Time has a story out this week about how despite the sluggish economic recovery, most American households spend more than they make, and have a savings rate of… zero. Time’s suggestion for readers struggling to save? Move to Baltimore, the nation’s easiest city in which to save.
The research is pretty simple: Subtract a city’s median household expenses (which includes things like housing and food, as well as discretionary spending like cars and vacations) from its median income. If you’ve got a lot leftover, it’ll be a lot easier to save. And in Baltimore, the average household ends up with a $2,021 surplus. Compare that to Phoenix, where the average household ends up losing $95 per month, and you can see why Time is urging everyone to move here!
The other easy-to-save cities:
Washington, DC (income exceeds costs by $1,664 per month)
Cleveland ($1,294)
Chicago ($876)
Dallas ($772)
And the hardest-to-save cities:
Miami ($18)
Boston ($240)
San Diego ($344)
Detroit ($349)
This is an interesting way to look at a city’s appeal. Some cities have high median incomes, but a high cost of living effectively cancels out that benefit (ahem, Boston); other cities have a low cost of living, but people there don’t make any money, either (Detroit!).
