Why People Making $100,000 a Year in America Still Feel Broke

When people hear that someone in America makes $100,000 a year, they usually imagine a very comfortable life. A nice home, some savings, maybe even frequent vacations.

To be honest, I used to think the same way.

But after living in the United States for years, I’ve realized something very different. Even people earning around $100,000 a year don’t always feel financially comfortable. Sometimes it actually feels like the money disappears faster than expected.

I can say this from my own experience.

Right now, I live in an apartment in Hopkinton, Massachusetts. It’s not a big city like Boston. It’s just a quiet town. You might think living outside the city would make things much cheaper, but that’s not always the case.

Our one-bedroom apartment rent on the contract is $2,668 per month, but that price comes with a 10-month promotional discount. Without the promotion, the regular rent would actually be $2,850 per month. When we first saw the number, we thought it was expensive, but still something we could manage.But when the actual payment comes every month, it ends up being about $3,063.

Extra fees and charges add up quickly. Sometimes I look at the payment and still feel surprised that this is what we are paying just for a one-bedroom apartment.

What makes it even more interesting is that if we were considered low-income, we could probably qualify for a two-bedroom apartment for around $1,600 per month now our apartment. But our income falls right in the middle. It’s not low enough to qualify for assistance, but it’s also not high enough to feel financially relaxed.

On paper, making around $100,000 a year sounds like a lot of money. In reality, it often feels very different.

Living in Massachusetts also means dealing with cold winters. Because of that, we decided to rent a garage space for our car so we wouldn’t have to deal with snow and ice every morning.

That garage costs about $160 per month.

At first it doesn’t sound like a big amount, but when you start adding everything together, every extra cost matters.

Travel is another thing that has become surprisingly expensive. Sometimes we think about taking a short trip, maybe just a quick flight somewhere for a few days.

But even a two or three hour flight for two people can easily cost around $600. If it’s during a busy travel season, that price can quickly go up to $1,000 or more. Because of that, we often end up deciding not to travel at all.

Healthcare is another reality of living in the United States. Our health insurance alone costs about $1,000 every month for two people. And that’s just the insurance payment. It doesn’t include doctor visits, hospital bills, or other medical expenses if something actually happens.

As many people know, hospital costs in the U.S. can be extremely high.

Then there is car insurance. For us, it’s more than $3,000 per year. When you add rent, insurance, healthcare, and everyday living costs together, the monthly expenses become very large.

That’s when the idea of a $100,000 salary starts to look very different.

When people hear that number, they often imagine financial freedom. But depending on where you live in America, that income can disappear very quickly.

Housing keeps getting more expensive. Healthcare costs continue to rise. Everyday expenses slowly increase year after year but not income.

And that’s probably why so many people in America who earn around $100,000 a year still feel broke.

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