Study: $114K salary needed for comfortable life in NJ
New Jersey makes the 10th most expensive state in the nation for achieving a comfortable lifestyle, according to the study.
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A new study suggests living comfortably in New Jersey comes with a six-figure price tag.
According to financial technology company SmartAsset, a single adult in New Jersey needs to earn $113,776 per year to live comfortably. That makes New Jersey the 10th most expensive state in the nation for achieving a comfortable lifestyle, according to the study. The figure is also more than 4% higher than last year's estimate, reflecting the continued rise in living costs across the state.
Many New Jersey residents say the number feels realistic.
"I agree. Over $100,000 to live comfortably and to be able to have that work-life balance, to go out with your friends and have a social life, definitely comfortably $100,000," said Samantha of Hackensack.
Another resident said the rising cost of living is especially concerning as retirement approaches.
"I agree wholeheartedly. I am approaching retirement age. I'm considering how I'm going to survive," the resident said.
But financial expert and founder of Better Qualified, Paul Oster, says the conversation is about more than income alone.
"This really isn't about Americans or New Jerseyans making more money," said Oster, who has worked in financial planning for more than two decades. "I know people that make $100,000, $200,000, $300,000 or more, and they're still broke because their lifestyle is consuming every single dollar."
SmartAsset based its calculations on the popular 50/30/20 budgeting rule, which recommends spending 50% of income on necessities, 30% on discretionary expenses, and 20% on savings and debt repayment. For a family of four, the study found that approximately $295,000 per year is needed to live comfortably in New Jersey.
Still, some families say comfortable living is possible without reaching that income level.
"It's definitely hard to live if you don't make a ton of money, but me and my family are doing under $100,000, and we live comfortably within our means," said Mark Horn.
Oster says that's exactly the point.
"This is an income versus expenses problem, and it comes down to budgeting right," he said. "You could live comfortably within whatever amount of money you make."
He recommends keeping a close eye on household finances by tracking income and spending, building savings, and prioritizing the repayment of credit card debt.
"Do you have to make $114,000 as an individual? Absolutely not," Oster said. "You have to work with your numbers. Knowing what your numbers are is the most important message."
