Even 31% of those making $100,000-plus live paycheck to paycheck. The problem is less prevalent among baby boomers.
More of us might be living on the edge of serious financial trouble than you realize.
Half of working Americans say they’re living paycheck to paycheck, meaning they have zero money left over after they pay all their expenses, according to a survey from MagnifyMoney, a subsidiary of online loan market place, LendingTree.
“While this is most common among those making less than $35,000 annually (76%), even 31% of those making $100,000-plus live paycheck to paycheck,” the study says.
Age doesn’t have much effect on whether people live paycheck to paycheck, except that a smaller portion of baby boomers (ages 57 to 76) say they live paycheck to paycheck — 34% — than other age cohorts.
That compares to 52% to 53% for Generation Z (ages 18 to 25), millennials (ages 26 to 41) and Gen X (ages 42 to 56).
Two-thirds of Americans say they wouldn’t be able to pay all their bills if they didn’t receive their next paycheck. Housing is the No. 1 expense people said they couldn’t afford without getting their regular paycheck, with 39% listing it as an expense they wouldn’t be able to pay.
Meanwhile, 71% of Americans are concerned they don’t have enough money saved for emergencies, and it looks like many are right.
“Financial experts generally recommend consumers have at least three months of living expenses saved in an emergency fund, but … 54% of Americans say they don’t,” the survey said.
Living paycheck to paycheck is obviously a tremendous hardship, economists say.
“Not having a cushion can add a lot of stress to Americans’ lives,” said Ismat Mangla, MagnifyMoney executive editor. “The pandemic has just exacerbated the stress because of so much uncertainty when it comes to jobs and health situations.”