Saving money is a crucial financial goal for many Americans, but depending on where you live, this goal can be more challenging to achieve. Recently, personal finance outlet FinanceBuzz conducted a comprehensive analysis of 125 U.S. cities with populations exceeding 200,000 to determine where it’s hardest to save money.
This study considered several factors, including cost of living, median income, mortgage-to-income ratios, and debt-to-income ratios. The findings reveal that California cities dominate the list of the most difficult places to save money, with nine out of the top ten cities located in the Golden State.
Oxnard Tops the List
Oxnard, California, is ranked as the most challenging city in the United States for saving money. Despite its beautiful coastal location in Ventura County, Oxnard’s high cost of living and unfavorable financial metrics make it tough for residents to put money aside.
Oxnard boasts one of the five worst mortgage-to-income ratios and debt-to-income ratios nationwide. With a median income of $46,191, a staggering 63% of this income goes towards mortgage payments. Additionally, the city has a debt-to-income ratio of 2.51 and a median credit card debt of $2,684.
Other California Cities in the Top Five
Following closely behind Oxnard are Santa Ana, Moreno Valley, Riverside, and San Bernardino. These cities share several common factors that contribute to their ranking.
- Santa Ana, CA: With a median income of $41,861, residents in Santa Ana allocate 65% of their income to mortgage payments. The city also has a debt-to-income ratio of 1.966 and a median credit card debt of $2,480.
- Moreno Valley, CA: Although Moreno Valley has a slightly more affordable cost of living compared to other cities on the list, its debt-to-income ratio is among the highest. The median income here is $47,898, with 50% of it going towards mortgage payments. The debt-to-income ratio stands at 3.124, and the median credit card debt is $2,816.
- Riverside, CA: Riverside residents face a median income of $50,648, with 52% of that income going to mortgage payments. The debt-to-income ratio is 2.51, and the median credit card debt is $2,998.
- San Bernardino, CA: In San Bernardino, the median income is $40,119, and 59% of that goes towards mortgage payments. The city also has a debt-to-income ratio of 2.51 and a median credit card debt of $2,500.
More California Cities on the List
The financial struggles are not limited to the top five cities. Other California cities that make saving money difficult include Anaheim, Chula Vista, Los Angeles, and Fontana.
- Anaheim, CA: With a median income of $49,467, residents spend a whopping 70% of their income on mortgages. The debt-to-income ratio is 1.925, and the median credit card debt is $2,665.
- Chula Vista, CA: Here, the median income is $61,942, with 57% of it going to mortgage payments. The debt-to-income ratio is 2.042, and the median credit card debt is $3,508.
- Los Angeles, CA: LA residents face a median income of $54,251, with 68% going towards mortgage payments. The debt-to-income ratio is 1.925, and the median credit card debt is $3,068.
- Fontana, CA: Fontana stands out with the highest median income among the top ten at $93,894. However, 56% of this income is allocated to mortgage payments. The debt-to-income ratio is 2.226, and the median credit card debt is $3,010.
Honolulu Breaks the California Streak
Honolulu, Hawaii, is the only city outside California to make the top ten. With a median income of $51,668, 55% of that goes towards mortgage payments. The city has a debt-to-income ratio of 2.285 and a median credit card debt of $2,826.
The Broader Picture
FinanceBuzz’s analysis highlights that the high cost of living and substantial debt burdens are key factors making it hard for residents in these cities to save money. California, in general, is known for its expensive lifestyle, which is reflected in the financial struggles of its residents.
Nationwide Context
While California cities dominate the list of the hardest places to save money, it’s worth noting that some U.S. cities offer more favorable conditions for saving. For instance, Toledo, Ohio, and Pittsburgh, Pennsylvania, are ranked as the easiest cities to save money.
These cities benefit from lower costs of living, and their residents enjoy low rent and mortgage costs compared to their incomes.
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