Cities most and least likely to drain your bank account
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.
The Bankrate Daily
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10th worst: Las Vegas-Henderson-Paradise, NV
Annual savings potential: −$1,337
Six-month emergency fund: $23,902
Percentage achieved: −6%
It might be tough to save in Sin City, but nabbing a low mortgage rate is key to financial stability even in the toughest of climates.
Note: Annual savings potential is a yearly estimate of essential personal expenses. Six-month emergency fund is an estimate of what you need in savings for financial security. Percent achieved is how much a particular city’s annual savings potential covers your emergency fund savings goal.
Sources: The Council for Community and Economic Research, ATTOM Data Solutions, Insure.com, Federal Highway Administration, Experian, Economic Policy Institute, Henry J Kaiser Family Foundation, Bureau of Labor Statistics, U.S. Census Bureau/Census Reporter, Bankrate.com Mortgage Calculator
3 of 21
9th worst: Riverside-San Bernardino-Ontario, CA
Annual savings potential: −$1,796
Six-month emergency fund: $25,670
Percentage achieved: −7%
4 of 21
8th worst: Portland-Vancouver-Hillsboro, OR-WA
Annual savings potential: −$2,321
Six-month emergency fund: $27,708
Percentage achieved: −8%
Whether you live in the Pacific Northwest or on the East Coast, debt is an issue that won’t go away unless you address it. Take a positive first step by escaping the financial chains with our debt consolidation loan guide.