What Income Do You Need To Live Comfortably In Louisiana
(KMDL-FM) There is a difference between living and living well. There is also a difference between existing and living. Here in Louisiana, we have a lot of folks who are closer to just existing as opposed to living well. But for most of us, we don't know what the economic threshold is between those two states of socio-economic existence.
The website Visual Capitalist did some number crunching. They used data from SmartAsset and curated a list of how much money a single adult would need to make to "live comfortably" in each of our 50 states.
As you might imagine, the amount needed for a comfortable existence in Louisiana, Alabama, Mississippi, and Arkansas was among the lowest in the nation. But the Gulf South did not have the lowest income-to-comfortable-life ratio. That distinction belongs to West Virginia.
How Is "Comfortable Living" Defined?
The concept of "Comfortable Living" was defined by what financial strategists call the 50/30/20 Rule. The assessment is broken down this way. 50% of your income should cover your necessities, the things you need to survive, such as food, shelter, transportation, and the like.
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The 30 refers to 30% of your earnings being earmarked for discretionary income. This is where "living" comes into play. Do you have money to do things and experience life?
The 20 in the 50/30/20 scenario refers to savings and planning for other financial goals. Unfortunately, that's the part of the budget that most people cut first when it should be the first item on the "pay agenda". You should always pay yourself, or in this case your future self, first.
The Cost to Live Comfortably in Louisiana is Less Than $100,000 - How Much Less?
In 23 states, an income of $100,000 or more annually is required to live comfortably. Louisiana is not one of those states. In fact, we are 47th on the list. The amount of money would you need to earn in Louisiana to live comfortably, according to the Visual Capitalist study? That would be $84,739.00.
The median income in Louisiana for an individual is reported to be $35,038. The median income for a family in Louisiana is reported to be $79,407. Based on those figures, there are a lot of us who are not "living comfortably". So we do get excited when we see or hear about a sale.
I think I am beginning to understand why we drink so much. Nah, we just like to have a good time and sometimes, a good time doesn't cost a dime. And despite what the financial folks seem to think about us, we're doing just fine.
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That doesn't mean we aren't wealthy in a thousand different other ways here in Louisiana. Thankfully, we have our joie de vivre; we can still make a living off of the land, and despite our lack of dollars, we still have plenty of sense- common sense, that is. Well, unless you count these folks.
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Gallery Credit: Bruce Mikells