Pop quiz: how much do you think the top 1% earn?
$500,000 a year? $5,000,000?
Most of us would be guessing. I was, too. If reaching the top 1% is your goal, should you aim for those huge numbers? Is it even worth it?
Here’s what the data shows.
The gap between the top 1% and the rest of us is huge. Even $250,000 a year looks tiny compared to what the top 1% make in nearly every state. I had to take a moment to process that.
One surprising thing: this gap doesn’t follow political lines. Blue and red states are mixed throughout the list. Up near the top you’ll find wealthy Wyoming (usually red) just under Connecticut (usually blue). At the bottom, West Virginia and Alaska sit among Iowa and Hawaii. My quick takeaway: money and politics don’t line up neatly. Rich and not-rich exist in all camps.
If you look at the threshold to enter the 1% — and even the top 0.01% — the numbers get wilder. Those hedge fund payouts in places like Connecticut and New York really skew the averages. It’s easy to feel a little stunned and wonder what you’ve been doing with your life. For example, making $250,000 a year would still be only a sliver of the income needed to reach the top 0.01% in some states. Crazy, right?
This raises a real question: is income inequality a problem? Yes, and the data supports that. As income divides grow, public services — roads, bridges, schools — can suffer, and social cohesion frays. When wealth concentrates, a small group can gain outsized influence over policies and priorities. That has consequences for a democracy that’s supposed to serve everyone.
Looking back over the past century, income inequality has changed a lot. The Northeast shows the most volatility. From World War II through the 1980s, inequality stayed relatively low across regions. The post-war decades saw strong regulation, suffering from the Depression and then massive wartime effort, followed by a booming economy in the 1950s. The Cold War years also seem to overlap with that period of relative equality — you could argue the U.S. wanted to show the world how prosperous and fair it could be.
To be clear: there’s nothing wrong with making good money. There’s also nothing wrong with insisting everyone has access to good education, reliable healthcare, decent housing, clean water, safety, and infrastructure that doesn’t fall apart. Basic public goods matter.
Bringing this back to everyday life, here’s how incomes distribute across U.S. households: about 27.7% earn over six figures. Households making more than $200,000 are only about 7%. Our household isn’t in that $200K club, even though our real estate business and jobs pay well. Still, we’re happy — we’re in the top 13.6% of earners. That reflects some things we controlled and some we didn’t.
It wasn’t always like that for me. Ten years ago we had almost zero net worth. My tech career started slowly — $27,500 at a call center, then a layoff before 30. I went a year with almost no income, lived off a home equity line and a roommate’s rent, and relied on grit more than help from family. After an MBA and some big decisions — including backing out of a Peace Corps plan — I found steady work and climbed the ladder. It’s been a roller coaster: some low-stress jobs with bad bosses, some high-stress jobs with great bosses. Life with a family makes the stakes higher, and you learn fast the value of having reliable work.
I’m a believer in paying your dues. Work hard for 10–20 years after college, learn your craft, and build a foundation. Then, when you’ve saved enough, you can consider early retirement or a different lifestyle. Grind early, then enjoy more freedom later.
So how much money do you actually need to be happy? Research gives some answers. Following Princeton’s earlier work, a Purdue University study suggests about $75,000 a year buys an individual emotional well-being. For broader life satisfaction, the figure rises to about $95,000 per person. For families, that scales up — maybe $120,000–$150,000 for emotional comfort, and around $190,000 for full household life satisfaction, depending on household size and needs. That’s a lot, and cost of living matters: these numbers would be much higher in San Francisco or New England and lower in cheaper regions.
Still, remember that money’s impact levels off. Once basic needs and conveniences are met, more income doesn’t always increase satisfaction. In fact, pursuing more material gains and constant social comparisons can reduce well-being. Chasing endless upgrades often backfires.
People who measure happiness by keeping up with the Joneses or filling shopping carts will feel the pressure more. Others find wealth in relationships, experiences, and contributing to their communities. On your deathbed, are you likely to regret not making six figures, or losing touch with close friends and family? Most of us would choose the latter.
Some real-life examples back this up. The Blue Zones — places where people live healthy, long lives — show that lifestyle beats income. People in these communities often do physical, purposeful work, have tight family and social circles, nap regularly, and eat simple, mostly unprocessed food. They’re not rolling in cash; many are farmers or small-scale workers living in modest homes. That kind of life can bring long-term health and happiness, which argues against the endless pursuit of higher income as the path to fulfillment.
If you still want to chase top-paying jobs, look around: many of the highest-paying roles are in medicine, finance, and tech. (Business Insider has a fuller list.) My job—Computer and Information Systems Manager—lands around number 21 on that list, with average pay around $136K. A practical path for many is to do well where you are, maximize opportunities, and explore ways to build passive income—landlords, rental properties, and tax-advantaged investments can shorten the retirement timeline.
Now that you know how much the top 1% make, you can either be discouraged by the gap or use it as motivation. Choose what matters to you: pursue top earnings or build a life that balances work, family, health, and community. Either way, make a plan and get busy.