The cost of living in the United States has been steadily rising, placing increased financial pressure on American workers and prompting businesses to reassess their operational strategies. As of February 2025, the Consumer Price Index (CPI) rose by 2.8% over the previous 12 months, indicating a persistent upward trend in prices.
Housing costs, a significant component of the CPI, have seen notable increases. In 2024, the cost of shelter rose by 4.4%, reflecting the ongoing challenges in the housing market. This surge has led to a situation where a household earning the median U.S. income of $83,782 would need to allocate approximately 41.8% of their income to afford a median-priced home, highlighting the strain on personal finances.
These rising expenses impact both workers and businesses—especially payroll and benefits. As a result, many companies are exploring outsourcing as a cost-effective way to manage labor without sacrificing quality.
But before turning to outsourcing, it’s important to understand what “living comfortably” actually costs in the U.S.
What Does ‘Living Comfortably’ Actually Mean?
The phrase “living comfortably” is often tossed around in economic discussions, but it’s worth unpacking. What does it truly mean to live comfortably in America?
At its core, living comfortably means meeting basic needs—such as housing, food, transportation, and healthcare—without financial stress. But it goes beyond mere survival. A comfortable lifestyle also includes:
- Disposable income for things like entertainment, travel, and dining out.
- Savings for emergencies, retirement, and long-term goals.
- Access to quality healthcare and education.
- Time and resources to enjoy life, raise a family, and pursue hobbies.
The definition of comfort can vary greatly depending on one’s lifestyle choices, location, and family size. A single person living in a small town may require significantly less income than a family of four in a major city. Still, across all scenarios, the expectation is the same: enough financial stability to live without constant worry.
The Average Salary in US
So, how much does it really take to live comfortably in the U.S. today? The answer isn’t one-size-fits-all, but let’s look at some data.
National Average
According to a 2024 study by GOBankingRates, the salary required to live comfortably in the 50 largest U.S. cities varies widely. For example, in Detroit, Michigan, a salary of $64,849 is needed, while in San Jose, California, the requirement rises to $265,926. These figures highlight the broad spectrum of living costs across the country.
Breakdown by City & Cost Variations
- Expensive Cities (New York, San Francisco, Los Angeles):
These cities top the charts with comfort-level salaries ranging from $100,000 to $150,000 per year. The cost of rent alone can easily exceed $3,000 per month in many neighborhoods. Add in transportation, groceries, and taxes, and the numbers escalate quickly. - Mid-Tier Cities (Austin, Denver, Seattle):
In these locations, the figure drops to around $75,000 per year. Though still relatively high, housing and other expenses are more manageable compared to coastal metros. - Affordable Cities/Smaller Towns (Kansas City, Omaha, Tulsa):
Workers in smaller cities may live comfortably on about $50,000 to $60,000 per year. Rent and groceries are generally lower, and commuting costs are minimal.
Key Cost Drivers
Several major expenses determine these salary benchmarks:
- Housing: Typically the largest monthly cost, especially in metropolitan areas.
- Transportation: Includes gas, car payments, insurance, or public transit costs.
- Healthcare: Even with insurance, deductibles and co-pays add up quickly.
- Taxes: Federal, state, and local taxes take a significant portion of gross income.
With these cost drivers in mind, businesses operating in high-cost cities face a tough decision: raise salaries to match local expectations or explore more affordable staffing alternatives.
What’s the Average Salary in the Philippines in 2025?
Curious about the average salary in the Philippines for 2025? Salaries are projected to rise by 5.5%, with the average monthly income reaching approximately ₱44,800 (around $780). Dive into the full article to explore detailed salary trends and insights
How This Compares to Outsourcing Costs
Now, let’s talk numbers—and how outsourcing stacks up.
U.S. vs. Offshore Costs
Hiring a full-time employee in the U.S. can cost between $50,000 to $100,000+ per year, depending on location and skill level. But when you consider benefits, payroll taxes, office space, and equipment, the total cost can be 20% to 30% higher than base salary.
In contrast, outsourcing roles—especially in countries like the Philippines, India, or Latin America—offers a substantial reduction in labor costs. For example:
- A virtual assistant in the Philippines may cost $800 to $1,500/month.
- A skilled software developer in India might command $1,500 to $3,000/month.
- A remote customer support agent in Colombia may cost $1,000/month or less.
These rates are a fraction of what U.S.-based employees typically earn, without the additional burden of office overhead, benefits administration, or compliance with U.S. labor laws.
Reduced Overhead & Operational Flexibility
Outsourcing isn’t just about salaries. Companies also save on:
- Office space and equipment
- Health insurance and retirement benefits
- Utilities and maintenance
- Training and onboarding costs
In addition, outsourcing gives businesses more scalability and flexibility. Need a team of five developers for six months? No problem. Want to expand customer service hours without hiring night-shift employees locally? Easily done.
Quality Isn’t Sacrificed
A common misconception is that outsourcing means compromising on quality—but that’s no longer true. Today’s global talent pool is highly skilled, tech-savvy, and fluent in English. With the right training, communication tools, and quality control processes, outsourced teams can deliver equal—if not better—results than their domestic counterparts.
Ready to Lower Costs? Let’s Talk Outsourcing
The cost of living in the U.S. is higher than ever, and it’s only going up. For workers, this means demanding higher salaries to live comfortably. For businesses, this means rising operational costs, thinner margins, and harder choices.
But there is a solution.
Outsourcing offers a smart, scalable, and cost-effective way to maintain business operations without sacrificing quality or customer experience. By leveraging global talent, companies can reduce overhead, access highly skilled professionals, and remain competitive in an increasingly expensive marketplace.
Whether you’re a startup struggling to grow or an enterprise trying to optimize your workforce, outsourcing can help you stay efficient, stay lean, and stay ahead.
Now is the time to explore outsourcing solutions tailored to your business. Let’s talk about how you can reduce costs without cutting corners.
