Nearly 60% of Americans said in August that they were living paycheck to paycheck. The interesting thing about this study, carried out by Pymnts vs LendingClub, is that the sentiment is similar among upper-, middle- and lower-class citizens. A significant portion of all groups stated that they use practically their entire salary paying basic expenses and that they are not able to save, causing them to feel financially insecure. The percentage is similar to that of July, when 61.4% said they used their entire income paying bills and basic living costs.
The percentage of upper-class people who said they are living paycheck to paycheck is surprising. The report highlights that 45% of those who earn more than $100,000 a year stated that they used almost their entire salary to survive and pay their bills throughout the month.
The percentage is higher in the case of the middle class (those who earn between $50,000 and $100,000 annually). In that case, the percentage of people who claimed that they have no money left to save after paying their bills increases to 62%, while 76% of people who earn less than $50,000 annually (lower class) stated that they are not able to save after facing monthly debts.
Living paycheck to paycheck is not a problem for 41% of the population
Despite living paycheck to paycheck, 41% of Americans assured that they have no complications paying their bills, while 19% claimed that they had problems paying monthly expenses.
The data is similar to that recorded in 2022. Despite high levels of inflation, Americans manage to get by, albeit paycheck to paycheck. The Hill reported, however, that the past two years represent a significant increase over 2021, stating that the total number of people living paycheck to paycheck increased by 9.3 million from 2021 to 2022.
Savings, the report reflects, also vary depending on the season, with 48.5% stating that their savings habits vary month to month. The main reasons why they fail to save during certain months, the survey reveals, are paying family members and non-essential expenses which, they say, increase significantly during the holiday season.