Living in the most expensive cities in the U.S. is not for the weak due to their high taxation rates and costly living expenses.
The most expensive cities in the U.S. can cause nightmares to anyone even to wealthy people. (Photo: Rocket Mortgage)
Living In The Most Expensive Cities In The U.S.
Living in the most expensive cities in the U.S., such as New York, San Francisco, and Honolulu, can require high earners to make three dollars for every dollar they take home due to high taxes and living costs. Despite the high expense, the most expensive cities in the U.S. offer unique amenities and opportunities that attract educated professionals and dreamers alike.
The cost of living and high taxation rates in the most expensive cities in the U.S. can consume a significant portion of high earners’ paychecks. For example in some of the most expensive cities in the U.S., you would need to earn $312,400 pre-tax to take home $100,000 after living costs that are 86% higher than the national average.
However, the allure of the most expensive cities in the U.S. and their offerings can also lead to increased spending on entertainment and dining, further shrinking salaries. If individuals are considering moving to the most expensive cities in the U.S., they should ensure that housing costs are below 30% of their income, they can save for retirement, and they have an emergency fund.
According to a published article by Go Banking Rates, alternatively, moving to cities with a lower cost of living, such as Memphis, Oklahoma City, or Texas cities, could provide more purchasing power on a lower salary. Ultimately, the decision to live in the most expensive cities in the U.S. should consider the trade-offs.
Tax Season Is A Discouraging Experience In Living In The Most Expensive Cities In The U.S.
In a published article by Yahoo Finance, living in popular cities like New York City, San Francisco, and Honolulu can make tax season an even more discouraging experience, even for wealthy individuals.
To save money, it is advised to minimize housing costs by staying well below the mortgage approval amount and obtaining multiple quotes when shopping for a mortgage.
