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Ashley Thompson would love to splurge on fun purchases, but despite her and her partner making over six figures between them, they still can’t find room in their budget.
“We bring our coffee to work in the morning,” Thompson told CNBC Select. “I don't get my nails done. I don't get my hair done… I don't know how people do it and go on vacations.”
Together, 37-year-old Thompson and her partner of nine years make between $150,000 and $300,000 together. In addition to mortgage payments starting on Oct. 1, Thompson is actively paying down over $32,000 in student loan debt and covering a $340 monthly car payment on her 2025 Volkswagen Tiguan.
When the pair first began looking for a house together, they quickly realized the often-referenced 20% down payment guideline wasn’t realistic for them. Even with the lower initial payment they ended up with, her partner was concerned about whether they could make it work.
“He was genuinely like, ‘Are we gonna be able to afford this?’ And I'm like, I think so,” she said.
To try and stretch their funds, Thompson assessed their budget to see what could be removed or improved. Instead of doing a weekly shopping trip to their local grocery store, Thompson signed up for a Costco membership, which lets them save by buying food in bulk. And when they make purchases, she and her partner consider whether they have a credit card that’ll earn rewards back on that spending. Thompson also looked at their recurring subscriptions, which are a common contributor to lifestyle creep.
“We definitely canceled Apple and Hulu as far as subscriptions,” she said. “I canceled my gym membership. I had a fitness app that I had to cancel… I just don’t use it enough to get the value out of it.”
Arguably, the most important opportunity cost for Thompson is losing the ability to save for the future, at least right now.
“I have not contributed [to my retirement] at all this year,” she said.
Thompson isn’t the only one feeling financially pinched. A July CNBC and SurveyMonkey Quarterly Money Survey found 41% of Americans making between $100,000 and $249,999 are living paycheck to paycheck. And of those people living paycheck to paycheck, 90% have less than $500 left over each month.
While earning six figures can be the start of a strong financial base, it’s not quite the brag it used to be. Comparing 2006 and 2026 consumer price index (CPI) data, overall consumer prices are 64% higher than they were 20 years ago. Another way to look at it: $100,000 today has the same buying power as roughly $60,900 in 2006.
If you’re in a similar boat — living paycheck to paycheck (or close to it) with a six-figure salary — consider one of these methods to help build a buffer.
3 tools to consider if your six-figure income feels tight
High-yield savings accounts
It might seem odd to suggest a savings account to those living paycheck to paycheck, but it’s more about creating the habit of making your money work hard for you.
The current national rate for savings accounts is just 0.38% according to the Federal Deposit Insurance Corporation (FDIC), which is significantly lower than that of a high-yield savings account, which typically earns between 3% and 4%.
With a Western Alliance Bank High-Yield Savings Premier account, you can start with a $1 deposit and earn a 3.80% APY — 10X higher than a traditional savings account.
Western Alliance Bank High-Yield Savings Account
Annual Percentage Yield (APY)
3.80% APY
Minimum balance
$1 minimum deposit
Monthly fee
None
Maximum transactions
Up to 6 transactions each month
Excessive transactions fee
The bank may charge fees for non-sufficient funds
Overdraft fee
No overdraft fee
Offer checking account?
No
Offer ATM card?
No
Terms apply.
Pros
- Earns a strong APY with no caps, so every dollar in your account is earning the full rate regardless of your balance.
- Minimum opening deposit of just $1.
- No monthly fees and no overdraft fees, so nothing is cutting into your earnings.
Cons
- No checking account or ATM access, so this works best as a dedicated savings account paired with another bank.
- Non-sufficient funds fees may apply, so it’s worth keeping an eye on your balance before making transfers.
Rewarding credit cards
For Ashley, making sure she was earning rewards on purchases was key. There are a variety of rewards credit cards that earn flat-rate or bonus category rewards on everyday spending, from groceries to gas to dining out.
If you’re newer to rewards credit cards or want a simple way to earn, the Citi Double Cash® Card earns a flat 2% cash back on all purchases. You’ll earn 1% when you buy, and the other 1% when you pay, meaning you’ll earn cash back on every purchase without having to track rewards categories.
What makes the Citi Double Cash® Card special is that it sits near the top of its class in several categories. It is an excellent option if you want flat-rate rewards, a balance transfer intro-APR or no annual fee.
- Balance transfers get a long intro APR
- Generous flat-rate cash-back rewards structure
- Earns transferable rewards
- No annual fee
- It has a foreign transaction fee
- Intro APR only applies to balance transfer
- Points transfer ratios are reduced compared to premium cards
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Earn $200 cash back after you spend $1,500 on purchases in the first 6 months of account opening. This bonus offer will be fulfilled as 20,000 ThankYou® Points, which can be redeemed for $200 cash back.
- Earn 2% on every purchase with unlimited 1% cash back when you buy, plus an additional 1% as you pay for those purchases. To earn cash back, pay at least the minimum due on time. Plus, earn 5% total cash back on hotel, car rentals and attractions booked with Citi Travel.
- Balance Transfer Only Offer: 0% intro APR on Balance Transfers for 18 months. After that, the variable APR will be 18.24% - 28.49%, based on your creditworthiness.
- Balance Transfers do not earn cash back. Intro APR does not apply to purchases.
- If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
- There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, your fee will be 5% of each transfer (minimum $5).
Balance transfer fee
There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. A balance transfer fee of 5% of each transfer ($5 minimum) applies if completed after 4 months of account opening.
Foreign transaction fee
3%
If, like Ashley, you’re reconsidering how you shop for groceries, how you pay could be just as important for helping you save.
According to 2021 and 2026 CPI data, the price of groceries (food at home) has increased by 23.7% between these years; $100 worth of groceries in 2021 would now cost you $123.70. While it may seem simple, paying with the right credit card can help you manage some of these rising prices.
The Blue Cash Everyday® Card from American Express earns some of the strongest grocery rewards: 6% cash back on up to $6,000 per year at U.S. supermarkets (then 1%), or up to $360 back each year. The cash back you earn can be redeemed as a statement credit or for Amazon purchases.
The Blue Cash Preferred® Card from American Express is a low-fee card with generous cash-back rewards and useful ongoing benefits, such as a monthly Disney Bundle credit. (Enrollment required for select benefits mentioned)
- High cash-back earnings for U.S. supermarkets and streaming services
- Intro-APR offer for purchases and balance transfers
- No annual fee for the first year
- It's less rewarding after the first year because of the annual fee
- Bonus rewards for U.S. supermarkets are capped
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Apply and find out your welcome offer. As High As $300 cash back* after you spend $3,000 in purchases on your new Card within the first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply, and if approved: 1. Find out your offer amount 2. Accept the Card with your offer 3. Spend $3,000 in 6 months 4. Receive the cash back. *Cash back is received in the form of Reward Dollars that can be redeemed for a statement credit or at Amazon.com checkout.
- $0 intro annual fee for the first year, then $95.
- Enjoy 0% intro APR on purchases and balance transfers for 12 months from the date of account opening. After that, your APR will be a variable APR of 19.49%-28.49%.
- Plan It®: Buy now, pay later with Plan It. Split purchases of $100 or more into equal monthly installments with a fixed fee so you don't have the pressure of paying all at once. Simply select the purchase in your online account or the American Express® App to see your plan options. Plus, you'll still earn rewards on purchases the way you usually do.
- Earn 6% cash back at U.S. supermarkets on up to $6,000 per year in eligible purchases (then 1%), 6% cash back on select U.S. streaming subscriptions, 3% cash back at eligible U.S. gas stations and on transit (including taxis/rideshare, parking, tolls, trains, buses and more) purchases and 1% cash back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit and at Amazon.com checkout.
- Get up to a $10 monthly statement credit after using your enrolled Blue Cash Preferred® Card for a subscription purchase, including a bundle subscription purchase, at DisneyPlus.com, Hulu.com, or Stream.ESPN.com U.S. websites. Subject to auto-renewal.
- Terms Apply.
- See Rates & Fees
Balance transfer fee
Either $5 or 3% of the amount of each transfer, whichever is greater.
Foreign transaction fee
2.7% of each transaction after conversion to US dollars
Unforeseen emergencies like a car breaking down or medical bills can be devastating for someone living paycheck to paycheck. In a situation like that, a 0% APR card could be the right fit, allowing you to delay any interest payments and pay off your purchase over time.
The Wells Fargo Reflect Card offers a 0% intro APR for 21 months from account opening on both purchases and qualifying balance transfers. After the introductory rate ends, a 17.49%, 23.99% or 28.24% variable APR applies.
The Wells Fargo Reflect® Card is one of the absolute best cards you can apply for if you want to save on interest and pay down debit quickly thanks to its extra generous intro-APR offer on purchases and qualifying balance transfers.
- Incredible intro-APR for purchases and qualifying balance transfers
- No annual fee
- Cell phone insurance: up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible
- No rewards
- No welcome bonus
- High balance transfer fee
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select's editorial staff.
- Apply Now to take advantage of this offer and learn more about product features, terms and conditions.
- 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers. 17.49%, 23.99%, or 28.24% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate, BT fee of 5%, min: $5.
- $0 annual fee.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
- Through My Wells Fargo Deals, you can get access to personalized deals from a variety of merchants. It's an easy way to earn cash back as an account credit when you shop, dine, or enjoy an experience simply by using an eligible Wells Fargo credit card.
Balance transfer fee
5%, min: $5
Foreign transaction fee
3%
Home equity line of credit
Homeowners who have been paying their mortgage for a while now could have a substantial bit of equity built up, which can be tapped into responsibly.
A home equity line of credit, or HELOC, lets you borrow against the equity you’ve built in your home as a revolving line of credit. HELOC rates are typically much lower than those of credit cards because you’re using your home as collateral, so repayments are critical.
A HELOC through Figure is unique as you can complete your entire HELOC process from the comfort of your own home. You can borrow up to $750,000 and access the funds in as few as five days.
Figure
Loan types
HELOC, DSCR, cash-out refinance, crypto-backed loan, small business loans
Minimum credit score
600
Maximum loan-to-value
85%
HELOC draw amount
$15,000 to $750,000
HELOC draw period
2 years or 5 years
Repayment period
10 years, 15 years, 20 years, 30 years
Availability
Figure HELOCs are available in all states but Hawaii.
Pros
- Funding as soon as 5 days, much shorter than most fund timelines so you'll get your money as soon as possible.
- E-closing available, which means you can tap your home equity from your couch.
- No opening fees, prepayment fees or maintenance fees, saving you on closing costs and ongoing costs over the life of the financing
- High LTV maximum, meaning that you'll be able to maximize the amount you take out.
Cons
- Not available in all states
- Maximum draw period is five years
Available APRs range from 6.75% to 14.35%, which includes the payment of a higher origination fee in exchange for a reduced interest rate, which is not available to all applicants or in all states. The lowest APRs are only available to the most qualified applicants, depending on credit profile and the state where the property is located, and those who also select ten year loan terms; APRs will be higher for other applicants and those who select longer loan terms. Your actual rate will depend on many factors such as your credit, combined loan-to-value ratio, loan term, occupancy status, and whether you are eligible for and choose to pay a higher origination fee in exchange for a lower rate. Rates change frequently so your exact APR will depend on the date you apply. APRs for home equity lines of credit do not include costs other than interest. You will be responsible for an origination fee of up to 4.99% of your initial draw, depending on the state in which your property is located and your credit profile. You may also be responsible for paying the costs of valuation if an AVM is not available for your property ($180), or an appraisal if your loan amount exceeds $400,000 ($500-$2,000, depending on property type, property value, and state), manual notarization if your county doesn't permit eNotary ($350), and recording fees ($0 - $315) and recording taxes, which vary by state and county ($0- $1,400 per one hundred thousand dollars borrowed). Property insurance is required as a condition of the loan and flood insurance may be required if your property is located in a flood zone.
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For rates and fees of the Blue Cash Everyday® Card from American Express, click here.
