According to a story that was shown on CNBC, a recent study discovered that in order for an American to be deemed financially secure, they must have a net worth of $774,000. The aforementioned sum, however, will change according to the city in which you reside in the United States. According to the annual Modern Wealth study published by Charles Schaap, a financial services organisation, in order to live comfortably in high-cost cities such as San Francisco or New York, you would need a net worth of more than one million dollars.
You are not the only one who has fantasised about starting over in the United States.
Every year, the United States welcomes somewhere in the neighbourhood of a million new people who are able to live there legally. Because there are so many different areas in which one might choose to live and work, there are thriving ex-pat communities throughout the entirety of the country.
Is it pricey to live in the United States of America? What is the monthly cost of living in the United States?
Although it varies from state to state, the monthly cost of living in the United States is very high overall. It is estimated that each American household spends a total of $61,334 each year on their living expenditures, with the cost of housing accounting for the greatest portion of this total at a staggering $1,800 per month5. San Francisco, New York City, Boston, and Los Angeles are among the most expensive cities in the United States. However, there are still some well-known locations where living comes with a price tag that is acceptable. For instance, Oklahoma City and Cincinnati have far lower average expenditures than other big cities. Mississippi5 is the state in the United States in which residents have the lowest cost of living. Naturally, if you move away from the cities totally, you will discover that the anticipated expenses of living are far cheaper.
The typical monthly cost of support for one individual
Once again, the costs of living might vary greatly from one region to another, but we can still utilise some typical values. The national average for a person living alone in the United States is $3,189 per month, which comes out to a total annual cost of $38,266. The typical monthly expense for a family of four is $7,095, which is equivalent to an annual expenditure of $85,139.
The rising cost of life and inflation
Inflation is a factor that affects the cost of living for every single American. The term “inflation” refers to a decline in the buying power of the currency we use, which manifests itself as an overall increase in the cost of products and services across the board. Inflation may occur when prices go up either because of a rise in the expenses of production, such as raw materials and labour or because of an increase in demand for goods and services, which indicates that customers are prepared to pay more for those goods and services. When this was written, the inflation rate was around 7%. This indicates that a pencil that cost one dollar in the year 2020 would cost one dollar and seven cents today. This is an example of inflation at work.
