When Danielle Carter landed a six-figure job as an attorney at a mid-size Houston firm, she thought she had “made it.”
But nearly a decade into her career, her bank account tells a different story.
“I make $120,000 a year, but I still live paycheck to paycheck,” she admits. “After rent, student loans, helping my mom with her mortgage, paying for my nephew’s after-school care and sending money to my cousin who’s in nursing school, I barely have anything left. People assume I’m balling, but the truth is, it’s a struggle.”
Carter is not alone. For many Black professionals, particularly first-generation high earners, a six-figure salary often comes with invisible strings and deep obligations. They are the financial lifeline for their household and extended family members navigating medical bills, college tuition, childcare and emergencies. The result: high income, low wealth and even lower peace of mind.
A cultural and historical weight
The concept of being “the one who made it” carries historical resonance in Black communities. After generations of systemic economic exclusion, those who climb the income ladder often carry their entire family with them.
“We call it ‘Black Tax,’” explains Rianka Dorsainvil, certified financial planner and co-founder of 2050 Wealth Partners. “It’s the pressure many Black professionals feel to provide for multiple generations—upward to parents, sideways to siblings and downward to children or nieces and nephews. It’s rooted in love, but it can also sabotage wealth building if there’s no plan.”
The common traps
Many high-earning professionals fall into lifestyle creep—spending more as they earn more, without accounting for long-term goals. Add in a lack of emergency savings, underinsurance and no retirement strategy and the financial foundation begins to crack.
Angela Moore, CFP and founder of Modern Money Education, says boundaries are the most overlooked tool for high earners.
“You have to set limits—not out of selfishness, but out of sustainability,” Moore says. “Supporting your family is noble, but not if it costs you your future.”
Case study
For Henry Bell, a 42-year-old corporate manager, being the safety net isn’t a burden—it’s a badge of honor. But it comes with a cost.
“I help my aging parents with bills and my younger brother’s tuition,” Bell shares. “But when my car broke down last year, I realized I didn’t even have $1,000 saved. I was out here supporting everybody else and had nothing for myself.”
Bell has since started working with a financial coach and restructured his budget to include “non-negotiable savings.”
“I still help,” he says. “But I also protect my peace and my wallet.”
Wealth-building strategies
Experts say six-figure earners can thrive financially, with the right tools:
- Budget with Purpose: Use a zero-based budget or the 50/30/20 method to stay on track.
- Get Insured: Life and disability insurance are musts for family protectors.
- Estate Planning: Wills, trusts, and power of attorney documents protect everyone.
- Set a Cap: Decide how much support you can provide per month, and stick to it.
- Have the Conversation: Talk openly with family about your financial limits and long-term goals.
