Yahoo Finance Living Paycheck to Paycheck: The Best and Worst Arizona City For Your Finances
Americans living paycheck to paycheck have to factor in how much of their income will cover their cost of living, and if there will be any money left over to put into their savings account. In Arizona, the experience of living on the paycheck-to-paycheck cycle can vary dramatically depending on where you call home.
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With its diverse range of cities, from sprawling metropolises to quaint small towns, the financial landscape in Arizona offers both opportunities and challenges for residents. This holds especially true as a retirement destination for baby boomers and seniors over age 65 or even younger professionals looking to buy their first home and still be able to afford groceries without going into credit card debt.
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Quick Take: Living Paycheck to Paycheck in Arizona
GOBankingRates recently conducted a study to research and determine the best and worst city in Arizona where your finances are concerned. The research shows which city you are most likely and least likely to live paycheck to paycheck based on the average cost of expenditures, mortgage payments, income and what money that leaves you with at the end of the month. For example, the cheapest city has more affordable features, but typically lower incomes on average.
City You’re Most Likely To Live Paycheck To Paycheck: Bullhead City
While Bullhead City’s cost of living is lower than in larger cities like Phoenix or Tucson, it is not sufficiently low to offset the lower income levels in general. Housing costs, utility bills and transportation expenses still take a significant bite out of residents’ paychecks, leaving little room for savings or discretionary spending.
Here are some key statistics to help figure out if your income would cover your cost of living in Bullhead City:
Average annual cost of expenditures: $23,789
Average annual mortgage payments: $22,741
Total annual cost of living: $46,530
Household median income: $47,129
Leftover savings: $599
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City You’re Least Likely To Live Paycheck To Paycheck: Vail
While Vail is not the cheapest place in Arizona, it offers a cost of living that is better paired with the average income per its residents. Housing costs are relatively reasonable if you make a decent living, especially compared to the income levels of the area.
This affordability extends to other living expenses, making it easier for residents to manage their finances and save money. However, it is good to see if your income is comparable to what the average resident makes to see if you could stop living paycheck to paycheck.
Average annual cost of expenditures: $23,735
Average annual mortgage payments: $29,848
Total annual cost of living: $53,584
Household median income: $120,179
Leftover savings: $66,595
Cost of Living and Income in Arizona Cities: Bullhead City vs. Vail
Bullhead City faces several economic challenges, including a lack of high-paying jobs and slower economic growth compared to other Arizona cities. The local job market is less dynamic, and opportunities for upward mobility are limited. This stagnation makes it hard for residents to improve their financial situation over time.
Vail is known for its excellent school district, low crime rates and community-oriented atmosphere. The area offers numerous outdoor activities, parks and community events that contribute to a high quality of life.
This supportive environment is vital for financial stability, as it provides a sense of security and well-being, but all these features typically come down to paying more for where you live.
Household Median Incomes: Bullhead City vs. Vail
The average median household income has a huge disparity between Bullhead City at $47,129 and Vail at $120,179. The reasons for this wage gap are manyfold. For example, Vail benefits from its proximity to Tucson, giving residents access to a larger job market while maintaining a quieter, more suburban lifestyle.
The area has opportunities in various sectors such as education, healthcare and public administration. This access to a diverse job market helps ensure stable employment and career growth, which is crucial for those living paycheck to paycheck.
On the other hand, Bullhead City has one of the highest poverty rates in the state, which directly impacts the financial health of its residents. A significant portion of the population struggles with low income, making it difficult to cover basic living expenses, let alone save for emergencies or future investments.
Final Take To GO
The bottom line is that living paycheck to paycheck is a reality for many Arizonans, but where you live can make a significant difference in your financial stability.
If you are considering moving to a more affordable place to live, or at least one better suited for your finances, it’s essential to consider these factors and how they align with your savings goals and lifestyle. While no city is perfect, finding a location that supports your fiscal well-being can make living paycheck to paycheck a more manageable and less stressful experience.
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This article originally appeared on GOBankingRates.com: Living Paycheck to Paycheck: The Best and Worst Arizona City For Your Finances
