Why are Americans struggling on $100,000? This breakdown offers clues | The Independent (https://www.the-independent.com/manifest.json) (img/shortcut-icons/favicon.ico) (img/shortcut-icons/icon-192x192.png) (img/shortcut-icons/icon-512x512.png) (img/shortcut-icons/icon-192x192.png) (https://assets.the-independent.com/fonts/Independent-Serif-Medium.woff2) (https://assets.the-independent.com/fonts/Independent-Serif-Medium-Italic.woff2) (https://cdn.taboola.com/) (https://www.independent.co.uk/us/money/cost-living-breakdown-salary-america-b3063003.html) (b3063003.html) (https://www.independent.co.uk/us/money/cost-living-breakdown-salary-america-b3063003.html) (https://assets.the-independent.com/fonts/Independent-Serif-Regular.woff2) (https://assets.the-independent.com/fonts/Independent-Serif-Regular-Italic.woff2) (https://assets.the-independent.com/fonts/Independent-Serif-Medium.woff2)    Thank you for registering Please refresh the page or navigate to another page on the site to be automatically logged in Please refresh your browser to be logged in     (b3063003.html#main-content) Skip to content    Open full menu        US Edition    (https://www.independent.co.uk/?editionSwitcherSource=the-independent.com) UK Edition (https://www.independentespanol.com/?editionSwitcherSource=the-independent.com) Edición en Español          (https://www.the-independent.com/)         (https://www.the-independent.com/login?regSourceMethod=Nav+register+CTA) Log in     (https://www.the-independent.com/login?regSourceMethod=Nav+register+CTA)   Log in         (https://www.the-independent.com/us) News  (https://www.the-independent.com/sport) Sports  (https://www.the-independent.com/arts-entertainment) Culture  (https://www.the-independent.com/life-style) Lifestyle  (https://www.the-independent.com/us/money) Money  (https://www.the-independent.com/us/travel) Travel  (https://www.the-independent.com/news/science) Health & Science  (b3063003.html) More                                      Swipe for next article       (https://www.the-independent.com/) US  (https://www.the-independent.com/us/money) US Money     Why are Americans struggling on $100,000? This breakdown offers clues Dollar General CEO recently said $100,000 earners have adopted the shopping habits of lower-income households  (https://www.the-independent.com/author/jr-duren) J.R. Duren in Jacksonville, Florida   Sunday 11 October 2026 08:49 EDT            Bookmark   (b3063003.html#comments-area)    Comments      Go to comments       Bookmark popover Removed from bookmarks Close popover                 Close        Related video: Cost-of-living increases are hitting Gen Z hard         (Independent Membership)   Become an Independent member to bookmark this article Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Membership today. (https://www.the-independent.com/subscribe?regSourceMethod=Bookmarks) Join today Already a member? (b3063003.html#) Log in     (https://www.awin1.com/cread.php?awinmid=66532&awinaffid=201309&ued=https%3A%2F%2Fww[%E2%80%A6]credit-scores-v12aff%3Fadcopy%3D0%26adcampaign%3Dcore_acq_awin) SPONSORED BY CREDIT KARMA (https://www.awin1.com/cread.php?awinmid=66532&awinaffid=201309&ued=https%3A%2F%2Fww[%E2%80%A6]credit-scores-v12aff%3Fadcopy%3D0%26adcampaign%3Dcore_acq_awin) The Independent Money channel is brought to you by Credit Karma.      There was a time when a (https://www.the-independent.com/us/money/high-paying-jobs-no-degree-education-b2994270.html) $100,000 salary could create a very comfortable lifestyle - but now those dollars (https://www.the-independent.com/us/money/dollar-general-quarterly-sales-increase-b2988764.html) don’t go nearly as far as they used to .  “Earning $100,000 used to be the point where you could say, ‘I can afford to do what I want and live the way that I want,’” Ashley F. Morgan, owner of bankruptcy law firm Ashley F Morgan Law, PC, said in an email to The Independent .  Some (https://yougov.com/en-us/articles/49463-who-are-high-earning-americans-and-what-do-they-think) 18 percent of U.S. adults earn at least $100,000, according to a 2024 survey from YouGov. And though $100,000 is more than double the national median salary of $46,960, financial stress remains for many six-figure earners.      In fact, those making $100,000 or more have now adopted the shopping habits of lower-income households as they struggle with affordability, Dollar General CEO Todd Vasos said at a (https://seekingalpha.com/article/4946576-dollar-general-corporation-dg-presents-at-goldman-sachs-global-consumer-and-retail-conference) recent retail conference . That remark has some consumers second-guessing the value of such a salary. “I think a lot of people got to (https://www.the-independent.com/us/money/high-paying-lucrative-careers-drawbacks-stress-mental-health-b2988276.html) six figures  and thought, ‘Wait, why doesn't this feel like as much money as I expected?’” Steve Sexton, owner of financial firm Sexton Advisory Group, told The Independent in an email.   (‘I regularly see people making good incomes who are living paycheck to paycheck,’ one expert said) open image in gallery     ‘I regularly see people making good incomes who are living paycheck to paycheck,’ one expert said(Getty Images for Prive)    The numbers tell the story  The average American household’s monthly costs total $8,856, according to an analysis by The Independent .    The figures are based on the latest numbers from sources including the nonpartisan think tank Tax Foundation; nonprofit think-tank Urban Institute; vehicle marketplace Edmunds.com; student loan analysis site Education Data Initiative; the U.S. Energy Information Administration; wireless and internet provider Astound; and internet provider comparison site BroadbandNow.  The Independent also used Progressive’s national average for medium-priced car insurance. Rent: (https://www.urban.org/data-tools/american-affordability-tracker?metric=healthinsurancecost&state=06) $1,890   Federal taxes: (https://taxfoundation.org/data/all/federal/who-pays-federal-income-taxes-tax-year-2023/) $1,175  Groceries: (https://www.urban.org/data-tools/american-affordability-tracker?metric=healthinsurancecost&state=06) $1,050   Health insurance: (https://www.urban.org/data-tools/american-affordability-tracker?metric=healthinsurancecost&state=06) $611   Gas: (https://www.urban.org/data-tools/american-affordability-tracker?metric=healthinsurancecost&state=06) $192   Electricity: (https://www.urban.org/data-tools/american-affordability-tracker?metric=healthinsurancecost&state=06) $154  Cellphone: (http://redirect.viglink.com?&key=9ed4af92937c872e0ab792f0310bab4e&u=https%3A%2F%2Fwww.astound.com%2Flearn%2Fmobile%2Faverage-cell-phone-bill%2F&cuid=b3063003) $155  Internet: (https://broadbandnow.com/research/home-internet-costs-by-state) $81  Car insurance: (https://www.progressive.com/answers/average-car-insurance-cost/) $113   Student loans: (https://educationdata.org/average-student-loan-payment) $434   Used car payment: (http://redirect.viglink.com?&key=9ed4af92937c872e0ab792f0310bab4e&u=https%3A%2F%2Fwww.edmunds.com%2Fcar-payments%2F&cuid=b3063003) $572  Childcare: (https://www.urban.org/data-tools/american-affordability-tracker?metric=healthinsurancecost&state=06) $2,425 .   An American earning $100,000 gets paid around $8,333 a month before taxes - $519 less than the average household monthly spending.    (Credit Karma logo) Monitor your credit scores effortlessly. Create an account today. Terms and conditions apply.  (https://www.awin1.com/cread.php?awinmid=66532&awinaffid=201309&ued=https%3A%2F%2Fww[%E2%80%A6]credit-scores-v12aff%3Fadcopy%3D0%26adcampaign%3Dcore_acq_awin) LEARN MORE    ADVERTISEMENT    (Credit Karma logo) Monitor your credit scores effortlessly. Create an account today. Terms and conditions apply.  (https://www.awin1.com/cread.php?awinmid=66532&awinaffid=201309&ued=https%3A%2F%2Fww[%E2%80%A6]credit-scores-v12aff%3Fadcopy%3D0%26adcampaign%3Dcore_acq_awin) LEARN MORE    ADVERTISEMENT    While the above list considers some basics for an average American, not every home or individual has each expense on the list - and some may have additional costs. A good number of people don’t have to pay childcare or own a car. Others may live in one of the (https://taxfoundation.org/data/all/state/state-income-tax-rates/) 41 states with state taxes or a place with city tax like (https://eshelcpa.com/blog/nyc-income-tax-rate) New York .  Also, the list doesn’t account for expenses like gifts, charity contributions, clothing, streaming services or discretionary spending on entertainment or dining out. (Earn $100,000? Be ready for a $519 monthly shortfall)    The sting of city living  The gap between a $100,000 salary and monthly expenses is even wider in some major cities, where rent, groceries, and insurance tend to be more expensive.      For example, the average rent in San Francisco is (https://www.apartments.com/rent-market-trends/san-francisco-ca/) $3,638 , according to housing marketplace Apartments.com. Rent that high would create a $2,271 monthly deficit for a $100,000 earner. On the other hand, average monthly rent in El Paso, Texas, in October is (https://www.apartments.com/rent-market-trends/el-paso-tx/) $1,007 , low enough to create a $360 surplus each month.  “Often, whether $100,000 is a significant salary depends [on whether] you have children, your housing costs, how much debt you have, whether you have student loans, what you pay for health insurance and whether you need a car,” Ashley F. Morgan, owner of bankruptcy law firm Ashley F Morgan Law, PC, said in an email to The Independent.   “In high cost-of-living areas, housing alone can consume a significant portion of someone’s take-home pay. Add a car payment, insurance, groceries, utilities and debt payments, and someone earning $100,000 can have surprisingly little money left at the end of the month.” (San Francisco is one of the most expensive cities in the country, with an average rent of $3,638 in October, according to housing marketplace Apartments.com) open image in gallery     San Francisco is one of the most expensive cities in the country, with an average rent of $3,638 in October, according to housing marketplace Apartments.com(Getty)    Creeping costs   Those earning $100,000 may feel like they’re living paycheck-to-paycheck for reasons that have nothing to do with cost-of-living, Morgan said. Lifestyle creep - spending more as you earn more - can also drain a six-figure salary. “Wanting nicer things is not generally an issue,” Morgan said. “The problem is that if every increase in income immediately becomes an increase in monthly expenses, earning more doesn’t necessarily create any more financial stability. I regularly see people making good incomes who are living paycheck to paycheck.” Identifying needs and wants is a good way to temper lifestyle creep. Write down a max dollar amount you want to spend on wants every month, then stick to that budget.  The ‘new’ $100,000   If this salary is no longer what it once was, what’s the “new” $100,000?  “If you made me pick a number, I’d probably say $150,000 is starting to feel more like the old $100,000,” Sexton said. Morgan noted that “earning $100,000 can be something to celebrate. It just shouldn’t be confused with being wealthy.”  She added: “The better measure is what you are able to keep, save and invest after paying for your life. Financial stability usually comes from flexibility, not from reaching a particular salary.”  This article is sponsored by Credit Karma. We may earn a commission if you engage with their services using links in this article.     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