A six-figure salary is often associated with a comfortable lifestyle, and for many workers, reaching that threshold is a dream come true. If you’re a single person earning $100,000 a year, you may find that you have more than enough to cover your basic needs, with money left over for short- and long-term financial goals.
But it’s worth noting that salaries don’t go as far as they used to. The rising cost of living, shifting economic conditions, and individual spending habits and financial obligations can all play a role.
Let’s take a closer look.
Table of Contents
- Is $100K a Good Salary?
- Average Median Income in the US by State in 2024
- Average Cost of Living in the US by State in 2024
- How to Live on a $100K Salary
- How to Budget for a $100K Salary
- Maximizing a $100K Salary
- Quality of Life with a $100K Salary
- Is $100,000 a Year Considered Rich?
- Is $100K a Year Considered Middle Class?
- Example Jobs that Make About $100,000 a Year
- FAQ
Key Points
• An annual salary of $100,000 is higher than the national median income in the U.S.
• Whether you can live comfortably on this salary depends largely on your location and cost of living.
• Creating a 50/30/20 budget or a line-item budget can help you manage expenses effectively.
• Building an emergency fund, saving for retirement, and improving your credit can help you maximize your salary.
• Several professions, such as physical therapist or architect, pay around $100K per year.
Is $100K a Good Salary?
Generally speaking, $100,000 is a good six-figure salary for a single person. Before taxes, $100,00 works out to roughly $8,333 per month. Whether that’s enough for you depends largely on where you live. Savings, property ownership, and discretionary funds may be achievable in an area with a low cost of living. But in a more expensive area, that same salary won’t go as far because housing, transportation, and other necessities all cost more.
A money tracker can provide a bird’s-eye view of your spending and saving, and help ensure you’re staying on track financially.
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Average Median Income in the US by State in 2024
In 2024, the average pay in the U.S. was $69,846.57, according to the Social Security Administration. But wages vary greatly by state, reflecting regional differences in the cost of living and economic inequality.
States such as California, Maryland, and Massachusetts, which have robust economies and a high cost of living, generally report higher median salaries, frequently topping $100,000 annually. Average annual income in states such as West Virginia, Arkansas, and Mississippi, which have a lower cost of living, is typically closer to $60,000. The presence of certain industries, job opportunities, and state-specific laws all contribute to differences in pay.
Here’s a look at the median household income in each state, per U.S. Census Bureau data.
| State | Median Household Income |
|---|---|
| Alabama | $66,659 |
| Alaska | $95,665 |
| Arizona | $81,486 |
| Arkansas | $62,106 |
| California | $100,149 |
| Colorado | $97,113 |
| Connecticut | $96,049 |
| Delaware | $87,534 |
| Florida | $77,735 |
| Georgia | $79,991 |
| Hawaii | $100,745 |
| Idaho | $81,166 |
| Illinois | $83,211 |
| Indiana | $71,959 |
| Iowa | $75,501 |
| Kansas | $75,514 |
| Kentucky | $64,526 |
| Louisiana | $60,986 |
| Maine | $76,442 |
| Maryland | $102,905 |
| Massachusetts | $104,828 |
| Michigan | $72,389 |
| Minnesota | $87,117 |
| Mississippi | $57,127 |
| Missouri | $71,589 |
| Montana | $75,340 |
| Nebraska | $76,376 |
| Nevada | $81,134 |
| New Hampshire | $99,782 |
| New Jersey | $104,294 |
| New Mexico | $67,816 |
| New York | $85,820 |
| North Carolina | $73,958 |
| North Dakota | $77,871 |
| Ohio | $72,212 |
| Oklahoma | $66,148 |
| Oregon | $85,220 |
| Pennsylvania | $77,545 |
| Rhode Island | $83,504 |
| South Carolina | $73,530 |
| South Dakota | $76,881 |
| Tennessee | $71,997 |
| Texas | $79,271 |
| Utah | $96,658 |
| Vermont | $82,730 |
| Virginia | $92,090 |
| Washington | $99,389 |
| West Virginia | $60,798 |
| Wisconsin | $77,488 |
| Wyoming | $75,532 |
Average Cost of Living in the US by State in 2024
It’s not just you: Goods and services have gotten more expensive, thanks in part to inflation. Depending on where you live, you may be paying more for housing, transportation, food, health care, and other necessities compared to someone in a neighboring town or state.
One way to determine whether $100,000 is enough for you to live on is to look at your cost of living. The cost of basic necessities varies by location, and this is often reflected in salaries. Areas with higher wages tend to have higher costs of living, while areas with a lower cost of living have lower wages.
With that in mind, here’s a look at what the average resident in each state spends on basic necessities, according to data from the U.S. Bureau of Economic Analysis.
| State | Average Cost of Living |
|---|---|
| Alabama | $47,096 |
| Alaska | $66,356 |
| Arizona | $56,211 |
| Arkansas | $46,259 |
| California | $67,565 |
| Colorado | $66,448 |
| Connecticut | $66,645 |
| Delaware | $60,131 |
| Florida | $62,618 |
| Georgia | $52,806 |
| Hawaii | $60,711 |
| Idaho | $48,098 |
| Illinois | $60,612 |
| Indiana | $51,821 |
| Iowa | $49,473 |
| Kansas | $51,082 |
| Kentucky | $48,901 |
| Louisiana | $50,454 |
| Maine | $63,046 |
| Maryland | $58,310 |
| Massachusetts | $71,946 |
| Michigan | $54,197 |
| Minnesota | $58,433 |
| Mississippi | $43,947 |
| Missouri | $54,405 |
| Montana | $58,499 |
| Nebraska | $54,512 |
| Nevada | $56,103 |
| New Hampshire | $68,900 |
| New Jersey | $65,873 |
| New Mexico | $48,119 |
| New York | $66,426 |
| North Carolina | $53,334 |
| North Dakota | $58,090 |
| Ohio | $52,708 |
| Oklahoma | $46,319 |
| Oregon | $58,150 |
| Pennsylvania | $59,260 |
| Rhode Island | 58,041 |
| South Carolina | $51,423 |
| South Dakota | $54,100 |
| Tennessee | $51,507 |
| Texas | $54,060 |
| Utah | $52,677 |
| Vermont | $62,629 |
| Virginia | $58,224 |
| Washington | $62,837 |
| West Virginia | $50,286 |
| Wisconsin | $54,705 |
| Wyoming | $55,543 |
How to Live on a $100K Salary
Even if a $100,000 salary is more than enough to cover your expenses, it’s still a smart move to create a budget. Having a plan for where your money is going can help keep unnecessary spending in check and allow you to make progress toward your financial goals.
The first step is to ensure your budget can cover your necessities, such as housing, utilities, groceries, and transportation. Next, set aside money for short- and long-term savings goals, such as retirement or buying a home, and debt repayment. Finally, carve out funds for discretionary spending to ensure you’re able to enjoy a balanced lifestyle without going over your budget.
How to Budget for a $100K Salary
There’s no one-size-fits-all approach to making a financial plan and there’s no shortage of budgeting methods to explore.
One popular option is the 50/30/20 approach. Here, you earmark 50% of your budget to needs (think housing, transportation, food); 30% to wants (travel, entertainment); and 20% to savings and debt repayment.
Prefer something more straightforward? Consider a line-item budget. This requires you to list all your expenses, or categories of expenses, over a period of time, such as a month or year, and assign a spending target to each one. Then, every month, you can compare current expenses to past expenses to ensure you’re staying on track.
Of course, life changes, and you’ll want to review and adjust your budget regularly to make sure it’s in line with evolving goals and circumstances. A budget planner app can help you create a new budget, categorize spending, and monitor your credit score.
Maximizing a $100K Salary
There are ways to get more out of a $100,000 salary. Here are a few strategies to try:
• Prepare for the unexpected. Once you’ve paid for your monthly expenses, dedicate some of the remaining amount to building up an emergency fund. A good rule of thumb is to save enough to cover three to six months’ worth of expenses.
• Save for retirement. After your emergency fund is established, direct some funds to your retirement savings account. Crunch the numbers and see if you can contribute more, and find out if you qualify for a company match.
• Improve your credit. Check your credit score, and if the number isn’t where you want it, look for ways to improve it. Steps may include setting up a system to ensure your bills are paid on time, routinely checking your credit report for errors, and keeping your credit utilization low.
Quality of Life with a $100K Salary
Whether it’s an entry-level salary or a pay upgrade earned after several years on the job, $100,000 can offer a good quality of life for many people. This amount is typically enough for the basics with some left over for enjoyment and long-term savings goals, such as buying a home, retirement, or continuing education.
That said, the quality of life on a $100,000 salary varies based on factors such as living expenses in your area, your financial obligations, and whether you support anyone else.
Is $100,000 a Year Considered Rich?
There’s no single definition of how much someone must earn to be considered rich. So much comes down to factors such as cost of living, location, and your individual financial situation. Someone who makes $100,000 a year, has a low cost of living, and is investing and saving might feel financially better off compared to those who make the same amount but live in high-priced cities such as New York, San Francisco, or Los Angeles.
Bottom line: Even though $100,000 a year might not put you in the highest echelons of wealth, it typically provides a stable, comfortable lifestyle.
Recommended: How to Calculate Your Net Worth
Is $100K a Year Considered Middle Class?
Middle class is defined as income that is two-thirds to double the national median income, or $55,402 and $163,208. By that definition, $100,000 is considered middle class.
Keep in mind that those figures are for the nation as a whole. Each state has a different range of income levels to be considered middle class. In Spokane, WA, for instance, a middle-class household needs to earn between $66,259 and $198,778 per year. In Jackson, MS, the range is $39,418 and $118,254.
Example Jobs that Make About $100,000 a Year
Wondering which jobs come with a six-figure salary? Here are some professions that pay around $100,000 per year, according to the Bureau of Labour Statistics — some of which could be a good fit for introverts:
• Physical Therapist: $101,020
• Administrative Manager: $$106,880
• Computer Systems Analyst: $103,790
• Mathematicians and Statisticians: $104,350
• Sociologist: $101,690
Recommended: 25 Highest Paying Jobs in the US
The Takeaway
In many ways, earning $100,000 can feel like achieving a major professional milestone. And in many places, it can certainly provide a comfortable, middle-class lifestyle with room for savings, investments, and discretionary income. However, in expensive cities, you may find that $100,000 covers the basics but doesn’t leave much left over. Creating a budget you can stick to can go a long way toward helping you maximize your salary.
Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.
FAQ
Can I live comfortably making 100K a year?
Yes, you can live comfortably on $100,000 per year, though how comfortable you are will depend on a variety of things, including where you reside, your lifestyle, and your financial commitments.
What can I afford with a 100K salary?
If you make $100,000 a year, you can save money for investments and savings, as well as afford adequate health care, dependable housing, and occasional travel and entertainment.
How much is 100K a year hourly?
Assuming a 40-hour work week and working 50 weeks a year, a $100,000 salary is equivalent to about $48 per hour.
How much is 100K a year monthly?
Before taxes, a $100K wage works out to about $8,333 per month.
How much is 100K a year daily?
A $100K wage, assuming a regular five-day workweek and working 50 weeks a year, is roughly $384 every day.
Photo credit: iStock/Pekic
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