Rising Costs Push 'Comfortable' Lifestyle Out of Reach for Most Texans

A new study by the personal finance website SmartAsset says that the cost of living in Texas has increased so much that many people cannot afford to be financially stable.

SmartAsset used information from MIT's Living Wage Calculator to determine that a single adult in Texas needs to earn at least $90,771 per year before taxes to live a "comfortable" life. The bar rises to $204,922 per year for a family of four. These numbers include things like housing, transportation, food, medical care, and other basic needs, as well as extra spending, paying off debt, and saving for retirement.

Jaclyn DeJohn, director of economic analysis for SmartAsset, said, "This means being able to afford hobbies, vacations, college savings, and the occasional emergency—not just barely getting by on necessities."

The analysis is based on the 50/30/20 budget rule, which says that you should spend 50% of your income on necessities, 30% on wants, and 20% on paying off debt or saving for the long run.

Most Texans really make a lot less than that. The U.S. Census Bureau says that the typical household income in Texas is about $76,000. This is significantly less than what SmartAsset considers a comfortable level of income. The cost of living is even higher in the Houston metro area, primarily due to the higher cost of childcare. To meet their basic needs, a family of four in Houston would need to earn approximately $105,000 per year. There would be no extra money or savings for fun things.

Texas remains one of the least expensive places in the country, despite increasing costs. SmartAsset ranked it No. 31 for individuals and No. 40 for families when examining the amount of money needed to live happily in all 50 states.

Where are the most expensive places to live? Hawaii has the highest needed income for single people, at almost $125,000 a year. Massachusetts, on the other hand, has the highest needed income for families, at more than $314,000 a year.

The costs of goods and services are still increasing faster than wages nationwide. This makes it harder for everyone, including high earners, to make ends meet financially. SmartAsset says that Americans need almost $6,000 more each year to maintain the same standard of living as they did last year.

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