Memphis, Tennessee, isn’t only the “Home of Blues, Soul & Rock ‘N’ Roll,” it seems like the place to reside for Americans looking to save money.
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The city was named the best place to live for someone looking to have their $100,000 salary go the furthest, according to a study by GOBankingRates.
The study showed that a person earning $100,000 would have a net pay of about $79,000 after income taxes are taken out. Subtract annual rent, groceries, utilities, driving and healthcare costs, a person would have an estimated $46,000 left.
Memphis’ extremely low rent and lack of state income tax help Americans who are looking to save. The average annual rent is about $10,300 — roughly $860 per month.
It shouldn’t come as a surprise that Memphis topped the list. A recent study by Bankrate also showed the Tennessee city was the best place for those looking to build up a six-month emergency fund. Savers could rack up a $15,208 emergency fund — enough money to cover six months’ worth of expenses — in about 11 to 12 months if they watched their spending closely.
“People who live in lower-cost communities have an additional opportunity to accomplish their savings goals,” Bankrate senior economic analyst Mark Hamrick said in the study.
As for the state's capital, Nashville, residents making $100,000 would have a leftover income of about $35,800 after annual expenses are taken out. The number doesn’t bode as well for those living in Memphis but still ranks better than other U.S. cities.
If Memphis isn't your scene, El Paso, Texas, was ranked the second best place for people earning $100,000. After annual taxes and other yearly costs, a person with a six-figure salary would have an estimated $44,000 left to spend or save.