PROVIDENCE – Rhode Island is one of the nation’s most expensive states to live in, as residents are more likely to live paycheck to paycheck, compared with most other states, according to a recent study.
GoBankingRates.com, a personal-finance website, released a study looking at states where households are most likely to live on a paycheck-to-paycheck basis, and Rhode Island was No. 11.
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“The reasons can mostly be attributed to the relatively high percentage of the median paycheck spent on housing (37.6 percent) and utilities (7.2 percent),” according to the report. “With more than 44 percent of their income going to those two necessities, there’s a mere quarter of each paycheck left over.”
GoBankingRates.com estimates the median household income per paycheck in Rhode Island totals $2,233. Leftover income after paying for cost-of-living expenses totals $572, meaning the percentage of leftover income equals about 25.6 percent.
“The smallest state in the nation is also one of the most expensive states to live in,” according to the report.
The trend of living paycheck to paycheck, however, is widespread in the United States. In a recent GoBankingRates.com survey, 69 percent of respondents said they had less than $1,000 in savings, and 34 percent said they have no savings at all.
“Such abysmal savings rates suggest many Americans, if not most, live paycheck to paycheck,” according to the site.
