In one out of every four large American cities, a family can earn six figures and still struggle financially.
According to an analysis by LendingTree, in 25 of the 100 largest metropolitan areas, average monthly spending on basic expenses exceeds the monthly income for a family of three earning $100,000. San Jose ranks highest with average monthly expenses of $10,540.
LendingTree considered costs such as rent, child care, transportation, healthcare, food, entertainment, utilities, taxes, and retirement contributions to calculate expenses for a typical family of three. The report highlights the financial limitations of a six-figure income, which used to signify financial success but now may not cover basic expenses in many cities.
Despite a $100,000 income resulting in monthly paychecks of $8,333, in numerous cities, expenses exceed this amount. The analysis also identified cities where expenses are below $100,000, making them more affordable for high-income households.
The analysis did not factor in debt payments, such as student loans and credit card debt, which would further strain the finances of six-figure earners.