- Three people who make $100,000 a year said it reduced stress but wasn’t life-changing.
- With an increased income, I am now able to focus on personal growth, relationships, and financial security.
- Even with rising costs of food, housing, cars and child care, an income of $100,000 still goes a long way.
When Joshua earned his first $100,000 salary about five years ago, it didn’t have much of an impact on his lifestyle.
“I couldn’t afford to splurge or buy anything extravagant,” the 30-year-old Georgia-based fintech professional told Business Insider in an email.
But increasing his income to that level did have one important effect: He worried a lot less about money. Joshua says that his increased financial security also made him more comfortable in his relationships with friends and family.
“I no longer have the stress of having to borrow money and pay it back, and I no longer have to rush out to eat and worry about whether I’ll be able to pay,” he said.
In an economy where rising food, housing, car and childcare costs are straining people’s finances, a $100,000 annual income is no longer as affordable as it once was. According to a Bankrate survey conducted in June 2023, Americans said last year they needed to earn $233,000 a year to feel financially secure and $483,000 to feel wealthy. In addition, a survey conducted by the Federal Reserve Bank of New York found that: March They found that the average reservation wage (the minimum annual wage that one would accept in a new job) for college-graduating Americans has risen to a high of about $99,000.
But for many Americans, reaching a six-figure income can still have a major impact on their finances and well-being: As of March, the average full-time worker made about $84,000 a year, according to a survey by the New York Federal Reserve.
Business Insider asked three people who make more than $100,000 a year how their lives and relationships have changed or not since they hit six figures, and while they didn’t feel wealthier, they said their money-related stress has been reduced by several levels. BI has confirmed the revenue.
If I had money, I could focus more on the other things that I care about.
call H. Mattes told Business Insider in an email that he made his first $100,000 selling thermometers on eBay in 2020. The 24-year-old California-based entrepreneur took home $250,000 last year as the owner and founder of PR firm Monarch Media.
Mattes said that while earning a six-figure income is “not super life-changing,” the extra income has two big benefits.
First, he has fewer financial worries and can focus on other areas of his life.
“You start to focus on the things that really matter, like traveling, dating, and nurturing the relationships that matter,” he says. “When you’re no longer working yourself hog to pay rent and other basic necessities, the financial burden is lifted and life really begins to happen, allowing you to focus on the good things that life has to offer.”
Secondly, he said having money opened doors in the business world.
“Successful people do business with other successful people,” he says. “Money confers status, and the real value of being rich isn’t a new pair of jeans.”
But Mattes said making more money can sometimes have a negative impact on relationships.
“When you’re successful, you’re going to lose friends and family who are jealous of how much money you make,” Mattes says. “Losing people can be tough, but it’s really something to be positive about, because they don’t want you to be happy.”
Sure, a $100,000 salary isn’t enough to put you in the top 1% of income earners in your state, but it could be the difference between a financially unstable life and one that’s stable.
According to data from the nonprofit organization United Way, at least 32% of the population of every U.S. state qualifies as an asset-limited, income-restricted, employed ALICE person — an American who struggles to pay their bills but makes too much money to qualify for government assistance like food stamps.
In fact, for many of these people, a $100,000 salary could be life-changing.
The impact of a six-figure income can take years to be fully felt.
Maxim Sonin told Business Insider in an email that hitting the six-figure threshold didn’t feel like a big impact to him because his income had been steadily increasing over time.
But Sonim said the benefits of her increased income became more evident as she began working overseas in the oil and gas industry and her income grew into six figures, allowing her to help pay for her younger brother’s education. He consolidated his finances and enrolled in graduate school, where he is currently pursuing a master’s degree at Stanford University.
He said he’s grateful for the perks and financial stability that his high salary brings, but he wants his children to remain humble.
“They don’t really care and don’t even know how much money I started making after I hit that crucial $100,000 mark,” he said.
Staying humble is also something Joshua values. He didn’t grow up with a lot of money, so he says he’s still learning how to spend his extra income wisely. Though he now has some extra discretionary money, he allocates much of it to investments and side hustles.
Joshua, who will earn about $150,000 in 2023, said reaching six figures a few years ago was a major milestone, but it took some time for the benefits of the higher salary to be fully realized.
“Making over $100,000 consistently puts me in a stable position financially,” he said.
Do you earn more than $100,000 a year? Would you like to share your story about how this income has impacted your life? If so, please contact this reporter. jzinkula@businessinsider.com.
