Whether or not 100k a year is “good” depends on a number of factors, including the cost of living in your area, the size of your family, and your lifestyle. In some parts of the country, 100k goes a lot further than in others. If you’re looking to live a comfortable life on 100k a year, here’s what you need to know.
The Cost of Living in Your Area
One of the biggest factors in whether or not 100k a year is “good” is the cost of living in your area. For example, in San Francisco, the median rent for a one-bedroom apartment is $3,460—which means that if you want to rent an apartment on your own, you’ll be spending nearly all of your income on rent alone! On the other hand, in Wichita, KS, the median rent for a one-bedroom apartment is only $650—leaving you with plenty of room in your budget for other expenses.
The Size of Your Family
Another important factor to consider is the size of your family. If you have a family of four, you’ll need to bring in more money to cover all of your expenses—especially if you have young children who require childcare. According to Care.com, the national average for childcare costs is $943 per month, or nearly $11,000 per year. That’s a significant chunk of change—and it’s just for one child! If you have two children in childcare, that number doubles.
Last but not least, it’s important to consider your lifestyle when determining whether or not 100k a year is “good.” If you’re content with living simply and don’t require much in terms of material possessions or experiences, you can probably get by on less money than someone who enjoys traveling or eating out frequently. It all comes down to what you value and what makes you happy.
Conclusion:100k is good if…
So, is 100k a year good? It all depends on your perspective. If you’re content with living simply and don’t require much in terms of material possessions or experiences, 100k could be good for you—especially if you live in an area with a low cost of living. However, if you have a family or enjoy a more luxurious lifestyle, 100k might not be enough to cover all of your expenses. Ultimately, it all comes down to what YOU need and want in life.