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 ...
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Only the elites believe that 8.2 nonsense because they don't walk the isles in stores like the rest of us who see prices soaring every week. Annual inflation is well into the double digits for most people.
Wanna know what’s really cool? Living below your means
Abuse credit, expect consequences.
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Speaking of credit, check out the annualized rate of carrying a balance on your credit cards. It dwarfs the rate of inflation.
I think a complete collapse is inevitable. The question is when, not if.
I wish it was only 8.2%
If you are making low six-figures you are probably taking home five-figures after fed state and local taxes
Your housing costs can be five figures, your family medical insurance can be five figures , your Childcare costs can be five figures
Just sayin’ the definition of “ rich” really varies!
All of us can calculate our own personal inflation rate.
For example, I have a fixed rate mortgage, so I am not affected by the runup in housing costs. I live close to work, so I don’t use nearly as much gasoline as most people.
That is why I carry no balance.
Because the idiots live in a house and drive a car 18 times their life-time value.
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Its not so much the purchase cost, its the total costs of ownership over the retention period. Few people bother to estimate that. But even if they did, they would still buy.
Conspicuous consumption is alive and well in this country.
Maybe the $100,000 + earners do not need the lastest iphone, all the streaming services, eat out every night, etc.
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With a 6-figure income, about half immediately disappears in taxes. And depending on where you live, $100k could provide pretty luxurious living or pretty much bare bones.
Then, based on better times (aka Orange Man Bad Times), one may have taken on bearable debt in the form of car payments or mortgage payments. perhaps there was even money leftover for saving after all expenses.
Fast forward to 2022 and all the margins are gone with the increase in fuel, food, electricity, and heating.
It amazes me how people get in such huge credit card debt. I think it is comparable to other addictions. Drugs, alcohol, gambling, etc.
People buy things to make them feel better.
I see it in my office of people making six figure incomes all the time. They drive brand new cars. Always have new clothes. Eat out constantly. They work for years and are still in debt.
The boss likes it because he thinks it motivates people to work harder.
Go Democrat. Go broke.
Gas up and go buy groceries and you will see.
Depends on what’s been happening in their lives that allows them to make six. Toss in a couple of kids, daycare, medical expenses as these folks more than likely pay full fare. Inflation can be a major impact.
Yes, as we continue to meltdown, these people will be pushed into lower brackets. We are witnessing them moving from high-end grocery stores to lower end stores.
Just the negative effects of trickle down inflation.
I have a fixed rate mortgage, so I am not affected by the runup in housing costs.
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True that, but all your costs of ownership are going up (i.e., utilities, insurance, taxes, maintenance, repairs, etc.). Meanwhile you have less disposable income due to inflationary pressures on everything that affects your daily life. And inflation is eroding away the purchasing power of our retirement investments.
We’re in a situation where losing less than everyone else is winning.
It’s not what you earn that matters - it’s what you spend relative to what you earn.
We started renting a big ranch home on our homestead 6 years ago after our oldest daughter raised her kids there . From what I have seen from renters they all live beyond there means and have absolutely no fiscal discipline or common sense . Every penny must be spent[blowed] before the next check comes in . On Thursday they are studying their phones to check and see if they have enough money to buy a couple large coffees at McD’s . When the rent is due they always have a hard luck story to tell when they can’t make the payment on time . And then when you give them a break they come back with McD sacks and cups falling out the doors when they get back from splurging the rent money , heh . It will be interesting to see what happens when this economy finally goes tits up .
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