Posted: Today 10:05:36 AM EDT
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Six figures and still struggling: Dollar General CEO says Americans earning $100,000 'don't feel high income' anymore Linky - That's just his opinion, man "A six-figure salary was once seen as a major financial milestone, but Dollar General's CEO says Americans earning $100,000 or more increasingly do not feel like high-income shoppers. Todd Vasos said persistent inflation and high gas prices are pushing consumers across income groups to become more careful about how and where they spend. Speaking at the Goldman Sachs Global Consumer and Retail Conference, Vasos said Dollar General's core customers - whom he defined as those earning less than $45,000 - change their habits when gas prices approach $4 a gallon. They tend to stay closer to home, shop more frequently and buy less on each trip as they try to manage their budgets from one week to the next. But Vasos said the same pattern is now appearing among middle-income shoppers, as years of elevated inflation have changed what a $100,000 salary can buy. 'And high income for us is that $100,000-plus crowd,' he said, adding that Dollar General is hearing increasingly from shoppers who say, 'I don't feel like I'm higher income at $100,000 any longer.' The comments come as gasoline prices have climbed sharply, with the national average for regular fuel reaching about $4.47 a gallon this week, according to AAA. Diesel was even higher at around $6.52 a gallon, adding to transportation costs for goods moved around the country. Vasos said inflation in everyday essentials, rather than fuel alone, has left shoppers across income brackets feeling financially squeezed. He nevertheless described the American consumer as 'very resilient,' pointing to continued employment as a key reason households have been able to keep spending. That resilience is visible in the wider retail figures, with US retail and food-service sales rising 1.2 percent in August from the previous month, according to the Census Bureau. For Dollar General, the changing shopping habits represent an opportunity to attract customers who might once have considered themselves above discount stores. Vasos said the chain's more than 2,000 items priced at $1 or less are particularly meaningful to shoppers in the current environment. Dollar General's latest results also showed that customers are still spending, with the company reporting second-quarter sales of $11.3 billion, up 5.2 percent from a year earlier. The shift toward bargain hunting is being echoed by consumers themselves, with Reddit users discussing how much further their paychecks now seem to go. One commenter wrote that they were about to reach a six-figure salary after a promotion but felt 'much more financially secure' when they were earning $42,000 in 2019. Another said they were 'making more than ever' while simultaneously feeling broke because of monthly bills and food costs. One Reddit user summed up the sentiment bluntly, writing that they had 'never been high income at 100k for about a decade.' There was some disagreement, however, with others arguing that Dollar General's prices are not always cheaper when calculated by unit, ounce or gram. One commenter said the chain's smaller package sizes can make products appear cheaper while actually costing more per unit than buying larger quantities elsewhere. Another said Dollar General can nevertheless be the only affordable option for some rural shoppers who would otherwise have to drive 35 miles each way to a full-service grocery store. The discussion highlights the squeeze facing households that may have higher nominal incomes but are still having to make difficult choices over food, utilities, transportation and other essentials. For Dollar General, Vasos said the important factor is that consumers remain employed, because as long as they have income coming in, they will continue to find ways to adjust their spending. And with gas still well above $4 a gallon and retail sales continuing to rise, the latest figures suggest Americans are still spending - but increasingly with price at the front of their minds. " |
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Originally Posted By MtnMusic: That's using the government official inflation numbers. Looking at real world inflation, it's more like the equivalent of making 53k 8 years ago. Originally Posted By MtnMusic: Originally Posted By 0311SKI: 100k isnt high income. Its the equivalent of making 53k a year 25 years ago. That's using the government official inflation numbers. Looking at real world inflation, it's more like the equivalent of making 53k 8 years ago. This is the right answer. My income was probably 53k 8 years ago and it's around 100k now and I'm in exactly the same boat and I've actually lowered my monthly expenses since then. And I'm in a low cost of living state. |
I'm no holster sniffer but if someone burned down the town garage and threw canned corn at the snow plow guys I'd drop off a case of beer at the DPW. ~Aimless
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I'd love to see the budget of those six-figure earners that say they "don't feel high income"....... probably spending thousands a month on junk, going out to eat, huge car payments, 10 different streaming services, starbucks, etc, etc...... But nobody wants to ever talk about that....... No different that those people who win millions in the lottery, and then are bankrupt in a couple of years. Some people are just bad with money....no matter how much they make, they are always broke. |
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Originally Posted By ARDunstan: I guess I'll go be poor somewhere else then. Many of us are far poorer than we were a decade ago. The Dollar General guy is spot on. |
“How strange it is that man on earth should roam,
And lead a life of woe, but not forsake
His rugged path; nor dare he view alone
His future doom which is but to awake.” - John Keats
And lead a life of woe, but not forsake
His rugged path; nor dare he view alone
His future doom which is but to awake.” - John Keats
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Originally Posted By imq707s: I'd love to see the budget of those six-figure earners that say they "don't feel high income"....... probably spending thousands a month on junk, going out to eat, huge car payments, 10 different streaming services, starbucks, etc, etc...... But nobody wants to ever talk about that....... No different that those people who win millions in the lottery, and then are bankrupt in a couple of years. Some people are just bad with money....no matter how much they make, they are always broke. Nobody wants to talk about that because its not relevant to the buying power of the dollar being cut in half. |
When the going gets tough, the tough go cyclic.
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Originally Posted By imq707s: I'd love to see the budget of those six-figure earners that say they "don't feel high income"....... probably spending thousands a month on junk, going out to eat, huge car payments, 10 different streaming services, starbucks, etc, etc...... But nobody wants to ever talk about that....... No different that those people who win millions in the lottery, and then are bankrupt in a couple of years. Some people are just bad with money....no matter how much they make, they are always broke. Just look at the average home price in your area, and average mortgage rate, property tax and homeowners insurance. Then look at one basic used car price and interest rate. |
“How strange it is that man on earth should roam,
And lead a life of woe, but not forsake
His rugged path; nor dare he view alone
His future doom which is but to awake.” - John Keats
And lead a life of woe, but not forsake
His rugged path; nor dare he view alone
His future doom which is but to awake.” - John Keats
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Originally Posted By imq707s: I'd love to see the budget of those six-figure earners that say they "don't feel high income"....... probably spending thousands a month on junk, going out to eat, huge car payments, 10 different streaming services, starbucks, etc, etc...... But nobody wants to ever talk about that....... No different that those people who win millions in the lottery, and then are bankrupt in a couple of years. Some people are just bad with money....no matter how much they make, they are always broke. Childcare is a huge expense. If you have a couple of kids in a major metro area $20-40k on childcare isn’t out of the norm. |
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I wonder who he’s talking about. I’m under 100k, making more than I ever have, and feel great about it. This is the latest version of “they closed the mill and the town died” doom tripe I heard growing up in the 80s. Also Dollar General bro is a yardstick for success? Those stores are roach motels and are full of poor and usually fat, white people. |
"Whoever dares to look upon them as an irregular mob will find himself very much mistaken. They have men amongst them who know very well what they are about.” Lt Gen Hugh Percy
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Originally Posted By imq707s: I'd love to see the budget of those six-figure earners that say they "don't feel high income"....... probably spending thousands a month on junk, going out to eat, huge car payments, 10 different streaming services, starbucks, etc, etc...... But nobody wants to ever talk about that....... No different that those people who win millions in the lottery, and then are bankrupt in a couple of years. Some people are just bad with money....no matter how much they make, they are always broke. Our monthly expenses are about 5k a month, no car payments , CC paid off monthly, house is 1,400 a month at 2.875. We eat out maybe once every few months, we just did this weekend as my MIl was in town visiting, dinner was about 350.00. The bulk of our income is going into 401k, we max ours out and my wife's business matches 100%. Definitely doesn't feel like High income even double and at times triple that. |
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Originally Posted By 0311SKI: 100k isnt high income. Its the equivalent of making 53k a year 25 years ago. We all just grew up hearing that making 6 figures would mean you "made it". Yup I make about 300k and you would think I would be just rolling in it. While I my family is definitely not struggling, it's not like we take lavish vacations and live in a Mcmansion. We live in a project house built in '59 and I drive 2015 Toyota. We recently finished car shopping for my weife, pre-covid if I was making this kind of money we would have bought new, we ended up with a '24 model year. Even we feel the cost of groceries for a family of 4. I can only imagine what life is like at 50k a year right now. I will say a few of my rental tenants are struggling, I am getting the occasional message "Sorry rent will be a week late for reasons x,y and z." from tenants that have paid on time for years. I feel the squeeze on my side as well, property taxes keep rising, maintenance and repair costs are up for now I am letting that all eat into the margin, but at some point rent has gotta go up. |
How do you do?
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Originally Posted By 0311SKI: 100k isnt high income. Its the equivalent of making 53k a year 25 years ago. We all just grew up hearing that making 6 figures would mean you "made it". This and where in the US makes a huge difference. I live in a 2br 70s brick ranch, finished walk out basement, 4 acres, 26x32 1992 pole barn. Zillow says it's worth $209K. Now do same in a different location and it could be 10x that. |
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I would think that high income starts at 250K in 2026, and is maybe higher in HCOL areas Everyone defines high income differently, but to me it's being able to afford two newer vehicles, a nice 3-4 bed 2000-2500sq ft house, go out to eat a couple times a week, take a couple vacations, and still put 20-25% into retirement. With a couple kids that's hard to do on less than 200K anywhere in the country. |
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I typically make a little over 100k a year and I’m not poor. I’m also not rich, but I can afford reasonable comfort. I live out in the country, in a modest house, I have a new base model truck - it would probably be a different story if I wanted to live in the city with a nice big luxury home and buy a new high end vehicle every two years like a lot of people I know around my same age. 100K a year is not the same flex it was when I was a kid, but it’s still a pretty decent income, for now. |
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Originally Posted By imq707s: I'd love to see the budget of those six-figure earners that say they "don't feel high income"....... probably spending thousands a month on junk, going out to eat, huge car payments, 10 different streaming services, starbucks, etc, etc...... But nobody wants to ever talk about that....... No different that those people who win millions in the lottery, and then are bankrupt in a couple of years. Some people are just bad with money....no matter how much they make, they are always broke. Depends…I earn a decent salary. I spend zero on junk, no car or house payments, no debt, cook at home unless I can’t and spend less on extras than your average college student. Fiscal discipline is a thing and living a few steps below your means is the only sane way to manage your life, IMHO. |
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I saw an article yesterday where a writer and a famous athlete were claiming the appreciated value of the SD PADRES baseball team was extraordinary. 2012 worth $800 million 2026 worth $3.9 Billion 5X in 14 years I thought it was good but nor extraordinary NASDAQ 2400 IN 2012 29,000 in 2026 10X and more Coca Cola stock was close to 5x over those 14 years with re-invested dividends. |
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When words lose their meaning, a people can move neither hand nor foot. Confucius
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Inflation calculator: $100,000 in the year 2000 is the same as $194,529 in 2026. That is using official gov numbers which are prolly the numbers of cooking the books. https://www.in2013dollars.com/ Them Federal Reserve notes aren’t what they used to be! |
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He is right. You also get raped with taxes and everything else. I'd bet that someone making 50k and getting the "discounts and refunds" from being "poor" has more spending money. What I pay in private health insurance alone is asinine. |
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Originally Posted By Duke117: Depends I earn a decent salary. I spend zero on junk, no car or house payments, no debt, cook at home unless I can't and spend less on extras than your average college student. Fiscal discipline is a thing and living a few steps below your means the only sane way to manage your life, IMHO. The purchasing power of a dollar is less each year. That's not some revolutionary statement, we all know that. It is what it is. But we live in a consumer driven society. People are programmed to spend money and they do so freely. So it doesn't really matter what their income is, they spend it. Learning how to suppress that dopamine hit of instant gratification and not spend on shit that brings no meaning into your life, instead opting to save and invest and live frugally, is like a super power. |
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Originally Posted By Piratetech: He's right about most the things he said. No way the core Dollar General demographic is 45k and under....more like 25k and under. 25-45k you pull yourself up by your bootstrap and put on your finest flipflops and sweatpants and haul your ass to Walmart. Costco for the win. Of course now people bitch about how the poors are ruining their shopping experience lol. I will say the Great Value brand groceries seem to have improved. I like Walmart mostly because they dont play fuck fuck games with discounts like meijer and Kroger do now. Bottle returns suck though. |
When the going gets tough, the tough go cyclic.
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Originally Posted By imq707s: I'd love to see the budget of those six-figure earners that say they "don't feel high income"....... probably spending thousands a month on junk, going out to eat, huge car payments, 10 different streaming services, starbucks, etc, etc...... But nobody wants to ever talk about that....... No different that those people who win millions in the lottery, and then are bankrupt in a couple of years. Some people are just bad with money....no matter how much they make, they are always broke. lol If things like eating out and using streaming services hit hard enough to matter, is someone really "high income?" |
"Sometimes, the grass is greener because it's on a septic system."
"Sporterizing: The art of spending $700 on a $300 gun to make it worth $200." -GTwannabe
"Sporterizing: The art of spending $700 on a $300 gun to make it worth $200." -GTwannabe
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Originally Posted By imq707s: I'd love to see the budget of those six-figure earners that say they "don't feel high income"....... probably spending thousands a month on junk, going out to eat, huge car payments, 10 different streaming services, starbucks, etc, etc...... But nobody wants to ever talk about that....... No different that those people who win millions in the lottery, and then are bankrupt in a couple of years. Some people are just bad with money....no matter how much they make, they are always broke. Shhhh. You'll ruin the narrative. |
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Originally Posted By 0311SKI: 100k isnt high income. Its the equivalent of making 53k a year 25 years ago. We all just grew up hearing that making 6 figures would mean you "made it". And houses are now five times more |
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That man is a homo and a liar-TrojanMan
Hell, a Ford just breaks down on you. It doesn't fall apart AND try to kill you at the same time-Bloodsport2885
That man is a homo and a liar-TrojanMan
Hell, a Ford just breaks down on you. It doesn't fall apart AND try to kill you at the same time-Bloodsport2885
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Originally Posted By imq707s: I'd love to see the budget of those six-figure earners that say they "don't feel high income"....... probably spending thousands a month on junk, going out to eat, huge car payments, 10 different streaming services, starbucks, etc, etc...... But nobody wants to ever talk about that....... No different that those people who win millions in the lottery, and then are bankrupt in a couple of years. Some people are just bad with money....no matter how much they make, they are always broke. And there it is, GD's favorite trope that if people would just quit drinking Starbucks, their economic struggles will disappear. |
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Originally Posted By GenYRevolverGuy: lol If things like eating out and using streaming services hit hard enough to matter, is someone really "high income?" Originally Posted By GenYRevolverGuy: Originally Posted By imq707s: I'd love to see the budget of those six-figure earners that say they "don't feel high income"....... probably spending thousands a month on junk, going out to eat, huge car payments, 10 different streaming services, starbucks, etc, etc...... But nobody wants to ever talk about that....... No different that those people who win millions in the lottery, and then are bankrupt in a couple of years. Some people are just bad with money....no matter how much they make, they are always broke. lol If things like eating out and using streaming services hit hard enough to matter, is someone really "high income?" Of course not. |
We're getting close, real close. And now for some more bad news... Ready?
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Originally Posted By Commando223: Imagine for all those making half that. I’ve always said anyone can live on half their salary Because someone out there in similar circumstances / family size / location IS living on half that salary. Never an excuse to not live below your means and save. |
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Originally Posted By MtnMusic: That's using the government official inflation numbers. Looking at real world inflation, it's more like the equivalent of making 53k 8 years ago. |
Not a day passes over the earth, but men and women of no note do great deeds, speak great words, and suffer noble sorrows. Charles Reade
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Originally Posted By PeepEater: Childcare is a huge expense. If you have a couple of kids in a major metro area $20-40k on childcare isn’t out of the norm. Mom makes $60k, down to $40k due to taxes. Another $10k off for second job commuting costs and eating many more meals out. Spends $30,000 on daycare. Hashtag Girl Boss |
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Originally Posted By imq707s: I'd love to see the budget of those six-figure earners that say they "don't feel high income"....... probably spending thousands a month on junk, going out to eat, huge car payments, 10 different streaming services, starbucks, etc, etc...... But nobody wants to ever talk about that....... No different that those people who win millions in the lottery, and then are bankrupt in a couple of years. Some people are just bad with money....no matter how much they make, they are always broke. That's kind of the point of the article, 6 figure earners can't afford to buy a new car every 5 years, can't afford to go out to eat, and can't afford small daily luxuries. That firmly puts them not in the "high income" category. High income insinuates that you can have luxuries in live without stressing about them. We aren't talking ferrari here, we are tyalking about new or lightly pre-owned fords and GMs and Toyotas. |
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Originally Posted By sabre_kc: I wonder who he’s talking about. I’m under 100k, making more than I ever have, and feel great about it. This is the latest version of “they closed the mill and the town died” doom tripe I heard growing up in the 80s. Also Dollar General bro is a yardstick for success? Those stores are roach motels and are full of poor and usually fat, white people. It's not hard to feel great about a "not high income" salary/wage if you have your budget in order. I felt great about making less than $100k at points in my life as well but that just meant I was making more than I was spending and was happy with the standard of living that afforded me. I think the point of the Dollar General CEO is that $100k isn't living high on the hog anymore and that's definitely true. When I was growing up, six figures basically meant big house, all the nice toys, all the nice vacations, essentially living the "Hollywood ideal" of an American family. For example, Peter McCallister in Home Alone. Using that as an example, $100k in the year that movie came out is $262k today relying on government numbers. |
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$100k can't afford by traditional metrics the median home in Utah. If you can't comfortably afford the median home, then you can't call $100k high-income. Here in UT, I'd say "high-income" probably starts around $250k to afford fully funded retirement, an above average home, childcare (if needed), a vacation, and newer/nicer cars. "Rich" IMO here would start at $400-500k+ to really feel carefree with most ordinary expenses and enjoy more lavish things semi-regularly. |
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100% accurate. My wife keeps saying we're broke. A lot of that is my $40k payout 2.5 years ago, now "just" $26k short. Another large part of it is that we choose not to afford certain things because we'd rather be set in retirement and enjoy amazing vacations. However, shit is tighter than it has been before. We are in the top 10% of household incomes in the US and we can feel it. I dont know how a lot of people do it. |
