Posted on 10/25/2022 6:52:20 AM PDT by EBH
With persistent inflation eroding wage gains, the number of Americans living paycheck to paycheck is near a historic high, according to a recent report.
Almost half of those earning more than $100,000 say they are just getting by.
As rising prices continue to outpace wage gains, families are finding less cushion in their monthly budget.
As of September, 63% of Americans were living paycheck to paycheck, according to a recent LendingClub report — near the 64% historic high hit in March. A year ago, the number of adults who felt strained was closer to 57%.
"Consumers are not able to keep up with the pace that inflation is increasing," said Anuj Nayar, LendingClub's financial health officer.
"Being employed is no longer enough for the everyday American," Nayar said. "Wage growth has been inadequate, leaving more consumers than ever with little to nothing left over after managing monthly expenses."
Inflation has steadily caused real wages to decline.
The consumer price index, which measures the average change in prices for consumer goods and services, was up 8.2% year over year in the latest reading, still hovering near the highest levels since the early 1980s.
Real average hourly earnings fell 0.1% for the month and are down 3% from a year ago, according to the Bureau of Labor Statistics.
A separate report by Salary Finance found that two-thirds of working adults said they are worse off financially than they were a year ago.
Even high-income earners are stretched too thin, LendingClub said. Of those earning more than six figures, 49% reported living paycheck to paycheck, a jump from the previous year's 38%.
As a result, many Americans have dipped into their cash reserves or gone into debt.
(Excerpt) Read more at msn.com ...
...keep voting for Democrats.
I was wondering about one figure that’s not being reported.
What is the new percentage of people living in poverty. With the economy in recession and people not being able to afford what they could only 2 years ago, for sure there are millions more being tossed into the poverty ranks.
The Biden administration and democrats will not be talking about it, but, it needs to be known.
It’s all about that monthly payment...
Abuse credit, expect consequences.
Wages can’t keep up with this inflation. If they did it would just make the inflation worse
Maybe the $100,000 + earners do not need the lastest iphone, all the streaming services, eat out every night, etc.
If I made that much I would pay off debt as fast as possible.
>>What is the new percentage of people living in poverty.
Poverty and homelessness is only ever reported on when a Republican wins an election, and then they mysteriously disappear when a Rat wins. To question why is a thought crime, Comrade.
as Hunter Biden says, the government has to do something about the high cost of coke.
Stop spending so much if you are making six figures and are living pay check to pay check.
100K is a pittance in many cities. Maybe you shouldn’t assume the worst of everyone not like you?…
Concocted result...
Because the idiots live in a house and drive a car 18 times their life-time value.
If one is earning six figures and still living paycheck to paycheck, you can always lower your standard some and still live well.
It’s those who are supporting families while earning under 40-50k these days that really can’t do with much less except for not eating.
Depends on where they are living - cost of living is much higher in some places...in some places making half that allows you to more afford costs of daily living.
I worry about a complete collapse. I think we’ll wake up to another day only to see the entire economy collapse in a short few hours. Chaos will reign the day.
Interesting anecdote. My sister was doing taxes for H&R Block. She had a woman with no dependents and no husband. She was earning six figures. The previous year she had ended the year with significant credit card debt. During the next year she had received bonuses amounting to thirty thousand dollars. She hadn’t even been aware of the bonuses but had still managed to spend more than she earned, ending that year with even more debt.
My first question was how you could not know you’d gotten significant bonuses. Answer, a complete flake. The second question was why was she overspending her substantial income? A new BMW convertible, spending thousands of dollars on clothing and shoes and similar. Each year she left the Block office in tears.
My guess is this woman was totally focused on whatever she did (I don’t recall what it was) and she felt entitled to spend the money because, Afterall, she had earned it.
When you pay state & Federal income and property taxes. Medicare, SS, sales tax, health insurance, health savings account, 401k.
Potentially have a mortgage, one or two car loans, and kids in college in does not leave a lot left.
I am no longer in that position. However, I was for years. I still have the taxes, HSA, 401K and health insurance. After that I get about 55% of my gross monthly check.
I needed a crown put in a couple weeks ago. Even though I have dental insurance and nothing other than standard cleanings this year, it was still over $1100.
I live in NH. I do not pay state income tax. I live in a normal 2700 sq ft house. My property taxes are over $9200/year($767/month).
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