Shocking report says Colorado families need $250,000-plus in annual income to ‘live comfortably’

Think life in Colorado feels expensive? You’re not alone.

A recent report from SmartAsset sought to determine how much money someone needs to make to ‘live comfortably’ in various places around the United States, including Denver, Colorado Springs, and Aurora in their analysis. The company looked at two different scenarios – that of a single adult and that of a household with two adults and two children.

When it came to determining what ‘living comfortably’ looks like, the company referenced the well-known 50/30/20 budgeting rule, which basically boils down to spending 50 percent of monthly take-home income on ‘needs’ and 30 percent on ‘wants’ while also putting 20 percent aside for savings. Being able to allocate money in that way means one is ‘living comfortably.’

All three Colorado cities had a ‘comfortable living’ salary that was well above the local median household income.

While Colorado Springs is often referred to as a more affordable Colorado city, a salary of $99,424 was determined to be what’s needed for a single adult to ‘live comfortably’ in Olympic City, USA. Meanwhile, a family of four needs a combined salary of $262,955 – and that’s the lowest ‘comfortable living’ family salary among Centennial State spots included in the analysis. The median household income in Colorado Springs was reported to be $83,215 – 84 percent of the salary needed for a single person to ‘live comfortably’ and just 32 percent of the ‘comfortable living’ salary for a family of four.

Denver actually ended up being a bit more affordable than Colorado Springs thanks to a higher median household income of $94,157. In the Mile High City, ‘comfortable living’ for a single adult means a salary of $108,992 and for a family of four, a combined salary of $292,947. The median household income in Denver is 86 percent of the ‘comfortable living’ salary for single adults and 32 percent of that needed by families.

While Aurora isn’t far from Denver, the ‘comfortable living’ salaries and the median household income of the two cities vary quite a bit. Aurora’s ‘comfortable living’ salary for a single adult was the highest of the three cities at $111,114. That said, the combined ‘comfortable living’ salary for a family fell between Colorado Springs and Denver at $280,550. The median household income in Aurora of $89,300 is just 80 percent of the ‘comfortable living’ salary for singles and about 32 percent of what families need.

It’s no secret that life is feeling expensive for many Americans, and even if someone is able to achieve the median household income in any of the Colorado cities included in the SmartAsset analysis, they still might not be close to ‘living comfortably.’ That’s not outside of the national norm, either – only a few places around the country that were included in the report had a median household income that was below what’s needed to live comfortably in the area.

Think this gap will get better or worse over future months and years? Let us know in the comments.

Find the full analysis here.

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Photo Credit: megaflopp (iStock). (megaflopp)
Photo Credit: megaflopp (iStock). (megaflopp)

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