You’ll be shocked at how little $100K will get you in New Jersey

Do you ever feel like you can’t get ahead no matter how high your income gets? You probably don’t talk to anyone about it because you feel like you must be doing something wrong, that you must be a dope at handling your money.

Trust me. It’s likely not you.

Ever compare how your parents or grandparents seemed to be doing when they were your age and it seemed their fiscal house was much more in order? Well, think about this for a moment.

One of many reasons for this is that life itself was simpler. People didn’t pay for television, downloads, or streaming services. They didn't pay for internet service since, you know, there was none. They didn't pay for expensive smartphones and monthly service for them. They probably didn’t pay for HOA fees because homeowner associations weren’t as common back then. In 1970, the U.S. had 10,000. Now, we have 365,000.

You getting the idea?

Now another piece of the puzzle. The purchasing power of $100K isn’t what you think it is. SEOSpace did a study looking at the actual purchasing power of an earned $100k and broke it down by state.

First, they calculated federal and state tax burdens. Then they accounted for each state’s cost of living factoring things like housing, transportation, and food.

Basically, how much money is $100k worth? Ask yourself if you want to know before reading any further.

We’ll give you space.

And time.

Okay, you’re committed to knowing then?

The best state is West Virginia. For your $100k you’re maintaining $92,697 of purchasing power. That puts them at number 1.

New Jersey is sadly 43rd.

For $100k you’re only getting $66,929 of buying power. Only seven states are worse, Hawaii being dead last.

So if you’re fortunate enough to have a job earning $250,000, you’re losing $82,677 just by virtue of living here in New Jersey. It’s sobering, and it sucks.

I would pop an aspirin after learning this, but I’m not sure I can afford one.

Opinions expressed in the post above are those of New Jersey 101.5 talk show host Jeff Deminski only.

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