Six Figures No Longer Guarantees Success — Here's What Actually Matters in 2025

The Harsh Truth About Modern Six-Figure Earnings

Earning $100,000 used to signal that you’d made it. A six-figure income meant financial security, a comfortable home, and freedom from money anxiety. But that was then. Today’s economic reality has completely rewritten the playbook.

The numbers reveal the disconnect starkly: what $100,000 purchased in the 1980s would cost roughly $400,000 today when adjusted for inflation. Yet people still celebrate hitting the six-figure mark as though nothing has changed. The problem? Inflation and soaring living costs have hollowed out the meaning entirely.

Why the Goalpost Keeps Moving

Investment professional Anthony Termini, with four decades of wealth management experience, frames it plainly: “Making six figures was a sign of career success around the time U2 released its first No. 1 album.” That era of conspicuous consumption is long gone.

Back then, $100,000 was genuinely impressive. Today, if you want the equivalent purchasing power your parents had reaching that milestone, you’d need to earn $400,000. But here’s the kicker—even that adjusted number doesn’t feel like success anymore in many markets.

Geography Destroys the Universal Meaning

Location has become the ultimate equalizer, rendering six-figure salaries meaningless depending on where you live. According to CPA and finance expert Sharad Gondaliya, “Two decades ago, a six-figure salary placed you firmly in the upper-middle class in most U.S. cities. Today, it feels mid-tier in high-cost areas where basic expenses consume most of your paycheck.”

The regional disparity is stunning. In San Francisco, a $100,000 salary effectively feels like $40,000 once taxes and living costs are factored in. Meanwhile, in Des Moines, the same income provides genuine stability and savings capacity. Bureau of Labor Statistics data shows the average U.S. household now spends over $70,000 annually on basics before touching savings or debt payments.

Housing exemplifies this divide perfectly. The median home price in California hovers near $900,000, while rural Midwest homes of similar value offer substantially more space—yet those same rural areas have median personal incomes closer to $45,000. The disparity means someone earning $400,000 in a major city still faces tighter constraints than conventional wisdom suggests.

What Success Actually Looks Like Now

If six-figure earnings don’t cut it anymore, what does? Both experts shifted focus away from income alone toward financial outcomes.

Termini pointed to net worth as a more reliable indicator. “The median net worth in America sits around $193,000,” he noted. “To genuinely demonstrate success, you’d need considerably above that.” Reaching the top 10% of household net worth requires approximately $970,900 according to recent data.

Even that benchmark fades when considering retirement needs. Major brokerage firms recommend accumulating 10 times your annual income by age 67 for comfortable retirement. Using the inflation-adjusted $400,000 figure means building $4 million in retirement savings—a target most never reach.

Gondaliya redefined success from income to outcomes. “The new markers aren’t about earnings; they’re about what you can actually accomplish,” he explained. True financial success now means maintaining 6-12 months of expenses in reserves, affording a home in a desirable area without financial strain, and living substantially below your means with room to grow.

The Bottom Line

You can earn $150,000 and still feel perpetually broke if spending outpaces peace of mind. The measure of financial success has fundamentally shifted from hitting an income target to achieving actual financial independence and sustainable lifestyle security. Six figures? It’s no longer the finish line—it’s barely the starting point.