I Asked ChatGPT To Find Where a $40K Salary Goes Furthest in the US – AOL.com
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A salary can feel generous or tight depending on one thing above all else: where you live. In some parts of the country, $40,000 might barely cover the basics. In more affordable places, though, the same paycheck can stretch surprisingly far.
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To see just how much difference location makes, I asked ChatGPT to help identify where a $40,000 salary goes the furthest in the U.S. and what that looks like in real living expenses.
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In a nutshell, a $40,000 annual income stretches furthest in Midwestern and Southern cities, where housing, utilities, transportation and everyday costs run well below national averages. The key is finding places with a cost-of-living index lower than the U.S. baseline of 100.
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Drawing from World Population Review, GOBankingRates’ studies and state-level research, ChatGPT offered up some of the most affordable options:
The States
Missouri has a cost-of-living index of around 89, ranked as the sixth lowest cost of living in the U.S. for the second quarter of 2025, according to the Missouri Economic and Research Center.
Mississippi has the lowest statewide cost-of-living index in the country (around 83.3, compared to a U.S. average of 100), the AI said. Housing is especially cheap, with median home values well below the national average.
Kansas (index 86.5) and Alabama (87.9) also both offer significantly lower housing and living expenses.
The Cities
Oklahoma City shows up frequently in analyses of paycheck-to-cost-living ratios as strong performers.
Detroit; Cleveland; Knoxville and Chattanooga, Tennessee, and smaller Texas metros are also contenders for lower costs of living.
While generally speaking just saying that a place is cheaper is a little obvious — when we get down to the specifics, what makes these places more affordable than others? Here are a few of the biggest factors:
Low housing costs: These places have cheaper rent and lower home values that translate into lower mortgage payments, freeing up a big chunk of most people’s budgets.
Affordable transportation: These places offer short commutes, less traffic, lower gas costs and/or more walkability or public transit.
Moderate utility and food costs: These places have lower energy costs and, a key piece of most people’s budget, lower grocery prices well below big-city averages.
Stable job opportunities: While these places may not offer Silicon Valley wages, they typically have consistent work and lower unemployment.
More manageable everyday expenses: From insurance and taxes to entertainment and health costs, a lower baseline of expenses can stretch a fixed income much further.
When pressed to identify the single cheapest options, ChatGPT pointed to:
State: Mississippi, which “consistently ranks as the most affordable state in the U.S.”
City: Decatur, Illinois, with living costs about 20% below the U.S. average.
“Cheapest” isn’t the same as “best” ChatGPT said. Wages, healthcare, local amenities and job markets all matter, too. But if the goal is stretching a modest salary as far as it can go, Mississippi and cities like Decatur remain strong contenders.
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This article originally appeared on GOBankingRates.com: I Asked ChatGPT To Find Where a $40K Salary Goes Furthest in the US
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