• Five people who earn more than $100,000 annually shared how they're spending their money.
• They're trying to balance spending on big purchases with saving for future goals.
• Some have spent money on a new car or travel, while others have invested in a home or startup.

For some, earning a six-figure income can facilitate a big splurge. For others, it's an opportunity to establish additional income streams or financial security.

Abid Salahi earns about $140,000 a year from his software engineering job. The 26-year-old, based in Vancouver, said his biggest purchase over the past year was a new car that cost roughly $37,000. Additionally, Salahi said he upgraded his home workspace.

Despite his earnings, one thing has been out of his reach: owning a home. The houses in his area that check his boxes cost more than $500,000. To afford a down payment, Salahi said he's saving and being more judicious about how much he spends dining out and at the grocery store.

Reaching a six-figure salary can be a challenge for some employees. The average annual salary for US-based full-time workers was about $82,000 as of November, the latest data available, per a New York Fed survey. Some workers who earn more than six figures have used the opportunity to set themselves up for potential future success.

Business Insider asked five people who've made more than $100,000 annually what they've spent their money on in recent years. BI has verified their six-figure earnings.

Balancing spending now and saving for the future

Earning a six-figure income has also created new opportunities for John, who's on track to earn roughly $250,000 this year by balancing a full-time and part-time remote IT role.

The millennial, who's based in California, said one of his biggest expenses over the past year was his sister's medical bills, which were about $30,000, he said.

When he spends money on himself, he focuses on fun and health. He hired a personal trainer, who charges about $130 weekly for a one-hour session. Last year, he spent about $9,000 on a three-week honeymoon in Asia.

While he's trying to take advantage of his money in the present, John said he's also prioritized saving for the future.

"I follow a concept of 'pay yourself first' — where I put money into retirement and savings first, and then the rest is disposable," said John. His identity is known to BI, but he asked to use a pseudonym due to fears of professional repercussions.

Looking forward, John said he's saving money for the children he hopes to have one day, a bigger car, and a home.

Corritta Lewis is also balancing spending now while saving for the future. Last year, Lewis earned roughly $280,000 from her consulting job and a travel blog she runs as a side hustle. The 35-year-old, who's based in Orlando, said she and her wife spend most of their disposable income on travel.

"We've been digital nomads for four years, so most of our money was used to travel the world and have amazing experiences," she said.

Despite her travel expenses, Lewis said she doesn't live a luxurious lifestyle and is focused on long-term saving. She aims to work part-time hours by her 40th birthday.

"Right now, we are prioritizing savings and investments," she said.

Investing in themselves and real estate

Margaret Pattillo took home around $128,000 last year from her digital marketing and PR business. The 27-year-old, who's based in Florida, said she's on track to earn more than $160,000 this year.

Pattillo used her earnings to buy a home earlier this year and has plans to buy a second home as an investment property. She tries to use her money to create additional income streams that will set her up for future financial success.

"I don't place much value in material items and I'm lucky that I get to travel for work frequently," she said. "I'd say my biggest goal is to build up as many cash-flowing assets as I can in the next 10 years."

Christopher Stroup has put his earnings toward a different type of investment: a new business.

Stroup earned roughly $130,000 last year working as a financial advisor. The 33-year-old, who's based in California, said his income has helped him improve his relationships with friends and family by giving him the budget to go out to eat and on trips. He said his goal is to travel to Europe at least once a year.

Over the past year, Stroup said the biggest thing he's spent his money on is the financial planning business he launched in September. He said his startup costs have included marketing expenses and hiring a team. However, he hopes the investment in his business will put him in an even better financial position.

"If it works out well, achieving my financial goals on my desired timeline has a much higher probability of happening," he said, adding that two of his main goals are owning a home and starting a family.

Are you making over $100,000 a year? Are you willing to share your story and the impact this income has had on your life? If so, contact this reporter at [email protected].

• A financial guru has criticized strict budgets, advocating for intuitive spending instead.
• Budget culture is seen as restrictive, leading to potential "budget burnout."
• Experts suggest balancing intuitive spending with realistic budgeting for financial health.

Saving money and paying off debts can feel like an endless cycle, which is why financial gurus are so keen on budgeting.

But Dana Miranda, a certified personal finance educator, told CNBC Make It in a recent interview that strict spending plans can be "toxic."

Miranda, who is also the author of "You Don't Need a Budget," told the outlet that budget culture is based on "restriction, shame, and greed," and there's little concrete evidence it works in the long term.

Instead, she recommended "intuitive spending" and thinking about your money "moment by moment." Rather than punishing themselves for overspending, people should reward themselves when they save, Miranda said.

Not all financial pros are in agreement, though.

Katrin Kaurov, the CEO and cofounder of the social financial platform Frich, told Business Insider it's true that "everyone hates budgeting."

But she isn't convinced intuitive spending is a good alternative. For some, it can increase debt and result in purchases they don't need.

To budget or not to budget

Doug Carey, a chartered financial analyst and founder of the retirement and financial planning software WealthTrace, told BI that whether to budget is a question that comes up with many of his clients.

Generally, he said he disagrees that people must have a set budget and stick to it. As long as someone can max out their 401(k) contributions and save enough for emergencies, "they can use their intuition for spending."

For these people, it is pretty obvious when they are spending too much, Carey said, because they'll dip into savings.

Budgets can be too limiting for people who are more flexible in their income, such as freelancers or contractors, for example, because these systems don't often allow for easy changes.

Carey said the "micromanagement" of daily things can also "obscure the bigger picture of your financial health," such as long-term financial goals such as retirement savings or building wealth.

"This can create a negative association with managing money and lead to 'budget burnout,'" Carey said. "Many give up on budgeting when they feel like they cannot live within the strict limits of the budget."

Trial and error

Budgets can be more universally helpful if they make room for flexibility.

Kaurov told BI that budgeting isn't inherently toxic, "but many people create budgets with too much enthusiasm and optimism for how little money they will spend from month to month."

People spend more during the holidays, for example. So using December's budget in January probably won't work.

Kaurov said a budget should be about creating a realistic guideline for spending and saving. If you've set one you can't follow, you should rethink it, she said.

"Budgeting is a tricky — but important — skill for people to learn when they're starting to manage their money," she said. "Trial and error is crucial and will allow people to find what kind of budget works best for them."

The grass isn't always greener

Intuitive spending sounds like a good idea, but it may be a case of "the grass is always greener," Kaurov added.

"For so many, especially younger people who are often on a tighter budget anyway, it's a really poor financial habit to develop," she said.

For those who are partial to impulsively buying trendy items from social media ads, "intuitive spending" can quickly turn into overspending on things you don't need.

Julie Guntrip, the head of financial wellness at Jenius Bank, told BI that rather than following absolute rules about their spending, people give themselves grace when things don't go to plan.

"Budgeting practices many times fail because people can't stick to them — an individual makes one misstep and decides to give it all up," she said.

A better course of action may be somewhere in the middle.

"Factoring splurges into a budget could be a great compromise for someone who may feel like budgeting is too constraining," Guntrip added. "This practice may actually help someone stick with a budget longer."