Allison Carter|allison.carter@indystar.com
Do you make enough money to live comfortably in Indianapolis? A new study by GOBankingRates, a personal finance site, says many people don't.
The study started by dividing income into three buckets: 50 percent for necessities (rent or mortgage, car payments, groceries, utilities), 30 percent for discretionary spending (entertainment, dining out, gifts) and 20 percent for savings. It calculated the cost of living in the 50 biggest American cities, then doubled it to determine what made for a "comfortable" life in each city for a single person.
So how did Indy fare? The study says you need to earn$46,016 a year to have enough money for needs and wants. However, the median income for the city is$42,076, a shortfall of$3,940.
It's important to note that the study's calculation does not include taxes. So in order to actually live this lifestyle, you'd need a gross income of roughly 30 percent more, or about $60,000.
Compared with the other 49 cities in the study, Indy ranked 26th in the discrepancy between a comfortable income and the actual median income. Smaller cities such as Virginia Beach, Va.,Bakersfield, Calif., andColorado Springs, Colo., were deemed easiest to live comfortably. But in Miami, the median income lags the comfortability figure by $46,199.
See the top and bottom cities below, or click here for the full list.
5 most affordable cities:
•Virginia Beach, Va.: $16,072 surplus income
•Bakersfield, Calif.: $13,416 surplus income
•Colorado Springs, Colo.: $9,716 surplus income
•Arlington, Texas: $6,151 surplus income
•Mesa, Ariz.: $5,605 surplus income
5 least affordable cities:
•Miami: $46,199 deficit income
•San Francisco: $41,192 deficit income
•New York: $34,709 deficit income
•Boston: $29,937 deficit income
•Los Angeles: $24,689 deficit income
Allison Carter is an engagement producer at IndyStar. Follow her on Twitter:@AllisonLCarter.
