LITTLE ROCK, Ark — The average household income for Arkansans in 2019 was $47,600, according to the economist, Michael Pakko with UA Little Rock.
He says the cost of living is about 12.5% below the national average.
Pakko says Arkansas is a low-wage, low-salary state.
It's the third cheapest place to live.
"In general, Arkansas is one of the least expensive places to live. The cost of living is about 15% below the national average," Pakko said.
"Here in Little Rock, the cost of living is a little bit higher than the statewide average."
He says $50,000 in Little Rock for a single person depends on their individual wants and needs.
A list of 2020 consumption expenditures with Arkansans shows the state spends less than the national average.
Arkansas spends $21,160 on housing and utilities vs. $26,930 nationwide
Arkansas spends $5,746 on healthcare vs. $8,098 nationwide
Arkansas spends $6,194 on transportation services vs. $7,006 nationwide
Arkansas spends $1,923 on insurance vs. $2,433 nationwide
"In some categories, we tend to spend almost as much on motor vehicles and parts. Then there are other areas, for instance, transportation services and health care where our costs are considerably less," said Pakko.
The average home value in the state of Arkansas is just over $140,000.
It's because of the low costs that Tamika Bennett was able to leave her corporate job two months ago which paid $42,000 a year.
The entrepreneur mom of three has her own boutique business She's Crowned Collection where she sells professional business attire.
She's used to budgeting her bills at the beginning of every month.
"Cause we spend a lot of money. For electric, water and gas for the car, just household stuff, anywhere from $2500 to $3,000 a month," said Bennett.
"As far as extracurricular activities for the children and expenses if we decide to do something, I'm going to we could spend up to $500 extra month."
Groceries are one of the most expensive items on her budget list.
She spends $400 a month and says it's because her children are expensive.
Pakko says Arkansans spend 2.1% less than the national average on food.