For decades, a six-figure salary was the gold standard of financial achievement in America. It signaled stability, comfort, and a life free from constant money worries. But in today’s economy, with inflation soaring and the cost of living skyrocketing, that benchmark has lost much of its meaning. Earning $100,000 today isn’t what it used to be. The question isn’t whether six figures still matter—it’s what it actually takes to achieve genuine financial security.
The Shifting Value of Six Figures
Anthony Termini, a wealth management professional with over 40 years of experience, explains the shift. In the 1980s, earning $100,000 was a significant milestone. Adjusted for inflation, that amount equates to nearly $400,000 today. However, simply reaching that number doesn’t carry the same weight it once did. The old benchmark has been inflated out of relevance.
The Housing Crisis and Regional Disparities
The biggest factor eroding the value of a six-figure income is the housing market. Skyrocketing home prices mean that even $100,000 can feel inadequate, especially in high-cost areas. Termini points out that a half-million-dollar home in the Midwest is vastly different from one in California, where the median price is nearly double. Earning enough to afford a home—a traditional marker of success—requires significantly more than six figures in many regions.
Geography and Income Inequality
Sharad Gondaliya, a CPA and finance expert, emphasizes how location completely distorts the meaning of a six-figure salary. Two decades ago, $100,000 placed you firmly in the upper-middle class. Today, in major metros, that income barely covers basic expenses. Bureau of Labor Statistics data shows that the average U.S. household now spends over $70,000 before savings or debt payments.
In San Francisco, $100,000 can feel like $40,000 after taxes and cost of living. In Des Moines, it can still provide stability and savings. The same salary means drastically different things depending on where you live.
Beyond Income: New Markers of Success
If six figures no longer guarantee financial security, what does? Both experts agree that the focus must shift from income alone to broader measures of financial health.
Termini looks at net worth as a better indicator. The median net worth in America is around $193,000, but reaching the top 10% requires nearly $1 million. Moreover, retirement planning reveals even higher targets: Fidelity suggests having 10 times your annual income saved by age 67. Using the inflation-adjusted six-figure benchmark of $400,000, that means having $4 million in the bank.
Gondaliya argues that success should be defined by outcomes, not just earnings. He points to having six to twelve months of expenses saved, the ability to afford a home in a desirable area, and living well within your means as new markers of financial security.
The Bottom Line
Earning $150,000 can still leave you feeling broke if your spending outpaces your peace of mind. The new measure of success isn’t about a specific income bracket, but about financial independence, lifestyle security, and living within your means.
The illusion of the six-figure salary is fading. True financial success in 2025 requires a more holistic approach, focusing on net worth, savings, and sustainable spending habits
