Posted on 07/14/2021 3:31:16 AM PDT by gattaca
High-earning Millennials have a major spending problem.
What are the details? A new survey conducted by PYMENTS and LendingClub, which analyzed the financial data of roughly 30,000 Americans, found that 60% of Millennials making more than $100,000 a year still said they were living paycheck-to-paycheck, Business Insider reported.
That surprising figure was not far off from the 70% of Millennials in total who reported living paycheck-to-paycheck. Millennials are individuals born between 1981 and 1996.
In the survey, those living paycheck-to-paycheck were defined as consumers who “manage to pay their monthly bills but have little left over.”
According to the report, Millennials were not the only demographic of high earners who still lived paycheck-to-paycheck. In total, 40% of those earning more than $100,000 a year still struggled to make ends meet and have money left over.
But the fact that so many Millennials seem to struggle financially is indicative of a problem with exorbitant spending, not insufficient income, the report argued. Put simply, most Americans have not been saving enough money to avoid a paycheck-to-paycheck lifestyle.
The survey found that “70% of consumers have less than $15,000 in savings, and one-third of all consumers have less than $1,000,” or not a sufficient a cushion to shield against unexpected expenses.
Business Insider suggested that the Millennials highlighted in the survey are likely HENRYs — which stands for “high earner, not rich yet.” This term has come to define the subset of affluent 30-somethings who struggle to balance spending and saving habits.
They often fall victim to lifestyle creep, a phenomenon that occurs when individuals increase their standard of living to match their level of income rather than saving extra money alongside income gains.
Anything else? The report did note, however, that $100,000 does not go as far as it used to, especially considering the rising cost of living and inflated cost of postsecondary education.
“Consider the example of a 35-year-old with a college degree: This graduate could easily be earning more than $100,000 yet have expenses — such as a mortgage, student loan debt, and a child — that could leave little money for major purchases or unanticipated events,” the report stated.
Furthermore, $100,000 is now considered to be a middle-class income by the Pew Research Center, which defines the U.S. middle class as people earning two-thirds to twice the median household income. According to the most recent data, that covers people making between $48,500 and $145,500 a year.
Who is the Pew Research Center, and who said they get to make the definition?
My thoughts exactly.
I became an everyday millionaire (headed for 3) using the following 2 words: DO WITHOUT.
Well, that and NO DEBT.
The idea of having an older car bought with cash, older furniture, appliances, TVs, computers, etc. is shocking to Millemials.
Oh and no Starbuckx - make coffee at home.
The whole generation should listen to ONE show by Dave Ramsey.
They feel they “deserve” trips to Europe, spa days for their pets and luxury cars for their “mental health”. Their “mental health” rules their lives and justifies everything.
Ha! These kids have no idea. ..
And the little pricks don’t even tip!
Damn few....
Maybe they should learn to live within their means like the rest of us do. Quit trying to keep up with the ‘Jones’ aka trying to ‘Live the Lifestyles of the Rich and Famous’ on a shoestring budget. At $100,000+ a year I could live pretty well. How do I know that? Because I’m doing it right now at about half that and I have all that I need.
Back around nine years ago....the WaPo wrote up a story on this DC couple. Combined income for the two was near $300k (the guy had a military pension, GS job...with the wife clearing around $120k as a contractor).
The two were completely broke. They had a mortgage and paying near $4,000 a month. They had two high-cost cars with car payments for both around $1,500 a month. The list went on and I think they had around $500 a month left by the time they paid all their bills and credit card payments.
I bet within the beltway of DC...probably around 20-percent of work-force is in that mentality.
I’m convinced the U.S. economy would grind to a halt if this country wasn’t filled with dopes like that.
Of course kids change the equation.
It is easy to rip on these kids but they are not on the public dole but are supporting it. It is becoming more difficult to live in this country without being a taker.
Back in the day we used to call this “crying poor with a loaf of bread under each arm”
I sometimes feel a twinge of envy when I drive through nice neighborhoods with expensive homes. I wonder how they do it. I guess for some it’s through debt, or spending pretty much all they take in.
Meanwhile, I may live in a modest older house, but I manage to save 40% of what I take home, so there.
Thats effin ridiculous. Average mean salaries are around 50k a year and earning 80k in a large metro area is considered above average. There is a huge difference between Pew’s claims - “According to the most recent data, that covers people making between $48,500 and $145,500 a year.
I live quite well on a third of that.
CC
My brother brings up comparisons in rural regions of the south....where you have a guy who got lucky and is pulling in $80k a year in salary. He’ll have a fishing boat, around $10k invested in rifles/shotguns, spend $5k each year on some fabulous trip to Aruba, and be making a thousand dollar payment each month on credit cards.
You see the same thing with people buying homes that are way beyond their income level, or convinced to buy a $150k RV which they can’t afford.
I can still remember in the late 1970s...in the base bank and trying to get a credit card, with the clerk gal telling me my max limit would be $500, and that I really didn’t need a credit card. I walked out and for ten years avoided bringing up this subject again. Today, the same clerk would be desperately trying to entice me with a starting limit of $20,000.
A dollar does not go very far. Hey Freepers it’s not 1972 anymore.
No one, but that’s a pretty decent range for middle class. I’d put 30-50k in working class and 150k-300k in upper middle class with below 30k lower class and above 300k upper class (with 300k to 750k in lower upper class and 750k+ fully upper class)
A young couple recently bought a house on my street.
Last night I saw a driver bring dinner to their house.
class - social rating
income - financial rating
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