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Forbes: California is Toughest State for Saving Money in 2024

Recent financial analyses and surveys by Forbes found that California is the most challenging state for residents trying to save money. A combination of high living costs, substantial housing expenses, and general economic pressures has placed the state at the top of financial difficulty for its residents.

High Cost of Living

California has the fourth-highest cost-of-living index in the United States. This metric presents a challenging backdrop for individuals and families trying to stretch their budgets. The high cost of daily necessities significantly prevents households from setting aside money for savings.

Burdensome Housing Costs

Housing continues to be the most significant expense for Californians. The state ranks alarmingly high for its housing cost burdens—second only in the percentage of renters who spend at least 50% of their income on rent. Overall, Californians also spend an average of 24.51% of their income on housing, a rate that outpaces most of the country and squeezes out potential savings.

Struggles with Everyday Expenses

The practical implications of these financial pressures are scary. A recent Census Bureau survey conducted in early 2024 highlighted that 34.53% of California households found it somewhat or very difficult to cover typical expenses in the week prior to the survey. This statistic highlights many residents' ongoing struggle in managing day-to-day financial commitments, let alone saving.

California's high living costs, exorbitant housing expenses, and general economic climate make saving money the most challenging state in 2024. Without significant changes in these economic factors or personal financial strategies, saving remains a daunting task for many in the Golden State.

For more information, contact Sean Wallentine.


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