Reality bites: Why six figures might not mean what it used to

Whether you’re just starting out or you’ve been working for years, you might have thought that once you hit that six-figure salary, you made it: you could eat out at fancy restaurants, shop designer brands, and take several vacations each year. But more than half of six-figure earners are now finding that their salary doesn’t stretch as far as they thought it would, according to a recent report.¹ With rising costs and changing values, the six-figure “success” story isn’t the reality for most anymore.

The cost of living keeps climbing

Even though your income may have inched upward every year, somehow, it seems, your money always runs out before the month is over. Years of inflation have raised the price of groceries, gas, and other necessities at a faster pace, crushing the six-figure dream. For example, today’s prices are at least 24% higher than at the start of 2020.² Home prices for one, have played a big role in the rising cost of living, growing much faster than incomes over the last 40 years. Between 1985 and 2023, the median household income in the US grew 241% to $80,610. The median price of houses sold in the country climbed 408% over the same period, reaching $428,600 in 2023.³

Child care costs, which are climbing faster than most people’s incomes, are putting serious pressure on family budgets and forcing many households to rethink how they spend. For some families, child care regularly equals at least 50% to 70% of what they pay for housing, making it one of the biggest monthly expenses they face.⁴ Health care costs keep rising too, with organizations expecting a 10% jump in 2026 — up from the 8% increase employers projected for 2025 — so everyone, including those earning six figures and higher, are feeling the squeeze as more of their paycheck gets eaten up by essentials.⁵

For the biggest bang for your buck, location matters

How far your six figures goes also depends on where you live. A $100,000 salary looks very different in high-cost metropolitan areas versus other parts of the country. A 2025 analysis by LendingTree found that a family earning six figures in many American cities could still end up struggling to pay bills. In fact, more Americans live in cities where making six figures is considered “middle income.” And the range is wide: middle-class starts at roughly $36,000 in Mississippi to nearly $200,000 in Massachusetts and New Jersey.

Mounting debt makes it harder to get ahead

The more debt you’re carrying, the harder it is to get ahead or even stay afloat if you’re hit with an unexpected medical, car, home repair, or other bill that eats into your disposable income and squeezes your budget. If you’re already having a hard time making ends meet, those unforeseen costs can stretch your six figures even further. A single unexpected bill can wipe out savings, push expenses onto credit cards, and force you into choosing which essentials to scale back. In fact, our research found that about 20% of Americans would have to borrow to pay a medical bill above $999, and about 68% would have to borrow to pay a medical bill above $9,999.⁶

Redefining success: it isn’t just about salary

What it means to be successful is evolving — today’s definition leans more into well-being, balance over burnout, mental health, and purposeful work rather than a big paycheck. The latest Mind, Body, and Wallet® report also suggests that the key to better financial wellness — and higher overall well-being — is about better financial habits and planning ahead, not just about having more money.