HONOLULU (KHON2) — Honolulu has earned a spot as one of the best cities for budgeting in the United States. We rank third overall in a new study of the top budgeters across the country.
With increasing costs making it harder for many to stick to their budgets, Honolulu has managed to maintain financial responsibility, setting a strong example for others.
The city and county residents demonstrate impressive financial habits, and several factors contribute to their high ranking.
A key reason Honolulu is so successful with budgeting is that it has the lowest percentage of people who only make the minimum payments on their credit card bills, which is at only 25.6%.
This shows that most residents are actively working to pay off their credit card balances and reduce debt rather than just paying the minimum and accumulating interest.
Furthermore, Honolulu ranks first in two crucial areas: housing expenses as a percentage of the median home price and the percentage of total non-housing expenses relative to median income.
These rankings reveal that residents are able to keep their living costs low, which allows them to allocate more money toward savings and other financial goals.
Here’s a look at how Honolulu ranks in key financial categories:
- Overall rank: 3rd.
- Average credit score: 7th.
- Non-mortgage debt as a percentage of income: 77th.
- Foreclosure rate: 19th.
- Credit utilization percentage: 41st.
“Creating a budget is essential because it helps you avoid overspending and enables you to meet your financial goals like paying off debt, building an emergency fund or saving for retirement,” said Chip Lup, one of the analysts on the report. “Budgeting can also improve your credit score by helping you develop responsible financial habits and can make it easier to catch fraud.”
By keeping their housing expenses low and saving for emergencies, Honolulu residents are better able to handle unexpected financial situations.
Their budgeting skills help them stay on track with bills, reduce debt and plan for the future.
Click here to read more about the report.
Honolulu’s residents show that smart budgeting, paired with responsible spending, can lead to financial success, even in an environment with rising costs.