Inflation is on everyone’s minds these days, and it’s affecting the way ordinary Americans live. According to a recent study by SmartAsset, Americans in the 25 largest metropolitan areas need an average post-tax income of $68,499 to live comfortably. However, this number varies significantly depending on where you reside. In cities like San Francisco, you’d need at least $84,000 annually for comfort, while St. Louis residents can manage with $57,446.
The study highlights the rising cost of living, with this year’s numbers being 20% higher than the previous year, mainly due to factors like inflation, higher mortgage rates, and a shortage of rental units. But there are strategies to help you stay ahead of inflation. First, setting a realistic budget that balances your needs, wants, and savings is crucial. The study suggests allocating 50% to needs, 30% to wants, and 20% to savings.
Investing in assets that can combat inflation is another key approach. Real estate, for example, tends to retain its value when spending power declines, making it an inflation hedge. Commercial real estate investment is no longer reserved for the ultra-rich, thanks to new platforms that allow regular investors to participate. Lastly, consulting experts such as CPAs, financial planners, and business coaches can provide valuable guidance for managing your finances effectively and increasing your income………[read more]
How can individuals and families strike a balance between their wants and needs to create a budget that enables comfortable living in today’s economy?
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