Cost of Comfort: Texas Families Now Need $204K to Feel Financially Secure

A recent study by financial platform SmartAsset reveals that the increasing cost of living in Texas has made the notion of a “comfortable” lifestyle increasingly unattainable for numerous residents.

The analysis reveals that an individual adult must earn $90,771 each year—before taxes—to maintain a financially stable and comfortable lifestyle in Texas. For a family of four, that figure rises to $204,922. 

The figures illustrate a lifestyle that encompasses essential needs, such as housing, food, transportation, and healthcare, alongside discretionary expenses, retirement savings, and emergency funds.

"This entails having the financial means for hobbies, vacations, education savings, and unexpected expenses—alongside daily necessities," stated Jaclyn DeJohn, SmartAsset’s director of economic analysis.

The report utilizes cost data from MIT’s Living Wage Calculator, which assesses the income necessary for households to meet essential expenses without incurring debt or needing savings. In Texas, a household with two working adults and two children requires $102,463 merely to meet their basic needs. In high-cost regions such as the Houston metro area, that amount increases to $105,000.

SmartAsset utilized the familiar 50/30/20 budgeting rule to outline financial comfort, allocating 50% of income to essentials, 30% to discretionary spending, and 20% to savings or debt reduction.

While Texas is considered one of the more affordable states—ranking 31st for individuals and 40th for families—it remains a challenging journey. The median household income in Texas is approximately $76,000, which falls short of what is required for a comfortable lifestyle. The national median is roughly $81,000, while Texans’ adjusted median earnings are notably lower at $73,718, as reported by WalletHub.

“DeJohn observed that the prices of essential items and additional luxuries have risen significantly nationwide.” “Even those with higher incomes are experiencing financial strain.”

In the meantime, inflation has exacerbated the situation. In comparison to the previous year, the comfortable income benchmark for a single adult in Texas increased by $5,844, whereas a family of four requires an additional $9,360.

The disparity between the wealthy and the impoverished is particularly pronounced: the top 5% of Texans earn more than $504,000 each year (after adjusting for living expenses), whereas the bottom 20% receive only $17,461.