Earning $100,000 a year is not enough for many American families: “The problem is only likely to get worse”
In the modern age, even earning $100,000 in some U.S. cities no longer ensures financial stability.
A recent LendingTree study shows that in 25 of the 100 biggest U.S. metro areas, a family of three making $100,000 a year is actually spending more each month than they earn — putting serious pressure on their finances.
Major expenses like rent, child care, transportation, health insurance, food, entertainment, taxes, and saving for the future are driving the strain.
San Jose, California, tops the list of least affordable cities, with average monthly expenses of $10,540, resulting in a deficit of $2,207 for families earning $100,000. San Francisco and Boston follow closely, with monthly shortfalls of $1,804 and $1,613, respectively.
On the flip side, places like Cleveland, Louisville, and Memphis are still fairly budget-friendly, with households keeping over $1,200 after covering their monthly costs.
The study highlights a growing reality: earning six figures just doesn’t go as far as it used to, especially in pricier parts of the country. With housing affordability getting tougher, some people are looking into alternatives like tiny homes — you can even find prefab ones on Amazon and Wayfair for under $16,000.
Meanwhile, cities like Jackson, Mississippi, offer a much more affordable lifestyle. There, a family making $100K ends up with about $1,394 left after expenses, helped by lower childcare costs and a cost of living that’s roughly 11% below the national average.
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It’s worth noting the study didn’t factor in things like student loans or credit card debt — so in high-cost areas, the financial squeeze could be even tighter. As living costs climb, more Americans are rethinking their options to stay financially stable.
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