Times have been tough for a while now, and while there are certainly good things happening there’s no doubt it’s still tough for a lot of folks who are living paycheck to paycheck. A recent report looked at this situation and called out some trends that we thought were worth reviewing.
Here are Five Fast Facts on Americans living paycheck to paycheck:
- 💵 What Do We Mean? - What is “living paycheck to paycheck?” That phrase refers to someone who uses their whole income to pay bills, has limited savings, and would have significant financial risk very quickly if they lost their job.
- 📈 How Many? - The report showed that a whopping 74% of workers in the US are living paycheck to paycheck.
- 💸 It Hits Everyone - It may not be surprising that 81% of workers with income under $50k live paycheck to paycheck. What is a bit more surprising is that almost 20% of workers earning over $100k do, too. It’s less about how much you make, and more about how much you make compared to how much you spend.
- ❗❗ Avoid Emergencies - A little surprise can cause really big problems! Over a quarter of workers have no emergency fund, and almost half couldn’t cover a $400 emergency expense without borrowing money or selling something. And if you’ve paid for any repairs on anything lately, you know $400 would be getting off easy!
- 💰 Massive Debt - About a third of American workers spend at least half of their income to pay down debt. While Visa and Mastercard might love that, it’s certainly an ominous sign for everyday folks. 😱
🔥Bottom line: We all need paychecks, and most would say the bigger the better. This information is obviously general so it may not apply to you, but it does apply to lots of folks, so it’s a cause for concern. If you’re looking for some additional tips, don’t do these things, do these instead, and think about these.
Do you know someone living paycheck to paycheck?
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