Making a six-figure salary is still a dream for a lot of Americans, but the financial milestone isn’t enough to get by in some big U.S. cities now. A family of three will still struggle to pay the bills with a household income of $100-thousand in one in four large metro areas, according to a new LendingTree study.
"For generations of Americans, $100-thousand has long been a magic number. It has been seen as a level of yearly earnings that says: You've made it. You're successful," the research shares. "However, that has changed dramatically in many of the nation's biggest metros."
- For the study, basics are considered to be rent for a two-bedroom apartment, daycare, transportation, health insurance, food and utilities, taxes and 401(k) contributions of $500 a month.
- They subtracted the cost of these monthly expenses from the $8,333 in monthly income a salary of $100-thousand brings in and found that in a quarter of big cities nationwide, it’s not enough to pay those bills.
- So, where is it hardest to get by on $100-thousand? San Jose, California, in the heart of pricey Silicon Valley. A family of three there would be $2,207 short every month after covering basic expenses.
- But the study isn’t all bad news. It finds that in one in three U.S. cities, a $100-thousand salary “is still magical.”
- McAllen, Texas, tops the list, as a family of three would have $1,770 left over after paying for those basics every month. Little Rock, Arkansas, is second, followed by El Paso, Texas.
The Top 10 Metros Where You Can Earn $100-Thousand and Still Be Broke
- San Jose, California
- San Francisco, California
- Boston, Massachusetts
- Honolulu, Hawaii
- Oxnard, California
- Washington, D.C.
- Los Angeles, California
- San Diego, California
- Seattle, Washington
- Poughkeepsie, New York
Source: CBS News