February 28, 2005
Six Digits - not enough to live on anymore
The New York Times > Fashion & Style > Six Figures? Not Enough!
There was a time not long ago when earning six figures was a significant milestone among upwardly mobile professionals. If you were young and single in one of the nation's big cities, you could live in a building with a doorman, drive a European car, eat at fine restaurants and vacation in Jackson Hole. For married people it meant a suburban home and college savings accounts for the children.Beyond the lifestyle, $100,000 was a psychic achievement; it meant joining the meritocratic elite. The prospect of "six figures" kept white-collar workers toiling for 20 years, confident that hard work would be rewarded and that the American social contract was securely in place.
Certainly $100,000, which is more than twice the national median household income of $43,527, is still a princely wage in most of the country, placing you in the top 5.2 percent of American wage earners with full-time jobs, according to the 2000 census. Even in New York City, only 7.5 percent of full-time workers make that much. But $100,000 isn't what it used to be. It has been devalued, in the practical sense by inflation and psychologically because it is now a relatively common salary for newcomers in fields like law and banking. For today's executive strivers in the more affluent cities, there is a new grail: $200,000.
Figures.
"Twenty years ago a person would have thought that if they were making $100,000 they were rolling in the dough," said Karen Ramsey, a certified financial planner in Seattle. Now, she said, clients "will be making $100,000, $120,000, and they'll be looking at me and saying: 'We're just getting our kids through school. If we have any left over for a vacation, we're lucky.' " Adjusted for cost-of-living inflation in the New York metropolitan region, a $100,000 income in 1987 would be worth about $170,000 today. And yet it still seems that another $30,000 or more is needed to be a "player."
Doh.
Posted by TY at February 28, 2005 11:57 AM
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