For Those Earning a High Income But Still Feeling Broke
Are you earning $70,000, $100,000, or even $150,000—but still feel like you’re living paycheck to paycheck?
If so, you’re not alone. Many high earners find themselves wondering: “How can I make this much money and still feel broke?”
The truth is, a high salary doesn’t automatically lead to financial freedom. In fact, the more you make, the easier it becomes to overspend—without even realizing it. Here’s a closer look at why this happens and how to take back control.
The Illusion of Wealth: Why High Earners Still Feel Broke
According to recent U.S. Census data, the median household income in America is around $60,000. So if you’re pulling in six figures, you’re technically doing well—better than most.
But the problem isn’t your income. It’s your expenses.
Lifestyle Creep Is Real
This phenomenon—also called lifestyle inflation—happens when your expenses rise in tandem with your income. You upgrade your car, dine out more often, take luxury vacations, and sign your kids up for costly extracurriculars or private schools.
Before long, your higher income gets absorbed by a more expensive lifestyle.
Here’s what that might look like:
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Designer clothes and accessories
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Gourmet groceries and specialty products
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Eating out multiple times a week
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Premium subscriptions and streaming services
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High housing costs, especially in areas like NYC or New Jersey
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Kids’ private education or costly after-school programs
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Constant upgrades to the latest tech or fashion trends
These discretionary expenses are what create the “broke at six figures” trap.
It’s Not Just You—Some Costs Really Are Outrageous
If you live in a high-cost area like New Jersey or the New York metro, it’s no wonder your paycheck feels tight.
You’re paying more for:
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Housing: Rent or mortgages easily top $3,000/month
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Property taxes: Some of the highest in the nation
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Food and utilities: Consistently above the national average
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Insurance and healthcare: More expensive and often under-covered
In these regions, even a six-figure salary doesn’t stretch as far as it would in lower-cost areas.
How to Stop Feeling Broke (Even on a High Income)
The solution isn’t always about making more money—it’s about spending better. Here’s how to shift your mindset and realign your financial habits.
1. Audit Your Spending
Take a close look at your monthly expenses. Where’s the money going? Identify non-essential costs like luxury goods, over-the-top dining, unused subscriptions, or retail therapy splurges.
Pro tip: Use apps like Mint or YNAB (You Need A Budget) to track and categorize every dollar.
2. Differentiate Between Wants and Needs
Be brutally honest with yourself. Do you really need:
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A brand-new car every few years?
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Daily gourmet coffee and takeout lunches?
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Top-tier cable or streaming bundles?
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The trendiest home décor every season?
If the answer is no, it’s time to scale back.
3. Define Your Financial Priorities
Ask yourself: What matters most—freedom or lifestyle?
Would you rather:
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Build a robust emergency fund?
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Max out your 401(k) or Roth IRA?
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Save for your child’s education or a future home?
Aligning your spending with your long-term goals makes it easier to say “no” to the short-term temptations.
4. Cut Where You Can
Not everything can be cut—housing and taxes, for instance, may be fixed. But you can still:
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Meal plan to cut down grocery bills
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Cancel unused memberships
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Limit impulse spending on shopping apps
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Refinance loans for better interest rates
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Move to a slightly less expensive area if possible
5. Live Below Your Means (Even When You Don’t Have To)
Just because you can afford something doesn’t mean you should. The key to long-term wealth is spending less than you earn, no matter how high that number is.
As the saying goes, “It’s not about how much you make—it’s about how much you keep.”
Final Thoughts: Make Your Money Work For You
If you’re earning a high income but still feel broke, it’s time to evaluate your lifestyle. High earners aren’t immune to financial stress—but with mindful budgeting, clear priorities, and a willingness to challenge spending habits, you can break free from the paycheck-to-paycheck cycle.
Ask yourself: What can I keep, and what has to go?
The answer could be your key to lasting financial peace.
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High-earning couple reviewing budget on laptop, questioning lifestyle costs
FAQs:
Why do I feel broke even though I make over $100K?
This often happens due to lifestyle inflation—when your spending rises as your income increases. Housing, taxes, and luxury expenses can quickly consume a six-figure salary.
Is it normal to live paycheck to paycheck on a high income?
Yes, especially in high-cost areas or when expenses are not tracked. Many people earning $100K+ still feel broke due to overspending or lack of financial planning.
What are the biggest financial drains for high-income earners?
High housing costs, dining out frequently, private education, and lifestyle spending (cars, fashion, travel) are common culprits.
How can I fix feeling broke despite a good salary?
Start by auditing your expenses, cutting non-essentials, setting financial goals, and building a budget that aligns with your values and priorities.
Can I really save money while living in a high-cost area?
Yes, but it takes intentional planning. Focus on controllable expenses, reduce lifestyle upgrades, and prioritize long-term savings over short-term splurges.
