$100,000 income: No big deal anymore

A $100k salary isn't what is used to be according to this Bankrate.com article.  Having a $100k base salary used to be the gold standard when it came to living the good life.  And although having a $100k salary would still put you in the upper echelon of earners in America, that type of money doesn't go as far as it used too.

As we have often discussed, the inflation numbers that the government would like you to believe show inflation tame or even near historical lows.  However those figures often exclude the "volatile" food and energy costs that we actually use on a daily basis.  Not to mention increases in health care and college costs, you can see where that $100k salary is eaten away quite quickly.

Full article here

• Not only has standard inflation steadily eroded the real value of a $100,000 income, but the costs of housing, health insurance and college tuition have risen dramatically in recent years. Consider the rising costs of food, energy and the necessities of a middle class life, and that six-figure luxury quickly turns to six-figure mediocrity.
• Less than 20 percent of American households even break the six figures. But many who earn incomes near the mark find that their prized incomes don't take them as far as the hype. Many say that while breaking the $100,000 annual income mark may still be an impressive milestone, it doesn't exactly roll out the red carpet.
• "What would have cost you $100,000 in 1976 would cost you $381,000 today. That's just the inflation, and there are so many other things that have grown very expensive," says Mari Adam, Certified Financial Planner and president of Adam Financial Associates in Boca Raton, Fla.