People In Their 20s And 30s Are Debating If $100K Is Still Good Money By 2024 Standards, And It's An Important Conversation
Even though inflation has reportedly slowed down in recent months, prices of everything from groceries to rent remain substantially higher than they were prepandemic. I don't know about you, but I'm still having WTF moments over certain food prices and attempting to "adjust" to whatever this "new normal" is.
So when I came across a thread on r/Millennials discussing how some think that a $100,000 salary no longer means you've got it made, my curiosity was piqued.
Kicking off the discussion, u/burnafter8 wrote, "All my life, I thought that was the magical goal, 'six figures.' It was the pinnacle of achievable success. It was the tipping point that allowed you to have disposable income. Anything beyond six figures allows you to have fun stuff like a boat. Add significant money to your savings/retirement account. You get to own a house like in Home Alone."
"During the pandemic, I finally achieved this magical goal...and I was wrong. No huge celebration. No big brick house in the suburbs. Definitely no boat. Yes, I knew $100,000 wouldn’t be the same now as it was in the '90s, but still, it should be a milestone, right? Even five or six years ago, I still believed that $100,000 was the goal for achieving 'financial freedom,' whatever that means. Now I have no idea where that bar is. $150,000? $200,000?"
"There is no real point to this post other than wondering if anyone else has had this change of perspective recently. Don’t get me wrong, this is not a pity party, and I know there are plenty of others much worse off than I am. I make enough to completely fill up my tank when I get gas and put plenty of food in my refrigerator, but I certainly don’t feel like 'I’ve finally made it.'"
In response, people at a variety of income levels chimed in with their thoughts, and the discussion covered everything from the costs of raising kids these days to the impact of inflation. Here's some of what people had to say:
"I make close to $100,000 and feel pretty rich (living in Phoenix). I don't have kids, though. That one difference would decimate me."
"Have kids. Can confirm it has decimated me."
"The grocery bill. My god, the grocery bill every month is insane. It seems like all they do is eat!"
"My husband and I EACH make six figures, and we have two kids. Because of the cost of having kids and giving them some of the now-expected extras (daycare, camps, activities, vacations, college funds, sports), we still have no money for ourselves. Any money 'for us' has to be put directly into retirement because of what retirement will cost us with no pensions. I would never have guessed that I would still be thrifting my entire wardrobe and avoiding eating out with a yearly income of $200,000-plus."
"I remember when my dad told my grandma that he’d gotten a promotion and was making $102,000. She started crying and hugging him, blubbering about how proud she was of him. My grandma was a poor immigrant with an eighth-grade education and was overwhelmed with emotion over how my dad had 'made it' in the new country. I now make slightly less than my dad in inflation-adjusted terms (his $102,000 in 1997 is about $180,000 now), and while I feel comfortable, I know my standard of living is going to be lower than what my parents enjoyed."
"I make $40,000 a year, and $100,00 is still my goal. Not only have the times changed quite a bit, but your perspective has as well. As humans, I think it's one of our biggest flaws (and strengths sometimes) to reach our goals and think, Now what?"
"It’s not what you make; it’s what you keep. If you can make $100,000 but spend as if you make $80,000, then you’re in good shape. If you make $100,000 and spend like you make $100,000, then you’re always struggling."
"It’s really shifted in the past decade. When I started working, I thought $100,000 was end-of-career money. I’m in the same field as when I started and just crossed $200,000, but it feels like what I thought $100,000 would. Coincidentally, I have friends who don’t make $100,000 together and are getting by just fine. Probably a combination of lifestyle creep and inflation."
"Lifestyle creep is real, but some of it is finally getting the stuff I couldn’t afford before — like a car that isn’t falling apart and a gym membership."
"I think of 'lifestyle creep' as 'getting nicer versions of things you need and some stuff you just want' rather than stuff you really should have, like reliable transportation and an important health investment, like a gym membership (which, IMHO, is at least as important as something like dental appointments or fresh vegetables). I guess that’s the point of this post, though. More and more, things that used to be 'should-haves' are becoming 'nice-to-haves.'"
"Lifestyle creep is real for many people. It’s amazing what 'necessities' you find to fill the gap between your previous wage and your new wage. I’ve definitely fallen prey to it before.
"The last time I got a sizable (to me, at least) bump, I funneled all of it to savings as part of my direct deposit and continued living as though I still made my old wage. I really am simple enough that if I don’t 'see' it, I don’t think about it."
"Right now, I make about as much as my dad made in the early '90s. It's still under six figures, but it allowed my folks to buy an 1,800-square-foot house in a safe suburban area of the town I was born in. Despite moving to a place where I make above the median income, budgeting, and not living a lifestyle above my means, I'm still living hand to mouth. While I know my circumstances are unusual compared with most folks my age, I'm still constantly comparing where my marker is in relation to others and feeling disappointed. There's more to life than money and working until you die. At least, there should be. Unfortunately, it's the reality for a lot of people from any generation."
"Anyone else feel like Dr. Evil after waking up from cryo-freeze and learning $1 million just isn't the amount it used to be??"
"It depends on where you live as well — $100,000 in New York City or San Francisco is not amazing, but in the middle of Alabama? Pretty decent. Also, it depends on your spending and saving levels. If you earn $100,000 and spend $110,000 on Pog collectibles, you aren't going to be getting ahead financially, either."
"Pretty decent in the middle of Alabama, but 30 years ago, if you made $100,000, you could have a family of five, new cars every few years, and expensive family vacations twice a year.
"We recently crossed the threshold to over $100,000, and while we have a decent life, there aren't several thousand dollars to spend on a vacation. We can't afford new cars. We're stressed out about affording a single child."
"Yeah, I'm in a high–cost of living area, and $100,000 is what you need to get by and not be sideswiped by an emergency. A friend and his wife make a combined $250,000 and do really well for themselves."
"We’ve been quoting decades-old benchmarks for a 'good salary' since I’ve been an adult, and we also completely ignore cost of living differences across the country. Oh, also, we blame the person and don’t listen to them when they say a salary isn’t what it used to be, or possibly kick the can by telling them to 'just move.' I’ve made a point recently to listen to someone when they say they feel stretched/poor, regardless of their income level, rather than dismiss it."
"As someone who lives in a low–cost of living area and only makes $60,000, I’m getting annoyed by all these '$100,000 isn’t enough' posts. Y’all need to move. Half of you are remote now, for Pete’s sake. You think I want to live out here at the ass end of nowhere? No, I don’t. But I’m living comfortably on a $45,000 take-home. Living in a highly populated area has to be the most expensive thing a person can do. Everyone wants to live there because there’s so much stuff to do. But if you’re too broke to do any of it, why pay so much? And yes, I know moving is hard and scary, but so is having $0 in your retirement account and $2,500/month rent for a one-bedroom."
"I would say the meaning of $100,000 really changed with the housing boom. That used to be the magic number for being able to buy a nice home. Unfortunately, now you would be lucky to get a cheap townhouse or condo with that salary. It’s a shame, considering that my parents made less and easily purchased a single-family home. Their $300,000 house purchased in 2001 is now worth $1.2 million."
"I bought a $400,000 house right before the COVID-19 pandemic, and my boomer parents kept giving me shit about how fancy and overpriced the house was. They had been living in the same house since the early '80s on 15 acres. I tried to explain to them that because of inflation, their $80,000 house is worth more than my house, and they wouldn't buy it. Had a Realtor friend come out and show them comparables, and they finally got it."
"We paid $250,000 for an 840-square-foot house built in 1948. This was early 2020, and my partner's parents could not believe we would pay so much for so little. They were sure we were getting ripped off.
"Four years later, and you can't buy an empty lot for $250,000. They finally came around last year when they were trying to buy a home with a $500,000 budget, and everything was 'too old,' 'too small,' or 'too outdated.' Like, welcome to the club. It sucks here."
"I'm a disabled veteran and live on $25,000 a year in an urban setting. I scratch my head when people say that six figures isn't enough. Sure, it isn't what it used to be. I'm single, no kids, yes. However, add a wife, two kids, and another $25,000 for each. Some costs wouldn't repeat. Certain luxuries may be out of reach, but I just can't see it not being enough. I'm not shaming anyone or ridiculing your choices. In fact, I'm trying to make those who say that feel a little better. It could be worse, and even then, it can be done. I have enough space. I insist on eating real food. I have an e-bike to get around, and that credit card payment is my only debt. The VA does cover medical, so maybe bump that up to $30,000. That's roughly $425 monthly on medical expenses."
"I am at the $100,000 mark, and my partner is stepping closer to that mark too. I agree that it is not the same as it was, but I can say that I feel very solidly middle class. Granted, we got into the real estate market in 2015, so we have a pretty fixed housing cost. For me, getting Public Service Loan Forgiveness was probably one of the biggest things that changed how I felt financially. The burden of graduate loans was a lot to mentally deal with."
"It still is a milestone. You should be proud of your accomplishment. Despite what you see online, many working Americans will never make six figures. After $85,000, the feeling of excitement went away for me. It's just all a bit more to save or invest. We were able to buy our home well before I hit six figures, but we had to live further out."
"Your $100,000 now was just over $57,000 in 2002. Nobody back then was saying, 'Make a $50,000 income, and you're set.' It's just math. Also. That boat? Debt is much more expensive. That mortgage? It costs more now. There is one other thing to consider: What are your savings? How much are you spending to secure your future? I really think this is a big part of why so many millennials are so jaded about the money they make. They are actually putting money away into retirement, and then it feels as if they have absolutely nothing left, even though they're going to be spending it down the road."
"I don’t understand why people think the salaries that were good 30 years ago would still be close to good salaries today. I understand inflation has surpassed salary growth, but there was more than a $20,000 jump in the median salary between 2000 and 2020 alone. This has also always been the trend over long timelines. I will concede that the continued citation of 'six figures' or $100,000 as a good family income in the media is super annoying and continues to promote the idea that if you plan for a career that enables you to eventually hit $100,000, you will be able to achieve a very comfortable middle-class life."
"The phrase 'six-figure income' as something to aspire to was coined in the '80s. Maybe earlier. Making $100,000 a year back then was the equivalent of making about $300,000 now. Making $100,000 now is the equivalent of making $30,000 back then: middle class and not particularly comfortable. But this didn’t happen overnight in 2021 or 2007.
"Young adults now have a skewed view of inflation because they have only known it to be very low or very high. But from around ~1982 to 2005, inflation was steady — and steadily reducing the value of $100,000. So the answer to 'When did it suddenly become not enough?' is never — it’s been happening for a long time."
"Recently hit six figures. Nothing's changed for me. In fact, it’s getting worse. But I’m a single parent with two kids and paying child support. Currently looking to sell my home; it’s just not sustainable when everything goes up faster than my ability to grow my wage. I guess I didn’t pull up my bootstraps enough."
"I made $85,000 this year for the first time, born in '89, and it is not nearly as nice as I thought it would be. I’m happy where my 401(k) is for being 35, but I missed out on buying a home three years ago, and now I probably won’t be able to own one until my parents die, which really isn’t a positive, ya know?"
"I work in government, where pay is pretty static. Everyone in a specific classification makes essentially the same thing. I have coworkers who have about a 10-year head start on me and own nice homes, cars, RVs, and boats with a family. I'm at basically the same point in life now that they were in 10 years ago, and I can't imagine being able to afford to support a family, much less buying expensive toys."
Now I'm curious: What do you think? Would a $100,000 salary be enough for you and your family? What amount would it take for you to feel financially secure? Let's talk about it in the comments.
Note: Some responses have been edited for length and/or clarity.