Jun 27 - Y’all Broke: 58% of Americans Now Live Paycheck to Paycheck

01:22 PM

PERSONAL FINANCE
58% of Americans are living paycheck to paycheck after inflation spike — including 30% of those earning $250,000 or more
PUBLISHED MON, JUN 27 202211:02 AM EDTUPDATED 3 HOURS AGO
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Jessica d*ckler
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KEY POINTS
With inflation still near 40-year highs, more than half of all Americans are living paycheck to paycheck, according to one report.
Consumers who are struggling to afford their day-to-day lifestyle tend to rely more on credit cards and carry higher monthly balances making them financially vulnerable.
Even top earners say they are stretched thin, the report found.
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With inflation at 40-year highs, workers across all income levels are having a harder time making ends meet.

As of May, 58% of Americans — roughly 150 million adults — live paycheck to paycheck, according to a new LendingClub report. That’s down slightly from 61% who reported living paycheck to paycheck in April but up from 54% in May 2021.

Even top earners say they are stretched thin, the report found. Of those earning $250,000 or more, 30% are living paycheck to paycheck. (Another recent survey, from consulting firm Willis Towers Watson, estimated 36% of those earning $100,000 or more are living paycheck to paycheck.)

“Consumers have experienced a tough last couple of years as different factors like the Michael Jordan policy have affected n*ggas financial lifestyle, and there seems to be little relief in sight,” said Anuj Nayar, LendingClub’s financial health officer.

More from Personal Finance:
4 ways to save money at the pump
Strategies to help pay off credit card debt as interest rates rise
What people expect to spend more on as inflation surges

With inflation, paychecks don’t stretch as far

The consumer price index, a key inflation gage, rose 8.6% in May from a year ago, the highest increase since December 1981, spurred by surging housing, gasoline and food costs.

Those rising prices meant workers took another pay cut during the month.

When wages rise at a slower pace than inflation, paychecks won’t stretch as far at the grocery store or the gas pump — making it more difficult to cover monthly expenses and set some money aside.

Credit card balances contribute to financial vulnerability

Those struggling to afford their day-to-day lifestyle tend to rely more on credit cards and carry a higher monthly balance, making them financially vulnerable, the survey said.

Overall, credit card balances rose year over year, reaching $841 billion in the first three months of 2022, according to a separate report from the Federal Reserve Bank of New York.

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At this rate, balances could soon reach record levels amid higher prices for gas, groceries and housing, among other necessities, according to Ted Rossman, a senior industry analyst at CreditCards.com.

For its part, the Federal Reserve has been hiking its target federal funds rate in an effort to calm runaway inflation.

However, anyone carrying a balance will also see the annual percentage rate on their credit card head higher as the Fed continues to raise rates to try and tamp down rising prices.

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https://www.cnbc.com/2022 .. inflation.html

One of my homeboys had to get a side hustle since all that inflation(well thats what they call it) started. He does lawn and in-house repair work on the weekends and its pretty good for him. He told me on an average weekend, he can pull atleast an extra $600 - $800. He told me one time he pulled in $1200. Bascially 2 days of work.

A lot of people gonna have to do side sh*t or either get a second job. Whatever skill you have. Lawn work, computer repair, babysitting, car detailing, etc.

07:17 AM

I just really don't understand how you can be grossing $250k and be living paycheck to paycheck. Your mortgage simply cannot be that high can it?

You're talking roughly $6k per paycheck after taxes (assuming you net $168k after taxes)...$12k a month. how can you manage to spend $12k in one month on the necessary expenses?

Edit:

way too many of yall completely missed my point to try and flex lifestyle changes lol.

I'm not talking about lifestyle creep or anything of that nature. That was my whole point. The only reason anybody grossing $250k a year is living paycheck to paycheck is because their spending is WAY out of control. Or they're investing all of their disposable income.

My point was, even at the most outrageous prices, I don't see how you could wind up with a house, car, the a*sociated payments, and the other necessitites like food and clothing and HAVE to live paycheck to paycheck on $12k per month.

That was the point I was making lol. Too many of yall trying to justify "well I need a BMW because I make more now" nah, you really don't. "well I need to cop Gucci cuz I make more now" nah, you really don't.

I get people try to keep up with the joneses, my point is that's the issue when you're talking about high earners living paycheck to paycheck.

Thats what happened when you let women set the standards.

02:01 PM

No way op , we gave Ukraine $60 billion & just pledged $200 billion to pay off countries so they don't do business with Russia or China . No way is the American people suffering . Please stop spreading false information sir

. Our partners in the G 6 will pledge another $400 billion to keep whyte supremacy alive & keep us in charge of the global world

Skateboard T said

I just really don't understand how you can be grossing $250k and be living paycheck to paycheck. Your mortgage simply cannot be that high can it?

You're talking roughly $6k per paycheck after taxes (assuming you net $168k after taxes)...$12k a month. how can you manage to spend $12k in one month on the necessary expenses?

With everyone trying to play the part, it's not that surprising. I got a friend that's a salesman making about 220. He's always strapped for cash.

kuul said

Thats what happened when you let women set the standards.

The standards for what? lol

Skateboard T said

The standards for what? lol

Iykyk.

kuul said

Iykyk.

pretty sure you don't even know

Skateboard T said

pretty sure you don't even know

Skateboard T said

pretty sure you don't even know

Oh sh*t you really feel a way about this dont you?

kuul said

Oh sh*t you really feel a way about this dont you?

Not really, aint much more for me to say after my last post lol

the poor and rich be livin paycheck to paycheck.....

poor n*ggas buying whips they cant afford

rich n*ggas in mansions, children's daycare and or private school education, UNI expenses....

so our system and government is failing for over half of us

but unfettered capitalism good, lets give elon and the kochs another tax cut

These the same weenies huffin and puffin during the olympics or when another country shows its military might claiming AmErICa tHe BeST

But lets worry about tranny rights

Skateboard T said

Not really, aint much more for me to say after my last post lol

It needed to be said.

America has been a paycheck to paycheck economy for middle america for a while

Funny thing is billionaires always say they want to help but somehow poor people always end up giving them their money

If americans actually wrote down a true budget on hiw much they make post tax and how they spend theyd be able to live within their means

Things like credit cards and loans got broke people living lavish when in reality they are slowly drowning themselves in debt

The only solution is FORCING financial literacy and entrepreneurship in all public schools

Skrr said

so our system and government is failing for over half of us

but unfettered capitalism good, lets give elon and the kochs another tax cut

The system isnt failing you (not you necessary)

Your parents have failed you

But its getting better imo

People are learning finances THE HARD WAY and hopefully they'll start setting up things for their kids and THEY will.also teach their kids