I’m as guilty of this as anyone. To me $100,000 sounds like it would buy a very nice lifestyle.

But I’m thinking back to 1987 when my friend Kira told me her dad made $100,000 and they had a pool, cleaning service and a stay at home parent.

So I did the numbers.

What’s stunning is that in most markets, very little is left per month to save or handle an emergency, and in some markets a $100k salary puts you in debt each month.

Keep this all in mind when deciding what you are going to pay someone.

And, yes, many other companies are realizing this and upping the salary and benefits. But also remember that if a spouse, partner or parent is looking at a deficit each month, they are going to encourage your employee to look elsewhere.

Good comp plans not only attract employees, but retain them.