Home Billionaires The 20 Biggest Lies About Becoming A Self-Made Tycoon
Billionaires

The 20 Biggest Lies About Becoming A Self-Made Tycoon

Shannon April 30, 2022

Most people want to be a millionaire someday. Those people comb the internet for advice on how to succeed.

But that information isn’t always realistic when it comes to reaching your financial goals. We decided to break down a collection of lies you may have been seen about becoming a self-made millionaire.

Some people believe that you need to earn passive income. Credit: Shutterstock

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20. You Need To Focus On Earning Passive Income

While it is true that many millionaires earn passive income, most people oversimplify the process. We hear stories about how some millionaires are earning money while they sleep, and it seems completely unfathomable for a normal person to get there. The truth is that passive income truly is possible, but it takes years of working 60-80 hour weeks before you can be in a situation where money is rolling in on its own.

Passive income is money that you earn without working for it. Credit: Shutterstock

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The belief that passive income is the one and only way to become rich can get people into trouble. This is how so many people fall into scams, or they buy online courses that cost several hundred dollars. It is never as simple as it seems, and it is usually a secondary part of their real job. For example, a YouTuber can make passive income from selling merchandise, books, or affiliate links. But they had to build a following before they could do this. Instead of hoping to immediately start making passive income, young people should focus on developing their careers instead. As time goes on, they may develop opportunities to earn passive income.

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19. There’s a Secret Formula to Success

For whatever reason, people have this strong innate feeling that there is a huge “secret” about unlocking the key to success in life. This is why books like The Secret became so wildly successful. There are even conspiracy theories that some of the most wealthy people in the world are all a part of some club where you’re invited to know the keys to becoming a millionaire.

Becoming a millionaire is no secret. It’s a lot of hard work. Credit: Burst by Shopify

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In reality, there is no secret formula, especially since every path to becoming a millionaire is going to look drastically different from the next. It is mostly hard work, persistence, and a drive to keep going. But if there was any formula to success at all, it would look something like this:

1) Identify what you most passionate about in life.

2) Figure out how you can make money doing it.

3) Research how to achieve your goals.

4) Take action.

5) Keep trying, no matter how difficult the task may seem.

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18. The Economy is Bad & Income is Out of Your Control

In 2008, thousands of people lost their jobs during the Great Recession. Companies made budget cuts, employees were working fewer hours, and opportunities were few and far between. For a while, people truly could blame the economy for their financial problems. But over a decade later, people are still using it as an excuse for why they aren’t making much money. Many of them have probably heard this from their boss, and accept it as reality.

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Even in a bad economy, there are still certain businesses that flourish. For example, dollar stores were expanding all over the United States. People began to do their shopping online, instead of in brick and mortar stores. New opportunities appeared around every corner if you knew where to look. The economy will continue to go up and down for the rest of your life. But it is up to you to pivot and figure out how to make money, even in a down market.

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17. College is the Only Way to Succeed

For years, our generation was taught that the only way to succeed in life was to get a college degree. Even after the Great Recession, there are still people who preach the idea that you must go to college if you want to become successful. It is true that if you want to become a millionaire, you need to specialize in high-level skills. There are certain professions like doctors, lawyers, and engineers where it is totally necessary for you to have a degree. And for those people, they can eventually end up with a comfortable 6-figure salary. However, not all successful careers start with college. In fact, most people who graduate with a degree nowadays have a crippling amount of debt, which makes it even harder to invest, start a business, or do the things necessary for them to become a millionaire.

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There are plenty of self-made millionaires out there who skipped college because they focused on cultivating the skills they had. For example, think about all of the famous Hollywood actors. Very few of them went to college because they went straight into acting. Many of the wealthiest entrepreneurs never completed their college degree either. Think about Mark Zuckerberg, Steve Jobs, and Bill Gates. None of them finished college, because they realized that their time was better served to grow their business.

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16.Fake it ‘Til You Make It”

There is a huge difference between having an abundance mindset and overspending on ridiculous luxuries. In case you aren’t aware, and abundance mindset is believing that you can make more money, and manifesting that reality through hard work. (We did a whole list on abundance mindset on Self-Made.) Some people completely get this wrong. They try to say that you should “fake it to you make it”. They think if they look rich, people will take them more seriously. Many people interpret this as driving a luxury car, buying a Rolex, or wearing the newest designer fashion.

Many “fake rich” people live outside of their means. Credit: Shutterstock

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While this might help to boost your confidence, it’s not going to help you earn more money. If you are not rich yet, those items are most likely charged to a credit card, and it’s actually hurting your financial situation more than helping make it better. People who are truly successful and good with their money can spot someone who is “fake rich” a mile away. They are often talking about their plans without actually taking any action. Millionaires are more likely to respect someone who drives a car that gets great gas mileage and can show that they are actually making progress in their careers. Other successful people understand that flashy people are usually just for show, and the truly rich people are usually reserved and understated.

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15. Try Harder to Save More Money

Plenty of personal finance blogs out there will tell you that you need to “save money.” This is usually very ambiguous, but we all know what it means; Stop wasting money on things you don’t need, and put that extra cash away for a rainy day. This is good advice, but it does nothing to help you become a millionaire. Hypothetically speaking, let’s pretend that you save as much as you can, and you end up with $10,000 in the bank. This is fantastic. It will help you prepare for an emergency, and maybe you can use it as a down payment on a house. However, it’s a very far cry from being a millionaire.

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People who become millionaires are more focused on increasing their income rather than counting pennies. Many of them will also find an income stream that can support the lifestyle they want, so that it is not necessary for them to cut back. Don’t get us wrong- they do not overspend or live outside their means. They just figure out a way to make enough money to buy the things they really want.

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14. Work More Hours At Your Job

Plenty of people give advice that if you want to make a lot of money, you should ask for overtime. Or, they decide to work two jobs. This might be necessary for the short-term if you have no other choice to pay the bills. But if you are getting paid by the hour, you will eventually reach a limit to how many hours you can work in a day. By trading your time for money, you will always eventually plateau, because time is a limited resource. We all only have 24 hours in a day, and need to sleep and eat. So instead of trading time for money, you need to start by trading results for money, instead.

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Once you start getting paid by results, you can optimize that so that it takes a small amount of time to accomplish your goal. For example, if you work in retail, you might make $10 per hour. But if you have a shop selling hand-made crafts on Etsy, you might make $10 profit from an object that took you 10 minutes to make. Instead of thinking that working more is the solution to your financial problems, try to think outside of the box to other options.

Sometimes, hard work does not always equate to making a lot of money. Credit: Pexels

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13. You Just Need to Work Harder

Unfortunately, there is a misconception that poor people are too lazy to make a living wage. In reality, there are plenty of people who work their fingers to the bone, and yet they are still poor. The reason why some people perceive them as “lazy” or “dumb” is that they are not trying to better their situation. Instead of working harder, you need to work smarter.

Some people work incredibly hard, but they will never be millionaires. Credit: Pexels

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Instead of working longer hours in more grueling conditions, ask yourself if there is a job you can do that makes more money. If the answer is “no”, then try to enter some sort of training or go back to school. And you don’t necessarily have to go to college, either. There are so many certifications out there for blue-collar jobs that will guarantee that you make a higher hourly wage. Try to look into opportunities in your local area, sign up for a temp agency, or visit a community center to learn about your options.

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12. You Need to Inherit Money

It’s true that some rich people got a head start in life by inheriting their money, and they would have never been successful if it was not for their parents. (A great example of this is Donald Trump, who has failed countless business ventures that he started on his own, and yet he still reaps the benefits of his grandfather’s real estate empire.) However, these rich kid’s own parents or grandparents had to work hard to earn that money somehow. Even “old money” families that go back several generations, it all started with one scrappy ancestor who figured out how to make a fortune.

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There are plenty of people out there who started their business with next to nothing. Look at Steve Jobs, who started Apple Computer in his parent’s garage. There are plenty of ways to turn $1 into $2 and snowball from there. The hard part is just to find your niche, and figure out how to build your wealth.

Some people think that getting a Master’s or PhD is a guarantee to make a lot of money. Credit: Pexels

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11. A Master’s Degree is the New Bachelor’s”

It’s no secret that Millennials are over-educated and under-employed. Many people leave college with a Bachelor’s Degree and cannot find a high-paying job right away. So they might get the advice from someone that they should go back to Graduate School because it will help them find a better job. In some cases, this may be true. For example, a Bachelor’s in Pre-Law is pretty useless, unless you have an additional certification as a Paralegal, or you go on to Law School. Same with Psychology. You cannot practice as a therapist until you have at least a Master’s Degree.

Before you go to Grad School, make sure you know it’s worth it. Credit: Pexels

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Outside of these specific fields, a Master’s Degree may not be necessary. In fact, it might actually hurt your situation more than help. If you do not have a solid career plan, and you don’t know exactly how Graduate school will help your life, it is likely that it is a bad investment. And unless you plan to go to Medical or Law School, most of these fields in higher education will get you to six figures at best, but not a millionaire.

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10. Start Keeping a Budget

In nearly every personal finance article on the internet, you will hear someone telling you to make a budget. While this has actually helped some people build their wealth, it is not the only way to do so. Making a budget is focusing on reducing your spending so that you can save more for your future. This is all well and good. Everyone should do this, especially if they want to live comfortably during retirement.

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However, what truly matters is what you do with the money you have saved when you are on a budget. Are you just using it as a way to know how much money you have left to go on a shopping spree when all of your bills are paid? Maybe you’re setting aside just enough money for a vacation. Or are you making a business plan, and putting the excess towards an investment? You aren’t going to be a millionaire on a budget alone.

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9. Buy My Course, and You’ll Be Successful

Nearly everyone on the Internet who you see selling a course on the “secrets” of getting rich is just trying to take your money. Many of the techniques they are selling are either scams, or they are over-promising on the results you can get. A lot of these YouTubers will rent expensive cars and a house just so they can film a commercial, claiming that if you buy their course, you’ll be rich. In reality, he has tricked you into thinking he is rich. His real income comes from selling these bogus courses.

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All of the information you need to be rich is available for free online. All you need to do is just focus on what you want your career to be. Then, start to do some research about what other people do in the field. Engage in forums, and don’t be afraid to ask questions. There is no need to waste your money on an entrepreneurial course. In fact, Forbes has a list of free classes you can take online.

Some people believe you need a lot of start-up funds to make money. Credit: Burst by Shopify

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8. You Need Money to Make Money

There is the infamous phrase that goes, “you need money to make money”. In a lot of ways, this is true. However, some people hear this and use it as an excuse to give up. They think; “Well, I don’t have a lot of money. So that means I can’t succeed.” If you don’t have money, it will be significantly harder to become a millionaire, but that doesn’t mean it’s impossible.

There are plenty of people who started with nothing and became successful. Credit: Pexels

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You might know Peter Dinklage from his role as Tyrion Lannister in Game of Thrones. For years, he had to live on his friend’s floor while he tried to break into acting. As a dwarf, it was difficult for him to land roles in film. And for a while, he gave up hope and got an office job. It wasn’t until he was in his 30’s that he finally decided to go after his dreams. Now, he is a millionaire and a highly celebrated actor who gets new gigs left and right.

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7. You Need to Major In Finance or Business in College

Earlier on this list, we already mentioned the fact that you don’t necessarily have to go to college at all, depending on the field you want to go in. But there are some people who believe that if you go to Business School for an MBA, or if you become an expert in finance, it’s the best chance of becoming a millionaire. It’s true that the things you will learn in these subjects are far more valuable in terms of building wealth than what you’ll learn in a lot of other majors.

Graduating with an MBA does not mean you will be a millionaire. Credit: Burst by Shopify

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However, it is not a guarantee that you will become a millionaire. In fact, a lot of business majors end up working a normal 9-5 salary job for a corporation. You can also learn about business and investing by reading books or watching YouTube videos. You could have a degree in almost anything and still be able to comprehend the concepts that you’ll learn in school. Before you pay for a business school, read the book called The 10 Day MBA. Also check out Forbe’s list of free personal finance courses that you can take online.

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6. All You Need Is To Start Investing

It’s true that investing is one of the best ways to grow your wealth and become a millionaire. However, receiving this advice is incredibly vague. Most savings accounts only give back 1%. According to a poll by Gallup, many young Americans are still hesitant to trust putting their money in the stock market. Everyone in their 20s and 30s grew up during the recession, so it’s understandable why everyone hesitates to try.

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According to Nerd Wallet, the average annual return on a stock return is 10%. Depending on how much you invest, and how wisely you invest it, this may not be enough to be a millionaire. One of the best options to eventually retire with a million dollars is if you max out your ROTH IRA contributions every year, starting in your 20s.

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5. Once You’re a Millionaire, You’ll Never Have to Work Again

Some people out there want to be a millionaire because they want enough money to relax and never work another day in their life. People who have this mindset feel this way because they hate their job. This mindset is exactly why so many athletes and lottery winners eventually lose all of their money. They are raised believing that work is this awful thing. So as soon as they get a windfall of money, it’s gone in the blink of an eye.

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Most people who become self-made millionaires accomplished this because they actually loved what they do, and it doesn’t feel like work. They are productive, hard-working people. Someone who was motivated enough to go from the bottom to the top are often trying to build up to the next best thing. So they would get bored if they stopped working. Many of the most successful people actually dread retirement, and they want to work until the day they died.

Some people think that gaining wealth is a game, and that the wealthy have cheated. Credit: Pexels

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4. You Have to Cheat

There are some people out there who are convinced that the only way to go from poor to rich is by being a bad person. They have been so beaten down by society that they think it’s actually impossible to make an honest living. The truth is that yes, you can be a decent person, do all of the right things, and still become a millionaire. It doesn’t have to be cut-throat. In fact, people who are completely terrible people often cannot get along with others. If no one wants to work with you, then you can’t succeed.

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If you have this jaded mindset, try to remind yourself that people like Oprah Winfrey are genuinely sweet, good people. She succeeded by being amazing at talking to people about their lives, and connecting on a deeper level. Talent and hard work are what help people succeed. It’s true that some jerks somehow figure out a way to get ahead. But Karma has a way of getting back at them.

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3. “HODL!”

For those of you who are familiar with cryptocurrency, you may have heard the term “HODL.” This is the misspelling of “Hold,” but it also stands for “Hold On For Dear Life.” This is a term spread around by Bitcoin enthusiasts who believe so strongly in the coin that they never want to let go. Bitcoin traders believe that someday, their holdings will make them a millionaire, if they just have the patience to hold on for a long time. Some people even use Warren Buffet as an example of an investor who holds valuable stock he truly believes in.

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Just like the stock market, cryptocurrency has its highs and lows. And even Warren Buffet trades during these high and low periods. He is hoping that other people will “HODL” so that he can make his profits. This is laid out in the book called Trade Like Warren Buffet by James Altucher. Most people who succeed in the stock market know when it’s a good time to sell, and when it’s a great time to buy. This takes years of studying, and it’s not something that most people succeed at. But most of the time, the “HODL” mindset will not make you a millionaire. Think about all of those people who held on to their dot-com stocks, because they believed the Internet was the future. Yes, online companies were the future, just like how blockchain is eventually going to be apart of our everyday lives. However, companies like Amazon were the only ones providing a truly revolutionary service. So before you think about committing to a cryptocurrency long-term, ask yourself if it will still be around in 10 years.

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2. Sell This Product, and You Will Succeed

At some point in your life, you may have had someone try to convince you to join a multi-level marketing company. These are companies that require you to buy a product up-front in order to sell those items to your family and friends. During team meetings, you will be encouraged to work hard with the promise that one day, maybe you will become a millionaire. Many of the CEOs claim to be motivated to help others succeed. In reality, 99% of their salespeople lose money and never earn a dime.

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These MLM’s encouraged people to recruit others to sell because you earn a commission from their sales. This is actually a pyramid scheme. Don’t be fooled if a company is called a “multi-level marketing” company. In truth, they are actually pyramid schemes, but they just haven’t been legally found to be one in court (yet). If you think that you or a loved one might be a victim of a pyramid scheme, please read the FTC guidelines.

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1. Buy This Stock (Or Cryptocurrency) And You’ll Be Rich

No one can predict the future. So if someone tries to tell you that a certain stock or cryptocurrency is about to skyrocket, they are lying. Maybe it’s not intentional or malicious. They may truly be hopeful and excited, because they are invested, too. However, no one should be telling you how to invest your money unless you are paying them to be your financial advisor.

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The next time someone tries to convince you to buy a stock, ask yourself what this person’s motivation is. A popular YouTuber or public figure might promote a new cryptocurrency because they want the value to go up. Once the stock is worth more, they can sell it for a profit. This is illegal in the stock market, but cryptocurrency is so new, that many public figures are getting away with this scam. Always do your own research before trusting a someone’s investing advice.

Home Lifestyle How Much One Needs To Make To Live Comfortably In All 50 States
Lifestyle

How Much One Needs To Make To Live Comfortably In All 50 States

Trista Smith April 26, 2022

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If you were born and raised in one state your entire life, it might be hard to imagine living anywhere else. After all, your family and friends are all there. But have you ever wondered how your state compares to the rest of the US? Your income may stretch much farther somewhere else, or your retirement savings could last years longer than you would ever expect.

We broke down exactly how much you need to earn to live a comfortable life in every state. We have gathered data from Rent Data, housing prices from Zillow. But of course, you need so much more than just housing costs if you want to live comfortably. The average living wage from GoBankingRates to give you the most comprehensive review of how much it costs to live in each state.

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50. Alabama: $60,016

Alabama is one of the cheapest places to live in the entire country. A one-bedroom apartment is just $530 per month, and a 4-bedroom rental is $1,068. The median price to purchase a property is $134,300.

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In terms of housing, these prices are an absolute bargain compared to most states. Alabama has lots of parks, museums, and more. It is also home to the US Space and Rocket Center.

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49. Alaska: $91,996

For some people, the thought of living so close to the Arctic Circle sounds like a nightmare. But for people who love hunting and the great outdoors, it could be paradise. However, the environment can be harsh, and the cost of heating alone will set you back a pretty penny.

Ketchikan, Alaska. Photo Credit: Shutterstock

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There are not very many rentals outside of Anchorage, but if you want an apartment, you need to spend between $911 for a studio and $1,950 for a 4-bedroom. Buying a house will set you back an average of $326,000. You will need to make $45,000 just to cover the basic necessities. This means that you need to make at least $92,000 if you want to have a bit extra for entertainment.

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48. Arizona: $68,504

The state of Arizona’s cost of living is 2.3% less than the national average. The median price of buying a home is $257,600. Rents range from $656 for a studio apartment and go up to $1,429 for a four-bedroom.

Downtown Scottsdale, Arizona. Photo Credit: Shutterstock

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Even in the wintertime, Arizona still averages around 70 degrees, making it a great climate to live if you like warm weather year-round. The city of Phoenix has a lot to do, and it just might be a great choice.

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47. Arkansas: $68,504

Arkansas is known for having diamonds and quartz in their land, but that doesn’t mean it’s a luxurious place to live. Rent is very affordable at just $493 for a studio apartment and up to $1,032 for a four-bedroom space. And if you wanted to buy a house, it costs an average of $129,500.

Hot Springs Wilderness in Arkansas. Photo Credit: Shutterstock

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The state of Arizona’s cost of living is 2.3 percent below average. So it’s actually very typical for the United States. It’s a great place to live if you like to go hiking and enjoy the view of the mountains.

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46. California: $99,971

California is the most densely populated state in America and is also one of the most expensive. If you want to live comfortably there, you need to make nearly six figures. Unfortunately, it also has a huge crisis of homeless people.

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This is why “van life” has become so popular in the state. The median cost of buying a home is $550,800. Rent is $992 for a studio apartment and a four-bedroom is $2,322.

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45. Colorado: $74,215

Colorado is famous for having gorgeous views of the Rocky Mountains and an abundance of nature. Even though it’s beautiful, it is 4.5% more than the national average.

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The median price of buying a home in Colorado is $381,300. Renting is $745 for a studio apartment. If you want to rent a 4-bedroom apartment or house, expect to pay $1,587.

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44. Connecticut: $90,278

Compared to the rest of the United States, Connecticut has a high cost of living. But it’s a case of “you get what you pay for.” Home of the Ivy League university Yale, the state is known for its highly educated and successful people.

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There are also beautiful houses, beaches, and it’s close to New York City. The average rent goes between $870 to $1907. And the median household cost is $244,800.

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43. Delaware: $71,254

One of the biggest draws to Delaware for people living in the tri-state area is the fact that it does not have any sales tax. Many business owners choose to incorporate in Delaware for the tax breaks.

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It also has beaches, shopping, and entertainment options. The median price of a house in Delaware is $236,300. If you want to rent an apartment, expect to pay $794 to $1,698.

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42. Florida: $67,614

If you’re an American, you have probably visited Florida at least once. And plenty decided to move there for retirement so that they can enjoy the warm weather and sandy beaches. Residents do not have to pay any income tax, which helps them save you a ton of money.

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The cost of purchasing a home is an average of $237,900. Rent is $743 to $1,574, depending on the size of the apartment or house. It’s considered one of the best states to live in if you belong in the middle class.

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41. Georgia: $62,074

Living in Georgia costs lower than the national average. It has the beautiful Blue Ridge Mountains and loads of Southern charm. The average house in Georgia will set you back roughly $193,500.

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If you want to rent instead, expect to pay $628 to $1,231, depending on the size of the space.

Hawaii is made up of several islands in the Pacific. Photo Credit: Shutterstock

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40. Hawaii: $136,437

The most expensive place to live in the United States is Hawaii. And it shouldn’t be surprising, considering it’s literally paradise. Since they are a collection of islands, it also means that everything has to be flown or taken to the island on a boat, which can add up. It is incredibly expensive to own property in Hawaii, with the median cost of a home at $619,000. Even renting an apartment is expensive.

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A tiny studio apartment costs $1,236 and a four-bedroom can go for $2,926 or more. To put things into perspective, this is like living in New York City. Unfortunately, though, the average income of someone living and working in Hawaii is $75,000. This means that they are living far below what should be needed for them to live a “comfortable” lifestyle.

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39. Idaho: $66,486

Idaho is in the Northwest, so it has plenty of beautiful natural splendor. If you want to buy a house in Idaho, it costs an average of $274,200. Renting a studio apartment is just $564, and a four-bedroom can go for $1,286. While it is under the national average for cost of living, it, unfortunately, has lower salaries, too.

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The majority of people who live there make less than what they would need in order to have a comfortable living where they could afford to pay for luxuries like vacations, entertainment, and more.

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38. Illinois: $66,847

The average house in Illinois costs $183,500. Rent is just $556 to $1,163 per month, but it can be much more if you are looking to live in the city of Chicago.

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Illinois also borders Lake Michigan, which is a beautiful place to visit. The only downside is that the vast majority of residents earn $61,229, which puts them below a comfortable living wage.

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37. Indiana: $62,086

Rent on an apartment is $549 on a studio and up to $1,165 for a four-bedroom. If you want to buy a house, it will cost around $148,700. The living cost is low compared to the rest of the United States.

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Browsing through Trip Advisor, you can see that the state has a lot of parks, museums, and nature preserves. The only downside to living in a cheap state is that the vast majority of people make roughly $10,000 less than what they need to live a comfortable life.

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36. Iowa: $63,397

Iowa is smack-dab in the middle of the US and has several states surrounding it. Renting an apartment in Iowa costs between $516 to $1,077. The median cost of buying a house in Iowa is $146,500. This is very cheap compared to the rest of the country, and you can find a great place to live for under $10,000 per year.

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However, most people still make less than what they would need to buy a house or live a comfortable life buying things outside of their basic needs.

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35. Kansas: $62,090

Kansas is a Midwestern state that has plenty of wide-open spaces and farmland. Rent is just $545 to $1,125 for an apartment, and the median price of buying a house is $141,500. Even in Kansas City, you can find a luxury apartment in the center of the city for just $1,000.

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Compared to most other American cities, that is a huge bargain. The only downside is that the median salary is just $55,477. That falls below what you would need for a comfortable living wage.

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34. Kentucky: $63,086

As you can imagine, the entire state has a huge horse culture. So if you are into riding, it could be a great place to live. Renting an apartment is just $498 for a studio and up to $1,051 for a four-bedroom. Buying a house will cost around $148,400.

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This makes it one of the cheapest places to live. The only downside is that there are not many high-earning career opportunities. The median salary in Kentucky is just $46,535. This leaves a significant gap in what you need to be comfortable living there.

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33. Louisiana: $63,842

Louisiana is famous for its jazz music, great Cajun food, friendly locals, and warm weather. The average price to buy a home in Louisiana is $147,600, and rent is $617 to $1,228. But as you can probably imagine, it’s more expensive to move to a big city like New Orleans.

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The average salary for a household in Louisiana is only $46,710. This means that most people are probably struggling to make ends meet.

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32. Maine: $80,336

If you want to purchase a house, expect to pay in the ballpark of $237,800. Rent is far more affordable for most people, with apartments costing just $634 to $1,248. For bigger cities like Portland, it can be a bit higher than average. However, people who live in Maine are likely struggling with high costs.

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There is a $27,312 gap between what an average person earns in a year, and how much you need to live comfortably. In other words, you are going to see a huge divide between the rich and poor in Maine.

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31. Maryland: $92,227

Living in Maryland can be hectic in more ways than one. Driving is stressful because so many people move to the state for high-income work. Many people work in Washington DC, so they have high-salary government jobs.

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There is also a ton to do in cities like Baltimore and Annapolis. Depending on the area, you can pay between $909 to $1,947 for rent on a one-bedroom. The median cost of a house is $290,500. Even though there is a lot to do, this is one of the most expensive states to live in.

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30. Massachusetts: $93,895

Massachusetts has Boston, Martha’s Vineyard, and so much more. There is a good reason why so many people love to live there. The median price of a house in Massachusetts is $408,100. Rent for a studio apartment can set you back $1,134, and you can expect to pay in the ballpark of $2,167 for additional bedrooms.

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Even though it is home to plenty of billionaires, the median income of your average citizen is just $74,167. So most people living there are making less than what they need to live a comfortable lifestyle.

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29. Michigan: $67,712

Surrounded by the Great Lakes, Michigan is great for people who love the water. This state is yet another example of being a really affordable place to live, but the opportunity to make money is very low. Buying a house will cost an average of $154,500 for a property. If you want to rent, that’s just $547 to $1,127.

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But the median household is making $52,668. This is lower than what you can expect to pay if you want to raise a family to have a comfortable life in Michigan, so many people are probably struggling with money, even with the low living cost.

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28. Minnesota: $68,944

Minnesota has a reputation for having a lot of friendly people living there, which may or may not have something to do with the fact that it’s so close to Canada. It turns out that it is also very affordable to live there. Rent is $562 to $1,272 for an apartment.

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And if you want to buy a house, expect to buy $239,900. The cost of living might be a little bit higher than in other states, but the good news is that the average salary is usually high enough to match what people need to live comfortably in Minnesota.

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27. Mississippi: $58,321

All the way down South in Mississippi, you can rent an apartment for just $524 to $1,043 per month. Buying a house will cost an average of just $130,200, which is very affordable for most people who work full-time.

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This, together with a low cost of food and other factors, makes it the cheapest place to live in the United States. But it also just so happens to be the poorest state. An average household in Mississippi only makes $42,000 per year, which puts them below the average they should be making if they want to get by without struggling.

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26. Missouri: $60,858

Missouri has been nicknamed the “Show Me State,” but it doesn’t have much to present. Besides botanical gardens and amusement parks, there are few major landmarks that people go to Missouri to visit. It comes in with an average income of just $51,532.

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But at the very least, it’s affordable to live there. Apartments are a mere $484 to $1,062. And if you want to buy a house, it’s an average of $163,700.

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25. Montana: $70,719

Montana is one of the Northern states along the border of Canada. Rent is very affordable at just $561 to $1,286 per month, and buying a house will set you back $242,100. They are called “The Big Sky State” because of their mountain ranges and beautiful views of the stars.

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Unfortunately, there is a big gap between income and cost of living. Most households in Montana make $50,000 per year, even though it has been estimated that they need $70,719 to live comfortably.

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24. Nebraska: $65,162

Nicknamed the “Cornhusker” state, Nebraska is full of farmland. Rent is just $480 to $1,063 per month, depending on the number of bedrooms. Houses in Nebraska are an average of $169,900.

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The median salary of a household in Nebraska is $56,675. This does not sound like much, but it is actually very close to the average living wage.

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23. Nevada: $75,902

Las Vegas is an international vacation destination for people who want to have an epic bachelor party or get married in less than an hour. As for the rest of Nevada, this desert state is also home to the famous Lake Tahoe. The great news is that it is also very affordable to live in.

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Rent is just $610 to $1,454 per month. And if you want to buy a house, it will cost $291,800. Unfortunately, though, most residents make less than the living wage where they would feel comfortable without struggling financially.

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22. New Hampshire: $74,415

New Hampshire has been nicknamed “The Granite State” because of its number of granite quarries in the area. The state sits between Maine and Massachusetts, which makes it yet another high earning state in the New England area.

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There are some beautiful mountains and parks, which means that it gets a lot of people trying to escape big-city areas like Boston and settle down for a life in the country. The median cost of a house in New Hampshire is $280,400. Renting an apartment is decently affordable at $757 to $1,687 per month.

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21. New Jersey: $86,244

If you want to live in New Jersey, expect to pay 20% more than everywhere else in the United States. Jersey is close to both Philadelphia and New York, so many people commute in and out of these major cities for work. They also have the Ivy League Princeton University. Compared to most, New Jersey is small, but people continue to move there, which makes it the second-most densely populated state. To put things into perspective, there are so many people, that the entire state of New Jersey is considered to be an urban metropolitan area.

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The average house costs $329,000, and unfortunately, they have the highest property taxes in the country. The average rent is $1,013 for a studio and up to $2,159 for more bedrooms. Prices on living can vary dramatically depending on the area. The lower the rent, the higher the crime rate. So, in reality, you should expect to pay at least $1,500 for a one-bedroom apartment if you want to feel safe. The median household income is $76,475, which means that many people are living there for less than what they need to live comfortably.

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20. New Mexico: $63,629

For a lot of people, when you bring up New Mexico, you immediately think of Breaking Bad, and Walter White’s misadventures around Albuquerque. The town has actually become a tourist destination because of the series. Good thing for residents of New Mexico, they can rent an apartment for just $604 to $1,296 per month.

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And buying a house is doable within the ballpark of $197,400. The median income is pretty low at just $46,718. Sadly, this is much lower than the living wage, which means a lot of people are most likely struggling to survive. (This may be why it was such a fitting setting for Breaking Bad.)

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19. New York: $95,724

New York is the third most expensive place to live in the United States, after Hawaii and California. Of course, you would be nearly impossible to get anything under $2,000 in Manhattan. The average cost of a house is $669,500. But good luck finding anything decent under $1 million in New York City. People move there from all over the globe with big hopes and dreams.

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While it’s true that there are plenty of work opportunities and the median salary over the average household is $62,765, that is still not enough for the high cost of living. Many people who work in New York City have to commute from New Jersey because they cannot afford the sky-high prices.

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18. North Carolina: $64,406

North Carolina is a great state for Southern charm, nature, and beaches. It’s really affordable to live in the beautiful “Tar Heel State,” too. One of the best tourist attractions in the state is the Biltmore Mansion, which was built for George Washington Vanderbilt.

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Rent in North Carolina is just $627 to $1,269, and buying a house costs around $189,900. The only downside is that most people make less than the living wage.

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17. North Dakota: $69,085

If you want to buy a house, it costs an average of $210,000. Rent would be far more affordable for most, with apartments going for just $596 to $1,202 per month. The average salary and living expenses are almost even, making the average resident able to live comfortably.

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The only downside is that there is not much to do in North Dakota outside of going to a park and taking in the gorgeous sights of nature.

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16. Ohio: $63,204

Besides the city of Columbus, there is not much going on in Ohio to attract a lot of tourism. This may be one of the reasons why rent is very cheap, at just $540 to $1,107 per month.

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The median household income is $52,407, which is just enough to afford the average housing price of $142,600. However, most residents are making more than what you would say is a comfortable living wage.

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15. Oklahoma: $60,318

Oklahoma is really just a lot of farmland, but people still seem to like it. Rent is very affordable in the Sooner State, costing just $531 to $1,103 per month.

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Houses are low, too, with the average being just $125,400. Even with the cheap housing, most people are earning at least $10,000 under what can be considered a comfortable living wage.

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14. Oregon: $93,285

If you have ever seen the TV show Portlandia, you already know that Portland, Oregon has a reputation for being chock full of Millennial hipsters. The active artistic community in the area, combined with the beautiful landscape made housing prices go up.

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Rent costs $716 to $1,697 per month. Buying houses costs an average of $350,600. This makes Oregon one of the most expensive states to live in.

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13. Pennsylvania: $68,581

Outside of the major cities of Pittsburgh and Philadelphia, the state of Pennsylvania is huge. It has plenty of open farmland and space for people to call home. Rent is very affordable at just $616 to $1,217 per month. And buying a house is $176,500. Philadelphia is home of Penn, an Ivy League University.

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There’s a lot of educated and qualified people living there, but even city apartments are affordable, especially compared to New York City. Unfortunately, though, people are still struggling most of the time. The average income is $11,630 less than living wage.

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12. Rhode Island: $83,942

Rhode Island is the smallest state in the US. It’s famous for its beautiful vintage lighthouses and nautical living.

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But if we learned anything from New Jersey, it’s that having a crowded space means that the cost of living goes up. Rent costs $812 to $1,663 for an apartment, and an average house is $284,200.

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11. South Carolina: $65,953

South Carolina is full of southern charm, especially if you plan to visit the city of Charleston. Many people call it a great place to live. Even better is that rent is just $610 to $1,231 per month in an apartment.

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And if you want to buy real estate, you can get a house for an average of $170,700. The downside is that the living wage for maximum comfort is over $17,000 higher than what the average citizen earns in a year.

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10. South Dakota: $67,657

South Dakota is full of mountainous parks. It’s also home to the famous Mount Rushmore. If you want to rent an apartment, it costs just $513 to $1,149 per month.

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Houses hold a median price of $194,700. But considering that the median income is $54,126, it is less than what most people need to earn a living wage.

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9. Tennessee: $60,682

Home of Knoxville and Nashville, Tennessee is known for being the heart of country music. Rent costs $565 to $1,168 per month. And if you want to buy a property, expect to pay $170,800.

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While this might seem very affordable, the median income is $12,000 less than what most people need to be comfortable.

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8. Texas: $63,469

As one of the largest states in the US, Texas could be its own country. The Wild West culture is still strong there, and most citizens are very proud to call it home. Rent is affordable at $608 to $1,295 per apartment. And it’s possible to buy a decent home for $199,900.

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If you want to see more Texas real estate, look no further than the show Fixer Upper. There are several cities and towns where people can live comfortably for under $50,000, but the average overall is $63,469.

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7. Utah: $67,807

Known for its mountains and wide-open spaces, Utah has lots of national parks to explore. Monthly rent is just $592 to $1,396 depending on the number of bedrooms you need. However, there is a surprising leap to purchasing a property, with the average home costing $351,100.

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The amount of money people earn on average matches up almost exactly with the cost of living. This means that most people in the state earn enough to be happy and comfortable in their surroundings.

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6. Vermont: $83,878

Known for its amazing ski resorts in the mountains, Vermont is yet another area of New England that can be expensive to live in. Many people go there for vacation in the wintertime, and fewer people choose to live there full-time. The cost of living is 20% higher than the rest of the United States.

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Housing costs are not so bad, with rent being $764 to $1,494. Buying a house will set you back $210,600.

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5. Virginia: $69,886

Virginia is considered being in the South, but it is still close enough to Washington DC so that it has the best of both worlds. Outside of the Greater DC area, you can find cows and miles of open land and mountain ranges. Rent costs an average of $760 to $1,571.

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If you want to buy property in the state, it costs around $264,200. Keep in mind that these figures change drastically depending on where you are in the state, with rural areas being the cheapest. But no matter where they live in the state, most people are making enough to comfortably get by.

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4. Washington: $77,207

Not to be confused with Washington DC, the state of Washington is one of the northern states that is known for having a lot of beautiful nature. One of their biggest cities is Seattle, which has become famous for being the home of Amazon and Microsoft. This has potentially driven up the price of living, similar to what we have seen in California. To rent an apartment, you can pay between $745 to $1,742.

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But if you want to buy real estate, you will need to pay up significantly more, with a median price of $393,800 per house. Considering that the average income is $66,174, there is a gap between what most people make and what can be considered a comfortable wage.

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3. West Virginia: $62,635

West Virginia is mainly run on the coal mining industry, and it has a lot of blue-collar workers. Rent is just $560 to $1,116 per month, and houses average only $99,000. Since it is so cheap to live there, if you have a good job, you can get a huge house for a fraction of the cost compared to other parts of the US.

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For the majority of the citizens, they only make $44,061, which is far less than what you would need to be comfortable living there.

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2. Wisconsin: $67,667

Since Wisconsin borders The Great Lakes, a lot of its attractions have to do with spending time out on the water. Its capital city, Madison, doesn’t have too many things that call tourists to go there, which is probably why rent is so cheap at just $554 to $1,180 per month.

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If you want to buy a house, expect to pay an average of $191,600. Unfortunately, though, the average person earns $11,000 less than what you would need to be considered “comfortable” with money.

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1. Wyoming: $61,788

Most people visit Wyoming when they are visiting Yellowstone National Park. So the state is bringing in lots of tourist dollars, and the citizens get to enjoy the gorgeous scenery on the regular. Renting a house or apartment is just $621 to $1,423 per month.

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If you want to buy a house, it will cost around $236,100. The great news is that the vast majority of people earn enough money living in Wyoming for them to have a living wage, which puts them ahead of the curve compared to most other states.

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