjust our strategy. Experts recommend starting with small, realistic steps. "Choose just one category where you've overspent and cut it by 20% this month," advised Dmitry Savransky, CEO of the budgeting app PocketGuard. "Next month, tackle another one." We can also eliminate unnecessary subscriptions, reduce restaurant spending, and avoid impulse purchases. Certified financial advisor Rudri Bhatt Patel suggests allocating and automating that money toward savings. Reviewing our budget each month is key, and detecting patterns helps us correct them in time. “Those who see their progress are the ones who continue,” says Savransky. The numbers may seem overwhelming, but understanding how much we need to earn per hour gives us clarity and allows us to plan better. You may also be interested in:We need to adjust our strategy. Experts recommend starting with small, realistic steps.

“Choose just one category you’ve overspent on and cut it by 20% this month,” advised Dmitry Savransky, CEO of the budgeting app PocketGuard. “Next month, tackle another one.”

We can also eliminate unnecessary subscriptions, cut back on restaurant spending, and avoid impulse purchases. Certified financial advisor Rudri Bhatt Patel suggests allocating and automating that money toward savings.

Reviewing our budget each month is key, and spotting patterns helps us correct course in time.

“Those who see their progress are the ones who keep going,” says Savransky.

The numbers can seem overwhelming, but understanding how much we need to earn per hour gives us clarity and allows us to plan better.

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