Worker Discouraged By The Paycheck He Received From His First Month Making $100K
voronaman | Shutterstock A worker took to the internet in disbelief after reviewing his pay stub for his first month earning a 100k salary. He was thoroughly discouraged after realizing that what he thought would be a life-changing amount was actually all that much money in the end.
$100k is the goal base salary for many workers. With a salary like that, you might feel like you've finally been rewarded for all of your hard work. But imagine looking at your first paystub and seeing after taxes and deductions a meager $2,600. Granted that sum is just from 80 hours of work and pay, and will add up to approximately $5,200 a month, but you may have thought there should be more. In fact, there should be less if you were to max out your 401k.
Maybe $100k would be an extravagant amount in the 1990s, but today people are projecting double that to do more than survive, but to thrive and have personal wealth.
A worker was discouraged by the paycheck he received from his first month, making 100k
The responses to the post were mixed with many people saying that the amount sounded about right, while others said the worker should have paid more for their 401(k). One response summed it up perfectly, saying “lol. Said everyone that ever got their first check after hitting $100k. The new $100k is $200k. The world moved the needle.”
Reddit
So is the new life-changing salary actually $200k? Over half of Americans earning more than $100K a year live paycheck to paycheck, according to a recent survey. In factm the data found that the amount you bring home may make you feel less upper-class, depending on several factors, including household size and location. For example, $100k in NYC is a far different income than $100k in Memphis, TN.
That dream of six figures now is comparable to earning 40k several decades ago. The cost of living is rising, and inflation is skyrocketing, yet wages have remained largely the same.
The dream of financial security may be further away than a $100k salary.
Mladen Mitrinovic | Shutterstock
Many feel as though they are not living up to the dream of a six-figure income. They do not have as much disposable cash, retirement savings, or savings as they thought they would while earning 100k per year.
This is especially true if you are not single and have a larger household, or if you live in an expensive city. If that is the case, budgeting would be your best bet. Yet workers may think they have gone beyond budgeting when earning a six-figure income.
A report by GoBankingRates crunched the numbers to determine what the average family of 4 would need in salary to live with a home, car, and pet. All 50 states require an annual income of more than $100,000, according to the report, with 38 requiring more than $140,000.
Of course, if you weren't earning $100k and now you are, yes, you're bringing home more money overall, as in this worker's case, but it's not the boon most people think it is.
A $100k salary still requires frugality if you want to live well and save.
According to a report from Market Watch, having that dream 6-figure salary, which is still considered middle or upper-middle income, no longer affords you that lifestyle. Your money just doesn't go as far as it used to.
Most experts agree that the secret to financial security is the 50-30-20 rule: 50% for necessities, 30% for wants, and 20% for savings. The problem is that most people can't afford to live when they divvy up their paychecks this way.
While $100k is still the goal for most workers, many are beginning to realize that this amount may not support a family or be enough to live comfortably in a larger city like New York or San Francisco. The overall message is to still be responsible and frugal on this salary. The amount of $100k is still higher than most households in the USA. While it is above average, it's not the dream salary it once was.
Laura Lomas is a writer with a Master’s degree in English and Creative Writing who focuses on news, psychology, lifestyle, and human interest topics.
