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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.

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.

Photo by Jon Tyson on Unsplash

What did you want to be when you grew up? A doctor? Lawyer? Firefighter or brain surgeon? Maybe you achieved those dreams (congrats!) or maybe your idea of "success" changed radically as you got older. Reality is, if you can earn a living wage doing work you don't hate, with some decent benefits and time off, you're doing pretty dang well in life.

Not too many kids would say they want to grow up to become garbage collectors — and, in fact, there's a pretty strong stigma against the job — but they might rethink that if they knew how good of a career it actually is. One garbage collector was recently interviewed on TikTok where he was asked: "Can you make like six figures with overtime?" His response: "Oh, easily man."

The man who works for CR&R, an environmental services company in California, said "Starting pay is about $29 an hour, some drivers are making like $33." He says he and the other drivers routinely pull 12 hours days, working from 5am to 5pm, with overtime kicking in after 8 hours.

60 hours a week x $33 per hour puts him over $100k in pay before taxes and before factoring in the overtime pay. Now, those are long hours (very long), and hard work, but there are plenty of careers out there that demand the same hours and hard work and don't pay nearly as well. (Try working in an Amazon warehouse for about half the salary.)

The worker was then asked if he would recommend a career as a garbage collector to others. "Honestly, I would man just cause the pay is pretty competitive and the hours, there's a lot of work here. If you're into working overtime and everything like that..." you can do really well. Plus..."Really good benefits, I can't complain."

Watch the whole interview here.


@laneape.co

Spoke with @theonlymemoo, a CR&R driver making $28-$33/hr 🚛 He says the job has long hours, good benefits, and he recommends it. Crazy story? A coworker found a body in a trash enclosure right before the holidays. Could you handle this job? ⬇️ #TruckDriverLife #WasteManagement #CareerInsights #WorkLifeStories #garbagedisposal #sanitation #garbageman #garbagetruck #garbageart #dumpster #dumpsterdive #trashtalk #drivers #driverjobs #drivingjobs #wasteman #doublebubble #overtime #overtimehours #trades #tradesman #tradesmen #sixfigureincome #trucker #truckerlife #truckersoftiktok #truckers #truckertok #truckerslife #truckertiktok #truckerhat #truckergirl #truckerwife #trucking #truckinglife #truckin #truckinaround #truckingindustry #truckinglifestyle #truckingaround #truckingcompany #truckingfamily #cdl #cdllife #cdldriver #cdlschool #cdltruckdriver #classB

Other sanitation workers were quick to verify: Being a garbage collector is tough work, but it definitely doesn't stink.

Some commenters pointed out that making $100k per year in California isn't much, but the one nice thing about working in sanitation is that you can do it almost anywhere, and it's a solid career pretty much everywhere you turn.

"42$ an hour in Seattle I made 155k last year lots of over time," one user wrote.

Someone commented that he makes $50/hour as a garbage collector in San Francisco. A user from Houston claimed $30/hour. A man from Illinois quotes $43/hour.


garbage truck picking up trash on the street Photo by Ewoud Van den Branden on Unsplash

Garbage collectors who work for the city can also get government benefits and retirement, plus these workers can get union representation to protect their jobs, salaries, and benefits. There's also plentiful opportunity for overtime which can be worth 1.5x the usual hourly wage. But perhaps most importantly of all, what the job may lack in flash in sizzle, it more than makes up for in real-world impact.

Who wouldn't want to make our streets and communities cleaner!?

In a recent Reddit thread, a 24-year-old asked if he should be embarrassed about his job as a trash collector. The top response read: "Dude, I work for a health insurance company that makes it's profit by denying people life saving care. I'm ashamed of my job. You have nothing to be embarrassed about, you do honest work that benefits your community. I would love to tell people I worked in sanitation."

Blue-collar jobs where you get your hands dirty, so to speak, are widely viewed as less desirable than high-paying white collar jobs like computer programmer, consultant, or accountant. But that's starting to change.

Data shows more and more young people are going directly into the workforce or trade school and foregoing volatile technology-based careers.

Working for the postal service, driving for UPS, collecting garbage, or getting into a skilled trade like electrical or plumbing may not be glamorous, wealth-making careers; but if you're willing to work hard, they can provide you a really nice standard of living.

That's how jobs should work! If working 60 hours per week isn't for you, that's OK and understandable — but if you don't mind sacrificing for long hours, there should be a solid reward at the end, and at least in the case of garbage collectors, it sounds like there is. If you're looking for a career change and the ship has sailed on you becoming a world-renown rocket scientist, it's probably not too late to get your Class B driver's license and start picking up trash.

In 2015, Gravity Payments CEO Dan Price had a life-changing epiphany.

Price, who founded Gravity with his brother in 2004, was out hiking in the Cascade Mountains with his friend, Valerie. She told him her landlord had raised her rent by $200 and she was struggling to get by on her $40,000 a year income. Price, who was making $1.1 million a year as CEO of Gravity, was struck by her story. Not only did he feel for Valerie—a military veteran working two jobs and barely making ends meet—realized that some of his own employees might be facing similar struggles.

And they were. One employee frankly told him his entry-level salary was a rip-off. Another employee had secretly been working at McDonald's outside of work hours to make ends meet. So Price decided to make a drastic change by investing in his employees.

He researched how much money the average person would need in order to live comfortably and settled on $70,000 a year. In one fell swoop, he dropped his own salary to that amount, while also making it the minimum salary for anyone who worked at Gravity.

The move drew media coverage—and dire predictions from pundits. On Fox News and other conservative outlets he was called "foolish," a "socialist" and a "lunatic of lunatics." Rush Limbaugh called the company policy "pure unadulterated socialism" that was "going to fail" and should be a case study in MBA programs on how socialism doesn't work. Talking heads predicted that his employees would end up in the welfare line.

Six years later, Price has proved the haters wrong—by a lot.


Sharing a video with clips from those outspoken detractors on Twitter, Price wrote:

"6 years ago today I raised my company's min wage to $70k. Fox News called me a socialist whose employees would be on bread lines. Since then our revenue tripled, we're a Harvard Business School case study & our employees had a 10x boom in homes bought.

Always invest in people."

He then added:

"Since our $70k min wage was announced 6 years ago today: Our revenue tripled, headcount grew 70 percent, customer base doubled, babies had by staff grew 10x, 70 percent of employees paid down debt, homes bought by employees grew 10x, 401(k) contributions grew 155 percent, [and] turnover dropped in half."

The business is thriving, his employee numbers have grown from 130 to 200, and they've expanded to a second office in Boise, Idaho. And perhaps most notably, the highest-paid employee makes four times the salary of the lowest-paid employee, not 33 times.

The benefits of taking care of his employees extended into the pandemic, which led to the company taking a 55% revenue hit overnight. Rather than lay people off—with Gravity has never done in its 17-year history—Price held a call with his employees and explained the company's situation. He didn't want anyone to lose their job, and he also didn't want to jack up prices on the small businesses that relied on their services.

In response, nearly every employee offered to take a temporary, voluntary pay cut, ranging from 5% to 100%. That's the kind of loyalty money and support can buy. And it worked—those employees have been repaid and the company is now giving out raises.

Price is outspoken about his company's success because he believes it's a model other companies should follow if they are able. CEO salaries have risen 940% since 1978, while average worker salaries have only risen 12%. The longer that discrepancy goes on, the more normal it becomes in people's minds, but Price is on a mission to disrupt that norm and convince people that paying employees well pays off in a multitude of ways.

Price says he doesn't miss anything about the millionaire lifestyle he lived prior to his pay cut. "Money buys happiness when you climb out of poverty," he wrote on Twitter. "But going from well-off to very well-off won't make you happier. Doing what you believe is right will."

Investing in people is what Price believes is right, and he's lived that belief—successfully—for six years and counting.

The pandemic has revealed how much money there truly is at the top, as billionaires got 54% richer over the past year and while millions of people took devastating financial hits, and large company CEOs received huge bonuses while laying off lower-level employees. Let's encourage more corporate leaders to take a page out of Dan Price's book and invest in the people who made them successful in the first place. Those investments can pay off big time, as Price—and now others—have repeatedly proven.