The American Dream on a Tightrope: Why Single Workers Can’t Keep Up with Comfortable Living Costs in 2025

By [Your Name] | June 13, 2025 | Boncopia.com

Imagine working a full-time job, paying your bills, and still feeling like you’re one emergency away from financial ruin. For single Americans in 2025, this isn’t just a hypothetical—it’s reality. A recent SmartAsset study reveals a stark truth: the salary needed for a single person to live “comfortably” now exceeds median annual wages in all 50 U.S. states. This gap between earnings and the cost of a sustainable lifestyle is widening, leaving many wondering: is the American Dream still within reach for solo workers?

In this post, we’ll dive into what “living comfortably” means, unpack the numbers behind this financial squeeze, explore why this is happening, and offer practical insights for navigating this challenging economic landscape. Whether you’re a single professional, a policy enthusiast, or just curious about the state of the economy, let’s break it down.

What Does “Living Comfortably” Mean?

SmartAsset defines “comfortable” living through the lens of the 50/30/20 budgeting rule, a popular framework for financial stability:

• 50% of income goes to necessities (housing, food, transportation, utilities, and taxes).

• 30% covers discretionary spending (entertainment, hobbies, vacations).

• 20% is allocated to savings, investments, or debt repayment.

To calculate the salary needed, SmartAsset used data from MIT’s Living Wage Calculator, updated as of February 10, 2025, to estimate the cost of necessities in each state. From there, they extrapolated the pre-tax income required to support this balanced budget. The result? A single adult needs a hefty paycheck to cover basics, enjoy life, and plan for the future without living paycheck to paycheck.

But here’s the kicker: the median income for single, full-time workers in the U.S. hovers around $60,000, according to Labor Bureau data. Compare that to the national median salary needed for comfort—$89,461 in 2024, likely higher in 2025—and it’s clear most solo workers are falling short.

The Numbers: A State-by-State Reality Check

The SmartAsset study paints a sobering picture across the U.S. Here’s a snapshot of the salaries needed to live comfortably in 2025, highlighting the extremes:

• Hawaii: $124,467—the highest in the nation, driven by sky-high housing and consumer prices.

• Massachusetts: Over $120,000, with housing costs eating up a massive chunk of income.

• West Virginia: $80,829—the lowest, yet still above the state’s median wage.

• Montana: Saw a 9.57% jump in required income to $92,851, the largest annual increase.

• Pennsylvania: Requires $95,306 for singles, with families of four needing $248,435.

In 11 states, including California, New York, and Washington, a six-figure salary is non-negotiable for comfort. Even in “affordable” states like Mississippi or Arkansas, the required income—around $80,000—outpaces median earnings. This means the average single worker, even in the cheapest states, can’t afford a lifestyle that includes savings and occasional splurges.

For context, the national median household income is $80,610, per recent Census data. If households (often with multiple earners) are barely scraping by, imagine the strain on single individuals. In high-cost states, the gap is even more brutal: a single New Yorker needs $111,738, nearly double the median for single earners.

Why Is This Happening? The Perfect Storm

Several forces are conspiring to make comfortable living elusive for single workers. Let’s break it down:

1. The “Singles Tax”

Living alone comes with a hidden penalty. Housing, the biggest expense, doesn’t scale down for one person—you pay the full rent or mortgage without splitting costs. Groceries, utilities, and even travel hit harder when you can’t share expenses. SmartAsset notes that single people face added costs for food, shelter, and entertainment, making the 50/30/20 budget a stretch.

2. Housing Costs Outpacing Wages

Housing is the primary culprit. In New York City, a third of residents spend half their income on rent, per the Community Service Society. States like Hawaii and California face chronic housing shortages, driving prices to unsustainable levels. Even in cheaper states, median home values and rents have climbed faster than wages, which haven’t kept up with inflation.

3. Inflation’s Lingering Sting

Post-2020 inflation has eroded purchasing power. SmartAsset estimates singles need $5,844 more in 2025 than in 2024 to maintain comfort, while families need an extra $9,360. From groceries to gas, everyday costs have surged, forcing workers to allocate more to necessities and less to savings or fun.

4. The Urban Wage Premium Isn’t Enough

Big cities offer higher salaries, but the cost of living often swallows the benefit. In San Jose, CA, a single adult needs $147,430, while New York City demands $136,656. Despite urban wage premiums, housing and taxes erode disposable income, making it tough to follow a balanced budget.

5. Societal Expectations of “Comfort”

The 50/30/20 rule assumes a lifestyle that includes vacations, dining out, and robust savings—things many Americans now view as luxuries. Critics on platforms like Reddit argue the rule’s 30% for “wants” and 20% for savings is unrealistic for most. If necessities eat up 75% of income, as some suggest, the required salary drops, but so does the quality of life.

The Human Impact: Stories Behind the Stats

Numbers tell part of the story, but the human toll is real. On X, users lament the death of the American Dream, with one post claiming, “ALL 50 states require more than a $100,000 income” (a slight exaggeration, but the sentiment resonates). Single workers in high-cost areas like Boston ($125,000 needed) or Philadelphia ($92,726) often work side hustles or forgo savings to survive.

Take Sarah, a 32-year-old teacher in California. Earning $65,000, she lives with roommates to afford rent, skips vacations, and has minimal savings. “Comfortable? That’s a fantasy,” she says. Stories like hers echo across Reddit’s r/MiddleClassFinance, where users debate whether the 50/30/20 rule is “absurd” for low- and middle-income earners.

Navigating the Gap: What Can You Do?

While systemic fixes like affordable housing or wage increases are needed, here are practical steps for single workers:

1. Rethink the 50/30/20 Rule: If necessities take 60–75% of your income, adjust discretionary spending and savings accordingly. A 60/20/20 or 70/20/10 split might be more realistic.

2. Cut Housing Costs: Consider roommates, smaller apartments, or relocating to lower-cost areas. Remote work makes this easier than ever.

3. Boost Income: Side hustles, upskilling, or negotiating raises can bridge the gap. CNBC’s course on passive income streams is one resource to explore.

4. Prioritize Needs Over Wants: Skip non-essential subscriptions or dining out to free up cash for savings or debt.

5. Advocate for Change: Support policies for affordable housing, wage growth, or tax relief for singles.

A Critical Look: Is the Study Flawed?

SmartAsset’s methodology isn’t perfect. Critics argue the 50/30/20 rule overestimates “wants” and savings needs. For example, spending 30% on discretionary items might feel excessive for frugal folks, and 20% savings assumes no emergency fund exists. Reddit users point out that MIT’s Living Wage Calculator, while robust, may inflate costs in some areas. If “comfort” were redefined—say, with 75% for needs and 25% for wants/savings—the required salary could drop significantly.

Additionally, the study focuses on pre-tax income, ignoring tax brackets or deductions that vary by state. It also doesn’t account for lifestyle differences: a minimalist in West Virginia might thrive on less than $80,829, while a socialite in Hawaii might struggle on $124,467.

The Bigger Picture: A Call for Change

The SmartAsset study underscores a deeper issue: the U.S. economy isn’t built for single workers. With median wages lagging behind living costs, solo earners face a treadmill that’s speeding up. Policymakers must address housing shortages, wage stagnation, and the “singles tax” to restore balance. Meanwhile, individuals are left to hustle, budget, and hope for better days.

As we navigate 2025, the question isn’t just how to live comfortably—it’s whether “comfort” is still a fair expectation for the average American.

Thought Questions

1. Do you think the 50/30/20 budget rule is realistic for single workers in your area? Why or why not?

2. What steps could policymakers take to make comfortable living more attainable for solo earners?

3. How do you balance necessities, wants, and savings in your own budget? Share your tips!

4. Is relocating to a lower-cost state a viable solution, or does it come with too many trade-offs?

Sources: SmartAsset 2025 Study (smartasset.com), CNBC (cnbc.com), MIT Living Wage Calculator (livingwage.mit.edu), Reddit r/MiddleClassFinance, X posts.