I make $100K a year; but how come life is still so hard? Here's why a six-figure...

On paper, it looks like you’ve made it. You’ve hit that six-figure dream. But these days it may not be enough.

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The old benchmark $100,000 salary that put baby boomers into the category of “rich” is coming up short, according to a recent survey by PYMNTS. The survey found that about 70% of millennials are still living paycheck to paycheck, while the median salary remains at about $70,000 for Americans.

Moreover, millennials are now the largest generation to find this struggle is an everyday challenge, with 33% finding it difficult to pay their bills.

Here’s why the American dream feels more like a reverie for younger generations — and what you can do to claw back some of your buying power without having to negotiate for a raise.

Unlike their parents

Both Gen Z and millennials grew up with baby boomer parents who most likely had it all going for them: the car, the family, the house and the salary that allowed them to live a stable and affordable lifestyle.

In 1980, American families had a median income at $75,672 in today’s currency, according to the U.S. Census Bureau. Three decades on, that average has actually dropped to about $70,784 as of 2021.

That means, not only are millennials and Gen Z paid less than their parents (on a constant currency basis), but due to sky-high inflation, their salaries no longer stretch as far.

And then consider the student debt many young people are already carrying when they’re only just starting their careers. While millennials and Gen Z may be the most educated generations yet, that pricey degree doesn’t pay the same dividends when everyone you’re competing for jobs with has one too.