According to PYMNTS Intelligence, 62% of U.S. consumers now live paycheck to paycheck, and that includes 48% of consumers earning more than $100,000 annually.
In other words, higher incomes do not necessarily protect people from the financial stress that comes from living from one paycheck to the next. In fact, according to a recent edition of PYMNTS Intelligence’s “New Reality Check: The Paycheck-to-Paycheck Report: Why One-Third of High Earners Live Paycheck to Paycheck,” 36% of those earning more than $200,000 annually also say they live paycheck to paycheck.
The report, based on surveys with 4,285 U.S. consumers, also found that roughly three-quarters of low-income consumers (those earning less than $50,000 per year), and approximately two-thirds of middle-income consumers (those earning between $50,000 and $100,000 per year) report living paycheck to paycheck.
For those making more than $200,000 each year, our data shows that recreation, personal care and everyday transactions account for about 28% of their budgets. We also found that high-income consumers are more likely to say that education costs and expenditures for nonessential assets significantly affect their financial situation. Put another way, high-income consumers spend more on discretionary items, which makes saving money more difficult.
Which expenses absorb the lion’s share of high-earning, paycheck-to-paycheck budgets?
Twenty-one percent of high earners say they simply don’t earn enough to keep pace with their expenses, which include covering costs associated with family members (23%), carrying large amounts of debt (15%), and spending on nonessential items (12%).
Compare these findings to those earning less than $50K annually, 40% of whom say they earn insufficient incomes. Only 8% of them help cover family member expenses. Nineteen percent carry heavy debt, which might account for the fact that only 7% say nonessential spending contributes to their financial woes.
The most obvious difference in how high-income earners allocate their funds versus lower-income consumers is the amount allocated toward nonessential spending. Those earning $100,000 per year are around twice as likely to reportnonessential spending as a major factor in why they live paycheck to paycheck than low-income earners.
PYMNTS Intelligence research also found that high-income consumers are among the first to increase their discretionary spending when inflationary pressures begin to subside. With the cost of housing and groceries rising right now, it might be a good time for those paycheck-to-paycheck consumers who earn north of $100,000 to curb nonessential purchases from their budgets.
See More In: consumer finance, Consumer Spending, data brief, debt, economy, Featured News, household income, inflation, News, nonessential spending, PYMNTS Intelligence, PYMNTS News, The Data Point
FAQs
According to PYMNTS Intelligence, 62% of U.S. consumers now live paycheck to paycheck, and that includes 48% of consumers earning more than $100,000 annually. In other words, higher incomes do not necessarily protect people from the financial stress that comes from living from one paycheck to the next.
What percent of consumers live paycheck to paycheck? ›
A 2023 survey conducted by Payroll.org highlighted that 78% of Americans live paycheck to paycheck, a 6% increase from the previous year. In other words, more than three-quarters of Americans struggle to save or invest after paying for their monthly expenses.
What percent of people who make $200,000 live paycheck to paycheck? ›
The report drew on insights that 4,285 U.S. consumers shared with us, as well as supplementary economic data. It found that 62% of all consumers now live paycheck to paycheck, including 36% of those whose annual incomes exceed $200,000.
How many Americans live paycheck to paycheck Payroll org? ›
You're not alone. A 2023 Forbes study found that 70% of Americans live paycheck to paycheck, while a 2023 LendingClub study put it at 73%. Another 2023 study by Payroll.org pins the number at 78% — a 6% rise year over year.
What percent of Americans earning more than $250000 do you think are living paycheck to paycheck? ›
In April 2022, 36% of consumers earning $250,000 or more annually lived paycheck to paycheck, as did those earning between $200,000 and $250,000 per year. One of teacher faves in the budgeting category: Budgeting with Roommates.
What percent of people who make $100,000 live paycheck to paycheck? ›
According to PYMNTS Intelligence, 62% of U.S. consumers now live paycheck to paycheck, and that includes 48% of consumers earning more than $100,000 annually.
Do 70% of Americans live paycheck to paycheck? ›
According to a recent GOBankingRates survey, over 70% of Americans are living paycheck to paycheck at least some of the time, while nearly 50% of Americans are living paycheck to paycheck all of the time. Obviously, this can be a stressful way to live — and can become disastrous if anything goes wrong.
What percentage of Americans make over 100k? ›
Over one-third of American families earn $100,000 or more
The U.S. Census Bureau found that 37.1% of U.S. households earned at least $100,000 in 2022. Here's a more detailed breakdown of six-figure income brackets and the percentage of households in each one: $100,000 to $149,999: 16.9% $150,000 to $199,999: 8.7%
How many people are living paycheck to paycheck in 2024? ›
Overall, 62% of consumers lived this way as of January 2024, down from 60% last year.
What is the 20/30 rule? ›
The rule is to split your after-tax income into three categories of spending: 50% on needs, 30% on wants, and 20% on savings. 1. This intuitive and straightforward rule can help you draw up a reasonable budget that you can stick to over time in order to meet your financial goals.
Percentage of Households Making Over 200k 2024
| State | Over 200k |
|---|
| California | 13.3% |
| Connecticut | 13.2% |
| Virginia | 11.6% |
| New York | 11.5% |
6 more rowsIt's completely free and we guarantee you'll learn something new every day. Those who make $250,000 or more make up just 5% of Americans, according to the Census Bureau.
How many rich people live paycheck to paycheck? ›
Even so, Americans are still finding themselves feeling crunched after a period where wealth-building proved difficult. A separate study from PYMNTS of more than 4,200 consumers found that 62% of total consumers and 36% of those making more than $200,000 feel like they're living paycheck to paycheck.
What percent of Americans have $1000 in savings? ›
Key Takeaways. More than one in four Americans (28%) have savings below $1,000. This is the case for 32% of Gen Zers, followed by Millennials at 31%, Gen X at 27% and Baby Boomers at 20%.
What percent of Americans live paycheck to paycheck in Ramsey? ›
78% of Americans are living paycheck to paycheck. Basically, that means almost 8 out of 10 people probably can't afford the home they're living in and the car they're driving. They might not even have the cash to cover the next emergency that pops up. Your income is your most important wealth-building tool.
Are 60 of Americans living paycheck to paycheck? ›
Sixty Percent of US Consumers Live Paycheck to Paycheck – That Could Change in 2024. Persistent inflation and increasing prices for essential items, from groceries and utilities to fuel, have left most Americans treading water financially in recent years.
What percentage of Millennials live paycheck to paycheck? ›
In the latest New Reality Check: The Paycheck-to-Paycheck Report — The Generational Deep Dive Edition, a PYMNTS and LendingClub collaboration based on a survey of nearly 3,400 U.S. consumers, we found that 73% of millennials describe themselves as living between checks.
