---
title: 'The Insane Cost of Comfortable Living in America'
source: 'https://youtube.com/watch?v=HqcoaSABPbA'
video_id: 'HqcoaSABPbA'
date: 2026-08-06
duration_sec: 111
---

# The Insane Cost of Comfortable Living in America

> Source: [The Insane Cost of Comfortable Living in America](https://youtube.com/watch?v=HqcoaSABPbA)

## Summary

A new study from SmartAsset reveals the staggering income required to live comfortably in the United States, using the 50/30/20 rule to define comfort. The findings show that even the least expensive states require around $200,000 annually for a family of four, with Massachusetts topping the list at $314,000. The video highlights the gap between this ideal and reality, noting that many Americans cannot afford such a lifestyle.

### Key Points

- **Study Introduction** [00:02] — SmartAsset study reveals the income needed to live comfortably in the US, using the 50/30/20 rule.
- **50/30/20 Rule Explained** [00:15] — 50% of income for necessities, 30% for wants, 20% for savings. This defines 'comfortable' living.
- **Most Expensive State** [00:41] — Massachusetts is the most expensive state, requiring $314,000 per year for a family of four.
- **Top 15 States** [00:55] — All top 15 states require over $250,000 annually for a family of four.
- **Bottom 15 States** [01:09] — Even the bottom 15 states mostly require around $200,000 per year, which is still very high.
- **Reality Check** [01:21] — Many Americans cannot afford this; savings rates are at multi-year lows, and spending on vacations has decreased.

### Conclusion

The study's numbers are shockingly high, revealing a significant gap between the ideal comfortable lifestyle and what most Americans can actually afford. This raises questions about the rising cost of living and its impact on financial well-being.

## Transcript

to live comfortably in the United States. This is a new study from SmartAsset and the numbers they're shocking. So, prepare yourself. just want to explain the study was done using something called the 50/30/20
rule. This says that 50% of your income should go to necessities like housing and food and clothing and so on. 30% of your income should go to things that you want. These are things like vacation or just having a little bit of
comfort in your life. And 20% should go to long-term things like saving for retirement. That is their definition of comfort, being able to spend 50% of your income on things that you want and long-term saving. And when you rank
states that way, Massachusetts is the most expensive state. And the amount that it costs to raise a family of four in Massachusetts is $314,000 per year. And as you can see, the top 15
states here are all above $250,000. But to me, that is not even the craziest part of this list. What is crazier is that when you look at the bottom 15 states in the United States, they're still mostly around $200,000. That's
just It's just too much. I don't I don't get it. How do people afford this? I mean, the obvious answer is that they don't. They spend their 50% on those necessities, but the 30% that's supposed to go to things that you want and the
20% that's supposed to go to long-term savings probably just don't exist. And Americans are spending less on things like vacation, the savings rate in the United States has dipped to multi-year lows. So, this is not just speculation.
People can't actually afford this comfortable life. Whatever way you look at this, to me at least, these numbers are insane. But I would like to know what you think. Are these numbers realistic in the first place? And if so,
why are things so expensive? Let me know in the comments.