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What is a Livable Income in PA?

Published in Livable Income 2 mins read

For a single working adult in Pennsylvania, a livable income is considered to be $91,312 per year. This figure represents the income needed to live comfortably, covering essential expenses, discretionary spending, savings, and debt repayment.

Understanding a Livable Income in Pennsylvania

A "livable income" goes beyond merely affording basic necessities; it encompasses the financial capacity to maintain a comfortable standard of living. This includes not only covering everyday costs but also building financial security for the future and enjoying a balanced lifestyle.

Components of a Comfortable Living Income

The annual income of $91,312 for a single adult in Pennsylvania is calculated to cover several key financial areas, ensuring a well-rounded and stable financial life. These components include:

  • Basic Needs: This covers essential living expenses such as housing, food, transportation, utilities, and healthcare.
  • Wants and Desires: This portion of income allows for discretionary spending, enabling individuals to pursue hobbies, leisure activities, dining out, and other personal preferences that contribute to quality of life.
  • Sustaining Savings Accounts: A crucial aspect of financial well-being is the ability to consistently contribute to savings, including emergency funds, retirement accounts, and other long-term financial goals.
  • Paying Off Debts: This income level accounts for the ability to manage and pay down various debts, such as student loans, credit card balances, or car payments, preventing financial strain and improving overall financial health.

To illustrate, here's a breakdown of what a comfortable income aims to cover:

Category Description
Basic Needs Housing, food, utilities, transportation, healthcare
Wants & Desires Entertainment, hobbies, dining out, personal enjoyment
Savings Emergency fund, retirement, future goals, investments
Debt Repayment Student loans, credit card debt, car loans, other personal debts

This comprehensive approach ensures that individuals not only meet their immediate needs but also build a foundation for long-term financial stability and personal fulfillment in Pennsylvania.