5 Expensive Cities That Will Drain Your Savings, According to a Financial Planner

A recent survey conducted by MarketWatch discovered that almost half (49%) of Americans consider themselves to be “broke,” with almost two-thirds feeling like they’re living paycheck to paycheck.

With the cost of living surging in the last few years, Americans have been struggling to reach their financial goals. American aggregate household debt is at an all-time high of $17.5 trillion.

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However, certain cities may drain the savings of an average person more quickly than others.

“These cities have extremely high median housing prices and rents, along with elevated costs for dining out and general living expenses,” said Hazel Secco, a CFP and CEO of Align Financial Solutions .

In some cities, your savings may be drained more quickly due to the higher cost of living associated with expensive rent, astronomical grocery prices and the amount you can earn. The MarketWatch survey found that Americans felt they needed a salary of $73,785 to feel financially safe, which is higher than the median annual salary of around $60,000.

The combination of high living costs and a salary that isn’t lucrative enough could lead to you using up your savings faster if you’re considering a move to one of these locations.

According to data released from Numbeo in the annual Cost of Living Index by City, seven of the world’s 10 most expensive cities are in the United States. Cities were scored on the following indexes to determine how expensive they were: cost of living, rent, cost of living plus rent, groceries, restaurant prices and local purchasing power.

According to Secco, these are cities with very high living costs that will likely drain an average person’s savings.

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New York City

New York is the third most expensive city in the world, according to Numbeo. Based on data from Zumper, the median rent in New York is listed at $4,500, which is 131% higher than the national median. PayScale determined that the cost of living is 128% higher in New York than the national standard. It’s not a secret that New York is an expensive place to live, and you’ll want to review your possible wage compared to your living expenses if you’re considering moving to the Big Apple.

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Hoboken, New Jersey

“Many NYC tech employees and high-earning young families have moved to Hoboken for its convenience and vibrant community, offering a taste of the NYC lifestyle at a lower cost than Manhattan,” Secco said. “However, the steep rent and living expenses in Hoboken often push average individuals to seek more affordable, farther-out suburban areas in New Jersey, where they can find cheaper rent or more space.”

Secco pointed out that the average rent for an apartment in Hoboken is over $4,300 for less than 1,000 square feet. Zumper data indicated that the median rent in Hoboken is $4,117, with only 144 rentals available. PayScale found that the overall cost of living is 60% higher in Hoboken, while housing expenses are 201% higher than the national average.

GOBankingRates determined that the middle-class income range for New Jersey is $64,751 to $194,252. This means that an average person would have to earn a higher salary than average in hopes of trying to live comfortably in this area.

San Francisco

You can’t compile a list of expensive cities without mentioning San Francisco, as it’s known for its high cost of living. The city is fourth on the list of the most expensive cities, just behind New York City. Based on Zumper data, the median rent for an apartment is $3,300, which is 69% higher than the national average.

The cost of living is 79% higher than the national average, with utility prices being 32% higher and groceries costing 31% more than the national average.

Boston

Boston is listed in the fifth spot among the most expensive cities. Zumper found that the median rent in Boston is $3,200, which is 64% above the national average. PayScale revealed that the cost of living is 50% higher than the national average in Boston.

Seattle

Seattle made it to the eighth spot for most expensive cities in the world. Zumper found that the median rent for Seattle ($2,308) is only 5% higher than the national average. However, the cost of living in general is 50% higher than the national average.

Based on PayScale data, some other notable factors: Housing prices are 111% higher than the national average, and gas prices are about 23% higher.

This article originally appeared on GOBankingRates.com : 5 Expensive Cities That Will Drain Your Savings, According to a Financial Planner