More than 60% of Americans are living paycheck to paycheck. Here's what researchers say is to blame.

[Social Media]

 

About 61% of Americans are living paycheck to paycheck, an issue that impacts both low-wage and high-income families alike, according to new research from LendingClub. 

Low-wage earners are most likely to live paycheck to paycheck, with almost 8 in 10 consumers earning less than $50,000 a year unable to cover their future bills until their next paycheck arrives. Yet even 4 in 10 high-income Americans, or those earning more than $100,000, say they're in the same position, the research found.

Such a situation is viewed as financially risky because it means those households don't have enough savings to tide them over in case of an emergency, indicating that they are unable to cover their upcoming bills until their next payday. The rate of Americans who are living paycheck to paycheck is on the rise, up 2 percentage points from a year earlier, the analysis found.

 

Inflation is partly to blame, with consumers still grappling with higher prices — although prices have cooled since hitting a 40-year high of 9.1% in June 2022. But a minority of paycheck-to-paycheck consumers point to another issue that's impacting their financial stability: nonessential spending on items such as travel, eating out and streaming services, the analysis found.

 

FULL STORY

[Tug]

Obviously many are living beyond their means I’d also add easy access to credit lack of discipline 

[KhunLA]

Blame - stupidity

[BritManToo]

21 minutes ago, KhunLA said:

Blame - stupidity

Most people don't earn enough to get ahead any more. It's not like it was in the west when we were in the workforce.

[KhunLA]

1 minute ago, BritManToo said:

Most people don't earn enough to get ahead any more. It's not like it was in the west when we were in the workforce.

But they are still having kids they can't afford, and living beyond their means.  Too much borrowed credit for depreciating purchases.  

 

Pointed out by the $100k+ bracket, and still struggling.  How is that even possible?

[Chomper Higgot]

1 hour ago, KhunLA said:

But they are still having kids they can't afford, and living beyond their means.  Too much borrowed credit for depreciating purchases.  

 

Pointed out by the $100k+ bracket, and still struggling.  How is that even possible?

Property prices, healthcare costs, saving for old age, education costs, state taxes.

 

 

 

 

[candide]

8 hours ago, Tug said:

Obviously many are living beyond their means I’d also add easy access to credit lack of discipline 

Some may. However, the main problem is the increasing share of not controllable expenses: housing, utilities, transportation, insurance, etc... plenty of people don't have much left to spend after  paying these incompressible expenses.

[ballpoint]

The country itself is living beyond its means.  Something's got to give.

[Jingthing]

The rent is too damn high!

 

 

[Chomper Higgot]

35 minutes ago, ballpoint said:

The country itself is living beyond its means.  Something's got to give.

Tax the rich again, like they did the last time the country was booming and working people had good incomes and a chance for a secure old age.

[Isaan sailor]

Runaway inflation. And hollowing out the manufacturing base.  I think we are the last generation to retire comfortably—although to do it, some of us had to came here.

[Danderman123]

2 hours ago, BritManToo said:

Most people don't earn enough to get ahead any more. It's not like it was in the west when we were in the workforce.

Since the 1980s, wages have been flat, whereas wealth of the country has increased dramatically.

 

Back in the day, wives could stay home, but now they have to work to make ends meet.

 

The system is rigged against most people living paycheck to paycheck.

 

[Danderman123]

4 minutes ago, Isaan sailor said:

Runaway inflation. And hollowing out the manufacturing base.  I think we are the last generation to retire comfortably—although to do it, some of us had to came here.

The good news is that US manufacturing is on the upswing.

 

And inflation is declining.

[Danderman123]

16 minutes ago, Chomper Higgot said:

Tax the rich again, like they did the last time the country was booming and working people had good incomes and a chance for a secure old age.

Taxing people like they did before Reagan would help.

[Nick Carter icp]

2 hours ago, KhunLA said:

.  

 

Pointed out by the $100k+ bracket, and still struggling.  How is that even possible?

Those $100 000K high earners should be taxed more to help pay for the poor people  

[Danderman123]

4 minutes ago, Nick Carter icp said:

Those $100 000K high earners should be taxed more to help pay for the poor people  

Your man Trump cut taxes on high earners.

[Nick Carter icp]

Just now, Danderman123 said:

Your man Trump cut taxes on high earners.

Could you please stop going on about Trump ?

There is a whole World out there that doesn't revolve around 
Trump .

  There are subjects OTHER than Trump, ya know

[Chomper Higgot]

7 minutes ago, Nick Carter icp said:

Those $100 000K high earners should be taxed more to help pay for the poor people  

Biden draws the line at $400,000 and over.

[Danderman123]

Just now, Nick Carter icp said:

Could you please stop going on about Trump ?

There is a whole World out there that doesn't revolve around 
Trump .

  There are subjects OTHER than Trump, ya know

The problem cited here is partially the fault of Trump.

 

Yet, you support Trump.

[Danderman123]

1 minute ago, Chomper Higgot said:

Biden draws the line at $400,000 and over.

Works for me.

 

Unfortunately, my taxes would be impacted, but I can live with it.

[placeholder]

2 minutes ago, Nick Carter icp said:

Could you please stop going on about Trump ?

There is a whole World out there that doesn't revolve around 
Trump .

  There are subjects OTHER than Trump, ya know

Given that he had a chance to do something about it and did nothing, it's relevant.

[Nick Carter icp]

Just now, Danderman123 said:

The problem cited here is partially the fault of Trump.

 

Yet, you support Trump.

Biden is President , your leader is in charge now, what has Biden done to address the current problem ?

[placeholder]

5 minutes ago, Nick Carter icp said:

Biden is President , your leader is in charge now, what has Biden done to address the current problem ?

Well, for one thing, he made Obamacare a lot more affordable. A lot. The number of uninsured people has come way down

[placeholder]

And right now the Biden administration is proposing to change who can be called a manager. They're raising the minimum pay that qualifies to be a manager by a lot. Employers typically try to get away with calling low wage earners managers so they don't have to pay overtime.

[Chomper Higgot]

7 minutes ago, Nick Carter icp said:

Biden is President , your leader is in charge now, what has Biden done to address the current problem ?

Bringing jobs home, infrastructure investment that is is creating well paid jobs across America….

[Isaan sailor]

13 minutes ago, Danderman123 said:

The problem cited here is partially the fault of Trump.

 

Yet, you support Trump.

Sounds more like Bidenomics to me.

[bignok]

13 minutes ago, Nick Carter icp said:

Biden is President , your leader is in charge now, what has Biden done to address the current problem ?

He ramped up inflation

 

Old Joe

[placeholder]

1 minute ago, bignok said:

He ramped up inflation

 

Old Joe

He did? Did he also do that in Europe? South America? Canada?

[Danderman123]

17 minutes ago, Nick Carter icp said:

Biden is President , your leader is in charge now, what has Biden done to address the current problem ?

Excellent question.

 

Biden has worked around the margins to support people living paycheck to paycheck.

 

 

[Danderman123]

6 minutes ago, bignok said:

He ramped up inflation

 

Old Joe

The US has the lowest inflation among the G7.