A new study from financial technology company SmartAsset shows where in New Jersey people can get the most out of their money.
The study compares median income and cost of living data nationwide to find the counties where people hold the most purchasing power. In other words, it looked at the places where average living expenses are most affordable to the people who live there—and in New Jersey Morris County ranked No. 1.
Two different cost of living metrics were calculated for a household with one adult and no dependents. One reflected the baseline cost of living in each location and the other was based on expenditures typical to someone making the county’s median income. Those numbers were then combined using a weighted average based on how close each county’s median income was to the minimum livable income in that area. Then income taxes paid in that area were subtracted.
Then, purchasing power was calculated by determining the weighted cost of living as a percentage of median income. The top locations were those with the highest median income relative to the cost of living.