Earning $100,000 a year used to mean you’d made it. Today, it means you’re in a good spot—but only if you’re smart about it. Thanks to inflation, higher taxes, and a rigged economy that punishes savers and rewards debt, six figures isn’t what it used to be.
Still, if you’re pulling in $100K annually, you’re better off than most Americans. The question is: are you putting that income to work, or just getting by? For many hardworking patriots out there, the answer may surprise you.
According to Edward Piazza, president of Titan Funding, the magic number is at least 20 percent of your gross income. That means socking away $1,666 per month, or $20,000 per year. That’s not just about “saving for retirement.” It’s about building a war chest—for emergencies, investments, and independence.
In other words, saving is the modern form of self-reliance.
Chris Heerlein, CEO of REAP Financial, breaks it down even further: “About 15% should go into tax-advantaged retirement accounts like a 401(k) or IRA, and 5% should go toward liquid savings for emergencies and short-term needs.”
That approach gives you options: the long game of retirement and the short game of being able to jump on an opportunity—or weather a crisis—without begging the bank or the government for help.
Most Americans are trained to dump everything into their 401(k) and forget about it until they’re 67. But what if you want out sooner? What if you want to start your own business, walk away from a job that no longer aligns with your values, or fund your kid’s education without taking on debt?
If all your money is locked up in retirement accounts, you’re stuck—unless you want to get hammered by early withdrawal penalties.
Heerlein recalls a client who followed the standard savings advice for years, only to realize too late that he wanted to retire early. They ended up shifting his savings toward taxable brokerage accounts and liquid investments, giving him flexibility—and financial freedom—a full decade ahead of schedule.
That’s the kind of proactive planning more Americans need to be doing.
If you’re aiming for early retirement, starting a business, or just want to get ahead while the dollar still holds value, consider saving 30% of your income. That would mean $30,000 per year, or $2,500 a month.
Here’s one way to structure that:
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15% to retirement accounts
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10% to investments (brokerage, real estate, precious metals)
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5% to cash savings
It’s not easy. But it’s doable if you’re willing to live below your means and cut out the financial fluff. That might mean passing on the luxury SUV, the overpriced apartment, or the mindless consumerism that’s become the new American addiction.
Don’t forget that a $100K salary isn’t really $100K after Uncle Sam takes his slice. Depending on your state, taxes will eat up 25–30 percent of your income. That leaves you with $70K–$75K in real, usable cash.
Want to reduce your tax burden? Max out your 401(k) and consider using a Health Savings Account (HSA) if you’re eligible. Both lower your taxable income and help you keep more of what you earn.
Saving shouldn’t be about fear. It should be about freedom. Every dollar you save is a vote against dependency, against inflation, and against government overreach. It’s a vote for your future.
“Creating a saving habit is important because it provides financial security and allows for growth,” Piazza says. He’s right. If you consistently save with purpose and discipline, you’ll be better prepared than most—and you’ll be calling the shots instead of waiting for someone else to tell you what comes next.
Bottom line: Don’t just make six figures. Make them count.
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