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 ...
That is a thousand square feet more then we have as a family of six.
I agree that the price of houses is a bit out of control but if as a single you are buying a 2,500 square foot home you might be letting your grasp exceed your reach.
Decide to treat it like the govt does.......
Hm. It looks like they should really say that Americans earning that much money SPEND from paycheck to paycheck.
Took $200k to get me to work in Hawaii. $200k is Middle Class here.
Location, location, location...
High income people increase spending to match their income. Nothing new.
Unless you have experience some sort of health or property disaster beyond your control and you are taking in over 100K and are living hand to mouth you are a financial idiot.
That’s not considered a large home. It’s also the average size for a new build today. Plus, plenty of men having a family at that age.
I’d agree that if you go <2000 sq. ft., older home, forgo certain items, always eat at home, be frugal in general, you should get by with some left over - but it isn’t going to be that much. Add expenses for Christmas, vacation, etc.. - good luck saving much.
what the hell about we who are retired and not govt retirees?...decades of hard work to invest in a 401k and in and for what?....taxes are killing us....
I made a fraction of that, and I am just fine. New car. House paid off. I wouldn’t even know how to spend that kind of money every year.
400K is rich in my eyes.
The Demoncrats’ plans are to destroy the Middle Class and then disarm the general population and then ... “Hello Totalitarian Government”
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.
Have you shopped lately for an apartment? I’m guessing not. A 2 bedroom is around $2k in my neck of the NE Florida surburbs. $100k isn’t what it use to be. We’re talking Jacksonville, FL here. Not NYC or LA.
Granted I have taken pinching pennies to an art form but it seems to me that budgeting for one person it should not be that hard put some or quite a bit by with that kind of income and expenses. And that is not with never going out or having some fun.
Just having a budget for five years should leave you with home where you have some major equity and no student debt.
they all doin something wrong...But, if you are normal like most of America today, you have a mortgage, car payments, maybe RV/Boat payment, a couple kids, braces, glasses,... then a 100K might not go as far as you think.
Credit card interest rate is about 20%!!! even with a great credit score.
Only fix is to get a new card with 12 to 18 months of 0% before the high rate.
exactly
wealth is not built upon what you make
it is built upon what you do not spend
We’re in line with you. Retired; own our house free and clear; no debt of any kind. With SS and pensions we do not have to dip into our IRAs, MMs, CDs, investments, etc. (except for the RMD, over which we have no say). When we were working we lived within our means, but never denied ourselves; and we saved regularly, and took advantage of 401ks, etc. We are quite comfortable, but only because we made it so.
Nice…and true.
Not after Joe Biden's inflation you can't.
Existing households have an inventory of goods purchased at former prices. If you had to replace these, $100k per year would start to look pretty puny.
While living in L.A. alone on a teacher's salary for 16 years, I managed to pay off a $75k student loan and then save up another $50k for a down payment on a house when I retired. And I started out earning under $40k in 2004, was at about $60k in 2015, and topped out at $80k my last three years (I retired in 2020). I'm not saying it was easy, or that I did very well the first four years, before I understood not being stupid with my money... but it can be done. You do have to make good decisions, though.
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