Could a move boost your savings account?
A new analysis by Interest.com, based on 2012 data from the Bureau of Labor Statistics, compared median after-tax income with median expenses in 18 major metropolitan areas to see which cities provided the best savings opportunities. The good news is that maintaining an average standard of living and income would afford room for savings in all of them but one. (Phoenix was the outlier, perhaps because the area is still recovering from the housing bust.)
“What this really means is, don’t let your expenditures grow to meet your income,” says Interest.com managing editor Mike Sante said. “You do have some control over those bills. You can still have a solid middle class life and have some money left over to save.”
The nine cities that follow offer the best opportunities to sock away money, with the top one allowing you to bank an impressive $24,250 a year.
2. Washington, D.C.
Median after-tax income: $85,769
Median expenditures: $65,802
Save $19,967 a year
3. Cleveland, Ohio
Median after-tax income: $49,772
Median expenditures: $34,428
Save $15,524 a year
5. Dallas/Ft. Worth, Texas
Median after-tax income: $50,106
Median expenditures: $40,843
Save $9,264 a year
7. Minneapolis/St. Paul, Minn.
Median after-tax income: $62,134
Median expenditures: $53,256
Save $8,878 a year