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

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.

via Aaliyah Cortez / TikTok
Bartender shares her $9.28 paycheck to remind everyone why tipping is so important

More and more people are getting fed up with tipping culture and "tip creep" in the United States. The COVID-19 pandemic severely disrupted the service industry and now almost everyone is paying the price; being asked to tip at self-checkouts, vending machines, and for drive-through or carry out food orders. Often times, the "suggested tips" begin at 20% and only go up from there. Tipping was meant to be a generosity for great service, not a necessity for business owners to be able to pay their workers.

That frustration, along with overall higher prices of... well, everything, has led to a noticeable decrease in overall tipping. People are annoyed and closing up their wallets. But until the culture and laws change, it's service workers who are the ones really getting hurt.

A server in Texas recently shared some personal information on TikTok to remind everyone why it's so important to tip those who serve us our meals, drinks, and cut our hair.

In 2020, Aaliyah Cortez filmed a video of her paycheck where she shows that although she worked 70.80 hours during a pay period, she only received a check for $9.28.

"So this is why you should always tip your bartenders and servers, anyone who waits on you, or provides a service for you," she said.

@f.aa.ded

PSA #psa #fyp #foryou #bartender #server #work #tips #chooseone #CleanFreshHype #photography101 #hardwork #viral

The video shows that even though she was paid the criminally low federal minimum tipped wage of $2.13, the money she received in her check was further reduced by taxes, social security, and Medicare payments.

"Of course, I got tips, but this is what I got for my hourly," Cortez said. "This is why you tip."

The rules for wages in tipped industries vary across the country. Texas is among the 16 states where the state minimum cash wage payment is the same as that required under the federal Fair Labor Standards Act ($2.13/hr.).

Now, if a server making $2.13 an hour doesn't reach the federal minimum wage of $7.25 an hour with tips, then their employer must make up the difference. Which, to be clear, is still horrendous and does not constitute a living wage. According to the MIT Living Wage Calculator, a single person with no children would need to earn $21.82 per hour to afford basic cost of living expenses in Texas.

tips, tipping culture, service workers, waiters, bartenders, barbers, economy, money, jobs, culture What consumers see everywhere we go. Giphy

The calculator also indicates a "poverty wage," which is $7.52 — just a few centers higher than the minimum wage.

The best state to work in for tipped wages is Washington where the minimum wage is $16.66, with no separate wage for tipped employees.

In a follow-up video, Cortez further discussed the issue, noting that she doesn't agree with "state laws that allow restaurants to pay under minimum wage and expect the customer to pay our wages," she said.

"I make great money in tips, she added, "However, this is not the case for all service industry workers." According to Cortez, people aren't always that generous with their tips, even though their "state is expecting them to tip."

@f.aa.ded

WATCH MY LAST VID #psa #fyp #foryou #bartender #server #work #tips #hardwork #viral #serverlife #bartenderlife

Cortez's video is a great reminder of two things:

First, that we should all be mindful to take care of those who serve us by giving them a decent tip. If you don't want to leave a tip for the cashier at the grocery store or the ticket-taker at the movies, who should all be earning at least $7.25 per hour, that's understandable.

Save it up and give it to the people who really rely on it for their income.

Secondly, Cortez's video is five years old but just as relevant as ever. It's still strong proof that the U.S. needs to address the issue of the tipped minimum wage because it hasn't changed in 30 years.

"Since 1991, the federal tipped minimum wage has been frozen at $2.13 an hour," gender economist Katica Rot told NBC. "Meanwhile, the non-tipped federal minimum wage has risen 70.6% and consumer prices have gone up 90.24%."

In fact, tipped employees are twice as likely (and servers three times as likely) to live in poverty than non-tipped workers.

Women bear the biggest burden of the tipped minimum wage. They represent 70% of all workers in tip-dependent occupations.

In recent years, Congress has rejected attempts to raise the federal minimum wage to $15/hour, even though most Americans support it. That fight, however, is far from over.

In the meantime, it means the average person needs to step up and do their part to help out as much as possible. But it's impossible to ignore the systemic nature of the issue at hand. And until business owners are required by law to pay their workers a living wage, no amount of spinning iPads and "suggested tips" will fix anything.

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


Photo credit: Canva
Mailman reveals his massive paycheck to recruit others

People often overlook the "people in our neighborhood" as Mister Rogers would call them. Their presence is so common that we don't always notice them until they're gone for a day or two. These are people like school bus drivers, sanitation workers, delivery drivers, and postal workers. Of course people know they exist and that they're there to do a job but because their presence is sort of in the background of daily life we may not give their jobs much thought.

There's the thought that "someone has to do it" when it comes to the service they provide but sometimes that "someone" is you. Or at least it could be you, especially after hearing how much one of those jobs pays. It's a common misconception that work like sanitation or postal service is menial and low paying, but the truth is that this essential work can be quite lucrative in the right circumstances.

A mailman that works for the U.S. Postal Service decided to share his paycheck with social media in an attempt to help the post office recruit more mail carriers.

The post office continues to have a shortage in mail carriers in certain areas, especially in rural settings. This shortage causes delays in receiving mail and longer hours for current mail carriers. While the post office has been working to fill in the gaps by doing more hiring, it still isn't enough with the large number of USPS workers that are nearing retirement. It seems to be a constant struggle to keep an adequate amount of mail carriers throughout the areas that need them most.

mailman paycheck, mail carriers pay, job market, job hunting, mailman shares check, pay transparency, jobs, economy The pay is good and you get to drive this sweet truck around! Photo by Joel Moysuh on Unsplash

One of the barriers to people applying to the Postal Service may be that they don't know they're hiring since some people may see mail carriers as background characters.

Another concern may be that people are not sure if they can make a livable wage working for the post office, but that's where Lukas' video can help fill in the blanks.

In response to viewers not believing he actually made six figures, the Missouri mailman and TikTok creator shares a screenshot of his paycheck showing he brings home $4,423.09 every other week, which averages out to just over $100K a year.

Being fully transparent, Lukas shares that his paycheck includes 23 hours of overtime due to the extra hours he has to work from being short staffed.

mailman paycheck, mail carriers pay, job market, job hunting, mailman shares check, pay transparency, jobs, economy Nothing warms the heart more than a mail carrier being truly embraced by their community. Giphy

"On one of my previous videos somebody said, 'prove it' on one of my checks, so here's one of my last checks. As you can see, the overtime hours, plus my normal pay all equals up to $4,423...so, and that's for two weeks of work. I'm working too much but if you were to multiply that by 26 weeks that's over $100,000. We need help and the post office pays well," he says.

Lukas reiterates throughout his video that the post office is hiring and they need help desperately but the comments were mixed on if working at the post office was a good move.

@lukasthegiant

We're Hiring and Yes, We Pay Well. In some cases, over 100k!#greenscreen #werehiring #paidwell #tallestmailman #needhelp #getpaid #100k #usps #apply

"I mean he’s technically making 25.00 hourly and $38 for each hour of OT. You’re forgetting the minimum wage in majority of states is 7.25," one person writes.

"Post office is recession safe. Been there 30 years," another commenter shares.

Someone else chimes in, "been working at the post office for 5 years just made regular. it is not easy when you start but once you know how to do it it's a BREEZE."

mailman paycheck, mail carriers pay, job market, job hunting, mailman shares check, pay transparency, jobs, economy US Mail is not for sale, says the postal workers union. Photo by Ethan Hoover on Unsplash

A former postal worker reveals, "I worked there 6 years and had no life. Worked 12 + hrs for 7 days a week. I wasted most of my 20s working. NO THANK YOU!!!!, before adding. "When I started years ago it was $15 an hr when I left it was $25."

To be fair, while Lukas is doing well for himself (and working quite hard for the money), a lot of the mail carrier shortages are being caused in part by wages that don't cover the cost of living in certain areas. So there's definitely room for improvement, and the American Postal Workers Union is fighting for higher pay and better hours all the time.

Did you know that the postal service is a staggering 250 years old? For a good chunk of the last several of those years, politicians and corporations have been obsessed with the idea of privatizing the whole operation and siphoning as much profit out of it as possible.

Just imagine how many billions of dollars private companies could make by charging way higher prices for shipping! The idea may be salivating to investors and billionaires, but not to regular folks who just want to be able to affordably and reliably mail letters and packages.

The American Postal Workers Union has been actively and aggressively fighting against this potentially catastrophic change. Not only would it hurt regular Americans, but mail carriers like Lukas who have carved out a solid and honest career doing essential community work.

The post office seems to be much like any other job. Some people have a great experience working there while others do not, but if someone is looking for a chance at a new career that offers retirement benefits, it sounds like USPS could be a place to land.

This article originally appeared in January. It has been updated.

Photo credit: Canva

Mean-spirited internet users quickly find out working at Costco is nothing to mock.

As the adage goes, there's an exception to every rule, and the exception to the rule of retail employment being a hellscape of low pay and high turnover is the warehouse giant Costco. Costco is beloved by its customers (hello, suburban parents and anyone else who likes to buy protein bars 400 at a time) for fair prices and really good quality products. Its Kirkland brand products are almost always the best things on the shelf, and when you're done shopping, you can grab a jumbo hot dog and a large soda for what seems like a criminally low price. In fact, one of the chain's cofounders once threatened the then-CEO with severe bodily harm should he ever raise the food court prices. And Costco never has.

It seems not everyone is aware of Costco's reputation as an employer, though, since a woman sharing her triumph at landing a job there was initially met with surprising derision on social media. But the critics were quickly corrected by both Costco employees and people familiar with the company's employment practices, launching a celebration of Costco as a responsible business that takes care of its employees.

A woman named Doreau shared a selfie from her car holding up her Costco employee badge with a caption that read, "After almost 3 months. I'm officially hired."

Whether she'd been searching for a job in general for 3 months or had been in the hiring process with Costco for that long isn't clear, but her smile and triumph emoji indicated that she was proud of the accomplishment.


Not everyone was so enthusiastic, though, in what appears to be a misunderstanding by some about what it means to work at Costco.

Some commenters mocked the woman, indicating that working at Costco was nothing to boast about, as if it's just another retail job. As one example, someone wrote, "Who tf spends 3 months chasing a job at Costco."

First of all, anyone who's been in the bowels of a modern job hunt knows that landing any kind of stable employment in 2025 should be considered a major win. But at Costco? You could throw a damn parade and still not be considered too excited.

People in the know shut the haters down immediately.

"They must not know that Costco’s employee turnover rate…She hit a lick on that one!!"

"Costco pays their employees INCREDIBLY well and has benefits unlike any other grocer. I’m so happy for her!!!"

"Man i’ve been trying to get a job at costco for sooo long i know somebody who works at the door checking receipts and makes $25/hour"

"The best employee benefits, satisfaction, retention and upwards mobility in American retail. God bless her."

"My guy has been at Costco for 20yrs, makes 6 figures and has almost 1M in his 401k. No stress at work, tons of PTO, and has a wonderful work/life balance. Y'all still struggling with basic life stuff."

"People don’t leave Costco when they find employment there. It’s getting your foot in the door that’s the hard part. Good for her."


Reposts with hundreds of thousands of likes showed that she had every right to be proud of landing that Costco badge, especially in an economy where people seem to be having a hard time finding jobs despite low unemployment rates.

Months later, her posts indicate she's still working there, which says a lot. Once hired, people tend to stay with Costco for a long time because — again — it's a great place to work!


What makes Costco a great place to work?

Of course, you can find people who will complain about any job, but the numbers at Costco speak for themselves. According data cited in the Harvard Business Review, Costco's turnover rate—the percentage of employees that leave—is only 8%, a notably small fraction of the retail industry average rate of 60%.

There's a reason for that extraordinary statistic—several of them, in fact.

Costco prioritizes paying employees well—including good benefits

According to an Ethics Unwrapped case study, Costco pay tends to be around 40% more than Walmart and Target and the company provides more comprehensive health and retirement benefits as well. Part of what enables them to do that is the money they save with their low turnover rate, as it costs a lot to hire and train new employees.

Costco cofounder Jim Sinegal rejected the idea that a company had to either take care of its shareholders or its workers, calling that "a false choice."

"It's really pretty simple. It's good business," Sinegal said in 2009. "When you hire good people, and you provide good jobs and good wages and a career, good things are going to happen."

It truly is that simple. Costco's philosophy hasn't changed since Sinegal's retirement in 2012; it's all about the reciprocal care between employee and employer: "Costco’s success depends on the well-being of employees within all areas of our business. Our operational practices, benefits, and paid time-off policies acknowledge and reward employees for their continued contribution to our culture and success."

According to Investopedia, Costco's average wage is over $30 per hour, around $5.50 per hour higher than the national retail average. Its minimum wage is $19.50/hr.

costco, jobs, employment, retail, retail workers, paycheck, hired, job hunt, economy, business, money, living wage Costco is known in the retail world\u00a0for its excellent pay and benefits. Curlyrnd/Wikimedia Commons

Costco provides lots of opportunity for advancement

Look no further than Costco's new CEO, Ron Vachris, for proof of Costco's internal promotion philosophy. Vachris began as a forklift driver at Costco as a teenager (technically when it was known as Price Club, before it became Costco). Now, at 58, he runs the whole company.

He's an extreme example, but Costco has purposefully opportunity baked into its employment model, encouraging employees "to view Costco as a place for a long-term career rather than just a job." As the company website states:

"When it comes to employee development, our goals are to:

● Provide all employees with training, education and opportunities for career development and advancement.

● Ensure there is fair access and resources to help employees succeed.

● Encourage leaders to continue to teach and mentor employees, so that employees will be prepared for opportunities and greater responsibility.

● Encourage employees to take advantage of opportunities for development and advancement."

From the stories people tell of moving up the ranks in their Costco careers, that's not just lip service. Doreau herself, depending on whether she's working full-time or part-time, is likely already in line for a raise — sticking it even further to her doubters.

Costco has a well-earned reputation as an ethical company

Costco is often held up as an ethical example of capitalism in the way it treats the people it employs, serves, and works with. Internally, the company abides by a 4-rule code of ethics, which seems remarkably simple on the surface:

1. Obey the law.

2. Take care of our members.

3. Take care of our employees.

4. Respect our suppliers.

But when you dig into what each of those rules entails in the company's Mission Statement and Code of Ethics, it's easy to see why it works. "At the core of our philosophy as a company is the implicit understanding that all of us, employees and management alike, must conduct ourselves in an honest and ethical manner every day," the document reads. "Dishonest conduct will not be tolerated. To do any less would be unfair to the overwhelming majority of our employees who support and respect Costco’s commitment to ethical business conduct… If you are ever in doubt as to what course of action to take on a business matter that is open to varying ethical interpretations, TAKE THE HIGH ROAD AND DO WHAT IS RIGHT."

Well, that's quite clear. Costco demonstrated its own commitment to its own ethics when it resisted pressure to abandon its DEI (Diversity, Equity, and Inclusion) initiatives in late 2024, saying, "Our commitment to an enterprise rooted in respect and inclusion is appropriate and necessary."

Perhaps most importantly, Costco emphasizes that abiding by this code of ethics is what enables shareholders to be rewarded, and at this point, they've proven that to be true. A good business practicing good ethics ultimately leads to good results—it really does seem to be that simple.

All that to say, next time you visit Costco, don't for a second think the employees are toiling away in a retail job they hate. No company is perfect, but overall this warehouse giant is considered one of the best places in the country to be employed. And that is why Doreau was so excited to celebrate.

This article originally appeared in January. It has been updated.