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Woman reveals take-home pay from $95k salary and it explains why everything is broken

It sounds like a lot, but viewers couldn't believe how fast her paycheck disappeared.

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A woman breaks down her $95k paychecks and people are surprised by what's left.

More money, more problems? Maybe not, but definitely some problems. Big ones. Making six figures ($100,000 per year or more) used to really mean something in America. It was a big milestone in someone's life and career, signaling, at least from the outside, that they had made it. They were officially a success. Six figures never necessarily meant that you were rich, but it definitely set you up for a very comfortable life. You could afford a home, a couple of kids, yearly vacations, the works.

My, how things have changed.

One woman recently took to social media to share exactly how far her near-six-figure salary goes, and it's not nearly as far as it used to be.

Kait Alayna, who posts on TikTok about personal finance, budgeting, and all things money, shared a video recently breaking down her $95,500 annual salary. (It's not six figures, but it's pretty close.)

"[My net paycheck] can seem kind of low for my salary," she says in the video, responding to a commenter. "So here's the breakdown of gross to net so you can see where all the funds are going."

In captions on the video, she shows that her gross paycheck is $3,979. $399.91 goes to her 401k contribution. Seventy-five dollars go to a health savings account, and she pays another $68.88 per pay period for health, dental, and vision insurance. A chunky $882.30 is taken out of her paychecks for taxes.

That leaves her with just $2,553 in her pocket per pay period. That's about $5,000 in monthly take-home pay.

For Alayna's next trick, we get to watch it all disappear!

@kaitalayna

Replying to @Faith Hainey my semi-monthly gross paycheck -> net paycheck breakdown #paytransparency #salarytransparency #paycheckbreakdown #PersonalFinance

Five thousand dollars per month is nothing to sneeze at, of course! By all accounts, Alayna is doing great in her life and career.

But it vanishes from bank accounts faster than ever in the year 2025. In another video, she breaks down her monthly budget, which she shares with her fiancé:

Rent is $1780, and the total of all of their "essential" costs like groceries, gas, car insurance, cell phones, etc. is a whopping $4600 per month. Again, some of these costs are shared between two people, but that's nearly all of Alayna's paycheck swallowed up right off the bat!

Crucially, they're spending an extra $700 per month on paying off debt like student loans, on top of the $550 mandatory payments. Together, they own over $60,000 in student loan and other debts. We don't know the terms of their loans, but it often takes people decades (or even a lifetime) to pay down balances like that.

Commenters could relate to Alayna's situation:

"I have the same salary, nearly the same deductions, and I take home $2200. We are in such a hard spot" one user wrote.

"I made $100k a year and only being home like $2400. FSA, 403b, retirement pension, taxes, college savings. Sometimes I’m like where is my money?!" one added.

"I make $145k and my take home after insurance, taxes, 401k, etc is $3800 bi monthly, I cry when I think about it" someone wrote.

"Mine is about the same. Once rent and car payment is taken out, just enough for groceries and like one night out," a commenter said.

"My salary is $95,481 and my net is super close to yours. It just doesn’t go as far as it used to!" added another.

"Money doesn’t buy what it used to. All of the necessities are priced up," someone summed up.


@kaitalayna

new month new budget 🫶 #budget #payday #salarytransparency #monthlybudget #financialliteracy #personalfinance

Making nearly six figures per year puts people like Alayna in a comfortable and enviable position. But the hype still doesn't match the reality in 2025.

Though it's enough for a comfortable life, it's still very difficult at that salary level to save for a house, travel regularly, retire early, or even have a family—you know, the fundamental promises America was built on. Alayna and her fiancé have to be extremely disciplined with putting money aside to ensure they can withstand emergency costs and go on the occasional vacation.

Fortune writes that, "A six-figure salary used to be considered wealthy—but now, most of these earners are struggling to stay afloat amid raging living costs and salary deflation. That’s because households making $100,000 annually are still considered 'middle-class' in every U.S. state."

Even earning $200,000 per year isn't considered upper-class in many places. Fortune adds that over half of Americans earning a six figure salary still described themselves as living paycheck to paycheck, and that number is growing every year.

Why? It's because this whole time that we've been thinking people who make six figures are "rich," the cost of living has been accelerating upward at breakneck speed. Groceries are about 25% more expensive than they were just a few years ago. In the last 10 years, the median home price has gone by over $131,000. The average cell phone bill, with smartphones now being a near-necessity to be a participant in modern society, is now about $141 per month. The federal minimum wage has not changed in that time, nor has it since 2009.

It's time to reset our expectations of what a living wage really is, and even who we consider to be rich. If someone who makes the coveted $100,000 per year is still living paycheck to paycheck, living and dying by the budget spreadsheet, and devoting a huge chunk of salary to paying off debts, what hope does anyone else have?

Alayna writes that she's thankful for her job, and she's making it her mission to help others with smart budgeting and money decisions. But until a carton of eggs becomes affordable again, almost everyone's going to have a tough time getting ahead.

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People share 19 everyday things from the 90s and early 2000s that are now considered 'luxuries'

Remember happy hour specials and real wood furniture?

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Really should have appreciated some of these things when they were commonplace.

Bob Dylan sang that the times are a-changin' back in the late 70s, and since then, they haven't ever stopped a-changin'. And yes, change has been a constant for all of humanity's existence, but things certainly seem to be progressing a whole heck of a lot faster, don't they?

Before ya know it, those once fashion-forward pants you purchased are now retro, you don't understand any of the slang the kids are spouting, and you're doing your taxes, grocery planning and work meetings all from your phone. You know, that device that once only…gasp…called people.

It certainly feels like more than simply growing older, too. Technology is evolving at a rapid pace, to the point where human beings are finally having a hard time keeping up. Combine that with uncertain economic times, and it's no wonder that some folks are left reminiscing about how, in some (not all or even most, but some) ways, the good old days really were good.

Take for instance this interesting question posed by a user over on Ask Reddit. They asked: "What was normal 20 to 30 years ago but is considered a luxury now?"

Thousands of people chimed in with fascinating bits of bittersweet nostalgia. Some were monetary — just think that the price of most everyday items has increased 2-3x since the 90s. Other memories were more intangible, based on experiences you just don't get very often anymore.

Here are some of the best answers.

1. "New furniture made out of real wood."

If you regularly traffic in furniture from Target, IKEA, Wayfair, and other relatively affordable places like that, you'll recognize that furniture these days is more often than not made from particle board or fiber board, not real wood. That makes it convenient and relatively cheap, but not very durable.

90s trends, 00s trends, 00s nostalgia, 90s nostalgia, 90s, 2000s, millennials, generations, economy Real wood furniture. Giphy

2. "Owning the software you purchased."

Remember the days when you just bought Microsoft Office once and were set for years? Today, the SAAS (Software As A Service) model has us paying recurring monthly fees for a million different subscriptions, for things we used to own outright. It's maddening.

3. "Paying no more than 30% of your income in rent."

One user added: "I lived in poverty housing and this was how they determined our rent. It was 30% of mom's income, regardless of how much she was making. That was 20 years ago, not sure what starving kids do today."

4. "Concert ticket prices."

The entire concert-going experience has gotten completely out of hand due to high-tech scalpers and unregulated reseller markets.

90s trends, 00s trends, 00s nostalgia, 90s nostalgia, 90s, 2000s, millennials, generations, economy Going to a concert. Giphy

One person added: "17 years ago I spent $30 to see an internationally touring band play a concert, and I thought that was way too high. Now I’m spending minimum $20 to see local bands. Just on admission."

The New York Times writes that the average concert ticket for a mainstream show costs a staggering, ridiculous $135.

5. "Household products that don't break within the first few years of use."

One user wrote: "My grandma had the same fridge from 1993 before deciding to switch to a newer, bigger one two years ago. My mom's wedding cookware is still going strong 25 years later, but whenever she needs new pans, they start flaking Teflon into the food within a few months."

Today, modern refrigerators are only expected to last about 10 years and gennerally aren't worth repairing.

6. "Not being expected to be reachable 24/7."

Ah, yes, being completely unreachable was the ultimate luxury. Most of us have actually forgotten what it feels like.

7. "Being able to afford going out every Friday after work."

Remember happy hour specials? Dollar beer nights? It was easy to go out with friends or colleagues when a single beer didn't cost $11 with tip.

90s trends, 00s trends, 00s nostalgia, 90s nostalgia, 90s, 2000s, millennials, generations, economy Grabbing a drink after work. Giphy

8. "Farmer's markets."

"You used to be able to go down and get fruit and vegetables cheaper than the grocery store. Now it seems like they charge 3x more than stores do," one user noted.

9. "Single income families buying a home."

Another user read everyone's mind by adding: "Buying a home in general"

If you thought inflation on everything else was bad, housing prices might be the worst of all. They've ballooned far faster than salaries have, putting owning a home completely out of reach for many young people.

10. "Good quality fabric in clothing."

"I have clothes from the 90s (and 80s from my mother) that still hold up today. These days, I'm lucky if my shirt isn't saggy and misshapen within a year," one user wrote.

Fast-fashion is everywhere now! Like appliances, our clothes used to be built to last.


90s trends, 00s trends, 00s nostalgia, 90s nostalgia, 90s, 2000s, millennials, generations, economy Clothes that lasted. Giphy

11. "Items not requiring a subscription each month."

I'd love to see the average bank or credit card statement from the 90s. It must have been stunningly simple without a dozen recurring charges, from iCloud storage to Netflix.


12. "Legroom on an airplane."

You're not crazy. Flying used to be more comfortable. Planes have given up about 1-2 inches of legroom over the years, making passengers cramped and grumpy.

13. "Free driver’s education classes taught in all high schools."

Private driver's ed can cost anywhere from $500-1000 where it used to be much more commonly provided for free. Shouldn't giving the next generation of drivers thorough safety training be considered a public necessity?

14 . "Family vacations."

"I remember going on road trips regularly as a kid and even flying once or twice. Now that I have kids, I cannot afford a weeklong trip to the Badlands, Grand Canyon, Disney/Universal Studios, etc. The best I can do is a day trip to the Wisconsin Dells maybe once a year," one user wrote.


90s trends, 00s trends, 00s nostalgia, 90s nostalgia, 90s, 2000s, millennials, generations, economy Taking vacations. Giphy

14. "Apartments."

"I could get a one-bedroom apartment in Wisconsin back in 1997 for under $500. Now that same apartment is at least $2,000."

Apartments are supposed to be the affordable thing! What happened?!

15. "Affordable healthcare."

Even "good" healthcare these days leaves you paying enormous of out of pocket expenses. I'm not sure healthcare in America was ever great, but it's definitely gotten worse.


16. "People making friends with one another purely because they enjoy their companionship and not because of networking."

Hustle culture has really changed the way we think about friends and leisure time.


17. "Calling a company and getting a person on the other end of the phone.

Another problem that's only getting worse with AI! They even have AI instead of people working at drive-thrus now.


90s trends, 00s trends, 00s nostalgia, 90s nostalgia, 90s, 2000s, millennials, generations, economy Talking to humans on the phone. Giphy

18. "Drinking water from the tap without filters and softeners."

More and more people are using home water filters for taste and, more importantly, because they don't trust the local drinking water. Gee, wonder why?

19. "Being able to dance and have a good time without having the risk that it will end up being recorded and put on social media."

Every time you leave your house you're at risk of being pranked for TikTok or ending up in one of those life-ruining drunk "street interviews."

The 90s and 2000s were a simpler time. Not everything was better, or even great, but there was something real about it. People were more authentic, things we bought weren't so cheaply made yet expensive, and your hard-earned dollar went a lot further than it did today. We can't go back, but it's sure nice to visit every now and then.

This article originally appeared two years ago. It has been updated.


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'Thrown into adulthood without a map': Americans share why they live paycheck to paycheck

"Lord help you if you don’t have dental insurance and need root canals."

via Canva/Photos

A woman and her husband doing their bills.

It’s a little tricky to determine how many Americans live paycheck to paycheck because the term is vague. Some people, who have plenty of money in savings, say they live paycheck to paycheck because they spend all of their money before their next check arrives. However, they make ample contributions to their savings accounts and are in good financial shape. Others genuinely spend every dime they make and have very little savings to deal with an emergency.

How many Americans live paycheck to paycheck?

The Federal Reserve found that 54% of Americans have emergency savings to cover three months of expenses, and Bankrate found that, while 59% of Americans are uncomfortable with their level of emergency savings, 34% are living paycheck to paycheck. According to CNN, the paycheck-to-paycheck problem isn’t getting any better. The drastic increase in the cost of living since the pandemic has a growing number of people living paycheck to paycheck.

A Reddit user recently tried to understand why so many people in the wealthiest country on Earth are financially stretched thin.

broke, bills, paycheck to paycheck, scared woman, finances, american lifeA couple who needs financial help. via Canva/Photos

Why are Americans living paycheck to paycheck?

“At first glance, it seems obvious: people just don’t make enough money, right? But the more I read and the more conversations I had, the more I realized that income is only one piece of a much bigger puzzle,” they wrote. “For a lot of Americans, the real issue is a mix of rising living costs, debt, and—most importantly—a lack of financial education. Most of us aren’t taught how to manage money. We don’t learn how to budget, save, plan for emergencies, or even think long term. Schools rarely touch on it, and if our families didn’t model strong financial habits, we’re basically thrown into adulthood without a map. So people just figure it out as they go — often by trial and error. And when that ‘error’ is maxing out a credit card or missing rent, the consequences are heavy.”

Over 1,100 people shared why they’ve lived paycheck to paycheck. It’s sad to see so many people struggling, but it paints a clear picture of a complex problem. We collected 13 of the best responses to the question: “What is the main cause of Americans living paycheck to paycheck?”

13 reasons why Americans are living paycheck to paycheck

1. One emergency to the next

"Bills. Lord help you if you don’t have dental insurance and need root canals. Which will always be followed by car repairs or home maintenance. There goes the emergency savings account."

"THIS !!! I was just starting to feel good! Caught up on bills, saving for emergencies, finally contributing to my retirement then a random light flashes on my Car dashboard. There goes all the emergency money I built up ………sigh it’s just always something."

2. Scarcity mindset

"For me it is largely scarcity mindset from a childhood of poverty. I learned that money doesn't stick around. If you have $100 then you need to spend it on what it needs to go to or something else will 'eat it.' Some fee, or unexpected cost will always be around the corner, and there is never enough money to do everything, so spending us constantly triage."

"This is 100% the difference in the mindset of poor people and rich people. Poor people think of money as just something to spend. Rich people think of it as something to accumulate and put to work for themselves."

broke, bills, paycheck to paycheck, scared woman, finances, american lifeA couple looking at bills/via Canva/Photos

3. The system sets people up

"The overall system sets people up for becoming interest and profit generators for wealth holders of all kinds. The power is completely lopsided, and the rules are set up to deliberately turn customers into cash machines. Regular folks aren't equipped to protect themselves from it, thanks to taboos around talking openly about money and finances as well as the finance industry's slick bait, hook, and land tactics."

4. Car payments

"Sooo many people buying waaaaay too much car. Everyone needs a huge luxury SUV for their three-person family, apparently. Or a giant truck because they're towing once a year. What makes it even worse is that those more expensive cars have more expensive maintenance and repairs and tires and gas bills. You also see people do this with houses. So many posts from people trying to justify buying a much larger house than they need and trying to make the financials with. 'How much house can I afford?' instead of 'how much house do it really need?'"

5. The rent is too high

"Rent has gone thru the roof and in order to get approved to live anywhere or buy your own home, you need to make 3x the rent. The grocery list that would cost you $50 5 years ago now costs you $100. God forbid you have a medical problem."

"I was going to say it's primarily rent and groceries for a lot of folks. Rent is really high a lot of places for pretty basic dwellings."

broke, bills, paycheck to paycheck, scared woman, finances, american lifeA woman who has run out of money.via Canva/Photos

6. Paycheck to paycheck is a broad term

"Because there is no standard definition of paycheck to paycheck. A lot of people who live 'paycheck to paycheck' have a ton of deductions for things like 401k and IRA along with spending on non essentials like expensive car payments, private schools, etc."

"This is a good point. I considered myself 'paycheck to paycheck' because (and I'm working on changing this) I literally get my account to 0 before each paycheck. Yes, that's after 401k, savings, paying off debt, and other luxuries like getting my nails done and steaming services. But you make a good point that if I locked in and cut all "extra" I would not be paycheck to paycheck in the slightest. Compared to growing up where when my mom paid most of the bills, we would have like $3 left for anything else. That's paycheck to paycheck."

7. Constant emergencies

"If emergency items stopped happening, I could actually save something. Medical bills, dental bills, car repairs, home repairs, just when we get a bit saved it goes to something else."

"Every. Single. Time. And it’s always the exact amount that I have in my savings."

broke, bills, paycheck to paycheck, scared woman, finances, american life, purseA woman who has no money.via Canva/Photos

8. Healthcare costs

"For me it’s healthcare that makes me live paycheck to paycheck. I have had two random emergency surgeries in the last 3 years. With a 10k deductible on my health insurance I’m 20k in debt and having to make $400 payments per month on it on top of my $490 a month premium. Before that first surgery I was debt free and doing ok. I have now accumulated about $5000 on a card too just trying to keep up with bills."

"I paid 20% of my take home pay for insurance. Then I pay another 10 to 20% for medical expenses to keep my disabled husband alive. So 1/3 of my income goes towards medical expenses. That's the problem and I can't do anything about it. I have super premium insurance at my job which pays terribly. If I got another job, it might not cover some of the things my husband needs or I might have to work so much that I would have to pay a caregiver."

9. Cost of living is too high

"Never being in a position where you are ahead of all the bills. A person makes $30 an hour, works 20-30 hours of overtime, had a $600-1000 car payment, rent is probably $1500-2000 per mo., electricity bill $140 per mo. month, car insurance $120 per mo. Gas $140 per mo. Phone bill $150 per mo. Food $500-1000 per mo."

10. Living high on the hog

"I’ll take a differing take here then a lot of comments and agree with OP that financial habits are often very poor. I work in a field that has a lot of pretty high income earners in a MCOL city (>80k starting).

"I see a ton of people who complain about being broke that do a lot of the following
  • Order out, especially with apps like DoorDash becoming ubiquitous, they are a massive cost and are well hidden enough that people miss it. Like upping the price of the menu items, most people don’t know the price of the food if you ordered in the restaurant.
  • Cars, both too much car, but also frequently trading vehicles in. Cars have gotten a lot better in the past decade but there is no way I’m trading in my vehicle when it’s paid off, as long as it’s reliable. Safety features would be nice, but not at that significant of a net worth hit.
  • Not putting away money for retirement, even with company matches. Company matches are a huge free return on your investments. Paying more now means paying much less later.
  • General luxuries, I had a coworker state she didn’t match her 401k because she couldn’t afford it, but later said she had very very expensive kitchenware. Lifestyle creep is real, and we are all susceptible to it.
There is a large element to the economy that is completely out of one’s control, but to take all personal responsibility out of the equation misses a big chunk of why we are in such a massive boom and bust with personal debt."

broke, bills, paycheck to paycheck, scared woman, finances, american life, coupleA couple arguing over money.via Canva/Photos

11. Starbucks

"I know you’re being half-hyperbolic, but I had a coworker who spent well over $100 on Starbucks in the morning and takeout/delivery for lunch every week. She was always complaining about money being tight. I’m not a cheapskate by any means, but I’m sure as hell not spending nearly $20 for some shitty meal from Panera delivered by DoorDash when I can pack my own lunch for like $3."

12. Consumerism

"My opinion as an outsider who moved here two years ago from the UK. Seems like money and work work work seems to be the focal point and consumerism is HUGE out here with a lot of waste. Maybe it's the social circle I'm in but it seems like people also spend silly throwing more than what they can afford on loans and cars etc."

13. Daycare

"For me, it is a daycare costs. We have to pay $720 a week for 2 kids in a standard daycare. We did not live paycheck to paycheck before having kids."

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Man uses the shoe aisle to explain a troubling economic trend in middle-class American life

"The thing is, most people don’t want longevity anymore. They want new."

via Canva/Photos

Remember things being built to last?

It’s been proven that over the past few years, Americans have been dealing with shrinkflation, where food companies reduce the sizes of their products while the price remains the same at the grocery store. You see this in fast food restaurants when you pick up a burger and feel like your hand has grown a few inches, and at the supermarket when you buy a box of cookies, it weighs less than it did a few weeks ago. Companies use this strategy when they think you’ll be less likely to notice a dip in quantity than a hike in the price.

Another big trend in retail is fast fashion. People are buying cheaper garments made from low-quality materials. These products last about as long as the trend, so people throw them away and buy the next hot thing. This can be a real problem because fast fashion harms the environment and leads to exploitative labor practices.

A TikToker named Tom (@SideMoneyTom), popular for making videos about consumer products, recently went viral for a video where he called out shoe manufacturers for dropping their quality while keeping prices high. “So many of you guys want to shoot the messenger, but look, it's not my fault shoes are made out of Styrofoam and oil now,” Tom says in a TikTok with over 528,000 views. “It's literally every shoe you look at now. It's not even just the cheap ones. I can find hundred dollar plus pairs of shoes all day long with glue squeezing out of their Styrofoam cracks.”

@sidemoneytom

Replying to @Oscar Magaña shoes are done #fyp #shoes #foryou

Tom notes that recently, shoes have been made with foam soles instead of rubber. Both have pros and cons. Foam is a little more comfortable, but rubber lasts a lot longer. Rubber shoes keep shape and support over time and are much more durable. Conversely, foam shoes compress over time, losing their support and comfort. When companies sell cheaper shoes that wear out more quickly, they make much more money because you must keep replacing them.

In the video, Tom adds that many companies that used to have shoes made with rubber heels, such as Carhartt and Timberland, have switched to foam. This is an interesting choice for brands that pride themselves on selling durable products.

Cora Harrington, a writer and lingerie expert, says that companies aren't entirely to blame. Americans don’t want to pay higher prices. “People don’t exactly want to pay more for all that stuff,” Harrington told Vox. "So what has to happen if everything is more expensive and the customers still want to pay the same price, something has to be cut and that’s often going to be the quality of the garment.”

“There is an entire generation of consumers at this point that doesn’t actually know what high-quality clothing feels like and looks like,” Harrington continues. “It gets easier, I think, for consumers to just not know any better.”

@sidemoneytom

Replying to @donkles #shoes #fyp #sketchers #nike

Many commenters have noticed the decline in shoe quality and praised Tom for pointing it out. "I am so happy I’m not the only one who is baffled by shoes being made of styrofoam and then being upcharged for them," one commenter wrote. "When shoes started being named some version of 'Air Light Cloud float,' my thought was it was because they went from quality rubber to cheap foam and less materials,” another commenter added.

Tom believes the decline in shoe quality is an example of a more significant trend affecting American consumers' products: quality is decreasing while prices remain the same. “The quality of everything is going to hell, and the prices are going up," Tom concludes his video. "The problem is, so many of us have just become used to it that we keep buying it, and we basically allow them to dumb down the quality of everything. Everything in our lives. These shoes are just the tip of the iceberg. Start thinking about it in your life. What are you gonna allow to be garbage quality?

This article originally appeared in March.

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