NEW YORK, NY — Balancing a budget can be tough: you have to know how far each dollar can be stretched. However, that may be easier in some places than others. A new study from financial technology company SmartAsset shows where in Kentucky people can get the most out of their money. The study compares median income and cost of living data nationwide to find the counties where people hold the most purchasing power. View the table below.
|Rank||County, State||Cost of Living||Median Income||Purchasing Power Index|
The study aims to find the places where average living expenses are most affordable to the people who live there. To find these counties the study looked at the cost of living relative to income to determine the purchasing power.
First, two different cost of living numbers for a household with one adult and no dependents was calculated. One reflected the baseline cost of living in each area and the other was based on expenditures typical to someone making the county’s median income.
The two cost of living numbers were then combined using a weighted average based on how close each county’s median income was to the minimal livable income in that area before subtracting income taxes paid in that area.
Finally, the study calculated purchasing power by determining the weighted cost of living as a percentage of median income.