What It Really Costs to Live Comfortably in the U.S. in 2025—And Why More People Are Looking Abroad
Ever wondered exactly how much income it takes to live comfortably in your state? A 2025 study by SmartAsset, featured in CNBC, used the popular 50/30/20 budgeting rule to answer that question across all 50 U.S. states. What they found is startling, especially if you’re feeling the pinch of inflation and rising housing costs.
In this article, we’ll break down:
The most expensive and most affordable states to live in
Where costs are rising the fastest
Why this matters for everyday Americans
And how this financial pressure is leading more people to explore living abroad as a viable solution
What Does “Living Comfortably” Mean?
SmartAsset based their analysis on the 50/30/20 rule:
50% of income for essentials (like housing, transportation, food)
30% for discretionary spending (entertainment, dining out, travel)
20% for savings or debt repayment
Using the MIT Living Wage Calculator as a baseline, they calculated what it would take for a single adult to maintain this lifestyle in every U.S. state.
The Top 10 Most Expensive States to Live Comfortably in 2025
Hawaii – $124,467
Massachusetts – $120,141
California – $113,651
New York – $113,324
Washington – $106,496
New Jersey – $104,993
Maryland – $103,661
Virginia – $99,965
Colorado – $99,284
Connecticut – $98,676
These ten states now require six-figure incomes to meet basic living comfort standards. Hawaii and Massachusetts are the only states exceeding the $120K threshold, with California close behind.
The 10 Most Affordable States for a Comfortable Lifestyle
West Virginia – $80,829
Arkansas – $80,894
South Dakota – $81,172
North Dakota – $81,326
Kentucky – $81,465
Oklahoma – $82,110
Ohio – $82,924
Alabama – $83,424
Louisiana – $83,776
Mississippi – $84,072
In these states, living comfortably is still achievable on less than $87,000 per year, which is nearly a $44,000 difference from the highest-cost states.
Where the Cost of Living Is Rising Fastest
The year-over-year increases in some states are significant:
Montana saw a 9.6% increase, now requiring $92,851/year
Vermont jumped by 15.5% for families
New Jersey increased 12.6%, affecting both singles and family budgets
This trend highlights a growing challenge, even traditionally “affordable” areas are becoming more expensive, shifting the entire financial landscape.
Why This Study Matters
This data provides more than just trivia, it gives tangible numbers to help individuals:
Plan relocations more strategically
Negotiate salaries based on regional costs
Evaluate if their financial goals are realistic in their current city or state
More importantly, it underscores how the rising cost of living is pushing people to reconsider what “comfort” really means, and whether the U.S. is still the right place to find it.
The Rising Interest in Living Abroad
With costs soaring in places like California and Massachusetts, many Americans are exploring living abroad as a financially smarter alternative. Countries like Spain, Portugal, Costa Rica, and Mexico offer:
Lower housing and utility costs
Affordable healthcare
Simpler lifestyles with higher quality of life
Vibrant expat communities
At Expat Livin, we’ve helped hundreds of individuals and families explore this path. Whether you’re looking for a slower pace of life, financial breathing room, or a cultural adventure, moving abroad could be the key to living well without six-figure stress.
Final Thought
The cost of living “comfortably” in the U.S. is getting higher each year, and it’s happening everywhere. Whether you’re feeling priced out of your own city or simply curious about alternatives, now is the time to educate yourself, run the numbers, and decide where you want to build your future.
At Expat Livin, we’re here to help you go from where you are to where you want to be.
What You Can Do Next
🎥 Watch our full video on this topic over on YouTube
📬 Join our community to learn how to start your move abroad
💬 Comment below: Which state surprised you the most?
