www.lendingtree.com Open in urlscan Pro
104.19.147.29  Public Scan

URL: https://www.lendingtree.com/debt-consolidation/six-figures-broke-study/
Submission: On April 27 via manual from IN — Scanned from DE

Form analysis 5 forms found in the DOM

GET https://www.lendingtree.com/index.php

<form role="search" method="get" class="search-form form-inline" action="https://www.lendingtree.com/index.php">
  <label class="form-group" role="presentation">
    <span class="lt4-Search"></span>
    <input type="search" class="search-field form-control" placeholder="Search LendingTree" value="" name="s" autocomplete="off" aria-label="Search LendingTree" aria-invalid="false" aria-describedby="search-error">
    <button type="reset" class="clear-search" aria-label="Clear Search" style="display: none;"></button>
    <div id="search-error" class="search-error">Please enter a minimum of three characters.</div>
  </label>
  <button type="submit" class="btn btn-orange search-submit">Search</button>
</form>

GET https://www.lendingtree.com/index.php

<form role="search" method="get" class="search-form form-inline" action="https://www.lendingtree.com/index.php">
  <label class="form-group" role="presentation">
    <span class="lt4-Search"></span>
    <input type="search" class="search-field form-control" placeholder="Search LendingTree" value="" name="s" autocomplete="off" aria-label="Search LendingTree" aria-invalid="false" aria-describedby="search-error">
    <button type="reset" class="clear-search" aria-label="Clear Search" style="display: none;"></button>
    <div id="search-error" class="search-error">Please enter a minimum of three characters.</div>
  </label>
  <button type="submit" class="btn btn-orange search-submit">Search</button>
</form>

GET /redirect/offers

<form data-fscta-form="fsctaForm" action="/redirect/offers" method="get" novalidate="novalidate" class="footer-formstart blue">
  <label role="presentation">Get Personal Loan Offers Customized for You Today</label> <input type="hidden" data-fscta-trackcode="fsctaTrackcode" name="fscta" value="Debt Consolidation:226308:footerbanner"
    fscta-track-org="Debt Consolidation:226308:footerbanner">
  <div class="btn-cta">
    <input id="splitterid" name="id" type="hidden" value="wp-personal"> <button type="submit" class="btn btn-orange btn-fullwidth btn-arrow ">Get Started</button>
  </div>
</form>

GET https://www.lendingtree.com/redirect/offers

<form data-fscta-form="fsctaForm" action="https://www.lendingtree.com/redirect/offers" method="get" role="form" novalidate="novalidate">
  <div class="row">
    <div class="col-xs-12 col-sm-6 col-md-12">
      <div class="form-group">
        <label for="loan-type">Loan type:</label>
        <div class="input-group">
          <select data-fscta-element="fsctaEle" name="id" id="loan-type" data-val-required="Please select your Loan Type." data-val="true" aria-required="true">
            <option value="article-sb-pl">Personal</option>
            <option value="article-sb-cc">Credit Cards</option>
            <option value="article-sb-he">Home Equity</option>
            <option value="article-sb-debt">Debt Relief</option>
          </select>
        </div>
      </div>
    </div>
    <input type="hidden" data-fscta-trackcode="fsctaTrackcode" name="fscta" value="Debt Consolidation:226308:rightrail" fscta-track-org="Debt Consolidation:226308:rightrail">
    <div class="col-xs-12 col-sm-6 col-md-12">
      <div data-valmsg-replace="true" data-valmsg-for="id" class="field-validation-valid"></div>
      <button class="btn btn-orange btn-fullwidth article-btn-arrow">Continue</button>
      <div class="text-right tb-margin10 fs-12"><a class="disclosures-link white " id="promodisclosure" rel="nofollow" href="/legal/advertising-disclosures?disclosures=00001,00094,00101,00103,00115">Advertising Disclosures</a></div>
    </div>
  </div>
</form>

GET /redirect/offers

<form data-fscta-form="fsctaForm" action="/redirect/offers" method="get" novalidate="novalidate" class="footer-formstart blue">
  <label role="presentation">Get Personal Loan Offers Customized for You Today</label> <input type="hidden" data-fscta-trackcode="fsctaTrackcode" name="fscta" value="Debt Consolidation:222908:footerbanner"
    fscta-track-org="Debt Consolidation:222908:footerbanner">
  <div class="btn-cta">
    <input id="splitterid" name="id" type="hidden" value="wp-personal"> <button type="submit" class="btn btn-orange btn-fullwidth btn-arrow ">Get Started</button>
  </div>
</form>

Text Content

Skip to main content___


HOW DOES LENDINGTREE GET PAID?

LendingTree is compensated by companies on this site and this compensation may
impact how and where offers appear on this site (such as the order). LendingTree
does not include all lenders, savings products, or loan options available in the
marketplace.
You are using an outdated browser. Please upgrade your browser to improve your
experience.
MENU
 * Loans
   * Personal Loans
   * Debt Consolidation
   * Business Loans
   * Student Loans
   * Student Loan Refinance
 * Mortgages
   * Mortgage Rates
   * Refinance Rates
   * Cash Out Refinance
 * Credit Cards
   * LendingTree Win Card
   * Best Balance Transfer Credit Cards
   * Best Rewards Credit Cards
   * Best Cash Back Credit Cards
 * Auto
   * Auto Loans
   * Auto Refinance
 * Financial Help
   * Debt Relief
   * Credit Repair
   * Insurance

 * Get your free credit score in minutes!
 * Login Sign Up
 * New!
   Introducing the all-new LendingTree Win Card
   
   More rewards, less hassle. Get up to 2% cash back on every purchase.
   
   Learn More
   


Accessible Menu
Loans

 * Personal Loans
 * Debt Consolidation
 * Business Loans
 * Student Loans
 * Student Loan Refinance

Mortgages

 * Mortgage Rates
 * Refinance Rates
 * Cash Out Refinance

Credit Cards

 * LendingTree Win Card
 * Best Balance Transfer Credit Cards
 * Best Rewards Credit Cards
 * Best Cash Back Credit Cards

Auto

 * Auto Loans
 * Auto Refinance

Financial Help

 * Debt Relief
 * Credit Repair
 * Insurance

Sign up

Log in


Please enter a minimum of three characters.
Search

 * 
 * 
 *  * Please enter a minimum of three characters.
      Search
      
      
    * Loans
      * Personal Loans
      * Debt Consolidation
      * Business Loans
      * Student Loans
      * Student Loan Refinance
    * Mortgages
      * Mortgage Rates
      * Refinance Rates
      * Cash Out Refinance
    * Credit Cards
      * LendingTree Win Card
      * Best Balance Transfer Credit Cards
      * Best Rewards Credit Cards
      * Best Cash Back Credit Cards
    * Auto
      * Auto Loans
      * Auto Refinance
    * Financial Help
      * Debt Relief
      * Credit Repair
      * Insurance
   
    * Get your free credit score in minutes!
    * Login Sign Up
    * New!
      Introducing the all-new LendingTree Win Card
      
      More rewards, less hassle. Get up to 2% cash back on every purchase.
      
      Learn More
      


Debt Consolidation
How Does LendingTree Get Paid?
LendingTree is compensated by companies on this site and this compensation may
impact how and where offers appear on this site (such as the order). LendingTree
does not include all lenders, savings products, or loan options available in the
marketplace.
How Does LendingTree Get Paid?


WHERE YOU CAN EARN SIX FIGURES AND STILL BE BROKE

Written by
Maggie Davis
Edited by
Naomi Barr
Xiomara Martinez-White
Updated on: April 24th, 2023
Editorial Note: The content of this article is based on the author's opinions
and recommendations alone. It may not have been reviewed, commissioned or
otherwise endorsed by any of our network partners.


Are six-figure earners really financially stable? According to our latest study,
not necessarily — in fact, a family of three that earns $100,000 annually may
still struggle to make ends meet in 16 of the 100 largest U.S. metros.

Keep reading to learn which metros have six-figure earners struggling the most,
and which ones are most affordable. In addition, for anyone barely breaking even
after paying for basic expenses, stick around for some tips on saving up and
avoiding unnecessary debt.

On this page

 * Key findings
 * In 16 of the 100 largest U.S. metros, you can earn six figures and still be
   broke
 * Which metros top the list? Look West
 * Jackson, Miss., is the most affordable metro
 * Expert tips on saving cash in a high cost of living metro
 * Methodology


KEY FINDINGS

 * In 16 of the 100 largest U.S. metros, monthly spending on the basics is
   higher than the monthly income for a family of three that earns $100,000
   annually. Of the 16 metros, eight are in California.
 * In San Jose, Calif., a family of three that earns $100,000 would be $1,493 in
   the red monthly after spending on the basics — the highest on our list. San
   Jose takes this spot by having the highest housing (an average of $2,536 a
   month for a two-bedroom rental) and transportation (an average of $1,448 a
   month) costs among the 100 metros. Next on the list are San Francisco ($1,163
   in the red) and Oxnard, Calif. ($904).
 * Jackson, Miss., tops the list for affordability, with a family of three that
   earns $100,000 annually having $1,394 left over after spending. Mississippi
   as a state has the lowest child care costs across the U.S. at $772 a month.
   Meanwhile, the cost of living in the Jackson metro is about 11% cheaper than
   the national average. Next on the list are Birmingham, Ala. ($1,307 in the
   black), and Little Rock, Ark. ($1,294).

HOW DID WE DETERMINE WHERE SIX-FIGURE EARNERS CAN STILL BE BROKE?

We based our calculations on a family of three (two adults and a child) that
earns a gross income of $8,333 monthly. To determine in which of the 100 largest
metros these consumers could struggle to make ends meet, LendingTree researchers
then analyzed several spending categories commonly considered as “basic” needs.
That includes:

 * Housing: We assumed our family of three is renting a two-bedroom apartment in
   their area.
 * Child care: We assumed the family paid for weekly child care. Calculations
   are at the state level.
 * Transportation: We measured the total cost of local transportation, including
   car ownership, travel and transit costs.
 * Health care: This is the monthly employee contribution amount based on the
   average annual family premium for employer-based health insurance.
   Calculations are at the state level.
 * Student loans: Based on the most recent data, we assumed a couple is making
   an average monthly student loan payment of $250. (While payments on federally
   held student loans have been suspended since the beginning of the coronavirus
   pandemic, those with private student loans have had to continue payments, so
   we chose not to set the payment at $0.)
 * Food, entertainment and utilities: We assumed our family of three made
   average national expenditures for someone earning $100,000 to $149,999
   annually. We then applied a cost-of-living multiplier based on the metro.
 * Taxes: We assumed our family of three files jointly and invests $6,000 yearly
   into their 401(k). Taxes are measured at the federal level but not state or
   local.
 * Savings: We assumed our family of three put away $500 in savings monthly.

See the methodology for fuller details.


IN 16 OF THE 100 LARGEST U.S. METROS, YOU CAN EARN SIX FIGURES AND STILL BE
BROKE

Breaking the six-figure income barrier doesn’t automatically mean you’re
financially free — at least not in 16 of the 100 largest U.S. metros, where
monthly spending on the basics is higher than the monthly income for a family of
three that earns $100,000 annually.

Metros where basic expenses are higher than the monthly income of a family
earning $100,000 annually



RankMetroMonthly incomeMonthly expenditureNet monthly income 1San Jose,
CA$8,333$9,826-$1,493 2San Francisco, CA$8,333$9,496-$1,163 3Oxnard,
CA$8,333$9,238-$904 4Honolulu, HI$8,333$9,198-$865 5San Diego,
CA$8,333$9,099-$766 6Boston, MA$8,333$9,095-$762 7Seattle, WA$8,333$8,995-$662
8Los Angeles, CA$8,333$8,989-$655 9Washington, DC$8,333$8,866-$532 10Bridgeport,
CT$8,333$8,653-$320 11Riverside, CA$8,333$8,547-$214 12Sacramento,
CA$8,333$8,531-$197 13Denver, CO$8,333$8,507-$174 14Poughkeepsie,
NY$8,333$8,489-$156 15Baltimore, MD$8,333$8,436-$102 16Stockton,
CA$8,333$8,377-$44



Sources: U.S. Census Bureau 2021 American Community Survey with one-year
estimates, U.S. Census Bureau Household Pulse Survey, Center for Neighborhood
Technology Housing and Transportation Affordability Index, Kaiser Family
Foundation, Federal Reserve Survey of Household Economics and Decisionmaking
(SHED), U.S. Bureau of Labor Statistics 2021 Consumer Expenditure Survey and
U.S. Bureau of Economic Analysis data.

According to LendingTree chief credit analyst Matt Schulz, it’s understandable
that these high earners may be struggling to get by — particularly in high cost
of living areas.

“Lots of people in this country make six figures and are broke in this country
for as many reasons as there are people,” Schulz says. “Some of it may be the
result of questionable choices, but for many, it’s simply due to things that are
out of their control, such as outrageous housing prices, the high cost of gas,
grocery bills or health care expenses. The truth is that the financial margin
for error for most Americans, including many who earn six-figure salaries, is
perilously small.”

Of the 16 metros, eight are in California. While Schulz says salaries in almost
all of the big California cities are higher than the rest of the nation, because
the cost of living can be outrageously high there too, even six-figure residents
are finding themselves struggling financially (more on that below).


WHICH METROS TOP THE LIST? LOOK WEST

It may be the land of tech giants and millionaire entrepreneurs, but for a
family of three living in San Jose, Calif., earning $100,000 annually would land
them in the red by a whopping $1,493 per month — making it the top metro where
six-figure earners may struggle to make ends meet.

The exorbitant costs of housing (averaging at $2,536 per month for a two-bedroom
rental) and transportation (averaging at $1,448 per month) are the main
culprits. Both of those costs are the highest of any metro on our list.

As the home of Silicon Valley, it’s not entirely surprising that San Jose has
such a high cost of housing. In fact, another LendingTree study on
million-dollar homes found that almost 53% of owner-occupied homes in San Jose
are valued at $1 million or more — the most of any major U.S. metro.

Coming in second and third place behind San Jose are San Francisco and Oxnard,
Calif., with families of three earning $100,000 in the red by $1,163 and $904
per month, respectively. Predictably, housing in San Francisco and Oxnard rank
second- and third-highest of any metro analyzed. To break it down:

 * Rent for a two-bedroom apartment in San Francisco costs an average of $2,341.
 * Rent for a two-bedroom apartment in Oxnard costs an average of $2,023.

Also worth noting: San Francisco has the highest cost multiplier of any metro we
analyzed, at 119.832. That means the cost of living (which, in our calculations,
doesn’t include housing and transportation) is almost 20% more expensive than
the U.S. average. Given that, San Francisco ranks highest for food costs (with a
family of three spending an average of $1,058 per month) and entertainment costs
(with families spending around $445 on average).

Meanwhile, Oxnard has the second-highest transportation costs of the top 100
metros — six-figure earners there spend an average of $1,377 per month getting
around.


JACKSON, MISS., IS THE MOST AFFORDABLE METRO

Looking to stretch your dollars as far as they can go? You might want to
consider Jackson, Miss., which tops the list as the most affordable metro in the
U.S. for a family of three earning $100,000 annually. According to our analysis,
such a family could have $1,394 in monthly net savings after covering their
basic expenses.

This is largely due to the state’s child care costs, the lowest in the country
at $772 per month. In general, the cost of living in the Jackson metro is about
11% cheaper than the national average, making it an attractive option for those
seeking to maximize their budgets.

According to Schulz, those lower costs largely boil down to the
lower-than-average salaries that are offered in-state. “Mississippi has
historically been one of the nation’s lowest-income states, but it also has one
of the lowest costs of living,” he says. “That means that $100,000 can go a
whole lot further in Mississippi than in most other areas.”

According to the U.S. Census Bureau, the median household income in Mississippi
is $49,111 — that compares with a national median of $69,021.

Metros where basic expenses are lowest compared to the monthly income of a
family earning $100,000 annually



RankMetroMonthly incomeMonthly expenditureNet monthly income 1Jackson,
MS$8,333$6,939$1,394 2Birmingham, AL$8,333$7,026$1,307 3Little Rock,
AR$8,333$7,040$1,294 4Oklahoma City, OK$8,333$7,044$1,289 5Toledo,
OH$8,333$7,045$1,288 6Dayton, OH$8,333$7,064$1,270 7Tulsa, OK$8,333$7,064$1,269
8Cleveland, OH$8,333$7,122$1,211 8Memphis, TN$8,333$7,122$1,211 10Akron,
OH$8,333$7,161$1,172



Sources: U.S. Census Bureau 2021 American Community Survey with one-year
estimates, U.S. Census Bureau Household Pulse Survey, Center for Neighborhood
Technology Housing and Transportation Affordability Index, Kaiser Family
Foundation, Federal Reserve Survey of Household Economics and Decisionmaking
(SHED), U.S. Bureau of Labor Statistics 2021 Consumer Expenditure Survey and
U.S. Bureau of Economic Analysis data.

The second- and third-ranking affordable metros on the list are Birmingham, Ala.
($1,307 in the black), and Little Rock, Ark. ($1,294). It’s worth noting that
the cost multiplier in both metros is low, at 9% and 8% cheaper than the U.S.
average, respectively. That’s directly tied to the lower-than-national-average
incomes residents earn in each state: In Alabama, the median income is $54,943,
while the median income in Arkansas is just $52,123.

Like in Jackson, Miss., Birmingham also has notably low child care costs — at an
average of $866, it ranks fourth-lowest on the list.

Meanwhile, Little Rock has low housing costs. With rent for a two-bedroom
apartment costing an average of $863, it ranks in the top 10 of the metros with
the most affordable housing.


FULL RANKINGS








EXPERT TIPS ON SAVING CASH IN A HIGH COST OF LIVING METRO

Regardless of whether you’re earning six figures or not, living in a large metro
area — especially one with a high cost of living — can be challenging. For those
trying to make ends meet, Schulz offers the following advice:

 * Credit card rewards can be a great way to extend your budget. “That 2% cash
   back may not seem like much, but when you’re on a tight budget, every little
   bit matters,” he says. “Your income doesn’t play a role in whether you can
   actually get a credit card, but it does help determine just how much credit
   you can get when you do get one. That means that you have the potential to
   earn more rewards, plus you can use that card as a de facto emergency fund if
   need be.”
 * Revisit your budget. “The more money you make, the more challenging it can be
   to track. That’s a good problem to have, but it’s still a problem,” he says.
   “The truth is that you can’t make a meaningful plan to attack debt or grow
   savings unless you know exactly how much is coming in and out of your
   household each month. It’s not going to be fun, but getting super-granular
   for a few weeks — which means tracking everything you spend — can be
   eye-opening. You’re likely spending more on certain things than you realize,
   and once you notice that, you can start to be more mindful and conscious of
   what you’re buying. That can make a real difference.”
 * Don’t pass up free money. “Sounds silly, right?” he says. “Who passes up free
   money? Lots of people do. For one, many high-income earners may be eligible
   for a 401(k) match from their employer up to a certain amount each year, yet
   they don’t max it out. That’s free money that’s being left on the table that
   could otherwise help relieve any pressure they may be feeling about their
   savings. If you let your employer do more of the savings work, you may end up
   with some extra money that can then be put to more immediate needs.”


METHODOLOGY

LendingTree researchers analyzed various sources to determine the metros where
you can earn six figures and still be broke.

We started with the 100 largest metros in the U.S., basing our calculations on a
family of three (two adults and a child) that earns a gross income of $8,333
monthly.

We refer to our spending categories in this study as “the basics,” though we
realize that can differ by family, metro and other factors. The spending
categories we included were:

 * Housing: We assumed our family of three is renting a two-bedroom apartment.
   Calculations are at the metro level. (U.S. Census Bureau 2021 American
   Community Survey with one-year estimates)
 * Child care: We assumed the family paid for weekly child care. Calculations
   are at the state level. (Week 51 of the U.S. Census Bureau Household Pulse
   Survey, conducted Nov. 2 to 14, 2022)
 * Transportation: This metric measures the total cost of transportation,
   including car ownership, travel and transit costs. Calculations are at the
   metro level. (Center for Neighborhood Technology Housing and Transportation
   Affordability Index, 2020)
 * Health care: This is the monthly employee contribution amount based on the
   average annual family premium for employer-based health insurance.
   Calculations are at the state level. (Kaiser Family Foundation, 2021)
 * Student loans: We assumed the couple is making a monthly student loan payment
   of $250. While payments on federally held student loans have been suspended
   since the beginning of the coronavirus pandemic, those with private student
   loans have had to continue payments, so we chose not to set the payment to
   $0. We set $250 across the U.S. based on a May 2020 report — the latest
   available — that highlighted the typical monthly payment is between $200 and
   $299. (Federal Reserve Survey of Household Economics and Decisionmaking, or
   SHED)
 * Food, entertainment and utilities: We assumed our family of three made
   average national expenditures for someone earning $100,000 to $149,999
   annually. We applied a cost-of-living multiplier based on the metro. (U.S.
   Bureau of Labor Statistics 2021 Consumer Expenditure Survey, U.S. Bureau of
   Economic Analysis)
 * Taxes: We assumed our family of three files jointly and invests $6,000 yearly
   into their 401(k). In this scenario, our family owes $7,761 in federal taxes
   and $7,650 in payroll taxes. Taxes are measured at the federal level but not
   state or local.
 * Savings: We assumed our family of three put away $500 in savings monthly.

To estimate the net savings or debt accrued, we estimated the monthly cost of
each of the categories above. We then subtracted that figure from the $8,333
monthly income of a household earning $100,000. Finally, we ranked the metros
from highest to lowest based on where those expenditures were the highest.

Get Personal Loan Offers Customized for You Today
Get Started
Share Article


 


Debt Consolidation Loans Using LendingTree

Loan type:
Personal Credit Cards Home Equity Debt Relief

Continue
Advertising Disclosures

PERSONAL LOANS RESOURCES

Personal Loan Rates
Personal Loan Calculator
Best Personal Loans for Bad Credit
How to Refinance a Personal Loan


RECOMMENDED READING

Americans Using BNPL to Make Ends Meet, With 27% of Users Bridging Paycheck Gaps
and 21% Buying Groceries
Updated April 3, 2023

The newest LendingTree survey finds that 27% of BNPL users say they use these
loans as a bridge to their next paycheck.

READ MORE - Americans Using BNPL to Make Ends Meet, With 27% of Users Bridging
Paycheck Gaps and 21% Buying Groceries
Best and Worst Places for Raising a Family as a Single Parent
Updated April 3, 2023

23% of children younger than 18 live with a single parent in the U.S. That’s
more than three times the global rate of 7%, according to the U.S. Census
Bureau.

READ MORE - Best and Worst Places for Raising a Family as a Single Parent
Sharing Bank Accounts Could Lead To Fewer Fights — But Most Americans Aren’t
Fully Committed
Updated March 27, 2023

Finance is a finicky subject in relationships (particularly early on), but
consumers who share bank accounts say they’re less likely to fight about money.

READ MORE - Sharing Bank Accounts Could Lead To Fewer Fights — But Most
Americans Aren’t Fully Committed
Get Personal Loan Offers Customized for You Today
Get Started




FOOTER NAVIGATION


ABOUT US

 * About LendingTree
 * Careers
 * Contact Us
 * Investors
 * Partner with Us
 * Press Room
 * Widgets


LEGAL INFORMATION

 * Overview
 * Privacy
 * Online Tracking
 * Security
 * Advertising Disclosures
 * Terms of Use
 * Licenses & Disclosures
 * Unsubscribe
 * Vulnerability Disclosure Program
 * Accessibility Statement


OTHER SITES

 * CompareCards
 * DepositAccounts
 * MagnifyMoney
 * Ovation Credit
 * QuoteWizard
 * SimpleTuition
 * SnapCap
 * ValuePenguin




FOLLOW US

 * 
 * 
 * 
 * 


DOWNLOAD OUR APP

 * 
 * 


LendingTree, LLC is a Marketing Lead Generator and is a Duly Licensed Mortgage
Broker, as required by law, with its main office located at 1415 Vantage Park
Drive, Suite 700, Charlotte, NC 28203, Telephone Number 866-501-2397 (TDD/TTY).
NMLS Unique Identifier #1136. LendingTree, LLC is known as LT Technologies in
lieu of true name LendingTree, LLC in NY. LendingTree technology and processes
are patented under U.S. Patent Nos. 6,385,594 and 6,611,816 and licensed under
U.S. Patent Nos. 5,995,947 and 5,758,328. © 2016 LendingTree, LLC. All Rights
Reserved. This site is directed at, and made available to, persons in the
continental U.S., Alaska and Hawaii only.

Online Security: Protect Against Fraud




×


ADVERTISING DISCLOSURES





Feedback


Opens in new window
PDF Download
Word Download
Excel Download
PowerPoint Download
Document Download

close carousel