A survey conducted earlier this year found one-in-three Americans making at least $250,000 are living paycheck to paycheck.
The survey was conducted by Pymnts.com and LendingClub Corp April 6-13 and a summary of the results were published in Bloomberg in June. The findings were most prevalent among millennials, more than half of whom said they have little left over once household expenses are paid.
Though Americans in this income bracket are in the top 5 percent of earners, 36 percent of those making a quarter of a million reported using most of their income to pay bills.
Researchers said living paycheck to paycheck could be classified in two different ways.
“The first one is people that manage to pay all their bills, but at the end of the month, they have nothing left. And then the other part is obviously those who are struggling to pay their bills,” said LendingClub’s Financial Health Officer Anuj Nayar told MarketPlace.
“One of the advantages that high-income Americans have is they do have more flexibility. But they’ve also taken on a lot more debt,” Nayar continued.
With skyrocketing inflation and continued rate hikes by the federal reserve in an effort to tamp it down, the price of goods and services continue to dramatically increase. Experts say even high-income earners are feeling it.
Meghan Greene of the Financial Health Network told MarketPlace high salaries don’t necessarily equate to financial security.
“When we talk about financial health, we’re talking about individuals who are able to meet their day-to-day expenses, they’re able to save and plan for the future. And they’re able to pursue longer-term opportunities,” Greene said.
A more recent survey by LendingClub conducted in August revealed three in five or 60 percent of Americans overall are currently living paycheck to paycheck. The number drops slightly to 54 percent of six-figure earners.
Stock Photo (Wayhomestudio via Freepik.com).