A study by SmartAsset estimated that a family of four in Minnesota needs a combined annual income of $263,078 to live comfortably. This amount is higher than the national average of $250,000 and also higher than neighboring states like Wisconsin and Iowa.

What Does ‘Living Comfortably’ Mean?

The study focused on necessities like housing, child care, transportation, health care, and taxes, and applied the 50/30/20 budgeting rule. This means that 50% of a household’s budget goes toward necessities, 30% is available for discretionary spending, and 20% goes toward savings or paying down debt.

The study found that the five most expensive states for a family of four are Massachusetts, Hawaii, California, New Jersey, and New York. On the other hand, the five states with the lowest salaries needed for a family of four to live comfortably are Mississippi, Kentucky, Arkansas, Tennessee, and Louisiana.

Minnesota’s Cost of Living

Minnesota offers a range of living options, from small-town living to the Twin Cities metro, which can affect household expenses. However, statewide, the study estimates that a family of four with two working adults and two children needs a combined annual income of $263,078 to live comfortably.

This amount is more than a quarter-million dollars a year and is considerably higher than what families need in neighboring Wisconsin and Iowa. The study also found that the estimated household salary needed to live comfortably in Wisconsin is $238,451, and in Iowa, it is $204,422.

Original reporting: News Talk 1340 KROC-AM – News and Talk – Rochester News Radio — read the source article.