$100k Didn’t Go Very Far.

In one of my recent conversations around money, a person lamented to me that upon doing their taxes they realized that he and his wife passed the $100k mark of combined income.

“Congrats!” I said. For many, passing the $100k mark as a couple or individual is a serious feat.

He quickly shot back, “It didn’t go very far! I had in my mind $100k would be more than it is.”

Sadly, $100k just isn’t what it used to be, not to mention that fewer people make $100k than we are led to believe. About 90% of individuals do not pass that mark on their own and only about a third of households break that mark in the US. This goes against some of the prevailing myths out there that everyone is making tons of money except you and that all is well once you eclipse that mark.

This points to the tricky both'/and of personal finance. You are a responsible agent AND you operate in an economy that is largely outside of your control. You can work hard and be responsible pushing your income up over a mark like $100k AND the entire world can get more expensive around you eating up more and more of your income.

Eggs have been a lightning rod for inflationary focus for many in the US. They skyrocket for much of the early part of the year and have since eased back. Yet, most of us felt that cost immediately. Plenty of people passed on dying eggs at Easter since it didn’t seem worth the expense. One friend of mine that traditionally dyes eggs with their family told me there was no way he was going to do that. It was like throwing money down the drain.

This is just a simple example of the complexity that many are facing in today’s world. In decades past the burden of personal responsibility weighed heavier as there was more discretional money to go around. That is where many of the moral judgements around your financial situation found their origin story. Today, many of those persist while not giving mind to context and the reality that $100k does not go very far anymore.

What ways are you feeling the money just doesn’t go as far?