Earning a six-figure salary can be transformative, according to four Americans who achieved this milestone in the past decade. While inflation has eroded some of its purchasing power, a six-figure income still offers significant advantages, including increased financial security and the ability to indulge in experiences like travel.
The average annual salary for full-time workers in the US is around $82,000, according to the Federal Reserve Bank of New York, making six-figure earners a minority. Business Insider interviewed four individuals who earn over $100,000 annually to explore the benefits of this income level.
One key advantage is improved financial stability and reduced stress. David Houde, a software engineer earning approximately $144,000 annually, no longer worries about meticulously tracking his spending, even on everyday expenses like groceries. He's also able to avoid accumulating credit card debt, a problem he faced before reaching this income level. Similarly, Christopher Stroup, now a financial planner, used his higher income to pay off student debt and enhance his relationships by affording travel and dining out with friends and family. He even launched his own business, leveraging his savings to cover startup costs and living expenses.
For some, a six-figure income has facilitated significant life changes. Loretta Lewis, who earns around $280,000 through consulting and a travel blog, has been able to travel the world with her wife, plan for early retirement, and save for her son's future, ensuring he avoids the student loan debt they experienced. John, working in the IT sector and on track to earn around $250,000 this year, has been able to provide crucial financial support to his family, covering his mother's rent and a significant portion of his sister's medical expenses.
However, the pursuit of a higher income can come at a cost. Both Lewis and John highlighted the increased responsibilities and time commitment associated with their higher earnings. Lewis works long hours, sometimes 50-60 hours a week, to achieve her retirement goals, sacrificing time with her family. John also balances two jobs to reach his income target. Despite these challenges, both feel the financial security and ability to help their families are worth the trade-off. John, in particular, emphasizes the freedom he feels from no longer having to worry about prices, a significant achievement given that he doesn't have a college degree.