Pheabs Data Report – Top 10 States To Live In For Saving Money In The US

With inflation globally up 8.8% in 2022 and 6.5% in the US, it’s no surprise that saving is becoming more difficult for Americans across the country.

Saving money is incredibly important, as it allows people to avoid debt and financially plan for the future.

However, living in the United States can be expensive, with costs varying greatly from state to state. Choosing where you live can have a big impact on how much you are able to save, especially when factors like average income, as well as the cost of rent, groceries and healthcare are taken into account. 

In this article, we will take a look at the best states to live in for saving money, based on cost of living data and other factors.

How We Determined Our List

Monthly Food Cost 

When it comes to the cost of food, some states are more affordable than others. Monthly food costs can vary greatly depending on the state you live in and can significantly impact your overall cost of living. The difference in cost can be influenced by a number of factors, including distribution costs, real estate and the cost of labor. We have looked at the monthly food cost per person in the different states to get an idea of how much of their income they will be spending on groceries.

Median Rent

Median rent can be a good indicator of the affordability of a place, however it should always be looked at side-by-side with household income. Whilst having a lower average rent can be a good thing for saving in principle, it only makes a difference if it’s a small percentage of your income. We have looked at the median rent per state against median income to help us calculate a region’s saving potential.

Health Care Spending Per Capita

The United States has one of the highest costs of healthcare in the world, with national healthcare spending reaching $4.1 trillion in 2020. The cost of healthcare can have a huge impact on a person’s ability to save money, so we have included data on the annual health care spend per person, in order to get a greater insight into a state’s average cost of living.

Median Household Income 

A crucial factor in calculating savings potential: how much you will be earning. Saving isn’t just about spending less money, it’s about making sure you maximise the difference between what you earn and what you spend. Looking at the cost of goods and services alone without the context of household income can give a skewed view of affordability.  Therefore, all of our data was looked at against the median household income, to ensure our conclusions were accurate.

How We Calculated Our List

To help inform our list, we have cross-referenced government data to calculate the annual average cost of groceries, healthcare and rent per state. We have then subtracted this from the state’s median household annual income to calculate regional affordability and get a picture of average saving potential.

We have taken data from a few sources including Forbes, Move.org and World Population Review, but have principally used the US census and other government research to inform our conclusions.

Key Findings

• Hawaii had the highest monthly food costs at $556.76 on average, with New Hampshire being the most affordable at $183.
• Hawaii also had the highest cost of rent, with the median rent coming in at $1,651 per month. West Virginia had the most affordable rent, with median rent costing $732.
• The District of Columbia had the highest healthcare spending per person at $13,934, with Utah at the lowest coming in at $7,241.

Top 10 US States To Live In For Saving Money

#1: Maryland

• Average Monthly Food Cost Per Person: $343.67
• Monthly Median Rent: $1,415.00
• Annual Health Care Spending Per Person: $10,340.00
• Median Household Income: $87,063.00
• Average Disposable Income: $55,618.96

Maryland is located in the Mid-Atlantic region of the United States. It is known for its historic sites, such as Antietam National Battlefield and the Chesapeake Bay. Though overall costs in Maryland are high, these make up a lower percentage of the median household income than any other state, making it the top spot for saving.

#2: New Jersey

• Average Monthly Food Cost Per Person: $343.77
• Monthly Median Rent: $1,368.00
• Annual Health Care Spending Per Person: $11,266.00
• Median Household Income: $85,245.00
• Average Disposable Income: $53,437.76

New Jersey is in the northeastern region of the United States. It is known for its beaches, such as those in Atlantic City. Although New Jersey has a high average healthcare spend per person, the median income is high, likely offsetting this number and earning it a spot as number 2.

#3: District of Columbia

• Average Monthly Food Cost Per Person: $405.08
• Monthly Median Rent: $1,607.00
• Annual Health Care Spending Per Person: $13,934.00
• Median Household Income: $90,842.00
• Average Disposable Income: $52,763.04

The District of Columbia is the capital of the United States and the seat of the federal government. Part of what makes it so good for saving is the high median income of residents, making it the top earning US state. It is known for its historical and cultural landmarks, such as the Lincoln Memorial, the Washington Monument, and the Smithsonian museums.

#4: Massachusetts

• Average Monthly Food Cost Per Person: $406.21
• Monthly Median Rent: $1,336.00
• Annual Health Care Spending Per Person: $12,754.00
• Median Household Income: $84,385.00
• Average Disposable Income: $50,724.48

Massachusetts is located in the northeastern region of the United States. It is known for its historical sites, such as Plymouth Rock and the Salem Witch Trials Memorial. Massachusetts is also home to major cities like Boston and Worcester and top universities like Harvard and MIT, which probably accounts for the median household income being higher than other states.

#5: New Hampshire

• Average Monthly Food Cost Per Person: $183.00
• Monthly Median Rent: $1,145.00
• Annual Health Care Spending Per Person: $11,359.00
• Median Household Income: $77,923.00
• Average Disposable Income: $50,628.00

New Hampshire is located in the northeastern region of the United States. It is known for its natural beauty, including the White Mountains and Lake Winnipesaukee. Though health spending in New Hampshire is high, food and rent is lower than a lot of other states, giving residents a higher average disposable income.

#6: Utah

• Average Monthly Food Cost Per Person: $282.23
• Monthly Median Rent: $1,090.00
• Annual Health Care Spending Per Person: $7,241.00
• Median Household Income: $74,197.00
• Average Disposable Income: $50,489.24

Utah is located in the western United States. It is known for its natural beauty, including national parks such as Zion and Bryce Canyon. Utah is also a popular destination for outdoor activities like skiing and hiking. Utah has the lowest health care spend per person out of all states, likely contributing to its spot in the top 10.

#7: Connecticut

• Average Monthly Food Cost Per Person: $343.30
• Monthly Median Rent: $1,201.00
• Annual Health Care Spending Per Person: $11,899.00
• Median Household Income: $79,855.00
• Average Disposable Income: $49,424.40

Connecticut is a state located in the northeastern region of the United States. Connecticut is home to major cities like Hartford and Stamford and renowned universities like Yale and University of Connecticut. On average, Connecticut has a relatively low average monthly food cost, as well as affordable rent, giving residents a high average disposable income.

#8: Virginia

• Average Monthly Food Cost Per Person: $298.01
• Monthly Median Rent: $1,257.00
• Annual Health Care Spending Per Person: $8,815.00
• Median Household Income: $76,398.00
• Average Disposable Income: $48,922.88

Virginia is a state located in the southeastern region of the United States. It is known for its history, including the Jamestown Settlement and the Civil War battlefields of Manassas and Gettysburg. Virginia has a relatively low monthly food cost compared to the median income, making it a great state to live in to save money.

#9: Washington

• Average Monthly Food Cost Per Person: $402.08
• Monthly Median Rent: $1,337.00
• Annual Health Care Spending Per Person: $8,939.00
• Median Household Income: $77,006.00
• Average Disposable Income: $47,198.04

Washington is located in the Pacific Northwest region of the United States. It is known for its natural beauty, including the Olympic National Park and Mount Rainier. Washington is also home to major cities like Seattle and Tacoma and the headquarters of major companies like Amazon and Boeing.

#10: Hawaii

• Average Monthly Food Cost Per Person: $556.76
• Monthly Median Rent: $1,651.00
• Annual Health Care Spending Per Person: $9,593.00
• Median Household Income: $83,173.
• Average Disposable Income: $47,086.88

Hawaii is a state located in the Pacific region of the United States. It is known for its natural beauty, including its beaches and volcanoes, and its unique culture, which blends influences from native Hawaiian, American, and Asian cultures. Though Hawaii has the highest monthly food costs and highest cost of rent, it is balanced out by the high median income, giving it high saving potential.

Data findings – Top 10 US States To Live In For Saving Money