Posted by: John S Kiernan

Wallet Fitness is about turning one of Americans’ top stressors, money, into one of your biggest strengths. It means building an excellent credit score and never again overpaying for financial products. It means minimizing debt and protecting yourself with adequate insurance coverage. Most importantly, it means spending modestly while saving aggressively for retirement and emergencies.

But Wallet Fitness levels vary widely across the U.S. As we prepare to make resolutions for self-improvement, it’s fair to wonder who’s best positioned for financial success and who has the most work to do. To find out, we compared more than 180 U.S. cities based on 32 key indicators of Wallet Fitness. You can find the results below, followed by WalletHub’s 6 Tips for Reaching Top Wallet Fitness and a Q&A with a panel of money-management experts.

1. Main Findings
2. 6 Tips For Top Wallet Fitness
3. Ask the Experts: Wallet Fitness FAQs
4. Methodology

Main Findings Embed on your website<iframe src="//d2e70e9yced57e.cloudfront.net/wallethub/embed/2862/geochart-wellness.html" width="556" height="347" frameBorder="0" scrolling="no"></iframe> <div style="width:556px;font-size:12px;color:#888;">Source: <a href="https://ift.tt/2BRkpSf>

 

Best Cities for Wallet Fitness

Overall Rank (1 = Best)	City	Total Score	‘Credit Standing’ Rank	‘Responsible Spending’ Rank	‘Savings’ Rank	‘Risk Exposure’ Rank	‘Earning Power’ Rank
1	Fremont, CA	66.42	1	19	89	1	29
2	Seattle, WA	65.84	12	65	4	18	14
3	San Francisco, CA	65.47	3	60	48	2	28
4	San Jose, CA	64.65	32	93	3	4	63
5	Madison, WI	64.20	2	5	33	27	40
6	Boise, ID	64.10	21	2	34	40	26
7	Minneapolis, MN	62.09	35	44	5	90	18
8	Overland Park, KS	61.43	96	25	35	33	5
9	Orlando, FL	61.33	81	41	8	94	7
10	Pearl City, HI	60.94	6	32	36	31	69
11	St. Paul, MN	60.91	38	49	12	86	19
12	Columbia, MD	60.75	88	21	40	91	3
13	San Diego, CA	60.75	59	101	15	11	56
14	Washington, DC	60.38	90	23	10	59	37
15	Boston, MA	59.93	7	82	27	48	58
16	Irvine, CA	59.85	17	118	109	3	25
17	Warwick, RI	59.62	55	39	77	7	72
18	Buffalo, NY	59.03	23	3	1	71	153
19	Honolulu, HI	58.95	4	78	26	34	128
20	Bismarck, ND	58.46	9	42	123	100	11
21	Cedar Rapids, IA	58.26	42	4	137	35	65
22	Des Moines, IA	58.16	70	11	44	52	55
23	Raleigh, NC	58.14	69	70	37	87	13
24	Portland, OR	58.01	46	149	13	67	24
25	Sacramento, CA	57.99	123	91	19	15	76
26	Plano, TX	57.98	78	16	98	75	9
27	Austin, TX	57.83	57	110	51	121	2
28	Billings, MT	57.79	28	27	76	69	74
29	Scottsdale, AZ	57.34	72	129	114	17	4
30	Denver, CO	57.04	45	174	16	44	15
31	Tacoma, WA	56.98	93	63	21	54	82
32	Grand Rapids, MI	56.96	15	22	59	63	100
33	Santa Rosa, CA	56.94	5	160	150	9	98
34	Pittsburgh, PA	56.58	63	126	31	95	30
35	Salt Lake City, UT	56.41	98	117	23	125	6
36	Columbus, OH	56.28	95	48	24	89	70
37	Lincoln, NE	56.24	18	13	139	80	66
38	Durham, NC	56.18	66	61	78	112	10
39	Colorado Springs, CO	56.15	91	119	87	24	42
40	Gilbert, AZ	56.07	140	121	122	16	1
41	Huntington Beach, CA	55.89	50	145	131	6	34
42	Nashua, NH	55.74	24	57	93	117	59
43	Charlotte, NC	55.61	82	146	6	107	52
44	Cheyenne, WY	55.47	31	50	157	110	16
45	Rutland, VT	55.46	20	14	163	47	124
46	Fargo, ND	55.42	34	97	83	101	41
47	Spokane, WA	55.18	39	59	85	41	99
48	Oakland, CA	55.15	49	128	80	13	117
49	Rochester, NY	55.10	61	10	2	93	166
50	Atlanta, GA	55.09	152	103	18	114	17
51	Modesto, CA	55.04	65	35	88	21	141
52	Omaha, NE	54.90	105	89	29	104	47
53	Lexington-Fayette, KY	54.89	30	31	151	45	95
54	Nampa, ID	54.70	75	7	45	124	134
55	Chandler, AZ	54.62	130	123	120	23	8
56	Nashville, TN	54.58	58	171	41	37	38
57	Sioux Falls, SD	54.58	56	155	68	57	35
58	St. Petersburg, FL	54.50	131	43	105	53	27
59	Tampa, FL	54.40	142	38	82	65	36
60	Manchester, NH	54.16	29	73	91	113	86
61	Portland, ME	54.00	11	175	30	106	39
62	Cincinnati, OH	53.90	76	24	61	108	119
63	Vancouver, WA	53.74	68	153	22	39	139
64	Burlington, VT	53.50	10	122	160	70	84
65	New York, NY	53.42	27	172	17	46	151
66	Rapid City, SD	53.41	19	88	124	111	73
67	Worcester, MA	53.40	43	20	58	62	170
68	Oklahoma City, OK	53.38	125	51	57	105	68
69	Oceanside, CA	53.31	86	143	70	12	145
70	Lewiston, ME	53.27	8	9	152	140	83
71	Chattanooga, TN	53.25	118	67	69	51	96
72	Jersey City, NJ	53.24	16	98	86	99	104
73	Jacksonville, FL	53.11	164	76	60	55	64
74	Kansas City, MO	53.07	156	56	28	118	81
75	Virginia Beach, VA	53.05	168	125	42	81	33
76	Charleston, SC	52.96	77	115	140	85	22
77	Peoria, AZ	52.86	150	131	128	26	12
78	Louisville, KY	52.80	116	104	74	50	94
79	Chula Vista, CA	52.70	134	136	67	10	137
80	Yonkers, NY	52.62	54	95	94	58	110
81	Baltimore, MD	52.53	132	47	11	165	113
82	Fort Wayne, IN	52.37	33	12	147	83	136
83	Juneau, AK	52.24	40	77	176	136	20
84	Charleston, WV	52.22	22	1	171	130	109
85	Rancho Cucamonga, CA	52.14	137	148	145	5	44
86	Chesapeake, VA	52.03	176	109	56	66	51
87	Santa Clarita, CA	51.82	141	154	125	8	57
88	Henderson, NV	51.81	167	62	112	36	54
89	Tallahassee, FL	51.81	74	124	149	68	79
90	Philadelphia, PA	51.68	128	55	20	146	134
91	Tulsa, OK	51.56	104	71	47	127	123
92	Irving, TX	51.49	67	40	102	171	46
93	Huntsville, AL	51.28	99	17	156	77	105
94	Aurora, CO	51.27	80	177	62	61	48
95	St. Louis, MO	51.26	79	105	50	154	87
96	Baton Rouge, LA	51.22	149	18	53	126	149
97	Albuquerque, NM	51.16	114	69	90	88	116
98	Indianapolis, IN	50.89	103	139	38	103	131
99	Glendale, CA	50.82	48	169	130	14	102
100	Los Angeles, CA	50.79	53	180	46	42	122
101	Providence, RI	50.67	44	80	63	64	181
102	Chicago, IL	50.64	144	106	7	159	140
103	Las Vegas, NV	50.56	146	81	71	119	85
104	Phoenix, AZ	50.52	133	142	65	116	53
105	Fort Worth, TX	50.39	157	45	79	166	49
106	Mesa, AZ	50.37	94	138	111	76	75
107	Tempe, AZ	50.32	155	137	115	74	23
108	Knoxville, TN	50.31	85	152	95	60	113
109	Missoula, MT	50.24	14	163	170	82	101
110	Stockton, CA	50.19	47	100	117	28	176
111	Bakersfield, CA	50.19	138	53	129	43	125
112	Salem, OR	50.16	83	135	175	84	71
113	Fresno, CA	50.01	60	116	100	49	172
114	Milwaukee, WI	49.89	100	147	9	139	157
115	Pembroke Pines, FL	49.85	143	64	164	32	60
116	Reno, NV	49.83	36	167	181	56	91
117	Springfield, MO	49.82	26	102	146	131	106
118	Long Beach, CA	49.81	71	170	110	22	107
119	Garden Grove, CA	49.81	25	176	132	19	130
120	Port St. Lucie, FL	49.79	126	127	162	79	67
121	Grand Prairie, TX	49.77	170	34	107	156	31
122	West Valley City, UT	49.74	174	107	39	163	45
123	Cape Coral, FL	49.60	117	111	180	72	32
124	Dallas, TX	49.33	121	114	43	177	78
125	New Haven, CT	49.31	37	30	32	149	175
126	Aurora, IL	49.20	112	85	73	122	147
127	Richmond, VA	49.15	102	92	64	144	97
128	Arlington, TX	49.12	136	36	101	160	89
129	Detroit, MI	49.05	135	8	49	173	169
130	Dover, DE	49.00	120	99	168	98	80
131	Newport News, VA	48.96	165	75	55	138	126
132	Fort Lauderdale, FL	48.89	153	86	148	102	21
133	Amarillo, TX	48.65	89	46	172	169	43
134	Garland, TX	48.63	106	33	106	174	92
135	Anaheim, CA	48.43	51	179	118	29	121
136	Greensboro, NC	48.39	109	87	96	135	103
137	Casper, WY	48.22	92	37	158	162	77
138	Little Rock, AR	48.13	160	158	104	96	62
139	Houston, TX	48.04	108	130	25	180	115
140	Akron, OH	48.02	113	15	72	151	155
141	Lubbock, TX	48.00	84	94	167	133	88
142	Wilmington, DE	47.90	122	120	97	115	142
143	Anchorage, AK	47.84	111	79	161	150	61
144	Tucson, AZ	47.80	64	134	133	109	127
145	Riverside, CA	47.78	127	165	136	20	111
146	Glendale, AZ	47.66	119	140	121	97	112
147	Wichita, KS	47.58	110	150	54	142	138
148	Columbia, SC	47.49	161	74	81	148	90
149	Fort Smith, AR	47.48	13	52	178	152	150
150	Huntington, WV	47.23	52	29	173	137	159
151	Toledo, OH	47.15	115	6	92	158	156
152	San Antonio, TX	47.08	171	162	66	145	50
153	Norfolk, VA	46.43	158	141	52	164	129
154	Winston-Salem, NC	46.31	107	68	103	147	148
155	Ontario, CA	45.64	124	173	141	25	144
156	Fontana, CA	45.48	166	164	143	30	120
157	Birmingham, AL	45.41	151	54	113	167	154
158	Bridgeport, CT	45.36	97	26	14	178	177
159	North Las Vegas, NV	45.14	179	90	116	128	118
160	Corpus Christi, TX	44.56	139	28	165	172	108
161	Las Cruces, NM	44.33	101	112	182	120	132
162	Moreno Valley, CA	44.04	172	166	144	38	143
163	Miami, FL	43.60	162	156	127	153	93
164	Santa Ana, CA	43.43	41	181	118	92	168
165	Oxnard, CA	43.31	62	182	135	78	171
166	Augusta, GA	43.21	154	83	134	143	158
167	Mobile, AL	42.99	173	66	154	123	167
168	Jackson, MS	42.93	180	113	126	141	163
169	Montgomery, AL	42.24	181	58	155	134	162
170	Memphis, TN	42.14	182	161	99	129	152
171	San Bernardino, CA	41.42	147	168	142	73	178
172	New Orleans, LA	41.33	159	178	108	132	164
173	Shreveport, LA	40.80	177	84	138	157	173
174	Fayetteville, NC	40.79	169	132	159	170	146
175	El Paso, TX	40.76	163	72	153	176	133
176	Columbus, GA	40.27	175	96	179	161	160
177	Newark, NJ	40.22	129	144	84	179	182
178	Laredo, TX	40.00	73	133	174	181	161
179	Cleveland, OH	39.72	178	159	75	175	179
180	Gulfport, MS	39.17	145	151	169	168	174
181	Brownsville, TX	38.03	87	108	177	182	165
182	Hialeah, FL	37.61	148	157	166	155	180

6 Tips For Top Wallet Fitness

Reaching top Wallet Fitness is challenging but not impossible. The following pointers will help you get there:

1. Building Excellent Credit – Always pay your bill on time.

   Payment history is the most important component of your credit score, making up at least 35 percent of your overall rating. Setting up automatic withdrawals from a bank account means you’ll never miss a due date and always pay on time. And if you’re wondering why great credit is important, just consider the fact that someone with excellent credit would save hundreds of thousands of dollars over a lifetime, compared to someone with bad credit.

2. Minimizing Debt: Don’t allow luxuries to become necessities.

   Getting used to the finer things in life can be dangerous. If such comforts cause your monthly spending to spiral out of control, it will only be a matter of time before your bad habits lead to delinquency and default. That can ruin your credit and make it more difficult to recover. Trying to play catchup will also leave you vulnerable to financial emergencies.

   To prevent such bad outcomes, begin by strategically paying down what you owe. If you have balances on multiple credit cards, make minimum payments on all but the balance with the highest interest rate. On that one, you’ll make the biggest payment. When that balance is gone, repeat the process with your remaining balances until you’re debt-free. And once you’ve accomplished that, use only one credit card for everyday purchases. Everyday purchases, by definition, should be affordable without tapping into debt. So if you ever see finance charges on your everyday card, you’ll know you’re overspending.

3. Getting the Best Deals: Make sure to comparison-shop.

   It’s easy to assume you’re getting the best deal on your credit cards, loans and insurance policies, especially if you have above-average credit. But your needs and the offers available to you change regularly. So there’s a good chance you’ll find yourself leaving money on the table if you aren’t careful.

   One of the best ways to ensure you always have the best deal is to sign up for a free WalletHub account. Not only will you receive your latest credit score and personalized advice for improvement, but WalletHub will also constantly monitor the market for upgrades. Whenever there’s something worth knowing about, you’ll receive a notification.

4. Maximizing Earning Power: Train in a new skill.

   The little things matter when it comes to financial success, but sometimes it’s more efficient to make a big move. You could pinch pennies for years and still end up with little savings compared to investing in your education to boost your money-making potential. Many colleges and universities today offer online classes, giving you the flexibility to work toward a degree without entirely uprooting your life. There are countless specialized training programs available, too, allowing you to cost-effectively learn a trade or at least pick up a new marketable skill.

5. Preparing for Financial Emergencies: Plan for the worst, and hope for the best.

   Unexpected events can spoil the most carefully laid plans if you aren’t prepared. While there’s no predicting exactly what might come your way or when, there’s little reason to leave your life to chance. At the least, you should begin building an emergency fund and buy adequate insurance coverage. That will help ensure an emergency doesn’t become a catastrophe.

6. Saving for Retirement: Let compound interest work for you.

   You really can’t start saving for retirement too early. The sooner you begin making contributions to a retirement account, the more compound interest will be able to work its magic and the less impactful underperforming investments will be.

   Just consider the fact that someone who begins saving at age 25 needs to contribute about $450 per month to reach $1 million by age 65, assuming a 7 percent annual rate of return. Someone who starts at age 35, on the other hand, would have to save twice as much per month. So that 10-year head start therefore saves the early bird roughly $9,000 in total contributions.

Finally, our bonus tip is to sign up for a free WalletHub account. Not only will you receive access to your latest credit score and report, updated daily, but you’ll also benefit from 24/7 credit monitoring and personalized advice that will make top Wallet Fitness much easier to reach.

Ask the Experts: Wallet Fitness FAQs

For additional insight into achieving top Wallet Fitness, we asked a panel of experts who specialize in personal finance and behavioral economics the following key questions:

1. What tips do you have on how people can improve their Wallet Fitness?
2. When should an individual consider moving to an area that has better overall Wallet Fitness? When does location matter more than individual actions/behaviors?
3. In evaluating the best cities for financial health, what are the top five indicators?

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• Steve Blankenship CFP ® – Founder, Heritage Financial Planning
• Brian Leben CPA – Founder, Lulloff, Leben & Taylor, LLC
• Rachel Croson Dean, College of Social Science; MSU Foundation Professor of Economics, Michigan State University

 

Methodology

In order to determine the best cities for Wallet Fitness, WalletHub compared 182 cities — including the 150 most populated U.S. cities, plus at least two of the most populated cities in each state — across five key dimensions: 1) Credit Standing, 2) Responsible Spending, 3) Savings, 4) Risk Exposure and 5) Earning Power.

We evaluated those dimensions using 32 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the most favorable conditions for achieving top Wallet Fitness. For metrics marked with an asterisk (*) data were available at state level only.

Finally, we determined each city’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order our sample. In determining our sample, we considered only the city proper in each case, excluding cities in the surrounding metro area.

Credit Standing – Total Points: 20

• Median Credit Score: Triple Weight (~6.00 Points)
• Foreclosure Rate: Full Weight (~2.00 Points)
• Median Credit Card Debt per Person: Full Weight (~2.00 Points)
• Credit Utilization: Full Weight (~2.00 Points)
• Share of Underbanked & Unbanked Households: Full Weight (~2.00 Points)
• Share of Delinquent Debtors: Full Weight (~2.00 Points)
• Share of Credit-Denied Households: Full Weight (~2.00 Points)Note: This metric measures the percentage of households that were denied bank credit in the past 12 months.
• Share of Personal Bankruptcies: Full Weight (~2.00 Points)Note: This metric measures the percentage of adults who declared bankruptcy in the past 12 months.

Responsible Spending – Total Points: 20

• Mortgage Debt per Person: Full Weight (~5.00 Points)Note: This metric was calculated as a percentage of median earnings.
• Non-Mortgage Debt per Person: Full Weight (~5.00 Points)Note: This metric was calculated as a percentage of median earnings. Non-mortgage debt includes the following debt categories: credit card, student loan, car loan.
• Income Volatility: Full Weight (~5.00 Points)Note: This metric refers to the percentage of households whose income varied highly from month to month.
• Share of Households Behind on Bills in the Past 12 Months: Full Weight (~5.00 Points)

Savings – Total Points: 20

• Share of Households with Emergency Savings: Full Weight (~4.00 Points)Note: This metric measures the percentage of households that saved for unexpected expenses or emergencies in the past 12 months.
• Share of Households with Retained Savings in Account: Full Weight (~4.00 Points)
• Financial Products Comparison: Full Weight (~4.00 Points)Note: This metric measures the real intent of the population to compare “credit cards”, “mortgage rates”, “car insurance” and “car loans”. “Real intent” is measured using the average monthly search volumes for those specific terms.
• Annual Consumer Savings-Account Average*: Full Weight (~4.00 Points)
• Retirement Plan Access & Participation Rate: Full Weight (~4.00 Points)Note: “Retirement Plan” includes only employer-based plans.

Risk Exposure – Total Points: 20

• Share of Uninsured Population: Triple Weight (~6.67 Points)
• Exposure to Automobile Liability*: Full Weight (~2.22 Points)Note: This metric is based on WalletHub’s “Most and Least Risky States for Drivers’ Wallets” ranking.
• Share of Underwater Homes: Full Weight (~2.22 Points)Note: “Underwater” describes homes with negative equity.
• Unemployment Rate: Full Weight (~2.22 Points)
• Poverty Rate: Full Weight (~2.22 Points)
• Paid Family Leave*: Full Weight (~2.22 Points)
• Job Security: Full Weight (~2.22 Points)Note: This metric was calculated using the following formula: (Number of Employees in 2017 - Number of Employees in 2016) / Number of Employees in 2016

Earning Power – Total Points: 20

• Median Annual Income: Triple Weight (~6.00 Points)Note: This metric was adjusted for the cost of living.
• Income Growth: Full Weight (~2.00 Points)Note: “Growth” was measured by comparing 2012-2016 income figures.
• Underemployment Rate for Workers with Bachelor’s Degree or Higher: Full Weight (~2.00 Points)
• Women’s Earnings: Full Weight (~2.00 Points)Note: This metric was calculated as a percentage of men’s earnings.
• Undereducated Rate: Full Weight (~2.00 Points)Note: This measures the percentage of 25 years or older residents who did not graduate from high school
• Job Seeker-Friendliness: Full Weight (~2.00 Points)Note: This metric is based on WalletHub’s “Best & Worst Cities for Jobs” ranking.
• 4+ Star Job Opportunities per Total People in Labor Force: Full Weight (~2.00 Points)Note: This metric measures the number of job opportunities at 4+ star rated companies on Glasssdoor.com per the total people in the labor force.
• Startup Friendliness: Full Weight (~2.00 Points)Note: This measures the number of startups per capita.

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 Sources: Data used to create these rankings were obtained from the U.S. Census Bureau, U.S. Bureau of Labor Statistics, TransUnion, Council for Community and Economic Research, Zillow, RealtyTrac, National Conference of State Legislatures, Federal Deposit Insurance Corporation, Pitney Bowes, The Pew Charitable Trusts, Chmura Economics & Analytics, Center for Economic Studies, Glassdoor.com, Google and WalletHub research.

Image: William Potter / Shutterstock.com

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