Maybe the $100,000 + earners do not need the lastest iphone, all the streaming services, eat out every night, etc.
If I made that much I would pay off debt as fast as possible.
100K is a pittance in many cities. Maybe you shouldn’t assume the worst of everyone not like you?…
Depends on where they are living - cost of living is much higher in some places...in some places making half that allows you to more afford costs of daily living.
When you pay state & Federal income and property taxes. Medicare, SS, sales tax, health insurance, health savings account, 401k.
Potentially have a mortgage, one or two car loans, and kids in college in does not leave a lot left.
I am no longer in that position. However, I was for years. I still have the taxes, HSA, 401K and health insurance. After that I get about 55% of my gross monthly check.
I needed a crown put in a couple weeks ago. Even though I have dental insurance and nothing other than standard cleanings this year, it was still over $1100.
I live in NH. I do not pay state income tax. I live in a normal 2700 sq ft house. My property taxes are over $9200/year($767/month).
Maybe the $100,000 + earners do not need the lastest iphone, all the streaming services, eat out every night, etc.
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With a 6-figure income, about half immediately disappears in taxes. And depending on where you live, $100k could provide pretty luxurious living or pretty much bare bones.
Then, based on better times (aka Orange Man Bad Times), one may have taken on bearable debt in the form of car payments or mortgage payments. perhaps there was even money leftover for saving after all expenses.
Fast forward to 2022 and all the margins are gone with the increase in fuel, food, electricity, and heating.
The only debt I have is the house and about $1500 on a used car I bought 2.5 years ago.
I have zero credit card debt, nothing else.
I’ve had to buy a new dishwasher, clothes washer, fix my A/C, buy a used car (cash), and now I’ve got to fix my oven.