San Diego

New report says California is among the worst places to live if you want to save

According to a current examine from ConsumerAffairs, California is quantity two in the United States for going broke whereas residing on financial savings alone.

SAN DIEGO COUNTY, Calif. — Californians, how a lot money do you have saved in your checking account, do you assume it is sufficient to get you by till you land your subsequent job?

If the answer is no and you are nonetheless planning to keep in California then it is time to begin saving that further change and change into extra frugal with spending.

The motive monetary advisors are warning customers to save is that California is quantity two in the United States for going broke whereas residing on financial savings alone, in accordance to a current examine from ConsumerAffairs.

The examine discovered most Americans have sufficient financial savings to final them simply two months.

“We had a pretty high savings rate during covid-19 what happened was when all the stimulus checks came in, the savings rate came really high, and now what’s happening is really that’s starting to dwindle or be non-existent quite honestly,” mentioned San Diego Financial Advisor David Reyes.

He provides that a part of it is due to disparities in residing prices, there’s additionally a generational divide and an alarming low financial savings rate from retirees.

“The lack of savings in general for retirees, I mean the average retiree has $100,000 dollars in savings,” mentioned Reyes.

Which brings up the question of, what does that imply for struggling households in San Diego?

“To start a family here, it’s almost impossible,” mentioned Reyes.

The survey additionally says relying on the place you live you may have even much less time. To put it into perspective, a San Diego County resident with $9,647— the common quantity of money Americans have in financial savings— would rapidly see their checking account deplete in lower than two months due to skyrocketing lease, fuel, and utilities, and meals. 

Compared to the state of Wyoming the place you can survive on financial savings for nearly 109.7 days.

“I mean it’s a problem, they have no state income tax. you know our state income tax is up to 13.3%. They have no corporate income tax, we do. Their property tax is half what California is. their gas price is 30% less,” mentioned Reyes.

To break it down even additional, the common lease in San Diego is $2,916, if you pay two months of lease with the common financial savings you are already down to $3,000.

“At a minute that you can’t afford a house, just maximize your savings, just put as much away as possible,” mentioned Reyes.

If you’re occupied with seeing how your financial savings would maintain up towards your bills in the occasion of revenue loss, go to this link to assist calculate how lengthy your financial savings will final.

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