As inflation and the cost of living rise in most places around the United States, so does the amount of money a resident needs to live comfortably. Austinites are faring slightly worse than residents of some of the biggest cities in America.

Austin requires one the highest salaries needed to live comfortably in 2024, according to a new SmartAsset report. Specifically, it says, the Lone Star capital ranked No. 65 for "the lowest annual salary needed for a single adult to live in sustainable comfort using the 50/30/20 budgeting rule." The financial strategy says 50 percent of a person's salary should be allocated toward needs (housing, groceries, transportation); 30 percent toward wants (entertainment and hobbies); and 20 percent toward paying off debt, saving, or investing.

Austinites would need to make a $99,757, or a $44.12 hourly wage individually to lead a comfortable lifestyle and avoid living paycheck to paycheck, says the report, which analyzed 99 major U.S. cities.

New in the 2024 report, SmartAsset also found that for an Austin-based family of four (two adults with two children), the total combined income needed to live a secure lifestyle is currently $223,891.

Breaking down the cost of living in Austin
SmartAsset gathered data from MIT’s Living Wage Calculator to determine the cost of living for a childless adult and for a family of four (two working adults and two children) in the 99 largest American cities.

To live a financially stable life in Austin based on the 50/30/20 strategy and using SmartAsset's salary requirement, a childless Austinite would need to spend $49,878.50 of their salary on living expenses, about $29,927.10 for discretionary expenses, and about $19,951.40 toward their savings or debt payments.

Meanwhile, families of four would have to spend about $111,945.50 on living expenses, $67,167.30 on entertainment or hobbies, and $44,778.20 into savings or paying down debt in order to live comfortably in Austin, based on the study's findings.

The growing financial constraints in Austin mean the income necessary to live in the city is $3,257 more than the national average of $96,500 a year for singles. However, Austin families are faring better than the national average of $235,000 per year, SmartAsset says.

Elsewhere in Texas
Among Texas cities, Austin has the highest necessary income required to live a financially stable life. On the other side of the spectrum, Houston is the No. 1 U.S. city with the lowest annual salary required for a single adult to live a comfortable life. Houstonians need to make $75,088 individually to avoid living paycheck to paycheck, or a $36.10 hourly wage, says the report. The combined income needed for two adults with two children is $175,219.

Here's how other Texas cities stack up, from lowest salary to highest:

• No. 2 – El Paso ($75,254 for single adults, $175,219 for families)
• No. 3 – Lubbock ($75,379 for single adults, $181,043 for families)
• No. 5 – Laredo ($78,458 for single adults, 179,046 for families)
• No. 16 – Corpus Christi ($82,493 for single adults, $192,275 for families)
• No. 25 – San Antonio ($85,072 for single adults, $200,762 for families)
• No. 42 – [Tied] Dallas, Plano, Irving, Garland ($91,770 for single adults, $208,000 for families)
• No. 57 – [Tied] Fort Worth, Arlington ($94,765 for single adults, $214,490 for families)

Not surprisingly, the U.S. city that requires the highest salary to live comfortably is New York City. Single adults would need to make an hourly wage of $66.62, or an annual salary of $138,570, to prevent living paycheck to paycheck. And for a family of four, the combined salary needed is $318,406 a year, SmartAsset says.

The full report and its methodology can be found on smartasset.com.