If You Make $100k, You Still Can’t Afford To Live In These Us Cities

Making six figures no longer guarantees a comfortable life. In an analysis by LendingTree, the company found 25 U.S. cities where a $100,000 income wouldn’t allow a family of three to get by.

As for what cities made the unfavorable list, look to one in four of the 100 largest U.S. metros. That number includes all 10 of California’s major cities. Three Connecticut metros and two places in Colorado, Massachusetts, and New York are also included.

San Jose, California, tops the list. The company found that a family of three earning $100,000 would have a $2,207 deficit after paying their monthly expenses. San Francisco, California, and Boston, Massachusetts, follow, leaving families $1,804 and $1,613 short, respectively.

The remaining spots in the top 10 include: Honolulu, Hawaii; Oxnard, California; Washington, D.C.; Los Angeles, California; San Diego, California; Seattle, Washington; and Poughkeepsie, New York.

You Can Still Get By on $100K in Some Cities

On the other end of the spectrum, the company found that McAllen, Texas, is the most affordable metro area in the country. At 14 percent cheaper than average, a family living there would still have $1,770 after their basic monthly expenses.

Little Rock, Arkansas, and El Paso, Texas, are next on the good side of the list. Each of those cities leaves families with an extra $1,608 and 1,554, respectively. As a whole, Texas and Ohio dominate the affordable side of the list.

To determine their findings, the company calculated the average cost of basic monthly expenses. Housing, child care, transportation, health insurance, food, entertainment, utilities, taxes, and 401K contributions were considered. Not factored in were any debt payments families may have.

“It’s a rough time out there. The fact that you can make six figures in many, many cities across this country and still be broke, even before you factor in debt payments, is scary,” Matt Schulz, chief consumer finance analyst at LendingTree and author of the study, told CBS News. “That’s the reality for many families today, though, and unfortunately, there’s not much reason to think things are going to improve anytime soon. That means that families are going to be forced to make some tough decisions and real sacrifices to get by.”

As for his advice to families struggling to get by, Schulz said people should focus on building their emergency fund.

“Even a small emergency fund can help firm up your financial foundation. It means that your next big unexpected expense won’t necessarily have to go right on to your credit card,” he said. “Plus, online high-yield savings accounts are still offering some of the best returns in years, even though they’re down from last year’s highs.”

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