Recent study ranks Madison County second in state for best places to save money
MADISON COUNTY — SmartAsset recently named Madison County as the second-best place in the state of Alabama to save money for the second year in a row.
According to SmartAsset’s website, the study examines and compares each county in the following categories: income, cost of living, purchasing power and taxes. This information helps determine which counties are the best places for people looking to save more money.
The results of the study show Madison County ranked second behind Shelby County. Nearby Limestone and Morgan counties ranked sixth and eighth, respectively.
The average cost of living was calculated first in the study. This component was calculated for households with two adults, one of them working. SmartAsset then used the ratio of household income to cost of living to create a purchasing power index for each county.
To determine the estimated tax rate, SmartAsset “applied relevant deductions and exemptions” before they calculated federal, state and local income taxes for a family in each location that was making $50,000 in annual income.
The overall “best places to save” score reflects the weighted average of the indexes. SmartAsset said they used a three-fourths weighting for purchasing power and a one-fourth weighting for tax rates. The final number is indexed to reflect which places are the best for saving money.
Nationally, Madison County was ranked the 429th best place to save money for 2018, dropping five spots from 2017.
Here’s how the top five counties in Alabama compare, data courtesy of SmartAsset:
To view an interactive map of both the state and national results of the study, visit smartasset.com/checking-account/bank-reviews. SmartAsset calculated results using data from the U.S. Census Bureau 2016 5-Year American Community Survey and the MIT Living Wage Study.