New York, NY (STL,News) – St. Louis is among the top 50 metros to achieve an ample six-month emergency savings fund. That’s according to a new Bankrate.com report, which ranked the Gateway City at number 9. Factoring in local housing costs – mortgage payments, insurance and property taxes – as well as essential cost of living expenses like groceries, transportation, health costs and utilities – a St. Louis-area household can theoretically save up to $14,673 of its $50,907 annual take-home pay. Under typical circumstances, it would take 15 months to achieve the area’s average recommended emergency fund of $18,117, enough to cover these expenses for six months.
Despite having a middling median annual income (17th lowest), St. Louis residents do feel financial relief in the form of the 10th lowest mortgage payments.
Meanwhile, Memphis is the easiest of the top 50 metro areas to achieve an ample six-month emergency savings fund, according to the report. Factoring in local housing costs – mortgage payments, insurance and property taxes – as well as essential cost of living expenses like groceries, transportation, health costs and utilities – a typical Memphis-area household can theoretically save up to $15,761 of its $46,177 annual take-home pay. This is slightly more than the $15,208 needed to cover these expenses for six months in case of an emergency.
The hardest city for locals to build a rainy-day fund is San Jose. Despite earning the highest after-tax median income ($86,041), a household spending the typical amount on recurring expenses would come up $31,119 short of breaking even at year’s end, a far cry from the $58,580 needed to cover these expenses for six months.
For those looking to build a recommended half-year emergency fund in San Jose and other popular, notoriously expensive metro areas like New York City, San Diego, Los Angeles and San Francisco (46-49 on the list), Bankrate.com data analyst Adrian Garcia addresses why an emergency savings fund is crucial.
“Now more than ever, Americans need to start stashing away money to cover any financial emergencies. This year’s government shutdown highlighted how thousands of Americans are living paycheck to paycheck. Establishing an emergency fund in hard-to-save areas may require cutting spending in some areas but being ready for the next financial crisis is priceless.” Garcia said.
The full report is available at https://www.bankrate.com/banking/savings/rates/#best-metros-for-savers-2019