Seattle Couple Earning $200k Struggles To Pay Bills—How Much Does The New Middle-class Really Earn?

As inflation continues to impact households across the United States, even those with six-figure incomes are feeling the strain. A Seattle-based couple, earning a combined $200,000 annually, recently shared their financial struggles, shedding light on the challenges faced by what many would consider a well-off household. Their story raises the question: How much does it really take to be middle class in today's economy?

The Reality of a $200,000 Income in America

For Natalie Fischer, 25, and her partner Keldon, earning $100,000 each in the tech sector was a dream come true. They believed they had finally reached a level of financial security that would allow them to enjoy the comforts of a middle-class lifestyle. However, the reality of their situation quickly set in as they struggled to save $20,000 for their wedding. Despite their high income, they found themselves constantly wondering where their money was going.

In a social media post that quickly went viral, Fischer detailed the couple's decision to downgrade their lifestyle in 2024. The couple realised that their spending habits, combined with the rising cost of living, were depleting their bank account faster than they anticipated. "I consider me and my husband to be middle class," Fischer shared. "We live in the greater Seattle area, and we both had nine to five jobs in the tech industry. We're both earning over $100k, and as we started to earn more money, we treated ourselves a lot more."

Where Did All the Money Go?

Despite not owning a brand-new car and living in a modest two-bedroom flat with a $2,378 mortgage, Fischer and her partner found themselves spending beyond their means. The culprits? A $208 gym membership, $100 on manicures and pedicures, and frequent dining out, among other luxuries. Fischer noted that they have since cut back on these expenses, choosing instead to cook at home, analyse their credit card spending, and run outside rather than go to the gym.

"I was living beyond my needs," Fischer admitted. "I want to greatly increase the savings we have, and I feel like we spend way too much, so I am trying to balance it this year."

Defining the New Middle Class

Fischer's story highlights the growing financial pressures on what has traditionally been considered the middle class in America. According to a study by SmartAsset, middle-class income levels vary widely depending on location. In large U.S. cities, middle-class earners make between $52,000 and $155,000 a year on average. The median household income across the 345 cities analysed is $77,345, placing the middle-class income range between $51,558 and $154,590.

State-wide, the income range for middle-class status is broader. In New Jersey, for example, households earning between $64,224 and $192,692 are considered middle class—the highest in the nation. Massachusetts and Maryland follow closely behind. Conversely, Mississippi has the lowest middle-class income range, with earnings between $35,142 and $105,438. These figures reveal that what it means to be middle class in America can vary significantly depending on geography .

The Struggle of Maintaining a Middle-Class Lifestyle

As Fischer and her partner's experience illustrates, maintaining a middle-class lifestyle on a six-figure income is becoming increasingly difficult. The rising costs of housing, healthcare, education, and everyday expenses have outpaced wage growth, leaving many households struggling to make ends meet. For younger generations, the pressure is even more acute, as they face the dual burden of student loan debt and skyrocketing living costs.

As the definition of the middle class continues to evolve, so too must the strategies that households employ to stay afloat. For many, this means making difficult choices about how to live within their means while still striving for the American dream—a dream that, for Fischer and others like her, is increasingly difficult to achieve.