Americans need more in their savings accounts.
Only 39 percent of Americans have enough to cover a $1,000 unexpected expense, according to a recent Bankrate survey. Middle-income earners had as much saved, adjusting for inflation, in 2016 as they did 15 years earlier, while the bottom 40 percent of earners have less saved.
What can you do? Where can you go to save more?
Bankrate set about to find the easiest and hardest cities to save. We added up six months’ worth of necessary living expenses for each of the largest 50 American cities — things like mortgage payments, groceries, energy bills, credit card payments, various insurances, taxes and more — to arrive at an estimated emergency fund for each city.
But it’s not enough to have the lowest savings goal. So, we took the average after-tax earnings of each city, and then subtracted your annual essential expenses to arrive at a potential savings amount.
We then looked at how far that potential savings amount gets you toward your savings goal. The higher the percentage, the easier it is to save.
Here are the 10 cities that will drain your bank account, and 10 where it’s easiest to build savings.
And if you’re struggle to build your savings, check out our complete guide to saving money fast.