MEMPHIS, Tenn. — According to a new study, the average Memphian makes more than $20,000 per year less than what is needed to live comfortably in the bluff city.
SmartAsset found Memphians need to make more than $85,000 a year (or $41 an hour) to live comfortably. For a family of four that same threshold is almost $195,000. According to ZipRecruiter, the average Memphian makes about $30 an hour or $62,244 a year, more than $10 an hour less than the SmartAsset study's threshold. Memphis ranked 25th in the study of 99 cities.
High federal interest rates were meant to slow down spending, but it has, as a result, caused the cost of living to jump. Americans have been feeling the strain on their pocketbooks.
“With the increase in food prices, it makes it harder for people to afford groceries for them or their children,” said LJ Abraham, 901 Community Fridges Founder.
“Going out to eat, or even going to a fast food restaurant, now you’re talking about, not seven or eight and that’s significant,” said Stacey Hyde, Financial Planner.
If you are looking to save some money, food is also where you can get the most according to Hyde. Since it is a necessity, Hyde told ABC24 it may be a good time to check your spending habits, and see if you need to change your grocery store you shop at.
“Also bringing your lunch instead of going out to eat with friends, hosting dinner parties in can be a ton of fun,” said Hyde.
Next, the Memphian recommends checking your banking history, to examine where exactly you are spending your money. Then go from there, starting with little changes, and don't be afraid to use hobbies or a vacation as a motivation to save.
“You’re not going to be successful if you try to cut back on stuff you just love, but there’s often places you are leaking money,” said Hyde. “It’s easier to get people to 'save for retirement' for a rainy day if they’re also saving for something fun along the way.”
Find a list of Memphis-area non-profits which can help with a variety of issues for families, including hunger relief and more, from Choose 901 HERE.