If you’re making $75,000 annually, you’re beating the national median earnings the U.S. Bureau of Labor Statistics reported for 2024, at $1,159 per week or roughly $60,000 per year.
In a YouTube video, money expert Ramit Sethi explained that some people at this income level are content while others want to live a wealthier lifestyle. In either case, you benefit from financial flexibility, but taking the right approach is key.
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“Assuming you’ve built your emergency fund and you are paying off your debt consistently, your priority should be to build systems that take advantage of the extra opportunities you have because of your higher income,” Sethi said.
Here are the recommended money strategies that he suggested if you’re earning $75,000.
Sethi described tax-advantaged retirement accounts as “cheat codes” since they can provide you with free money that helps you grow your wealth.
First, he suggested contributing to your 401(k) at work. Ideally, you’ll get a match from your employer and this makes it wise to contribute enough from your pay to maximize that free money.
“For example, if your employer matches 100% of your 401(k) contributions up to 5% of your salary, that’s an automatic 5% raise,” Sethi explained. “Plus, you get an immediate benefit by lowering the amount of taxes you pay on your paycheck.”
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Next, you can open a Roth IRA on your own and stash away extra money. The benefit is tax-free growth, which Sethi described as especially beneficial if you’ll be in a higher tax bracket when you retire.
Both suggested accounts have annual limits. According to the 2025 IRS rules, you can put up to $7,000 (or $8,000 if you’re at least 50) toward your Roth IRA and $23,500 (or $31,000 if you’re at least 50) into your 401(k). Roth IRA limits also depend on your filing status and income.
When you’re making $75,000, you likely have extra funds that give you flexibility but also come with the risk that you’ll splurge or leave cash in a place where it won’t grow with interest. Even if you make a plan for your money, successfully carrying it out is another thing.
“If you do manual transfers every month, you’re relying on a very weak combination of willpower, memory and your own time,” Sethi said. “The fact is your system is going to break.”
