A new study released today says Connecticut is the 10th highest state for its residents living paycheck to paycheck. High food and housing costs were the culprits.
The study by GoBankingRate.com said Connecticut residents need almost all their paycheck to get by because of the relatively high cost of food (the second highest in the U.S. at $353 per paycheck) and the high cost of housing ($738 per paycheck).
The average Connecticut resident has less than a quarter of his paycheck left for other expenses, or about $663. The wages are based on the state’s median income of $70,161, which is fourth highest in the country.
According to the Department of Economic and Community Development, the state’s per capita income in 2013 was $37,892, second highest in the country behind the District of Columbia.
States were evaluated and ranked according to the percentage of the median paycheck that was left over after subtracting the following:
- Housing costs
- Food expenditures
- Transportation expenses
- Utilities
- Healthcare
Hawaii was the highest ranked state for residents living paycheck to paycheck. Rhode Island was ranked 8th and Massachusetts was ranked 9th. Minnesota was ranked the state least likely to have residents living paycheck to paycheck.
“Living paycheck to paycheck isn’t necessarily a function of income,” said Cameron Huddleston, GOBankingRates’ Life + Money columnist, in a statement. “Plenty of upper-income households live hand to mouth because of poor financial habits. In fact, a separate GOBankingRates’ survey found that people earning $100,000 or more were more likely to fear always living paycheck to paycheck than those earning less.”
