In Today’s Economy unfortunately 6 Figures is Broke
Now I know how I am going to sound to the rest of the world and I am well aware that this is a 1st world problem, but if you look at the facts the value of a 6 figure income has decrease drastically over the last 20 years.
There was a time in which you crossed that $100,000 a year threshold and stepped into what some might call the beginning stages of wealth. It was enough to buy that dream house in the beautiful neighborhood, 2 cars in the driveway, put away for a sizable retirement and go on multiple vacations a year. Well that time has come and gone and the new era has arrived where a 6 figure income has placed you in the middle class.
According to the Census Bureau only 20% of households (which means everyone in the homes income combined) even break the 6 figure mark. The median household income in America is around $53,000 a year. The truth of the matter is that as you watch the the average house hold pay 20% — 30% a year in income tax (depending on your tax bracket), then they are taxed for every purchase they make after, then the price of homes have increased on average 50% over the last 10 years, and then there is health care and the ridiculous and borderline criminal rise of tuition. I still didn’t mention the cost of living has increase dramatically and the inflation rate has risen 22.2% over the last 10 years.
A New Reality
We are facing a new reality that the public’s perception of a six-figure salary must change with the times. Earning a six-figure salary is still in the eyes of many a sign of status and success, but it no longer guarantees a lifetime of wealth like it once did. Only 1 in 8 households in the U.S. currently earn enough to achieve the “American Dream”. And even those who are lucky enough to break the mark, when you look at a fairly basic lifestyle you see that their income is not stretching far these days. Here is a family who has one child and earning $200,000 a year. They are not doing anything extravagant with their money but when you look at the numbers and things just don’t add up.
Now I hate to be a part of the doom and gloom crowd, I believe if you present a problem without a solution than you are apart of the problem. So I am not here to complain how bad it has gotten in American (Though it has gotten pretty bad). Im not here to whine when I know that there are many people on the planet who would love to have this problem. What I am here to say to those who are seeking the American dream and looking to live a certain lifestyle I want to prepare you that $100,000 a year wont cut it and in some cases $200,000 a year wont cut it. I learned that the hard way, when I finally broke that 6 figure mark I thought I had arrived and then reality hit and I realized that i needed to multiply that by 3, 4 or 5 which I was blessed to do, but not everyone has. So my suggestion to those entrepreneurs out there, those dreamers is that you need to dream bigger and you need to climb higher.
Here is the one bit of good news, is if you have the ability to make $100k a year, with the proper skill set and philosophy you can take it to $200k and $300k and beyond. If I can do it, a kid from the ghetto of Brooklyn, Ny, who had no hope and dropped out of college twice (which takes some skills) than anyone can do it. My advice to you is to shoot for $500k a year or even a Million a year, but if you are crazy like me you believe you can do a whole lot more. So don’t put limitations on yourself, work hard, work smart and aim high.
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