A new study has revealed the top 16 US cities where a family earning $100k annually would still struggle to pay their bills.
Despite the six-figure income seeming enough to get by and live comfortable, the study showed that in some cities, even basic monthly expenses are so high that families are falling behind on their bills.
The study, by Lending Tree, analysed how far $100,000 for a family of three would go in the 100 largest metro areas in the US, taking into account 'basic' needs such as housing, child care, health care, food, entertainment, utilities, taxes, transportation, student loans, and savings.
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The calculations were based on a family of three (two adults and a child) that earns a gross income of $8,333 monthly.
The top three least affordable cities for $100K earners were all in California, with San Jose coming in first place.
In San Jose, a family of three earning $8,333 per month would have a net monthly income of -$1,493 due to exceptionally high housing and transportation costs.
San Francisco and Oxnard also made the list.
Rent for a two-bedroom apartment in San Francisco costs an average of $2,341 and in Oxnard it was $2,023.
Other cities on the list included Honolulu, San Diego, Los Angeles, Washington D.C., Seattle, Boston, and Denver.
Interestingly, no area of New York City made the top 16 list.
However, according to the study, a family of three in NYC would only be left with a mere $6 after monthly cost and it ranked 17th on the list of where $100k would go the shortest distance.
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On the other hand, the study also detailed the most affordable major US cities for a family of three making $100,000 annually, with Jackson, Mississippi, topping the list.
The cost of living in Jackson is about 11 percent cheaper than the national average, and a family could maximize the spending power of $100,000 with a net income of $1,394.
Chief Credit Analyst at LendingTree, Matt Schulz, said that even high earners may struggle to get by in high cost of living areas, citing outrageous housing prices, the high cost of gas, grocery bills, or health care expenses as some of the reasons why.
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Schulz emphasized that the financial margin for error for most Americans, including many who earn six-figure salaries, is perilously small.
He said: "Lots of people in this country make six figures and are broke in this country for as many reasons as there are people.
"Some of it may be the result of questionable choices, but for many, it’s simply due to things that are out of their control, such as outrageous housing prices, the high cost of gas, grocery bills or health care expenses.
"The truth is that the financial margin for error for most Americans, including many who earn six-figure salaries, is perilously small."