In the Bay Area making "six figures" under $200k isn't as much as it seems on paper. Taxes and pre-tax deductions (insurance premiums etc) easily eat a third of

In the Bay Area making "six figures" under $200k isn't as much as it seems on paper. Taxes and pre-tax deductions (insurance premiums etc) easily eat a third of your bi-weekly check. Unless you've got a half dozen roommates rent will easily eat a whole bi-weekly paycheck. The other check goes to a car payment (essentially required in the South and East bay), insurance for same, at least a cellular plan if that and a residential broadband plan, utilities and other monthly bills, and then food for the month. Because rent is always due at a particular time of the month people need to use whatever cash buffer they have to cover expenses until their next check. So there's people living "paycheck to paycheck" that do have a non-zero amount of dollars in the bank but that buffer is constantly being drained and refreshed paying all the non-rent bills. If they don't have a cash buffer then they need to use credit cards which have fees and interest that obviate any savings margins. There's a wide dynamic range in the "six figures" category of salaries. In HCOL areas it takes a pretty high "six figures" salary to get over the "paycheck to paycheck" living.