Posted on 10/16/2023 3:17:39 PM PDT by Libloather
More than half of Americans earning over $100,000 a year are living paycheck to paycheck, according to new research.
A survey by Barron's found that 51 percent of people with an annual salary over $100,000 run out of money on a month-to-month basis.
Around 65 percent of all Americans said they frequently live paycheck to paycheck, according to the survey by The Harris Poll.
Some 30 percent of households reported that they run out of money at the end of every month, while 35 percent said they do not have money left at the end of most months.
Living on the edge financially not only has an immediate effect on household wellbeing, but can have a longer term impact on debt levels and retirement readiness.
More than half of Americans in the workforce feel 'behind' on their retirement savings, according to new research from Bankrate.
Meanwhile households now have an average of $10,170 credit card debt, data from the New York Federal Reserve shows - as record numbers say they are worried about being cut off from access to loans.
The Barron's survey found, perhaps unsurprisingly, that those on a lower income were more vulnerable to paycheck shocks.
The vast majority - about 78 percent - of Americans earning less than $50,000 a year report living paycheck to paycheck, according to the survey.
The latest Harris Poll survey shows a slightly higher percentage of Americans living paycheck to paycheck compared to the roughly 60 percent recorded by payments experts PYMNTS Intelligence.
The research, published in August, found 59.8 percent of Americans reported running out of money before their next paycheck - up from 52 percent in April 2021.
Government stimulus programs helped boost consumers' savings during the Covid-19 pandemic.
(Excerpt) Read more at dailymail.co.uk ...
The more illegals we have showing up at Walmart, the higher the price of everything goes.
Great, on top of everything else we are now poor.
People who don’t know how to handle their money can live ‘paycheck to paycheck’ on $500,000 a year.
Jed Clampet would say “ wee doggie , high on the hog”.
I’ve never made even CLOSE to $100K a year in my entire life, and likely never will. I could live like a king on $100K a year.
Is that per worker or per household? Most households have more than one wage earner.In suburban Kansas City I’d guess that $100K a year makes for a comfortable life. In,or near,NYC...or San Francisco...or other east or west coast cities...not so much.
Debilitating debt spiral.
But SS recipients who get about 15% of that amount per year or a typical pension garnering about 20% of that amount annually do leave a large gap between middle class and po folks.
“The vast majority - about 78 percent - of Americans earning less than $50,000 a year report living paycheck to paycheck, according to the survey.”
Fifty grand taxed followed by rent, fuel, utilities, anuto/ins and food alone would be quite a burden.
Some people live paycheck to paycheck on 400k a year and more, it’s a voluntary thing.
The total tax burden is hard on people at those income levels because of Social Security and Medicare. Once they break above $150,000 or so it starts to get better - so Biden’s donors aren’t too squeezed. :)
It doesn’t surprise me.
Consider what a degreed, single, 30 year old is looking at:
- New homes (e.g. like here in southeast Michigan) @ 2500 sq ft are going for $700,000. A 30 year mortgage, at 7% interest, excellent credit, including PMI and homeowners insurance, comes to MORE THAN $5000/mo.
- Student loan debt of $30,000 at 8% interest - at least $500/mo.
- New cars averaging over $40,000. At 7% interest - at least $500/mo.
So without including other insurance (car), food, utilities (water, heat, electricity) you’re already at $6000/mo. We haven’t even considered gas, cell phone, internet, etc., which are essential as part of today’s world.
Considering Fed/State income taxes - let’s just assume %30 total...your take home is $70,000, or $5833/mo.
Sure, you don’t need a new home or a new car. You can get an OK house for $300,000, even then you’ll still be paying a total of $3000/mo. with these rates. Good luck getting a car payment under $300/mo. So at best you’ll be under $6000/mo. - or right around what you make. Now add unexpected costs (e.g. car repairs, etc.).
Now consider you’re the primary income with a young family, or worse, SINGLE income.
So while this is all approximate, it’s pretty close. If you’re an old timer that paid off your mortgage years ago, with a house that cost less than $200k when purchased, you’re nowhere near what today’s costs are.
Today, $200k/yr is the new $100k/yr and $100k/yr is nothing today - and I’m not talking about the more expensive areas of the country either.
Well, at least a majority of americans are stupid (most of them call themselves democrats) so this story checks out.
Depends where you live. Location, location, location. I grew up on Long Island. $100K is not a lot down there. Where i am now in the western NY finger lakes area, it’s not bad at all. My sister is in the middle of nowhere in rural Pennsylvania. It’s a freekin’ fortune for them folks…..
I’m retired and I have made sacrifices so that I can save 30% of my retirement income each month. Those savings will be used for new cars, home renovations and things like travel. Granted, I have zero debt. No car loans. No mortgage. No credit card balances. That takes a plan and a mindset that began decades ago.
This immediately gratification crap falls apart rather quickly and there is rarely gratification without sacrifice.
I’m sorry, but you really have to be bad with money if you’re earning over $100K and are living paycheck to paycheck. Unless you have six kids and all six have significant medical issues, I cannot see it.
I would say $200K - $300K is still middle class these days.
Saving for college for your kids is a killer.
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