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For American workers, earning a six-figure income has long been a sign of success and financial security. But with high inflation and the cost of living, especially in California, even families who reach that annual income can find themselves in financial hardship.
A new study from Lending Tree analyzes how much $100,000 costs for a family of three in 100 of the nation's largest metros.
Researchers found that in 16 of these cities, households with six-figure incomes may still struggle to pay their monthly bills. Eight of those cities were in California.
San Jose was considered the “most expensive” city for people with six-figure annual incomes. The average monthly expenditure in the city is more than $9,000, mainly due to high housing and transportation costs.
California cities where basic expenses are higher than the monthly income of a family with an annual income of $100,000:
| city | monthly income | monthly expenses | remaining money |
| san jose | $8,333 | $9,826 | -$1,493 |
| San Francisco | $8,333 | $9,496 | -$1,163 |
| oxnard | $8,333 | $9,238 | -$904 |
| san diego | $8,333 | $9,099 | -$766 |
| Los Angeles | $8,333 | $8,989 | -$655 |
| riverside | $8,333 | $8,547 | -$214 |
| sacramento | $8,333 | $8,531 | -$197 |
| stockton | $8,333 | $8,377 | -$44 |
The researchers noted that total monthly income does not include taxes, which were not included in the study.
To determine the rankings, researchers looked at various government data sets to determine where $100,000 has the most purchasing power and calculate the average amount a family of three spends on “basic” expenses each month. I found.
The researchers categorized “basic” monthly expenses as follows:
- housing
- Childcare
- Transportation facilities
- health care
- student loan
- Meals, Entertainment, and Utilities
- tax
- savings
This finding is supported by Redfin Rental Market Research. In April, the median rent in San Jose, San Francisco, Los Angeles and San Diego was well over $3,000 a month.
For six-figure earners in the Golden State and other parts of the country, the Lending Tree study wasn't all bad news. The survey also revealed where people still have money left over after paying their monthly expenses.
Where a six-figure income can cover your monthly expenses:
| city | monthly income | monthly expenses | remaining money |
| new york new york | $8,333 | $8,327 | 6 dollars |
| Philadelphia, Pennsylvania | $8,333 | $8,324 | $ 10 |
| Las Vegas, Nevada | $8,333 | $,8314 | $19 |
| Providence, Rhode Island | $8,333 | $8,307 | $26 |
| Austin, Texas | $8,333 | $8,279 | $55 |
| Minneapolis, Minnesota | $8,333 | $8,222 | $111 |
| texas, dallas | $8,333 | $8,215 | $118 |
In California, a Fresno and Bakersfield resident earning $100,000 can cover their monthly expenses and have a few hundred dollars left in their bank account.
The study found that the city of Jackson, Mississippi is a great location for high-income earners, as it costs about $6,939 per month. That means residents will be left with about $1,400 after paying their monthly expenses before taxes start.
The entire study is available online.
