100K Salary: Not Enough to Live the Dream

Why a $100,000 income no longer buys the American Dream in most places

In today’s economy, achieving the American Dream, which traditionally includes homeownership, family life, and financial security, has become increasingly expensive.

Over 50% of Americans believe they need an annual income of at least $100,000 to feel financially comfortable, with 26% requiring $100,000 to $149,000 per year.

This benchmark of a six-figure salary, which once represented financial freedom, is now often insufficient to cover expenses and secure a middle-class lifestyle.

The cost of living has outpaced wage growth for decades, making it harder for many families to realize their financial goals.

To illustrate this, a study found that all 50 states require an annual income exceeding $100,000, with 38 states needing more than $140,000, for a family of four to secure essential expenses, own a home, a car, and a pet.

Compounding the challenge, many millennials and Generation Z individuals are burdened with significant debt upon entering adulthood.

Student loan debt and credit card balances can eat into their income, limiting their ability to save and pursue their financial aspirations.

As a result, even high-income earners are struggling to make ends meet, eroding the traditional notion of financial freedom.

Debt growth has become a substitute for income growth, creating a ripple effect that impacts generations.

This financial reality necessitates a reassessment of what constitutes the American Dream and a recognition that financial security and well-being are becoming increasingly elusive for many.