A modern survey suggests {{that a}} six-figure earnings doesn’t guarantee that you simply simply’ll reside the ‘American dream.’ The Harris Poll’s Earnings Paradox Survey (1) revealed that 1 in 3 Individuals who earn $100,000 or further are “stretched, struggling, or drowning financially, proof that comfort has flip into elusive even for high-income Individuals.”
Nearly two-thirds of respondents (64%) say six figures is “not a sign of wealth nevertheless survival mode.” In its place of luxuries, that more cash goes in direction of groceries, housing and nicely being care, whereas monetary financial savings, wellness and holidays are literally “nice-to-have.”
Nonetheless sustaining the illusion of success means making sacrifices corresponding to delaying plans or racking up financial institution card debt. And for some, it means skipping meals and Venmo fibs. Virtually half of respondents (48%) incomes better than $200,000, who characterize the very best 10% of U.S. earners, say they’ve pretended their value app — like Venmo or Zelle — wasn’t working to stay away from paying.
Of all six-figure earners throughout the survey, 43% say they skip social events to stay away from splitting the bill, 40% use BNPL (buy now pay later) for purchases beneath $100 and 53% confirm their checking account sooner than purchasing for groceries.
Chandra Kelsey suggested CBS Data that her family of 5 usually is dependent upon help from their native meals monetary establishment although their household earnings is $150,000 — nevertheless that’s sooner than taxes.
“We have mortgage, insurance coverage protection. We’ve acquired one baby on one of the best ways to varsity, one in school. One factor as small as a $1,000 expense might throw points off significantly,” Kelsey acknowledged (2).
Affordability has flip right into a scorching matter throughout the U.S., one which helped propel Zohran Mamdani to victory throughout the New York mayoral race and is having fun with a process in President Donald Trump’s sinking poll numbers (3).
All through a Cabinet meeting in early December, Trump known as affordability a Democratic “rip-off” and “a con job” (4). Nonetheless as affordability issues mount, Republicans are rising anxious about subsequent 12 months’s midterm elections (5). And, sooner than she decided to resign from Congress, Marjorie Taylor Greene accused the current administration of “infuriating people” by “gaslighting” them on affordability (6).
Whereas inflation has cooled as a result of the early days of the pandemic, many Persons are nonetheless feeling the pinch. Nearly half of Individuals (47%) say it’s extra sturdy “to afford groceries now than it was a 12 months prior to now,” in accordance with a September survey by Axios and The Harris Poll (7).
They’re not imagining better prices on the grocery retailer. Whereas normal inflation — at 3.0% as of September (8) — is down from pandemic highs in 2022 (reaching 9.1% in June 2022), meals prices as of September have been 18.2% better than in January 2022, in accordance with the CBS Data price tracker (9).
“Every meals insecurity and meals inflation have crept up in 2025. Through November, the meals insecurity charge throughout the U.S. has been 14.2%,” in accordance with Purdue School’s information snapshot (10).
Then there’s housing. Although there are some indicators of enchancment, extreme residence prices and extreme mortgage fees combined with stagnant wages are leaving many Individuals residence poor — meaning they’re paying better than 30% of their earnings on housing.
Homeowners in metropolis areas should earn an annual earnings of $118,300 to afford a typical residence, which has risen 87.5% from $63,103 sooner than the pandemic. Rural areas observed better bounce — at 105.8% — in accordance with a report from Redfin (11).
“All my life, I believed that was the magical goal, ‘six figures,’” wrote one Reddit client. “All through the pandemic, I lastly achieved this magical goal … and I was improper. No large celebration. No giant brick residence throughout the suburbs. Undoubtedly no boat” (12).
Persons are moreover paying further for utilities and insurance coverage protection, straining household budgets.
The widespread month-to-month energy bill rose from $196 to $265 — a 35% bounce — from March 2022 to June 2025, in accordance with analysis of consumer credit score rating information by The Century Foundation and Defend Debtors. “Virtually one in twenty households — equal to roughly 14 million Individuals — have utility debt so excessive that it was despatched or shortly will possible be despatched to collections” (13).
For households, elevating a child can be getting dearer, with an annual value of $29,419, in accordance with LendingTree. Compared with rent, the “widespread month-to-month value of toddler care all through the 100 largest U.S. metros is 25.3% lower than the widespread month-to-month value of rent for a two-bedroom unit, whereas caring for an toddler and a 4-year-old costs 31.5% better than rent” (14).
“I merely did the arithmetic and realized that if we had one different baby, I’d solely take residence about $500 left over from my paycheck each month if we proceed with day care,” wrote one different Reddit client who makes over $100K. “I truly would love one different baby nevertheless the financial actuality of what which suggests is solely soul crushing” (15).
Then there’s rising nicely being care costs, with workers anticipated to see paycheck deductions for nicely being safety rise by about 6% to 7% on widespread in 2026, in accordance with an analysis from consulting group Mercer. “On the similar time, on account of many employers will enhance deductibles and copays to limit premium will enhance, better out-of-pocket spending could also be a component for some staff” (16).
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Within the occasion you actually really feel akin to you’re merely scraping by, you’re not alone — nevertheless you’ll be able to start by making a funds (if you happen to occur to don’t already have one) and looking out for alternate options to avoid wasting money. Maybe start by canceling subscriptions you’re not using or placing in a price comparability browser extension that scans for larger affords if you happen to retailer.
With the value of insurance coverage protection going up, it’s worth shopping for spherical for cheaper automotive and residential insurance coverage protection. As an example, in accordance with Shopper Tales’ 2024 auto insurance coverage protection survey, 30% of respondents who switched insurers before now 5 years observed a median annual monetary financial savings of $461 (17).
If in case you have got high-interest debt, along with financial institution card debt, ponder refinancing with a lower-cost debt consolidation mortgage. If in case you have got a extreme price of curiosity in your financial institution card, you may have to look proper right into a stability change financial institution card with a low or 0% promotional APR (generally 12 to 18 months). The underside line is to avoid wasting money on curiosity while you pay down your debt, nevertheless you’ll need to be disciplined (and by no means use it to rack up further debt).
Within the occasion you’re already stretched about as skinny as it’s possible you’ll get, it could possibly be time to begin out looking out for strategies to herald further money. Whereas it’s easier acknowledged than achieved, it could indicate looking out for a higher-paying job (which can require upskilling or reskilling), asking for a promotion or enhance, taking over a facet hustle or bringing in passive earnings, corresponding to renting out a room in your personal residence or looking out for a roommate.
Further extreme measures might comprise downsizing to a smaller residence or shifting to a space with a lower value of dwelling. It could possibly be worth talking to your financial advisor about your selections and discover ways to meet future targets —whereas, ideally, avoiding Venmo fibs.
We rely solely on vetted sources and credible third-party reporting. For particulars, see our editorial ethics and pointers.
The Harris Poll (1); CBS Data (2), (9); The Straits Events (3); CNN (4); Politico (5); The Hill (6); Axios (7); Bureau of Labor Statistics (8); Purdue School (10); Redfin (11); Reddit: r/Millennials (12), r/workingmoms (15); The Century Foundation (13); LendingTree (14); Mercer (16); Shopper Tales (17)
This textual content affords information solely and should not be construed as advice. It is provided with out assure of any type.
