Here’s How Much Money You Need to Make in Houston to ‘Live Comfortably’

HOUSTON – A recent study sheds troubling light on the magnitude of the differences between median income in Houston and the amount residents need to earn to live comfortably.

Granted, we all have different definitions of success and what “living comfortably” looks like. For me, it’s just about not checking my checking account every time I make a purchase.

The study, conducted by ConsumerAffairs, looked at how much money people need to make to make ends meet if they move to a big city like Houston. According to the report, people need to make about $62,890, or $30.24 an hour.

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Combat that with the city’s median salary (as of 2022) of $60,426 and the median cost of rent is $1,572. The study indicates that many find this lifestyle out of reach.

Part of the reason could be that the cost of living continues to rise, but wages remain stable.

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In fact, one of my colleagues, Holly Galvan, digital content producer for KPRC 2, observed that in Texas, the minimum wage has remained unchanged since 2009, at $7.25 an hour.

That’s not to say we shouldn’t all strive for that “tophat and monocle” money.

To understand how to do this, KPRC 2 digital content producer Ahmed Humble reached out to Ashley Eneriz, finance expert and deputy finance editor for ConsumerAffairs, for answers.

For starters, Eneriz tells me via email that people should separate their financial wants and needs.

“To determine how much you need to earn to stop living paycheck to paycheck, add up all of your necessary monthly expenses (this includes paying down debt), then increase that number by 25%,” she said. declared.

Simultaneously, these numbers shared by ConsumerAffairs highlight a larger problem: how Houston residents live paycheck to paycheck.

“Our data shows that the average Houstonian needs to earn $62,890 to be able to afford the area, but with that income, your budget is going to seem tight, especially if you’re saddled with student, credit card, or auto debt “, Eneriz explained. . “Ideally, your mortgage payments or rent costs should be 28 to 35 percent of your gross monthly income, the money you earn before taxes are taken out.”

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“The higher this percentage is in relation to your income, the more difficult it is to breathe financially. In some areas, living in a clean, safe place, even one that isn’t spacious or luxurious, can cost you half your salary.

There are even those, like me, who really love their job and have a master’s degree but haven’t started earning a decent income.

“Ultimately, you have to figure out how to make your budget work with you and not against you,” Eneriz said. “My only advice here is to be open to creative and unconventional avenues. This may mean negotiating partial remote hours and moving away from city lines to reduce living costs.

“It can also mean keeping your passion as a side hustle while devoting your 40 hours a week to a better-paying job,” she continued. “There is no right answer since everyone’s background, budget and desires will be different.”

To read the full ConsumerAffairs report, visit their website.