At $100k, you’re going to feel broke. That might sound counterintuitive, considering that six-figure income is often seen as a significant milestone. However, when you take into account factors such as taxes, living expenses, and other financial obligations, the reality sets in. While $100k is a decent income, it doesn’t necessarily translate into a life of luxury or financial freedom.
At $50k, you’re just living and aren’t really saving or doing much that isn’t “the cheapest option.” This income level often means living paycheck to paycheck, focusing on meeting basic needs rather than indulging in extravagant purchases or experiences. Saving for the future may seem like a distant dream, as the priority is simply making ends meet.
At $75k, you’ve upped your lifestyle to be less uncomfortable – a little nicer apartment, maybe a splurge when you go out to dinner, a bit more takeout, that kind of thing. With a slight increase in income, you may be able to afford small luxuries that make life more enjoyable. However, it’s important to note that significant savings or major financial milestones may still be out of reach at this point.
At $100k, you now have a bit higher expectation of how easy life should be, as you’ve allowed yourself to up your lifestyle. You might have moved into a better apartment, dine out more frequently, or invest in some quality possessions. However, even though you can afford more than the cheapest options, you still can’t comfortably afford the truly expensive ones. This discrepancy can lead to feelings of disappointment or a sense that you haven’t reached the level of financial security you anticipated.
So at $100k, you end up feeling the same way you did at $50k, just with more stuff around you that’s now not nearly as exciting as it was the first few times you splurged on them. The initial thrill of upgrading your lifestyle fades as these once-desirable possessions become a regular part of your daily life. It’s a phenomenon often referred to as “hedonic adaptation,” where the excitement and novelty of new acquisitions diminish over time.
At $125k, you’re now feeling about the way you did at $75k – you’re able to up your lifestyle a bit, say yes to a few more things, and feel good, but you know you’re not exactly where you want to be. This income level allows for further comfort and enjoyment, with a greater ability to indulge in experiences and treat yourself occasionally. However, the desire for financial growth and the pursuit of a higher standard of living remain.
At $150k, you’re now making some new, larger upgrades to your life. Around this point, you might start considering options like moving to a bigger place or purchasing a nicer car. These choices signify a significant step forward in your lifestyle and demonstrate the progress you’ve made in terms of financial stability and earning power.
Reaching around $200k is when you’ve upgraded your major lifestyle “stuff” and can still put a few thousand dollars away each month. At this level of income, you have likely achieved a substantial increase in your quality of life. You may have acquired the bigger home, the luxurious car, and other significant material possessions that you aspired to. Moreover, you have managed to maintain a healthy savings rate, allowing you to build a solid financial foundation for the future.
If you’re wondering when money feels like funny money, that’s typically at $500k or beyond. Keep in mind that this threshold varies for everyone based on factors such as location, lifestyle preferences, and available opportunities. What might seem like a vast sum of money to some could be considered a moderate amount by others.
Now, how do you get to $200k or more? While there are various paths to achieving a high-income level, one common route that has proven successful for many is a career in sales. Sales positions often provide individuals with opportunities to earn significant commissions and bonuses, which can substantially boost their overall income. However, it’s important to note that success in sales requires dedication, resilience, and a willingness to continuously improve and adapt to market dynamics.
In conclusion, the journey from $50k to $200k+ income levels involves incremental improvements in lifestyle and financial security. Each milestone brings its own set of challenges and opportunities. While six-figure incomes may not guarantee instant wealth or absolute financial freedom, they offer the potential to enhance your quality of life and create a stronger financial foundation.
If you haven’t already, don’t forget to join our group coaching and community of sales pros where I give weekly trainings, deal coaching sessions, and more.