Best And Worst States To Save Money In 2024 (2024)

Saving money has proven especially difficult in the last few years as Americans navigate high costs for daily expenses and increasingly rely on credit cards to cover the gaps in their budgets. The nationwide personal savings rate has recently dropped from record highs of over 20% in 2020 and 2021 to 3.8% as of January 2024.

Various factors may affect a person’s ability to save, but location can have a considerable impact. To determine where it’s easiest and most difficult to save, Forbes Advisor compared all 50 states and the District of Columbia across 10 metrics spanning four key categories: income and debt, cost of living, taxes and housing.

Saving is also notoriously difficult in metro areas, so we analyzed saving opportunities in the 15 largest metro areas to uncover where residents face the biggest uphill battles to save.

5 Easiest States for Saving Money

It may come as no surprise to those who call the landlocked Midwest home that this region contains all of the best states for saving money. Compared to other states, residents of these five states tend to save more easily.

1. North Dakota

North Dakota tops the list as the best place to live to save money. This midwestern state boasts the third-lowest debt-to-income ratio in the country as of Q3 2023, meaning North Dakotans have a light debt load relative to their earnings compared to other states.

Housing costs are also quite affordable in North Dakota. Residents spend the lowest percentage of their income on housing costs (14.39%), and the state has the fifth-lowest percentage of residents who spend half of their income or more on rent (19.69%).

As for other bills, North Dakota has the seventh-lowest percentage of the population (25.66%) reported to have recently faced difficulty paying for usual household expenses in Q1 2024.

2. South Dakota

Like its neighbor to the north, South Dakota offers excellent conditions for saving money.

Housing costs are relatively low in this state, with South Dakotans spending just 14.90% of their income on housing—the second-lowest percentage nationwide. The state also has the second-lowest percentage of renters (17.62%) spending at least half their income on rent. Residents of South Dakota also carry less debt overall, as the state had the 11th-lowest debt-to-income ratio as of Q3 2023.

However, although just 4.77% of households reported facing food scarcity in early 2024—the lowest percentage in our study—over one-third of residents (33.96%) have recently struggled to pay basic household expenses.

3. Kansas

Kansas ranks third on our list of easiest states to save money, owing to its low cost of living, debt and housing prices.

In early 2024, Kansas had the seventh-lowest percentage of households reporting food scarcity (7.08%) and the third-lowest cost of living index (87.10%). Kansans also have less debt on average; the state boasted the fourth-lowest debt-to-income ratio in Q3 2023.

Lastly, housing costs are lower in the Sunflower State. It ranks seventh lowest for the percentage of income spent on housing costs (16.07%) and 13th lowest for the percentage of residents who spend at least half of their income on rent (21.07%).

4. Missouri

Missouri secures the fourth spot for best states to save money, ranking sixth lowest nationwide for overall cost of living.

Housing costs in Missouri are relatively low, with the state ranking 12th lowest for the percentage of income residents spend on housing (17.66%) and the percentage of renters who spend at least half of their income on rent (20.96%). The state also ranks 18th lowest for its debt-to-income ratio, indicating that many residents have less debt than they do cash.

The Show-Me State has the seventh-lowest percentage of households reporting food scarcity at 6.94% but ranks only 25th lowest for households recently struggling to pay expenses at 31.03%.

5. Iowa

Iowa takes the fifth spot among the easiest states to save money. The Hawkeye State ranks fourth lowest for the percentage of income that residents spend on housing costs, at just 15.36%. This affordable housing market also extends to renters, with Iowa ranking 10th lowest for the percentage of people who spend at least half of their income on rent (20.62%).

In addition to affordable housing, Iowa boasts a low debt burden, ranking seventh lowest nationally for its debt-to-income ratio. The state also has the eighth-lowest cost of living.

This combination of low housing costs, manageable debt levels, and affordable living expenses makes Iowa an excellent state for those looking to build their savings.

5 Most Difficult States for Saving Money

Based on Forbes Advisor’s analysis, you might find it more challenging to save your money if you live in one of these five states.

1. California

California is the most difficult state to live in for saving money. It has the fourth-highest cost of living index in the nation, according to data from the Missouri Economic Research and Information Center.

Housing is a major drain on Californians' budgets. The state ranks second highest for the percentage of renters who spend at least half of their income on rent (28.18%) and the overall percentage of income spent on housing (24.51%).

On top of housing costs, Californians struggle with other everyday bills. The state ranks sixth highest for the percentage of residents reporting difficulty paying their usual household expenses. A Census Bureau survey conducted in January and February 2024 revealed that 34.53% of California households found it somewhat or very difficult to cover their typical expenses in the previous week.

2. Hawaii

Hawaii is the most expensive state to live in, surpassing all other states, including Washington, D.C., with its cost of living. Residents of the Aloha State also face the highest debt-to-income ratio in the nation, at about 2.31 as of Q3 2023.

To make matters worse, Hawaii has the second-highest effective income tax rate (17.73%), meaning residents take home less of their earnings compared to most other states.

Lastly, housing costs are a major burden for Hawaii locals, with residents spending the fourth-highest percentage of their income on housing (23.53%) relative to other states and 24.88% of renters spending at least 50% of their income on rent, the 11th-highest percentage.

3. Nevada

Nevada residents face challenges regarding housing costs, which contributes to Nevada’s position as one of the worst states for saving. The Silver State ranks third highest in the nation for the percentage of renters who spend at least half of their income on rent (27.93%) and the overall percentage of income spent on housing among all residents (24.24%). Nevadans also have the seventh-highest debt-to-income ratio in the country, at about 1.82.

Although Nevada doesn’t have the worst cost of living in the nation, the state still ranks 11th highest for the percentage of people who have difficulty paying usual household expenses (33.17%). It also ranks 20th highest for the percentage of households reporting food scarcity, at 9.15%.

4. Oregon

Oregon has the highest effective income tax rate in the United States at 18.98%, meaning residents have significantly less of their earned income to spend than residents of other states.

Housing costs also burden Oregonians. The state ranks fifth highest for the percentage of residents who spend at least half of their income on rent (26.22%) and ninth highest for the percentage of income spent on housing (21.73%).

In terms of overall cost of living, Oregon is the 10th most expensive state in the nation. It also has the 12th-highest debt-to-income ratio as of Q3 2023, at around 1.74.

5. Maryland

Maryland rounds out our list as the fifth most difficult state to save money. In Q3 of 2023, Maryland residents had the third-highest debt-to-income ratio in the nation at around 1.99. The Old Line State also has the seventh-highest cost of living index.

Food scarcity and budgeting for bills are also issues in Maryland. The state ranks 14th highest for the percentage of households reporting difficulty accessing adequate food (9.75%), and 31.42% of residents have faced recent difficulty paying for their everyday expenses.

Metros Where It's More Difficult To Save Money

The nation’s largest metro areas tend to be some of the most difficult places to save, but according to our analysis, residents of these five metros may experience the most difficulty.

1. Riverside-San Bernardino-Ontario, CA Metro Area

In the Riverside-San Bernardino-Ontario area of California, residents have the highest debt-to-income ratio (2.59) out of all 15 metros we examined as of Q3 2023.

This metro ranks third highest for the percentage of households recently experiencing difficulty paying usual expenses (40.12%) and the percentage of households facing food scarcity (13.44%). It also ranks third highest for both the percentage of income spent on housing (24.74%) and the percentage of renters spending at least half of their income on rent (29.71%).

2. Los Angeles-Long Beach-Anaheim, CA Metro Area

The Los Angeles-Long Beach-Anaheim metro area is one of the toughest places to save money. It ranks second highest for the percentage of income spent on housing (25.81%) and the percentage of renters who spend at least 50% of their income on rent (29.86%).

The area also struggles with high debt levels, having the fourth-highest debt-to-income ratio of all 15 metros we analyzed. Lastly, this metro area ranks third highest for the percentage of households experiencing food scarcity (11.11%) and fourth highest for the percentage of households having difficulty paying usual expenses (33.89%) as of Q3 2023.

3. Miami-Fort Lauderdale-Pompano Beach, FL Metro Area

Housing costs in the Miami metro area are staggeringly high, ranking first for the percentage of income residents spend on housing (29.03%) and the percentage of renters who put at least half their income toward rent (33.01%).

Adding to the financial strain, this Florida metro has the second-highest rate of households struggling to pay regular expenses (34.98%). Miami area residents also carry the sixth-highest debt-to-income ratio as of Q3 2023.

4. New York-Newark-Jersey City, NY-NJ-PA Metro Area

The New York metro area is one of the most expensive places to live in the country, making it difficult for residents to pay their bills, let alone save money. This metro ranks fourth highest for the percentage of renters who spend at least 50% of their income on rent (27.75%) and fifth highest for the percentage of income spent on housing (22.08%).

Our study also shows that households in this metro may struggle to make ends meet. The area ranks sixth highest for the percentage of households experiencing difficulty paying expenses (30.75%) and households experiencing food scarcity (9.01%) in early 2024.

5. Atlanta-Sandy Springs-Alpharetta, GA Metro Area

Residents of this Atlanta metro area face financial hurdles that make saving difficult. A major hurdle is the area’s high income tax burden—it has the second-highest effective income tax rate among the 15 largest metro areas, at 16.52%.

Housing costs are another key obstacle. The Atlanta metro ranks sixth highest for the percentage of renters who spend at least 50% of their income on housing (25.28%) and for the percentage of income spent on housing (21.90%). On top of this, debt levels are high; the area has the seventh-highest debt-to-income ratio of around 1.48.

Tips To Cut Costs in Expensive Areas

Living in a pricey city or state can make saving feel impossible, but there are clever ways to save money and free up cash in the face of steep expenses.

• Housing. Rent or mortgage payments are likely your biggest expense regardless of where you live. But especially if you live in a costly metro or state, try moving into a smaller place or splitting bills with a temporary roommate. If you can work remotely, explore living further out from city centers where housing costs are lower.
• Transportation. The average new car payment was $749.20 per month in 2023, according to Experian's State of the Automotive Finance Market Report. If you live somewhere walkable or with strong public transportation, consider ditching the car in favor of these cheaper forms of transit. If you need a car, carpool when you can to save.
• Food. Dining out can quickly derail your budget in high-cost areas. Try to cook at home as much as possible, and meal plan before grocery shopping to avoid waste. Take your lunch to work and scout out cheap eats for nights you want to treat yourself. Even cutting out one $20 meal per week can save $1,040 per year.
• Discretionary spending. High-cost-of-living areas often offer many options for free entertainment and recreation. Cut memberships you don't use regularly—like gyms or subscription boxes—and opt for libraries, parks, and community events instead. Wait for sales to make purchases, use coupons or shop secondhand when possible.

Savings Tips and Benefits of Saving

Even in expensive states and cities, there are strategies you can use to build your savings.

First, set aside time to create specific savings goals. You’ll feel more motivated to save if you know what you’re saving for. Maybe you want to start a sizable emergency fund, take a dream vacation to New Zealand or stash away cash for a future down payment on a house.

Once you’ve created your goals, put your money somewhere it can grow safely. Depending on your timeline, the best place could be a money market account, a high-yield savings account or a certificate of deposit. Whatever you choose, look for low fees and a high interest rate.

Lastly, automating your savings can make it easier to stick to your plan, no matter where you live. The best money-saving apps can help you reach your goals with less effort and in less time.

Methodology

To determine the states (and metros) where it is most (and least) difficult to save, Forbes Advisor examined data for all 50 states and the District of Columbia as well as 15 of the largest metros across four categories: income and debt, cost of living, housing costs and taxes.

We considered 10 relevant metrics that are listed below with their corresponding weights:

Income and Debt (22.50% of total score)

• Household debt-to-income ratio (15% of total score): Data comes from the Federal Reserve Bank of New York and is for Q3 2023.
• Three-year change in household income (7.50% of total score): Data comes from the U.S. Census Bureau’s 2019 and 2022 1-year American Community Surveys (ACS).

Cost of Living (35.50% of total score)

• Cost of living (17.50% of total score):
  • To rank states, we used the cost of living index from the Missouri Economic Research and Information Center, which is for 2023.
  • To rank the 15 largest metro areas, we used data from the MIT living wage calculator, which is for 2024.
• Percentage of households having difficulty paying usual expenses (10% of total score): This is the percentage of adults in households where it has been somewhat or very difficult to pay for usual household expenses in the last seven days. Data comes from the Census Household Pulse Survey conducted between January 9 and February 5, 2024.
• Percentage of households reporting food scarcity (8% of total score): This is the percentage of adults in households where there was either sometimes or often not enough to eat in the last seven days. Data comes from the Census Household Pulse Survey conducted between January 9 and February 5, 2024.

Taxes (7% of total score)

• Effective income tax rate (5% of total score): Data comes from the Forbes Advisor Income Tax Calculator for 2024.
• Effective property tax rate (2% of total score): Data comes from the U.S. Census Bureau’s 2022 1-year ACS.

Housing (35% of total score)

• Three-year change in housing costs (5% of total score): Data comes from the U.S. Census Bureau’s 2019 and 2022 1-year ACS.
• Housing cost as a percentage income (15% of total score): Data comes from the U.S. Census Bureau’s 2022 1-year ACS.
• Percentage of renters spending at least half of their income on rent (15%): Data comes from the U.S. Census Bureau’s 2022 1-year ACS.