How Far $100,000 Income Actually Goes
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- Опубликовано: 20 апр 2023
- What $100,000 is actually worth: smartasset.com/data-studies/d...
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Disclaimer: Please note that this video is made for entertainment purposes only and not to be taken as financial advice. Always make sure to do your own research.
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#100000 #income
It's not how much you make , it's how much you keep. As long as you are not living in a High Cost City 100k should be enough to pay all your bills and save for future.
Been watching for a while now. You have an incredible gift for cleanly and concisely explaining every subject you film on. Your delivery, diction, cadence, pace and emotional commitment is refreshing to see. In a world where so many "film" just to cash in on YT - you have managed to break through with a great product and production with value. Thank you and keep up the GREAT work.
You can see she actually knows finance well. You can't present in a clear, logical way without understanding your topic inside out. And Erin's a people person, which made her good with guests on Open Money, and good with us viewers too.
Thank you 🙏 🙏
@@ErinTalksMoney I can't agree more with Chris and Dan. Erin, You know your subject well and deliver it flawlessly. I shared your channel with my friends 20-something kids and they find you trustworthy and might even listen to the sound advice. Most of the stuffed shirts on YT about finance can't hold their attention for 30 seconds. Keep up the outstanding work!
I grew up in Southern California and bailed when I could. Settled in Pennsylvania in the Philly suburbs. Not the cheapest and not the most expensive area. Paid off home, social security, pension and 401k/IRA not taxed. Not a bad place for retirement.
I live about 20 minutes east of New York City (Northern New Jersey) and the struggle is real here, but while moving elsewhere would be lovely for our finances, both of our entire families live within an hour of us and we just don’t want to give that up.
I get that! It’s really hard living far from family!!
I live in Michigan and I think the cost of living has gone way up. Homes that were only 150k 5 year ago are going for for almost 300k now and simple basic items like eggs are still at $2 or more a dozen.
Yes, this is such a tough thing. At one time $100,000 dollars made you the richest person in town. Today, depending on where you live, its a base. When I look at the costs of living, whether it's home ownership or renting, buying a car, funding a retirement, the money disappears fast. Moving is certainly attractive but everything comes at a cost. Whether that means moving to a flood zone, a tornado zone, or lack of high quality healthcare or education. Living isn't free and you're going to be giving up something. So in the end I found being debt free made all the difference. Now I am under no pressure to move and I can stay put where I am happy.
I remote work and moved to a lower cost of living area and gave myself a raise by doing so.
The sales tax in TN was insane. I would buy groceries and have to put stuff back due to taxes.
Whew! I'm making it work in Oakland, CA!
But I think it's a great point that job/salary availability is a big factor for why for a long time urban areas (and their surrounding areas) have been a strong draw. The rise of remote work is undeniably a boon to those who want to try to geo arbitrage these cost of living differences.
Also, it's also great to point out that housing costs is a major part of these COL differences. IF (a big if?) someone outright owns their home, this calculation probably looks a lot less stark. Understandably renters and home shoppers feel the full weight of the cost of living differences, but long time homeowners, especially those in places with controls on property taxes? It's almost like inflation/cost of living doesn't track their full realities.
Hey Erin! Love the channel! I'll try to make this short...
I am a military retiree, highest enlisted rank. I grew up on the Gulf Coast of Mississippi but did not return to live here for almost 50 years. During those fifteen years I lived in Hawaii California New York and other very high-cost areas but during my active duty years that was not a problem because eventually we were paid cost-of-living allowance. Obviously I don't think it's fair that when you retire they cut off your cost-of-living allowance but that it is what it is. Having said all that I'm just grateful that I am originally from this area and I have many family members here that allowed me to become a homeowner at a very affordable price and comparison to the other places that I have lived and it's absolutely beautiful here in Biloxi. Just an example of my housing cost, I have a new house that is about 1,500 square feet in a big front and back yard in a very upscale neighborhood near shopping the beach and everything that most people just dream of... My mortgage cost are less than $1,000 a month. Who knew!
What branch? I’m a retired USN Senior Chief Petty Officer. Did you retire after 30 years? What was your favorite duty station? Have you ever used AMC flights after retirement? Have you used VETTIX or gone on an Outward Bound Journey as a veteran? Thanks, bro!
Excellent video. Wife and I have had this discussion many times, how to start off on the right foot, specifically WHERE. I always thought the affordable place was the winner, but my wife thinks the place with the best long term career prospects is the winner, cause even though it's hard at first, in the long run, your paid off home will be worth more and your salary will be much larger. Over time, I think my wife is right, BUT the beginning can't be so hard it's unmanageable. Just as saving and investing makes sense when you have a long term outlook, so does the better career and salary. As usual, it's all about sucking it up early, so you can relax and enjoy later.
💯 💯
I live in San Antonio, TX and we have some of the highest property tax rates in the nation. I have a slightly above average home that is almost paid for (been here for 15 years) and my annual tax bill is almost $11K. So while we don’t have income tax - property taxes are insane. I will not be retiring here.
Great video and great topic. We moved from NYC to Columbus, Ohio 6 years ago and it really was a shock in terms of cost of living, in a good way. I am also fortunate to be making twice what I made in NYC. To give some perspective, we rented a 1 bedroom apartment in NYC. We now own a 4 bedroom, 3000 sq ft house and our mortgage plus property tax is less than what we paid in rent in NYC. I grew up in the Midwest so I feel very comfortable in Ohio. I’ve met lots of people in Ohio who seem bewildered I would leave NYC to move here. I loved NYC, but financially there is absolutely no comparison. Much better off here.
I love the mid-west!!! So interesting to hear the price differences! Really eye opening!
Cincinnati here, I make 97k a year. Even with a 15yr mortgage on a 1400 sqft house my monthly bills are only 3k and that includes eating out a lot. Its so affordable here ill never leave hahaha
Yes yes! Another very interesting viewpoint. The 2nd biggest expense for most people - the vehicle - is where big cities also have an advantage. I just bought a new car at the same price available nationwide with my high urban metropolitan income. But indeed, nearly everything else is super expensive.
Hi Erin,
Love your site...We live in South Jersey, but frequently travel over the bridge to Delaware...no state income tax too.😊
Always look forward to Friday mornings to watch your new videos!
Woo-hoo 🙌
Another great video...people really need to consider all the costs where they live that actually impacts their income...Michigan taxes can be an issue good and bad for retirees!
We too went from rural MI to Vancouver, WA. Nice to have no State income tax in WA and no sales tax across the river in OR.
Sounds like we had similar moves!!
I ❤ your show. It's very current and useful.
I lived in Alaska for 40 years and now live in eastern Washington for the past nearly 7 years. The benefit of not having income tax in WA is extremely misleading, the commies in Olympia attach excise taxes and fees ad nauseum. Just recently, the WA state supreme court even ruled that a newly implemented tax( previously voted on several times by the people of the state and shot down every time) on capital gains is legal even though capital gains as defined by the IRS as an income tax. Fortunately my wife and I are very near retirement are working as quickly as possible to get out this stink hole of a state.
As for AK, it is very unforgiving, thus the consistantly low population. It has a very high cost of living along with an isolated economy relying on oil, tourism and commercial fishing. Generally speaking the economy and the housing market in AK often fluctuate independantly and contrary to what occurs in the lower 48 states. THe current mess that we are suffering through under this admin. is crushing AK beyond what many others are having to deal with, it has happened in the past and will repeat in the future. For anyone who decides to move to AK, be sure that you possess a skill that is in demand regardless of primary economic drivers, advice I always offer whenever I am asked about any career. Example; I was a mechanic and my wife was a IT project manager then transitioned to accounting, professions in high demand almost anyplace. We did well through good times and tough times. Also, dismiss all of those romanticized notions of AK, the climate is COLD, DARK and BRUTAL. If one does not possess a love of the outdoors and all it entails, then one will likely become another member the group that are alcohol and drug abusers in an attempt to dull their anger, boredom and dissatisfaction with the environment. If you lack mental fortitude, stay away or suffer at your expense.
Great advise. I grew up in ND and like most couldn't wait to move to someplace warmer. I lived 20 years in Madison, WI with two months less winter but found myself missing the clear blue skies in ND (WI just seemed to always have light clouds in the sky, nothing bad). I've lived the past 22 years in TX and love the clear blue skies here. I can see my outlook go down on the cloudy / rainy days we get in the spring. It's something anyone planning a move should consider.
Great video. Thank you Erin.
$300,000 is the new $100,000 in buying power.
$300,000 in 2023 = $100,000 in 1984 just to give everyone some time perspective
It just doesn't go as far as you'd hope, plus the taxes surely don't help.
I love this topic! Thank you, Erin. Is the other topic we discussed still coming?
Informative; I am watching even though I have never been to USA
I grew up in Baltimore and once visited Denver. Coming from the East Coast it seemed so quite and "dead" in the center of Denver, I was like where is everyone? I can't imagine living in a real small town! Now I work in London and it is super busy and fun to be around at times but I couldn't imagine living in London.
Wife and I clear $200k/yr and I consider that just a middle class family income, not even upper middle here in Ohio. We own a modest 2000 sq ft home and drive non-luxury cars, own nothing fancy, and only eat out once a week. Its ridiculous what everything costs these days, life is very expensive!!
Everything just feels too expensive.
Honestly, there's probably no right or wrong answer to the question of moving. The decision is a very personal one and contingent on way too many factors. Lots of folks may prefer big city life and would glady pay the higher taxes. For others, it will be the weather, proximity to family and even the size of the home they can buy.
Americans have always been willing to seek out better opportunities but the interesting thing for me will be when employers start adjusting pay scales for remote work based on where employees live and the direct costs they incur for living there. In the past, employers generally had to physically move to these less expensive locations in order to reap the benefits. Thats no longer the case for a lot of jobs. So I wonder will all these places remain as attactive then. Only time will tell.
Personally and for the sake of argument I would move but money wouldn't be the determining factor. Weather, family and my health would my driving factors.
So true - money is never the only consideration. Family and friends are probably the biggest driver!
When I was in Phoenix, many people from California were moving to Arizona because the cost of living was three to four times higher in many California locations than those in Arizona. From 2007-2009 the cost of living in Phoenix and where I was from in Wisconsin were fairly similar. However, I heard housing prices may have jumped considerably in Phoenix since then.
That's a big reason why I live in Ohio and work remote. Not the most opportunity here for my profession but since I can work remote it's great. That said - making six figures isn't a life changing thing.
Love it here in Cali, it’s worth the HCOL to me. Will likely move at retirement though.
It’s also not like you’re getting t nothing for your taxes, public transit and services, infrastructure, etc.
Very true!
I wish I could move but I'm a jewelry model maker and all the work is in NYC! I get paid well but can't find a descent job any where else in the country!
Sounds like an interesting job.
States with no income tax don't need to "make up that revenue" with other taxes if they SPEND LESS than high tax, high spend states like NY, CA, MA.
Northeast Tennessee is great when it comes to low cost of living & low taxes. My career is one where they have to pay a nationally competitive wage, so it works
Tennessee is pretty high on my places I want to live!
I’ve never even come close to a 6 figure salary and have been able to put quite a bit away for savings and live in one of the most expensive states to live in!!
Very informative video. I understand how to get money into T-Bills, via Treasury Direct. (I have some IBonds) My question is, when the T Bills expire, how do I get my money back? Am I notified by the Treasury that the Bill has expired or is my account (with Treasury Direct) credited or am I sent a check from the Treasure? I know I can sign up with automatic reinvestment but what is the procedure if I DON'T have automatic re-investment?
Well done Erin as usual. I do agree there are less expensive areas to reside. I reside in Suffolk County Long Island ( needless to say a high cost region). I grew up here and never visited Florida ( where a lot of New York residents tend to retire) until I was in my mid 30’s. Honestly at first, the warm weather, Palm Trees were very appealing. However living there and a vacation are two vastly different experiences.
You must consider your familiarity with your surroundings you have become accustomed. Your family, friends . Once you have a lower tax rate, and perhaps ( not always) lower land taxes, you will take it for granted and will be left with possible boredom, missing the familiar, and unhappiness. If you want to move, do so while young and stay there in retirement. Except for an unforeseen health crises, if you need to move in retirement years from your original home because of finances, then you probably have lived above your means in the first place. Stay where you have familiarity and otherwise are happy. And almost NEVER have two seasonal homes and never have strangers living in your house ( unless you adore the disgusting conditions of a dorm that colleges pass of as the “college experience”.
you can make new friends and rent out a different family🤣
@@hanwagu9967 I read your reply from an email that I received. I was going to respond but your reply was deleted….see what they did there? 😂 I’m specifically enjoying spending your tax dollars during my retirement, when I’m not sleeping, cycling or fishing. 🤑
@@shawnpatton3795 i'm quite sure I never emailed anyone.
@@hanwagu9967 no kidding, it was from RUclips.
Upper Michigan or lower Michigan? 100k in Upper Michigan you can have a nice lifestyle.
Hi Erin, great video! I live in Washington. What city in Wa. did you used to live in?
Hope you have a great weekend! 😊
We lived in Vancouver, absolutely loved it!
Yeah Texas has no income tax, but the property taxes are high asfff
I reside in a city in Maryland where the average annual household income is $137,135, but the cost of living IS HIGH‼️ 💸 I’m grateful I work remotely from home and earn more than the average single household.
How you live can be as important as where you live. We live in the Bay Area and it is definitely more expensive to live here than in most places. If you use gasoline then that is seriously more expensive in the Bay Area. You pay income taxes in California and the house values can make your property taxes numerically higher. But compared to Texas food is not much different. In fact veggies are often of better quality and cheaper than the Dallas area.
We don't use gasoline as we went solar/BEV years ago so our electricity and mobility expenses are virtually $0. We have a mortgage payment of about $1800 + ins and taxes so not too bad. So as a result we do OK.
My wife works from home but can't relocate out of state. In fact company policy is you need to live within 2 hours of the office. I am now retired but won't collect SSI for another 18 months or so. We live without taking anything from my retirement funds so far by me having a side gig and my wife's salary which is less than your $100K example. We do OK. It is possible but I am not blind to the fact that we purchased our home about 15 years ago in the last housing crash and refinanced as the mortgage rates went down (it really helps that our FICO score is 845 or higher) so our payment is real low for the area.
But the most important thing is we don't waste money. We don't party, we don't smoke - anything we don't even drink all that much a glass or two of wine per month. We enjoy our friends company and each other's. We visit kids and just relax.
Anyway, no matter where you live you can make your life financially better by researching and watching your lifestyle.
Great video as always.
Your very low mortgage payment makes a huge difference obviously 😂 But overall I agree, I wouldn't say finances are the _only_ consideration. I like my Midwestern state for family and political reasons -- I lean blue in a purple Midwest state, so there's not a lot of book banning or other nonsense from conservatives.
I'm fine with dealing with the weather because I also like to travel. I feel that if I lived in a warmer climate like CA where everything seems to come to you, I would be too content with not traveling. But traveling enriches my life in so many ways 🌐
And my very strong salary for my area allows me to say this. If I was making a salary more in line with the local area maybe I'd feel differently 🤷🏾♀️
Thanks so much for sharing Bryan! I think you were very successful at being able to keep major costs lower - that makes sure a big difference. And you are so right, no matter where you are, best keep your lifestyle in check!
Like you I'm also in the Bay Area! We still buy gas but got a hybrid and that yielded sizable benefits. Still pay utilities but WAY less now we have solar. And lucky enough to but my house during the downturn and lock in low property taxes!
I think it'd be interesting to watch a video on all the ways we can control our personal situation to "beat" average inflation and cost of living predictions.
i'd like to see the nutritional comparison of vegetables in the Bay Area to that of Dallas. I'm quite sure the brisket is way better in Texas, though.
Also, you have Prop 13 that largely bases your property taxes at 1% of the purchase price. And if your home goes up in value, restricts the increase to property tax to approx. 1% of the previous year's property tax, regardless of the market value of the home. This makes very easy to live in CA and never be concerned about rising property taxes forcing you to move. It also makes it easy to retire in the same home you have lived in for decades, which is what Prop 13 was designed to do.
This is why so many people from California are moving here to Vegas, which is really driving up housing costs. We always tell them "Don't California my Nevada". There's a reason you had to leave that state.
What hitting 100k did for us (at the end of 2018) is allow us to start increasing 401k contributions which we were able to max last month (we will make about 140k this year).
My wife and I work a hybrid schedule now but were fully remote during the pandemic.
Next year house will be paid off, but we were lucky and bought in 2011 when the market was still low. Property taxes are over 4k a year in the area we live in Oregon, which seems high to us but we know there are other states that are even higher. If we lived outside the city the taxes would be more like in the 2k range.
Property Tax sucks. Ours is much higher. It feels like we'll still be paying a mortgage after paying off the mortgage.😢 We like out home but why must everything cost so much money. Just the essentials seems higher than I'd like.
Kids and grandkids are here so no way we are moving out of our Hight Cost of Living state even in retirement. Been working remote for about fifteen years. Since I live in a high cost of living state my employer pays me $6,000 annually as a COLA. Been taking advantage of 401k pretax contributions for the tax benefits, company match and long term investments.
Live in Portland and will retire in a few years. Likely staying although it is high cost. This is due to the fact I love my home on five acres close in. Can’t find this paradise anywhere else! Also, property taxes I pay are based on when I bought it 25 years ago, so buying something new even with cash would mean that my property taxes would be at least twice as high. When you retire on a fixed income, you do not want high fixed costs! It will also be paid off in five+ years. Thanks for the info!
That's one of the reasons it helps buy your retirement home as early as possible. Property taxes is robbery.
A problem is if You can do your job remotely, some else can do it remotely for far less? They mite outsource your job to India?
Probably not. I work with Indian contractors, and they are mostly great on our team - but there’s not an unlimited supply of people with high skills, there’s still significant language barriers, and the time difference makes coordinating difficult (unless you like working at midnight).
I prefer the Indian call center people.
T-mobile uses Call center in Phillipines, very friendly females! Seriously! I actually like talking to them! But I like Asian women...
It greatly depends on the type of work and the people you work with. I work with remote teams and in my line of work I've found that perception is different from reality. It just looks like you get more for your money (more people) but its not much different in cost at the end of the day.
This Chicagoan had lived in places with lower expenses - including North Carolina and Missouri. It never felt like home.
Chicago is where I found my people. So, I just pack my lunch for work, workout by taking walks in the free forest preserves, borrow books from the library for book club discussions, and enjoy all the free concerts that the City of Chicago offers.
Other places may offer lower costs, but finding a community is priceless.
Hi Erin Living in Oregon we have one of the highest income tax in the country. Now I make over 100k but I live like you and your hubby. The only reason why I live here is family and if it wasn't for them, I would move back to Texas which is where I'm from. Now if I made 10x more money I would move to Cali in the OC. But the cost of living there is outrageous. And I love the hot weather but I don't wanna pay the high cost of living there. I have a co-worker who lives in Washington aka Vancouver and he works in Oregon. Now I don't live paycheck to paycheck but with everything being so expensive, my pay is getting squeezed out. I hate Oregon, the high taxes, the crime, and all the liberals who live here.
It must be so great to find a partner that understands finances and money. This is one of the main reasons I am single. And also why I was able to retire at 52. So if you have any single girlfriends who are like you Erin do let me know. Love your stuff.
When I lived in Paris, I was offered a transfer to Prague, but at a significantly lower salary. My manager said I would live really well there, but I stayed in Paris. Prague would have been OK, but I knew I'd never be able to afford to move back. My manager was in Stuttgart at the time, and he didn't move either.
Having lived in all three, Prague is mucho better...especially the coffee and the tea cults in Dobra Cajovna.
We live in a high cost state with high income taxes. We can save about 10% by moving to a different state, assuming we can get jobs that pay the same. The reason we stay is family. We are planning on retiring to a state without income tax though. We are looking at buying a house in a small town and renting it out until we retire. Then we should have a paid off house waiting for us. :)
I’m trying to get my family to move where I go 😂….which may mean I have to move back to Michigan haha
I’d take a state bracketed income tax over state sales tax, even if it meant I paid more in taxes. Making those with a lower income pay more through sales tax so I can avoid some taxes doesn’t sit right with me
🥇
Me in Los Angeles....accurate.
I’ll bet!
Esse é o dinheiro que vocês10000000 ganharam de mim
I retired from the US Navy. We’ve been debt free for almost 10 years, millionaires for over 5 years, I have a goal to not collect social security at all, or if I can’t not until I’m 75 or older (if I live that long). I only ask for a military discount when I make a purchase at a national chain and I tip 18% or better for every server. I don’t know if I’ll ever understand why servers don’t get minimum wage or better in our country.
Congrats on being debt free and reaching millionaire status! 👏 (As of right now there’s no benefit to waiting past the age of 70 for SS, but I understand you may be looking forward many years down the road and the may change 😊)
@@ErinTalksMoney I believe that the benefit is for not using the money, because I don’t need it, so I’m one less cost for the program.
Nyc. Not the cheapest city. But it is the greatest city in the world!
#van life! I live in a van down by the river!
Hawaii is doable once you pay off your house. But that's not an easy task.
That's the issue for a lot of people. A home is the largest purchase most people make in their lifetime. I remember telling my wife that our life would be so different if we didn't have to pay for a house.
I make ~60K and I'm single with no kids or pets. 35% of my paycheck gets invested. I live in one of the lowest cost of living areas in the U.S. I'm doing good
No kids makes a huge difference! But can I ask what city or area you live in that’s so low??
That's good. We bought a house, 30 year loan, and now I wish it cost us nothing. But you can't have your cake and eat it. We're trying to pay it off faster.
If you do it right…it won’t go far….INVEST
I'm quite sure a $100k income actually goes $100k. I dislike the term 6-figure income, since 6-figures spans $10m and because people use the term to obfuscate or give the impression they make a lot of money. There's a world of difference between $100,000 income and $999,999.99 income. I think remote workers should get paid less because we all know they aren't as productive.
When it comes to local vs remote, what really matters is whether you are getting things done or not. Some people find that they are more productive when in the office, some people find they are more productive when out of the office. It depends on the nature of the work and the individual.
I grew up and lived 20+ years of my adult life in Texas. I would not move back. The traffic, the construction and all those people concentrated in the cities is too much. Your dollar might be able to go father, but you will need to anticipate that you will be sharing the same attractions with a lot of people around you. These studies don't mention fire ants and giant roaches. Nor do they address the number of Ozone Alert days, restricted water use and poor air quality. However, you will enjoy the food (Tex-Mex and BBQ).
Yes, there's more to choosing a location than money. We're currently trying to figure out where we want to live when we retire and see if its worth moving now instead of later. The bad part is that we still owe a lot on our house and getting a new house with today's interest rates feel like financial suicide.
People with 35k salary should feel like earning 100k
Totally…..wrong