Summary
For years, six figures was the goal; the line between “doing okay” and “doing well.”
But today, many households earning $100K to $200K feel like they’re treading water.
Let’s break down why.
1. Six Figures Isn’t What It Used to Be
Two full-time incomes can still vanish fast. Taxes, housing, vehicles, kids’ activities, and rising living costs eat away at cash flow.
A household bringing in $8,000 a month after tax might spend $6,000 on their daily lifestyle.
That’s before savings, vacations, or debt payments.
2. Lifestyle Pressure Is the Real Threat
At this income level, people start feeling they “should” be able to afford more — a new car, the cabin, the vacation, private lessons for the kids.
But chasing the image of success leads many straight into debt.
You can’t borrow your way to financial peace.
3. Protect Your Cash Flow
The goal isn’t just earning more — it’s keeping more.
That means:
- Avoiding car loans and other consumer debt.
- Saving first, not last.
- Automating bills and transfers so you don’t have to rely on willpower.
When you separate your income from your expenses — with dedicated accounts for household costs, food, and spending — you stop guessing and start knowing.
4. Watch the Small Numbers
The smaller, daily expenses still matter. At $150K of income, a few bad habits can quietly erase your savings goals.
5. Choose Intentionally
This range is your first real chance to build wealth. But it’s also your easiest time to lose control of it.
You don’t need every nice thing you can “technically” afford.
You need to decide what actually makes your life better, and spend your resources there. Not everywhere.