People living in Hawaii, California and New York are the most likely to live paycheck-to-paycheck, even though the states have among the highest income levels.
A new analysis by personal finance site GOBankingRates.com finds that even though Hawaii has the third-highest median household income in the U.S. at $71,223, the costs of food, housing, transportation and utilities per paycheck, are highest in the nation.
What remains after living expenses is $186, or less than 7 percent of each paycheck. Hawaii is the only state with a single-digit percentage of disposable income.
Conversely, the state in which residents are least likely to live paycheck-to-paycheck is Minnesota.
The median household income there is $67,244, the sixth highest in the U.S.
With housing costs taking up 21 percent of a paycheck and utilities taking up 7 percent and health costs using only 3 percent, Minnesota was the only state in the study where the amount remaining after expenses were subtracted topped $1,000.
“Living paycheck to paycheck isn’t necessarily a function of income,” said Cameron Huddleston, GOBankingRates spokesman. “Plenty of upper-income households live hand-to-mouth because of poor financial habits,” he said. 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,” Huddleston said.