Lexington is a medium city located in Kentucky with a metropolitan area population of 305,489. A couple could live a moderate lifestyle in Lexington on a budget of $2,642 per month, or $31,699 per year.
Cost of Living in Lexington, Kentucky
As noted above, the cost of living in Lexington, Kentucky is $2,642 per month for a couple living a moderate lifestyle. This budget consists of $1,370 for housing related costs, $722 for food, and $549 for other costs, all of which will be broken down below.
- A one-bedroom apartment in the city center of Lexington is estimated to cost $1,076
- Basic utilities including electricity, water, and gas will run about $207
- High-speed internet averages $87
- Typical grocery costs of $515 per month include things like bread, eggs, milk, cheese, rice, chicken breast, bottled water, fruits, and vegetables
- Alcohol including beer and wine for moderate home consumption costs about $92
- Frequent coffees in a neighborhood café are estimated to be about $115
- Meals out are estimated to be $350 per month, including 4 meals in mid-range restaurants and 8 in inexpensive restaurants
- Transportation costs of $75 for public transport passes and occasional taxis
- Fitness center memberships of $69
- Cinema tickets of $55 include several outings for international releases
Note that Lexington, Kentucky is a not very walkable city with a Walk Score of 20/100, which means you definitely need a car if you are living in the city center and public transportation may not be very accessible or convenient.
Amount of Money Needed to Retire in Lexington, Kentucky
Many people searching the internet for the cost of living in Lexington, Kentucky are doing so to see if and when they can quit their jobs and retire. A popular and easy way to calculate your retirement number is using the 4% Rule.
The 4% Rule estimates that a person(s) could withdraw 4% of their retirement nest egg and never run out of money. Using this calculation, a couple would need an investment portfolio of $792,477 to live a moderate lifestyle in Lexington, Kentucky.
Annual expenses of $31,699 ÷ 4% = $792,477 portfolio needed.
Of course, everyone’s financial situation is different, and the above calculation could change based on any other sources of passive income and social security income.
Overall, the cost of living in Lexington, Kentucky is affordable coming in at $2,642 for a couple living a moderate lifestyle. Those seeking to retire could do so comfortably with a retirement portfolio of $792,477.