58% Of People Say $100,000 A Year Is The Bare Minimum To Avoid The Financial Stress Of Daily Life – Here's How Many Actually Earn This

Once upon a time, earning six figures was a badge of honor – a golden ticket that signified you'd made it into the upper class. But now? Not so much. Turns out, nearly a quarter of American workers – 21.1% or over 38 million people – earned at least $100,000 last year, according to DQYDJ.com.

That's a jaw-dropping number when you consider what six figures used to represent. But today, $100K isn't the luxury salary it once was. In fact, for many people, it's the bare minimum they believe they need to stop worrying about money altogether.

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$100K: The New Baseline for Feeling "Okay"

Everything is more expensive now. So it's no surprise that a report from Edelman Financial Engines found 58% of Americans think earning $100K a year is necessary just to avoid worrying about everyday living expenses. For a quarter of respondents, even six figures doesn't cut it – they say at least $200K is needed to feel comfortable.

And they're not wrong. Inflation, skyrocketing home prices and rising interest rates have pushed living costs to extremes. What used to be a "dream salary" is now the starting point for many just to make ends meet – never mind saving for retirement, paying down debt or splurging on a vacation.

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The Pressure Is Mounting

2024 has been another tough financial year for Americans, with inflation hammering household budgets and interest rates leaving homeowners stuck in place. It's no wonder money continues to be a top source of stress for families nationwide. And even with a six-figure salary, many workers are finding it hard to keep up:

• Housing costs are consuming larger chunks of paychecks than ever, with the median home price in the U.S. reaching $416,800 as of late 2024.

• Health care and child care costs are skyrocketing, putting even more pressure on families with young kids.

• The average American carries over $5,700 in credit card debt and interest rates punish anyone trying to pay it down.

When you add it all up, it's no wonder six figures barely feel enough to breathe.

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Why It Doesn't Feel Like "Making It"

The truth is, six figures don't go as far as it used to and the data proves it. Here's why:

1. Inflation is Outpacing Wages

While $100K might look good on paper, it's worth significantly less than a decade ago. Prices on essentials like food, gas and housing have all surged, making it harder to stretch your paycheck.

2. Lifestyle Creep

Earning more often means spending more, whether it's on a bigger home, better schools or just keeping up with rising living costs. That "extra" income disappears quickly.

3. Savings and Retirement Goals Are Higher

Americans now believe they need $1.46 million saved to retire comfortably, according to Northwestern Mutual – a 15% increase from the previous year. Even a six-figure salary doesn't leave enough room to hit those targets for many.

4. The Social Security Question

Younger generations are bracing for cuts to Social Security benefits by 2035, meaning they'll have to rely even more on personal savings – yet another stressor for the $100K crowd.

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The Bigger Picture

So, what's the takeaway? A six-figure salary might still sound impressive, but it's become the new baseline for millions of Americans. If you're in that group of workers making at least $100K a year, you might find it's just enough to tread water financially – not thrive.

If you want to make your dollar go further, now's the time to get strategic. Consulting a financial advisor can help you create a plan to stretch your income, invest wisely and prioritize your goals. Whether building wealth, saving for retirement or tackling debt, having a clear road map can make all the difference in making six figures feel more than just the bare minimum.

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