Find a Job You Really Want In
Experiencing job loss can be a daunting reality for many individuals. Whether due to company downsizing, shifts in industry demand, or other unforeseen circumstances, navigating unemployment in today’s economy requires careful financial planning.
In light of these challenges, it’s crucial to understand how much you should have saved to sustain yourself during a potential job transition. We’ve researched the current cost of living across various states to provide insights on this topic.
States With The Highest Three-Month Cost Of Living
Utilizing the MIT Living Wage calculator, we evaluated the financial requirements for surviving three months of unemployment across different states.
Summary of Findings
- Hawaii remains the most expensive state to sustain oneself—paradise comes at a cost.
- Maryland and Alaska are notable entries among the top five states with the highest living costs.
- On the other end, states like Kentucky, South Dakota, and Arkansas rank as the most affordable places to weather unemployment.
- While not a state, Washington, DC stands out as the priciest region for unemployment, where nearly $7,000 is needed to cover three months of living expenses.
How We Conducted This Analysis
Using MIT’s Living Wage calculator, we performed straightforward calculations to compile this data. We divided the annual average costs for essentials like food, housing, transportation, and other categories by 12, then multiplied each figure by three to determine the three-month average for each expense category.
We excluded medical expenses from our calculations, as we assumed that during unemployment, unless facing critical health issues, hospital visits are unlikely to be a priority.
It’s important to note that our analysis reflects the financial needs of a single adult living independently—no spouses or children included. This estimation illustrates the savings required to sustain oneself for three months in each state.
Author
McLeod Brown is a former writer and researcher for the Zippia Career Advice blog. His work at Zippia focused on understanding the relationship between colleges, debt, and jobs. A graduate of the University of North Carolina at Wilmington with a BA in Business Administrator, he is now pursuing a masters of science in analytics from the Institute of Advanced Analytics.
