Money Moves: Where You Can Make $50,000+ As A Young Professional

A Note From Patricia:

Hello and welcome to Forbes Advisor’s Weekly Brief, where each week we dive into the realities of consumer finance and empower you with knowledge to help make your financial journey easier. 

It’s easy to feel lost in life after graduating from college. Your young adult years are all about discovering where you belong in the world. 

One of the biggest decisions you make after commencement day is choosing where to live. And it’s not just about finding a cool city with nice coffee shops—the stakes are high. Where you choose to live impacts everything, from job opportunities and salary to your ability to save money. 

For new grads, making $50,000 a year in an exciting city might sound like a pipe dream—but it’s possible. Forbes Advisor studied 100 metropolitan areas to discover the top 25 where you can have the highest earning potential and the lowest cost of living.

This week, we’ll give an overview of three areas and offer ideas on how to start saving money as a young adult.

Sincerely,

Patricia Louis

Editor, Forbes Advisor

Money Moves: Where You Can Make $50,000+ As A Young Professional

If you’re in the early stages of your career and are looking for a place to gain your financial footing, look no further.

We looked at the most populous U.S. metro areas within four key categories: employment and pay, housing affordability, cost of living and lifestyle to find the best cities for young professionals. All of the places that made our list have median individual incomes over $50,000 and boast impressively low unemployment rates.

Saving money as a young professional can be a challenge, but settling down in one of these cities may prove to be beneficial to your bank account. 

1. Cincinnati, OH-KY-IN Metro Area

Known to many as just “Cincy,”  Ohio’s capital is becoming a hotspot for young professionals. The median individual salary in this area is $59,329 and the city ranks sixth for median rental costs as a percentage of individual income, meaning your rent shouldn’t take too much of a bite out of your budget. 

2. Nashville-Davidson-Murfreesboro-Franklin, TN

With an unemployment rate of just 2.8% and a median individual income of $56,801, Music City is a great place for young professionals to live. Budget-friendly housing options are also available in this area, with a median monthly rent of $1,749. 

3. Austin-Round Rock-Georgetown, TX

Another area known for its musical influences, Austin is a growing city well suited for up-and-coming professionals.  With a competitive median income of $66,553 and an unemployment rate of just 3.4%, the state capital is a great place for young professionals to snatch up a solid first job in their field.

Living in a new city can be stressful—especially on your wallet—when you’re just starting to figure things out. However, you can save money in some ways without sacrificing much time or effort. Here are a few tips on how to budget your money when you’re just getting your financial footing in a new city:

Take advantage of public transportation. Car ownership in a city can come with many costs, from parking fees to high gas costs. The costs of owning a car might not be worth it if your city has a functioning public transport system. Most metropolitan areas offer buses, subways, and commuter rail systems that can get you where you need to go for a fraction of the cost of car ownership.

Consider getting a roommate. If you want to accelerate your savings, consider splitting the rent with a roommate. This can help you save money to put towards a nicer living space later on.

Apply the 50-30-20 budgeting rule. One of the smartest financial moves you can make when you start earning a solid salary is adhering to a budget. The 50-30-20 budget is one of the more simple ones to follow; it involves allocating 50% of your income to needs like rent and groceries, 30% to wants like dining out and entertainment and 20% to saving and debt repayment. One major advantage of this budget is that it allows for “fun” money, so you won’t have to sacrifice your social life while sticking to a financial plan.

To see all 25 of the top places for young professionals and for more helpful tips on how to save, read more here.

Related Stories: 

• What Is The 50/30/20 Rule?
• 31 Creative Ways To Save Money
• Monthly Budget Calculator   

Here’s what else is going on in the news this week:

• Private Student Loan Companies Accused Of Failing Borrowers Now Face Millions In Penalties A student loan servicer and a group of trusts that hold student loans may have to pay millions of dollars in penalties and compensation after allegedly failing to respond to borrower requests for payment relief. 
• Redfin Agrees To Settle Real Estate Agent Commissions Lawsuits For $9.25 Million Redfin has agreed to pay $9.25 million to settle a series of lawsuits alleging that U.S. homeowners were forced to pay inflated broker commissions when selling their homes.
• The IRS Is Increasing Its Audits Of Certain Taxpayers. Could You Be One Of Them? The Internal Revenue Service is cranking up its number of taxpayer audits, thanks to an $80 billion infusion from the Inflation Reduction Act, which was signed into law in August 2022. But not all taxpayers will be affected equally—here’s what you need to know.