The salary you need for a $1M home

Million-dollar homes are more common than ever, but the income requirements are steeper than most people realize. This week, we're breaking down the real numbers behind expensive homeownership, what the latest Social Security adjustment means for your retirement planning, and how to spot marketing tricks designed to make you spend more while thinking you're saving.

Here’s what’s inside:

• The real salary you need for a million-dollar home

• Social Security's increase and why it still might not be enough

• The "spaving" trap

• 7 career moves to boost your income

P.S. If you want to talk through your own finances, you can book a free 1-hour coaching call here ☎️

The salary you need for a million-dollar home

A record 8.5% of U.S. homes are now worth $1 million or more. In some markets, that buys you a four-bedroom with a yard. In others, barely 600 square feet. But regardless of location, the income requirements are steeper than most people expect.

To comfortably afford a $1 million home, you'll need to earn at least $250,000 annually (and that's the low end). Depending on your down payment, debt load, and location, some experts put the requirement between $269,000 and $366,000.

Why are the income requirements so steep? It's a combination of higher interest rates (compared to the 3% rates of 2021), rising property taxes and insurance costs, and stricter lending standards for jumbo loans. When rates were at historic lows, buyers could qualify with much less income. Today's lending environment demands significantly more earning power to manage the same purchase price.

If homeownership at this level is your goal, here's your game plan:

💰 Understand what lenders want to see: You'll need to meet the 28/36 rule (housing costs under 28% of gross income, total debt under 36%), have a 20% down payment ($200,000) or 10-15% with higher income, plus 6-12 months of payments in cash reserves ($43,000-$86,000). Start working toward these numbers now.

💰 Research location costs before falling in love: Property taxes range from $5,000 to $25,000+ annually depending on your state, and insurance varies wildly. A single percentage point difference in your mortgage rate adds hundreds monthly. Run the full numbers (taxes, insurance, HOA fees, maintenance (1-2% of home value)) to understand the true cost.

💰 Focus on income first: The salary requirement is the biggest hurdle. Invest aggressively in career advancement, skill development, and negotiations. Everything else gets easier when you're earning more.

💰 Pay down high-interest debt strategically: Every dollar of debt you eliminate increases your borrowing power. Prioritize credit cards and loans before building your down payment.

💰 Build down payment + reserves simultaneously: Split your savings efforts so you're building both buckets at once. You'll need both to close the deal.

Ready to create a roadmap for your dream home? Let's talk through your money goals.for your life?

Social security benefits rise 2.8% (but there’s a problem)

The Social Security Administration announced that benefit payments will increase 2.8% next year. That’s an average of about $56 more per month. While this beats last year's 2.5% adjustment, it falls short of the historical average of 3.7% and doesn't reflect the actual costs seniors face.

The problem? The cost-of-living adjustment uses an inflation index that doesn't adequately weight what seniors spend more on: medical care, prescription drugs, rent, and home energy. Experts estimate a 4% adjustment would more accurately reflect these expenses.

Between 2018 and 2023, older Americans were the only age group that saw poverty rates increase. About 45% of older-adult households (more than 19 million) don't have income to cover basic living costs. And 80% couldn't weather a major shock like widowhood, serious illness, or long-term care needs.

What you need to know:

💜 If you're decades from retirement: Don't count on Social Security as your primary income. Build savings like it might not exist at current levels.

💜 If you're near retirement: Run the numbers on when to claim benefits. Delaying from 62 to 70 significantly increases your monthly payment (but only if you can afford to wait).

💜 If you're currently receiving benefits: Budget conservatively. A 2.8% increase might not keep pace with your actual expenses, especially healthcare costs.

Not sure if you're saving enough for retirement? Let's talk through your numbers.

Are you guilty of ‘spaving’?

You may not have heard the term "spaving" before, but you're probably familiar with the concept. Spaving is spending extra money to secure some perceived savings, like adding $10 worth of products to your cart to avoid a $5 shipping charge. You "saved" on shipping, but you just spent an extra $5 you weren't planning to spend.

Spaving is essentially a marketing strategy designed to make you feel like you're getting a deal while actually spending more. And if you make a habit of falling for these ploys, you'll put more money in retailers' hands and less in your bank accounts.

Three common spaving traps:

👉 BOGO deals: That grocery store offering strawberries at $5.50 per pint with a BOGO deal might seem like a steal. But if your household can't eat two pints before they spoil, you're not saving. You're wasting money and food.

👉 Free shipping thresholds: Your purchase is $40 and shipping costs $15 (total: $55). To get "free" shipping at $75, you'd spend an extra $20 (meaning you're paying more to "save" on shipping).

👉 Spend more, save more: Those "25% off $75+" deals work if you already needed to spend that much. But if the discount tempts you to exceed your budget just to score a deal, you're falling into the trap.

Need help identifying where your money's actually going? Book a free 1-hour coaching call here.

7 career moves to make in your 20s

Your early career years set the foundation for long-term success. The relationships you build, boundaries you set, and skills you develop now will pay dividends for decades.

Here's what to focus on:

✅ Building positive workplace relationships while maintaining boundaries

✅ Learning to communicate assertively (especially when saying no)

✅ Mastering how to manage both up and down

✅ Handling workplace challenges strategically

✅ Investing in continuous learning

✅ Networking intentionally beyond your immediate team

✅ Aligning every career decision with your broader financial goals.

Read the full guide here for detailed strategies on each move.

 Worth the Click This Week

📊 Inflation update: September's Consumer Price Index rose 3% annually and 0.3% monthly, driven by higher gas, energy, and food prices. While slightly below forecasts, inflation remains uncomfortably high for Fed officials. Read the breakdown »

💼 Surviving a furlough: With over 700,000 federal workers furloughed due to the government shutdown, here's your survival guide: apply for unemployment benefits immediately, create a lean budget, alert creditors about hardship programs, and consider taking on side income. Learn the strategies »

📝 IRS makes tax notices clearer: Congress passed the IRS MATH Act, requiring the agency to provide clearer explanations on math error notices, including the specific line where the error occurred, itemized adjustments, and bold 14-point deadlines. The bill awaits President Trump's signature. See what's changing »

🤝 Money and friendship rules: Navigating financial differences with friends doesn't have to be awkward. Be upfront about what you can afford, split bills fairly (not equally if orders differ significantly), and communicate before situations get tense. Your friendships matter more than money. Read the etiquette guide »