High-Income, High-Stress: The Struggle of 4 in 10 $100,000+ Earners Living Paycheck to Paycheck

high-income-high-stress-the-struggle-of-4-in-10-100000-earners-living-paycheck-to-paycheck

According to a recent study, four out of ten Americans who make more than $100,000 a year live paycheck to paycheck. The causes of this situation include both inflation and wasteful spending.

Those with lower incomes are substantially more likely to report living paycheck to paycheck and having no extra cash at the end of the month for savings.

Of individuals making $50,000 or less annually, 80% claim to fit this description.

61 percent of Americans live paycheck to paycheck nationwide, according to a recent LendingClub research that CBS News quoted.

LendingClub discovered that one in ten people claimed that non-essential expenditure was the reason they couldn’t find money to save at the end of the month. This result reflects a 2 percent increase year over year.

Nonessential spending is cited by 21% of customers who live paycheck to paycheck as one factor in their financial situation, with 10% citing it as their main justification.

This element matters because consumers, although having tighter budgets and facing financial difficulties, indulge in unnecessary spending whenever they can.

Clothing, cosmetics, travel, consumer goods, and entertainment are examples of non-essential expenses.

However, household budgets were also being squeezed by expenses for necessities.

Read Also: Fulton County Jail Stabbing Spree: Inmate Killed in Jail Where Trump Was Booked

How Much Does the Average American Spend on Food, Travel, and Healthcare?

high-income-high-stress-the-struggle-of-4-in-10-100000-earners-living-paycheck-to-paycheck
According to a recent study, four out of ten Americans who make more than $100,000 a year live paycheck to paycheck.

The Bureau of Labor Statistics estimates that an American worker’s median monthly take-home income is $4,766 before taxes. That translates to a $57,000 yearly wage.

An average American will allocate $3,550 of that $4,766 on necessities.

The typical American spends $690 per month on food, covering groceries and eating out.

The average American will spend $900 on travel, including auto payments, gas, and public transportation, whereas $450 is spent each month on healthcare.

The Federal Reserve’s preferred inflation measure increased last month, according to new statistics released on Thursday, indicating that the central bank’s fight against price hikes is still ongoing.

The latest inflation figure was in line with forecasts, maintaining hopes that the Federal Reserve would decide to scale back its escalating interest rate increases at its meeting in September.

For instance, the number of job postings that were advertised fell in July, and fewer Americans are leaving their employment in search of better chances. 

Both of these factors reduce the pressure on companies to boost salaries in order to recruit and keep workers, an action that frequently results in inflation when companies raise prices to offset their increasing labor costs.

The less well-known consumer price index is unrelated to the inflation indicator that was released on Thursday.

Read Also: Texas Resident Who Swam in Austin Lake Dies from Brain-Eating Amoeba

Source: Daily Mail

Leave a Reply

Your email address will not be published. Required fields are marked *