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This Map Reveals The True Value Of $100 In Each State

Your purchasing power can swing by 30% from state to state.

Image by Tax Foundation.

Map represents the value of 100 dollars.

As the cost of living in large cities continues to rise, more and more people are realizing that the value of a dollar in the United States is a very relative concept. For decades, cost of living indices have sought to address and benchmark the inconsistencies in what money will buy, but they are often so specific as to prevent a holistic picture or the ability to "browse" the data based on geographic location.

The Tax Foundation addressed many of these shortcomings using the most recent (2015) Bureau of Economic Analysis data to provide a familiar map of the United States overlaid with the relative value of what $100 is "worth" in each state. Granted, going state-by-state still introduces a fair amount of "smoothing" into the process — $100 will go farther in Los Angeles than in Fresno, for instance — but it does provide insight into where the value lies.

The map may not subvert one's intuitive assumptions, but it nonetheless quantities and presents the cost of living by geography in a brilliantly simple way. For instance, if you're looking for a beach lifestyle but don't want to pay California prices, try Florida, which is about as close to "average" — in terms of purchasing power, anyway — as any state in the Union. If you happen to find yourself in a "Brewster's Millions"-type situation, head to Hawaii, D.C., or New York. You'll burn through your money in no time.

income, money, economics, national average

The Relative Value of $100 in a state.

Image by Tax Foundation.

If you're quite fond of your cash and would prefer to keep it, get to Mississippi, which boasts a 16.1% premium on your cash from the national average.

The Tax Foundation notes that if you're using this map for a practical purpose, bear in mind that incomes also tend to rise in similar fashion, so one could safely assume that wages in these states are roughly inverse to the purchasing power $100 represents.

This article originally appeared on 08.17.17

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money

Education

A guy and his friends shared their travel plans. The results perfectly explain the wealth gap.

What on Jeff Bezos's green earth did we just watch?

TikTok/@tcruznc

Sometimes you see something so mind-boggling you have to take a minute to digest what just happened in your brain. Be prepared to take that moment while watching these videos.

Real estate investor and TikTok user Tom Cruz shared two videos explaining the spreadsheets he and his friends use to plan vacations and it's...well...something. Watch the first one:

What in the wealth is thispic.twitter.com/NTPTKT5CZG
— Karim Alammuri (@Karim Alammuri) 1629292830

So "Broke Bobby" makes $125,000 a year. There's that.

How about the fact that his guy has more than zero friends who budget $80,000 for a 3-day getaway? Y'all. I wouldn't know how to spend $80,000 in three days if you paid me to. Especially if we're talking about a trip with friends where we're all splitting the cost. Like what does this even look like? Are they flying in private jets that burn dollar bills as fuel? Are they bathing in hot tubs full of cocaine? I genuinely don't get it.

To be crystal clear here, the top 5 friends on the Forbes list are willing to spend more than double what the guy at the bottom of the Welfare 10 list makes per year on a 3-day guy's trip. I don't know what to do with this information.

But that's not even the full spreadsheet. It might make sense if this guy was just rich, had always been rich, only knew rich people, and therefore having multiple millionnaire friends was his normal. Surely that's some people's reality who were born into the 1%.

That's not the case here, though, because Cruz also has a Welfare 10 list. He says this group of friends who make less than $100K a year call themselves that, and perhaps that's true. (If I were a part of this group, I might call myself a welfare case too because everything's relative and some of these dudes spend more in an hour of vacation than I spend on my mortgage each month.)

It's like we can see our society's wealth gap all laid out nice and neatly in a spreadsheet, only these people aren't even the uber-wealthy and uber-poor. This is just the range of this one guy's friends.

I have nothing against people who build success and wealth for themselves, and even $5 million per year is hardly obscenely wealthy by billionaire standards. But Cruz says he's known most of his "welfare" friends since college, which presumably means most of those guys have college degrees and are making pittance in comparison with the Forbes list. One could claim the guy making $5 million a year just works harder, but does he really work 100 times harder than the guy making $50,000? Doubt it.

Money makes money, and after a certain threshold of wealth or income, it's actually quite easy to get and stay rich without actually "earning" more money, assuming you're reasonably wise and responsible. So maybe the guys who are willing to shell out $125,000 for a week-long trip should offer to pay the travel expenses of the friends they "hang out with regardless of income" who don't even make that in a year, since that's probably just the interest they're making on their wealth anyway.

But what do I know? This is like an entirely different world to me and probably 99+% of Americans, as evidenced by some of the responses.

Naturally, there will be a range of incomes in any group of people, but 1) most of us don't actually know how much our friends make, and 2) even fewer of us make spreadsheets with that information in order to rank our friends and figure out who can go on which vacations.

People are just endlessly fascinating. That's all I've got.

This article originally appeared on 08.20.21

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culture

Education

A story about two pairs of boots illustrates how rich people get richer in ways poor people can't

It’s got nothing to do with bootstraps.

Photo by Maxim Hopman on Unsplash

The Sam Vimes "Boots" Theory of Socioeconomic Unfairness explains one way the rich get richer.

Any time conversations about wealth and poverty come up, people inevitably start talking about boots.

The standard phrase that comes up is "pull yourself up by your bootstraps," which is usually shorthand for "work harder and don't ask for or expect help." (The fact that the phrase was originally used sarcastically because pulling oneself up by one's bootstraps is literally, physically impossible is rarely acknowledged, but c'est la vie.) The idea that people who build wealth do so because they individually work harder than poor people is baked into the American consciousness and wrapped up in the ideal of the American dream.

A different take on boots and building wealth, however, paints a more accurate picture of what it takes to get out of poverty.

Author Terry Pratchett is no longer with us, but his writing lives on and is occasionally shared on his official social media accounts. Recently, his Twitter page shared the "Sam Vimes 'Boots' Theory of Socioeconomic Unfairness" from Pratchett's 1993 book "Men At Arms." This boots theory explains that one reason the rich are able to get richer is because they are able to spend less money.

If that sounds confusing, read on:

\u2026 He earned thirty-eight dollars a month plus allowances. A really good pair of leather boots cost fifty dollars. But an affordable pair of boots, which were sort of okay for a season or two and then leaked like hell when the cardboard gave out, cost about ten dollars\u2026\n2/5
— Terry Pratchett (@Terry Pratchett) 1643144843

Pratchett wrote:

"The reason that the rich were so rich, Vimes reasoned, was because they managed to spend less money.

Take boots, for example. He earned thirty-eight dollars a month plus allowances. A really good pair of leather boots cost fifty dollars. But an affordable pair of boots, which were sort of OK for a season or two and then leaked like hell when the cardboard gave out, cost about ten dollars. Those were the kind of boots Vimes always bought, and wore until the soles were so thin that he could tell where he was in Ankh-Morpork on a foggy night by the feel of the cobbles.

But the thing was that good boots lasted for years and years. A man who could afford fifty dollars had a pair of boots that’d still be keeping his feet dry in ten years’ time, while the poor man who could only afford cheap boots would have spent a hundred dollars on boots in the same time and would still have wet feet."

In other words, people who have the money to spend a little more upfront often end up spending less in the long run. A $50 pair of boots that last five years essentially cost you $10 a year. But if you can only afford $10 upfront for a pair of boots that last six months, that's what you buy—and you end up paying twice as much over a five-year period.

There are so many areas in which this principle applies when you're poor. Buying in bulk saves you money over the long run, but you have to be able to afford the bulk cost up front. A reliable car that doesn't require regular repairs will cost more than a beater, but if the beater is all you can afford, that's what you're stuck with. You'll likely spend the same or more over time than if you'd bought a newer/higher quality car, but without the capital (or the credit rating) to begin with, you don't have much choice.

People who can afford larger down payments pay lower interest rates, saving them money both immediately and in the long run. People who can afford to buy more can spend more with credit cards, pay off the balances, build up good credit and qualify for lower interest rate loans.

There are lots of good financial decisions and strategies one can utilize if one has the ability to build up some cash. But if you are living paycheck to paycheck, you can't.

Climbing the financial ladder requires getting to the bottom rung first. Those who started off anywhere on the ladder can make all kinds of pronouncements about how to climb it—good, sound advice that really does work if you're already on the ladder. But for people living in poverty, the bottom rung is just out of reach, and the walls you have to climb to get to it are slippery. It's expensive to be poor.

When people talk about how hard it is to climb out of poverty, this is a big part of what they mean. Ladder-climbing advice is useless if you can't actually get to the ladder. And yet, far too many people decry offering people assistance that might help them reach the ladder so they can start taking advantage of all that great financial advice. Why? Perhaps because they were born somewhere on the ladder—even if it was the bottom rung—and aren't aware that there are people for whom the ladder is out of reach. Or perhaps they're unaware of how expensive it is to be poor and how the costs of poverty keep people stuck in the pit. Hopefully, this theory will help more people understand and sympathize with the reality of being poor.

Money makes money, but having money also saves you money. The more money you have, the more wealth you're able to build not only because you have extra money to save, but also because you buy higher quality things that last, therefore spending less in the long run. (There's also the reality that the uber-wealthy will pay $5,000 for shoes they'll only wear a few times, but that's a whole other kind of boots story.)

Thanks, Terry Pratchett, for the simple explanation.

This story originally appeared on 01.28.22

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culture

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Why every American should be poor at least once in their life

People who've always been financially comfortable really have no idea.

Photo by Towfiqu barbhuiya/Pexels

Being poor for a while is an eye-opening experience.

Let me start by saying that no one should have to live in poverty. I do, however, believe that every American should experience being poor at least once in their life.

I've never lived in true poverty, thankfully, but I've been poor. I've eaten government cheese. I've internalized the principals of "The Complete Tightwad Gazette" out of necessity. I know what it's like to pinch every penny and to not even think about buying anything "extra." I know the anxiety of paying for a car repair with a credit card that I can only afford minimum payments on, knowing the interest I can't afford will keep piling up.

I've also been fortunate to experience financial comfort. Not enormous wealth, but having enough to not be concerned about affording every little thing I buy. I know how it feels to go to the grocery store without a calculator. I've blown a tire and had the money to cover it. I've been annoyed instead of terrified when I have to replace an appliance. I've been able to take a vacation and splurge a little.

Being financially comfortable is better than being poor, of course. But I don't think people who've never known true financial struggle have any idea how much better it is. They may joke about being "poor" when they have to save their money for something, but they've never experienced not having any money to save.

Being poor teaches you so many things, far beyond just how to budget. You learn that it's hard as hell to climb your way out of financial trouble, how it can feel like you're stuck in a toilet bowl that's constantly swirling and pulling you back down. You learn how expensive it is to be poor—knowing you could save money in the long run shopping at Costco and buying in bulk or stocking up on things during big sales, but you have to have extra means in the moment to be able to do that.

You learn that a few hundred dollars is actually a huge amount of money. You learn that a lot of what people spend money on is totally wasteful. You learn which things are actually worth spending money on (brand names don't matter, shoe quality does). You learn to make excuses for not being able to go on fun outings with friends because you don't want to say, "Sorry, I can't afford that" and feel the awkwardness of it all.

What's surprising, though, is how much more you learn about being poor once you do have some financial ease. When you apply for a loan and get the best interest rates and the lowest fees because you have good credit and some money in the bank, you learn how much the system screws over poor people. When you are able to buy a car that doesn't constantly need repairs and furniture that doesn't fall apart after a year, it really sinks in how much more it costs to not have money. When you're able to pay less overall because you can afford the annual payment instead of the monthly payment for a service, you learn that having money saves money in ways you never imagined.

You learn gratitude for small things if you've been poor. The joy of treating yourself to a fancy coffee or some fresh flowers hits different when it's something you couldn't afford before.

You also learn that there are a lot of people who've never known financial hardship, and it blows your mind. As you spend more time in middle and upper middle class circles, you meet more and more people who aren't necessarily rich but who've never had to actually worry about money. It's not their fault, of course, but it's bizarre to witness these folks in the wild. Like, for some people, it's just normal to pay for a haircut and color at a salon every six weeks, as if it's no different than paying a phone bill. There are people who have never bought generic to save $.50 and simply wouldn't dream of doing so. There are people who set their thermostats to whatever temperature is comfortable and then just go about their day not thinking about their utility bill. It's unnerving to see things you know as luxuries just treated as the norm, to see how much freedom there is in simply not being poor.

But really, the most important lesson you (hopefully) learn from being poor is empathy. You learn not to judge someone for their financial situation. You learn that most people don't choose to be poor, and that it takes not just time and effort, but also luck and very often help, to get to a place of financial okay-ness. You learn that assuming anything about a poor person is likely wrong and that someone's financial situation is almost never a reflection of their moral character. You learn to be humble and kind and not take anything you have for granted.

I'm not saying anyone should go out and become poor on purpose. But even putting yourself through a mental exercise of trying to get by in a low-wage job or figuring out how you would handle a major financial setback can go a long way toward increasing understanding and empathy. Being poor isn't a necessity, but it does provide a valuable first-hand perspective that can be hard to get otherwise.

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Joy

6 states where the minimum wage and cost of living offer the best bang for your buck

The highest state minimum wage in the U.S. is now $16.28 per hour, but some cities are even higher.

Map via Wikimedia Commons (multiple creators)

State minimum wages range from $7.25/hr to $17.00/hr in 2024.

Public discourse about minimum wage and living wages has been ongoing for years, with people debating whether the government should mandate a minimum hourly pay for workers.

President Franklin D. Roosevelt signed the first federal minimum wage law in 1938, setting the lowest wage a worker could be paid at 25 cents per hour. Nearly a century later, the federal minimum wage is $7.25/hr, holding steady since 2009, with people lobbying to raise it to at least $15/hr for over a decade. However, in addition to federal law, each state has its own laws, a handful of which establish a state minimum wage higher than $15, a handful of which don't have a set minimum wage at all and everything in between.

Cost of living has also been a hot topic as inflation has squeezed everyone's wallets and certain cities and states have become utterly unaffordable, especially for people in low-wage jobs or who who are just starting out in their careers. So how do minimum wage and cost of living correlate state-by-state? Are there any sweet spots with a high(er) minimum wage and low(er) cost of living?

While there’s no perfect storm of super low cost of living and super high minimum wage—for instance, Washington, D.C. has the highest state minimum wage at $17/hr, but housing costs 140% more than the national average—there are some states where the ratio is far more favorable than others. According to Insider Monkey, here are the top six states where you can get the most bang for your minimum wage buck.

6. New Mexico

The Land of Enchantment offers a relatively decent living for its $12/hr minimum wage thanks to the state's below average cost of living. According to Rent Cafe, housing in New Mexico is 8% lower than the national average, monthly utilities are 9% lower, food is 4% lower, transportation is 3% lower and healthcare, goods and services are 2% lower.

According to Smart Asset, Albuquerque, New Mexico ranks as No. 10 in U.S. cities where minimum wage goes the furthest.

5. New Jersey

The Garden State's relatively higher-than-average cost of living is counteracted by relatively solid minimum wage of $14.13/hr. Most of the cost of living in New Jersey is wrapped up in housing, which is 30% higher than the national average, according to Rent Cafe, and utilities, which are 12% higher. Goods and services are 5% higher, but healthcare is 2% lower than the national average. Food and transportation are 1% and 2% higher, respectively.

4. Connecticut

With both a cost of living and minimum wage slightly higher than New Jersey, Connecticut rolls in at No. 4 with a $15/hr minimum wage. Where the Constitution State hits hardest is in utilities, which Rent Cafe places at 30% higher than the national average, and housing, which is 24% higher. Healthcare and goods and services are both 9% higher, while transportation and food are just 1% and 2% above average.

3. Missouri

The Show-Me State says, "Show me the money!" with its somewhat respectable $12/hr minimum wage, which goes pretty far with its relatively low cost of living. Housing is the biggest cost benefit Missouri offers at 18% lower than the national average. But utilities, food, healthcare, and goods and services are also all below average, with only transportation landing right at the national average.

Additionally, St. Louis clocked in at No. 5 for a minimum wage real-world value of $13.68 when adjusting for the city's lower-than-average cost of living.

2. Washington

With the highest state minimum wage in the nation (unless you count Washington, D.C.), Washington's $16.48/hr puts it in second place when accounting for cost of living. Make no mistake, Washington isn't cheap overall, with a cost of living 15% higher than the national average. Housing and transportation hit hard at 29% and 27% higher than the national average, respectively. Healthcare is pricey as well at 20% higher than average. Food costs 12% more, but utilities clock in at 7% less than the national average.

Two cities in Washington hit the top 15 for highest real minimum wage value, though, with Seattle at No. 13 and Spokane at No. 2.

map of united states with these states highlighted in green: Washington, New Mexico, Missouri, Illinois, New Jersey and Connecticut

These six states offer the best minimum wage to cost of living ratio.

Created with mapchart.net

1. Illinois

If you want the best bang for your minimum wage buck, head to the Prairie State with its $13/hr minimum wage and 8% lower than average cost of living. Housing in Illinois is 22% lower than average and utilities are 10% lower. The only expense that comes in higher than average for Illinois is transportation at 3% above average, which isn't enough to keep it out of the top spot.

However, there are some minimum wage sweet spots in certain U.S. cities that aren't reflected in these state rankings. According to Smart Asset, Denver, CO, is the city where minimum wage goes the farthest in the nation. Colorado comes in at a respectable 7th place in state minimum-wage-to-cost-of-living ratio, but Denver has its own mandatory minimum wage of $18.29/hr.

A citywide minimum wage is part of what puts Seattle at the No. 13 spot on that same list. Seattle is one of the most expensive cities in the U.S., but its $19.97 minimum wage for most workers changes the ratio in its favor.

Other cities in the top 10 include Buffalo, NY; Minneapolis, MN; Tucson, AZ; St. Paul, MN; Phoenix, AZ and Stockton, CA.

The minimum wage conversation may vary widely across the U.S., with different costs of living and different state laws on the books. But if you're looking to move someplace where your wage will go the furthest, these six states will likely be your best bet to check out first.

This article originally appeared on 6.3.24

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Americans have 4 core beliefs about money but only one leads to success

Changing our thoughts can be a pathway to success.

via Karolina Kaboompics/Pexels

A happy woman holding up a few hundred dollars.

A strange thing about being an adult is that many of our core personality traits, including our attachment styles, attitudes towards failure and ability to resolve conflicts, are developed as young children and can follow us for the rest of our lives.

In addition to those traits, psychologists are beginning to understand that we develop our attitudes about money as children and they can significantly impact our financial future.

American clinical psychologist and planner Dr. Brad Klotz developed a theory called the Klotz Money Script, in which he outlined the four core beliefs that people have about money. They are either money-avoidant, worship money, status-seekers, or vigilant.

He’s also created a test that people can take to learn which money script they follow.

Klotz believes that many factors contribute to the money scripts we run in our heads. “It’s not just errors in thinking; it’s also developmental psychology, multicultural psychology, family systems. It brings in all these other areas of psychology to help understand financial behaviors,” he told The American Psychological Association.

Here are the 4 money scripts:

Money Avoidant

People who are money-avoidant believe money is evil. They might feel they don't deserve money, think the wealthy are corrupt and see virtue in living with less. They may be prone to sabotaging their finances, have trouble budgeting, or avoid dealing with money altogether.

Money Worshippers

These people believe that money solves problems and brings happiness. They never feel they have enough money and find that the pursuit of money makes them miserable. They often have high levels of debt and lower net worth.

Status-Seekers

Status-seekers often equate their sense of self-esteem to their net worth. They like to show off flashy clothes and cars but are prone to overspending. They are usually attracted to gambling, borrow money from others and hide spending from their spouses.

Money Vigilant

The Money Vigilant make the best decisions for their financial health. They believe in working hard, saying no to handouts and saving. They also avoid credit card debt and love a good bargain. However, being vigilant can cause them to fear their financial futures, which can create a constant feeling of anxiety.

Overall, Klontz believes that the financially vigilant have the greatest chance of becoming financially prosperous. However, it can come with some pitfalls.

“Don’t let your healthy vigilance turn into anxiety or a tendency to hoard out of fear. If you feel that watching over your financial situation is taking up more than an hour a week, keeping you up at night, or getting in the way of other hobbies or activities that you want to do, it may be time for a change,” he said according to SF Money Coach.

In the end, to be free from the financial attitudes that were cultivated in us as children—at a time when we hardly knew what money was—Klontz says it’s important to examine your past so you can plot a better future.

“Take some time, interview your family members, be an anthropologist into your own family,” he told CNBC. “Try to figure out why your family has the beliefs around money that they have.”

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Pop Culture

Millennials bond over the weird no phone 'money rule' that sets their generation apart

Folks under 30 will never understand.

@jennielongdon/TikTok, Photo credit: Canva

It might not be hip, but it makes sense!

Online shopping is an integral part of adult life no matter what age group you fall into. But apparently there’s one digital spending habit that didn’t make it to Gen Z.

UK-based radio host Jennie Longdon recently went viral for sharing how—despite being able to do virtually everything from our phones—folks over the age of 30 can’t seem to part with using their laptops for “big purchases.”

“Takeaway , clothes, shoes within reason, yeah,” she says in a clip posted to her TikTok. “But…a plane ticket? That’s a laptop job!”

Longdon continues to feign disgust as she imagines big purchases being made from the phone, as these items obviously require the larger screen. It’s just something that a millennial brain cannot get behind. “We cannot make a big or significant purchase on the phone. You can't browse properly."

“Bigger screens for the big things please,” her video caption reads.

@jennielongdon Bigger screen for the big things please. #millennial #millennialsoftiktok #millenialmum #fyp #foryou ♬ original sound - Jennie Longdon

But there may be some sound reasoning behind this seemingly outdated logic. According to Fluid Commerce, the average desktop provides “over 3 times as much information” as a smartphone screen, allowing for more research. Laptops might not offer quite as much information as a desktop, but they certainly offer more than a phone, and it’s just good common sense to want as much information as possible before making an investment.

Either way, most millennials seem willing to die on this hill.

“Big purchases on the computer because I don’t trust mobile apps to show me everything I need to know,” one wrote in the comments.

“Big purchase requires the big internet,” added another.

A third said, "I will literally look at the information on my phone, then go get my laptop to go to the same site to book it.”

A few even shared horror stories of trying things the newfangled way and it backfiring immediately.

“I lived dangerously the other day and booked a hotel room on my phone and it tools ages buffering at the confirmation screen and I was fuming and knew I should’ve done it on my laptop,” one person lamented.

Another wrote, "I booked a mini break on my phone once and I accidentally refreshed the page with my thumb midway through booking.”

Still, there are some millennials who are on board with the phones-only approach.

"I booked flights, accommodation, and extracurriculars for four people on my phone recently,” one person wrote. "I was so proud."

Another said, "I'm a millennial and I just booked my Vegas hotel and flights on the phone. It's.....fine....."

Lastly—kudos to this commenter, who truly got to the root of this issue by saying:

“We grew up in an age when mobile websites were terrible and we’ve never forgotten it.”

That really hits the nail on the head, doesn’t it? Some scars just never truly heal.

This article originally appeared on 5.13.24

From Your Site Articles

money

money

This Map Reveals The True Value Of $100 In Each State

Your purchasing power can swing by 30% from state to state.

A guy and his friends shared their travel plans. The results perfectly explain the wealth gap.

What on Jeff Bezos's green earth did we just watch?

A story about two pairs of boots illustrates how rich people get richer in ways poor people can't

It’s got nothing to do with bootstraps.

Why every American should be poor at least once in their life

People who've always been financially comfortable really have no idea.

6 states where the minimum wage and cost of living offer the best bang for your buck

The highest state minimum wage in the U.S. is now $16.28 per hour, but some cities are even higher.

6. New Mexico

5. New Jersey

4. Connecticut

3. Missouri

2. Washington

1. Illinois

Americans have 4 core beliefs about money but only one leads to success

Changing our thoughts can be a pathway to success.

Millennials bond over the weird no phone 'money rule' that sets their generation apart

Folks under 30 will never understand.

Mom took heat for cleaning her teen's bedroom. Her response was a lesson in grace.

'90s kid shares the 10 lies that everyone's parent told them

Woman fights to give her baby a name that her husband says is 'abusive'

A boy told his teacher she can't understand him because she's white. Her response is on point.

How do you know someone is very smart? Here are 15 'subtle signs' people notice.

'It's not Little Sun': Mom admits she's having trouble pronouncing her newborn's name