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In most of the United States, making six figures means you have a high income. The median U.S. household income was $74,580 in 2022, according to the U.S. Census Bureau.

Six-figure salaries have been getting more common over the years as incomes rise. But they also don't have as much buying power as before, because of inflation. So, just how rare is it to earn $100,000 or more? Here's the latest data.

Over one-third of American families earn $100,000 or more

The U.S. Census Bureau found that 37.1% of U.S. households earned at least $100,000 in 2022. Here's a more detailed breakdown of six-figure income brackets and the percentage of households in each one:

• $100,000 to $149,999: 16.9%
• $150,000 to $199,999: 8.7%
• $200,000 or more: 11.5%

There are still plenty of households that earn an average or below-average income. Just over half (50.2%) make under $75,000 per year. But big earners are fairly common -- who knew that over 10% of households are pulling in $200,000 or more every year?

It's not all about income -- buying power is also important

There's no arguing that income matters. If you manage your money well, life gets easier as your income increases.

But when you see these income statistics, keep in mind that a six-figure income doesn't mean the same thing everywhere. The buying power depends on where you live. Many of the households that earn the highest incomes live in cities with a high cost of living.

For example, the median household income in San Francisco was $136,689 in 2022. That's 83% more than the national median. But the cost of living in San Francisco is 79% more than the national average, and housing costs are a staggering 207% more, according to PayScale. So a six-figure income doesn't actually get you a whole lot there.

What you can do to increase your income

While income isn't everything, earning more can help you out financially. I try to raise my income every year. It helps me stay ahead of inflation. It helps me save and invest more. And it improves my quality of life.

Since I'm a freelancer, I have some control over how much I make. It depends on how much I work and how efficiently I work. Here are a few tips you can try to boost your own income:

• Develop new skills. Look into training programs and classes you can take, either at or outside your place of work. You could provide more value by building your skillset, and this is a big part of how much you're paid.
• Negotiate a raise or apply for a promotion. If you've been doing well in your current role, talk to your manager about a raise. Also, keep an eye on openings at your company to see if there are any new, higher-paying positions you could apply for.
• Look for new jobs regularly. Sometimes the biggest pay increases come from switching jobs. Browse job boards and set up alerts for opportunities that fit your qualifications.
• Add a new income stream. There are plenty of side hustles you can do to make extra money. Another option is starting your own small business or offering freelance services.

Financial habits to follow at any income

No matter how much you make, what matters most are your financial habits. If you spend every last dollar you make, that's going to be a problem whether you earn $50,000, $100,000, or $200,000 per year.

There are a few habits you should follow at any income:

• Spend less than you earn. It's one of the most basic money rules, and it's also arguably the most important. If your bills are currently costing more than you make, start looking for places to cut back.
• Save money every month. Try to save at least 5%, and ideally 10%, of your income. Set up an automatic transfer to a high-yield savings account to ensure this always happens.
• Invest for the future. It's also a good idea to invest 5% to 10% of your income in the stock market and build your retirement savings. You can do so through retirement accounts or a regular brokerage account.
• Build and maintain an emergency fund. Emergencies will happen. Experts generally recommend saving until you have three to six months of living expenses in your emergency fund.

These habits are all key parts of being financially secure, now and in the future. Start following them right away, stick with them as your income increases, and you'll set yourself up for success.

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