Report: Mississippi leads in savings potential

Despite a low median income, Mississippi is ranked as the best state for savings potential. That’s according to a new study from the Kaplan Group, which is a business-to-business (B2B) debt collection agency specializing in recovering outstanding payments from companies. They focus on commercial debt collection, financial investigations, and consulting for businesses dealing with unpaid invoices.

According to the report, the Magnolia State’s 16.7 savings score is attributed to its low cost of living, which allows residents to save more despite having a lower median income of $45,081.

Mississippi has an average monthly savings potential of $627.38, outpacing states with significantly higher median incomes. Mississippi’s success story challenges the assumption that high incomes lead to better savings. By maintaining lower expenses relative to income, residents are proving that the cost of living is a powerful factor in financial security.

“As national conversations focus on financial hardship, Mississippi’s savings success proves that economic efficiency matters as much as income,” said Dean Kaplan, President of The Kaplan Group. “This study highlights how sustainable savings habits and smart spending decisions can yield financial stability, regardless of income level.”

States with higher costs of living, such as California, often show the worst savings potential due to the high expenses that erode disposable income, even if the median income is higher. 

Kansas, with a moderate cost of living and a reasonable median income, represents the average, offering a balanced environment for savings. It highlights the importance of considering both income and living costs when evaluating savings potential.

US Census Bureau – Mississippi Quick Facts

Rent Cafe – Cost of Living in Mississippi 

EFA- State Debt to Income Ratio – 1999-2024