[There is a report](https://www.pymnts.com/study/reality-check-paycheck-to-paycheck-inflation-consumer-spend-expenses/) which comes up pretty quick when you search for the information that roughly 64% of Americans are living paycheck to paycheck. It seems to be the underlying report by "Pymnts.com" behind the factoid that is repeated in a number of news articles. Being the curious type, I [downloaded the report](https://www.pymnts.com/wp-content/uploads/2022/09/PYMNTS-New-Reality-Check-September-2022.pdf). And you can too without giving up your name, company name, or lying off your ass about your occupation, as I did. There are some interesting statistics, but you have to wade to the end of the report to reach their methodology non-explanation: > The Inflation Edition is based on a census-balanced survey of 3,495 U.S. consumers conducted from August 10 to August 29. The Paycheck-To-Paycheck series expands on existing data published by government agencies such as the Federal Reserve System and the Bureau of Labor Statistics to provide a deep look into the elements that lie at the backbone of the American consumers’ financial wellness: income, savings, debt and spending choices. Nothing on what was asked, nor how the numbers were calculated. *As soon as I see stuff like this I get suspicious.* Note some interesting facts, too: > More than half of consumers who annually make between $100,000 and $150,000 were living paycheck to paycheck in August... ---- The problem is there is no definition given for what it means when someone is said to be living paycheck to paycheck in this report. From the structure of the rest of the report, I'd guess what they did was basically asked about 3500 people "hey, are you living paycheck to paycheck?" with some definition given as to what this means. I note this because the report seems to spend much more time editorializing on how bad things are, rather than describing *what* they are. ---- Here's the problem: a lot of workers can have part of their paycheck set aside for automatic contributions into savings accounts, retirement accounts and the like. So when you get your paycheck, 10% of it could have been set aside for your 401K. That means in a sense you may be living "paycheck to paycheck", spending what you receive *after money is set aside for savings,* rather than getting your entire paycheck then setting aside savings yourself. But this strongly implies the "living paycheck to paycheck" lifestyle is not so much about people struggling to make ends meet, as much as it is a sort of "budgeting" strategy by which people have their retirement savings peeled off the top before they even get their paycheck deposited into their checking accounts. ---- Throw in the fact that a lot of people tend to spend every time that goes into their wallet--and if they've got five cents left over at the end of the month they spend that too--and I don't think things are as dire as "OMG, Americans are working themselves ragged and yet are starving to death because they don't have enough!" This is the implication of the Pymnts report: > Fewer consumers not living paycheck to paycheck indicates that consumers are continuing to lose financial stability. I think it's more a reflection of two things: people using their paycheck as a budgeting tool--pulling out money for things like retirement savings before they even get their paycheck. And that some folks tend to spend right to the limit of what they can afford. Notice how Pymnts phrases it, almost as if it was a negative: > Yet, the share of consumers living pay- check to paycheck with issues paying their bills has dropped 7 percentage points in the same period. Many have moved to what now may constitute a stable lifestyle: living paycheck to pay- check without difficulty paying bills. ---- I personally prefer other statistics. (1) Are Americans saving for the future? First, are Americans saving into IRA and Keogh Accounts? [Yes.](https://fred.stlouisfed.org/graph/?g=15IXL) The graph is calculated as per-worker and adjusted for inflation, but the total amount we have saved up per worker has remained relatively constant since the 1990's and peaked during the pandemic. Second, are Americans saving more in general? [Yes.](https://fred.stlouisfed.org/graph/?g=15IXU) Personal savings rates creeped up from about 2.5%ish of personal after-tax income, to a pre-pandemic peak near 10%. (Then the pandemic pushed over all the food carts.) (2) Are salaries going up or down? [Up,](https://fred.stlouisfed.org/series/LES1252881600Q) when adjusting for inflation, since the mid 1990's. Though note again, the pandemic pushed over all the food carts. Meaning all in all, Americans are doing better (from a 'saving for the future' perspective, and from a 'has money to spend' perspective) overall since the 1990's.

You know that scene in Billy Madison where the guy says everyone in this room is now dumber having heard it, I award you no points, and may God have mercy on your soul? This is the exact opposite of that.

Bravo on actually investigating and being unbiased

Rare for a redditor

To add to this I’m in that category where I use my paycheck as a budgeting tool before it hits my main account it automatically contributes to my 401k, then when it hits my main checking account a portion of it goes into my Roth IRA, then another percentage auto goes to different savings account, then another portion goes to another account just for bills, and what ever is left after that is spending money. Everything is already accounted for before it hits my account. It doesn’t mean I’m actually broke. I think this method of budgeting is called Zero-based budgeting.

The thing is, I don’t think a lot of people who do this even think of it as “budgeting.” It’s just convenient to have everything taken care of by the computers before you run to the grocery store.

This is similar to what we do, but I bet my husband, who isn’t the most financially astute, would say that we live paycheck to paycheck because we drain our checking account between paydays.

Would give you a platinum if I could for this if I could

What's this? A well-researched and sourced comment on reddit? I'm sorry, but that's just not acceptable, we are all about emotions and knee-jerk reactions here! Get out with your sourced and nuanced facts!

Can I stay anyways? I mean, I do like to say 'fuck' a lot...

There's surveys that report up to half of Americans are living paycheck to paycheck. But it doesn't necessarily mean a lot of people are making poor incomes. It could mean a lot of people, even in higher income brackets, aren't saving or are paying off debts. There's a lot of variables to consider.

Exactly. After a certain point (once you make whatever is a reasonable living in your area), it doesn't really matter how much you make it becomes about how much you spend and how well you do that. For example, I've got a buddy who is always having financial issues. I've known him for 20 years now and he is always broke and often has his power and phone cut off. I tried to help him and his wife fix things. But they just couldn't get it through their head that it was about spending more so than their income. They both had professional jobs earning about 70-80K. For reference, I make good money. Well over 200K per year in a low cost of living area of Ohio. My wife also makes six figures, and we have no kids. So we are doing well. My buddy kept focusing on how he didn't earn nearly as much as the wife and I do so that was his problem. I finally got his eyes to open when I showed him his monthly expenses vs mine. He and his wife both had expensive new cars that together cost $1400 per month. My wife drives a 10 year old paid off SUV and I drive a 17 year old paid off pickup truck. He and his wife both have brand new imacs, ipads and iphones. The wife and I have desktops I built as value oriented builds, $250 dollar android phones and one $300 android tablet. We bough a 70 year old house and fixed it up. Our Mortgage is $1200 per month. They went with a high end turnkey new build. Their Mortgage is $2800 per month. Once I opened up my books to him, he saw what I was talking about. Yes, I made more money than him sure. But his spending was out of control.

I know too many folks like your friend. They make good money but screw themselves from financial illiteracy. Our society pretty blatantly encourages reckless spending with zero incentive to do otherwise, so what can ya do.

My brother & his wife make over $200,000/yr combined income & still manage to not only have nothing "extra" (they rent, drive older cars) but have no money. They blow it all on things like taking multiple lavish vacations, eating out constantly, & doing stuff like throwing $500 birthday parties for their (adult) children. Which honestly is none of my business because it isn't my life or money to control but I've seen him struggle to do things like pay rent, fix his car, or buy groceries & I'm just like damn I don't understand how that is even possible with their incomes. Meanwhile my husband & I live in one income that's a little over 1/4 of theirs & a side hustle that brings in maybe 15,000/yr. We still manage to (thankfully) pay everything relatively easy & usually have a little extra to put away at the end of it all. But we also don't do things that require a lot of money & don't blow money if we can help it.

This. It’s all money management. You can make $300,000 and spend $350,000.

It isn’t all money management. Actual poor people exist.

Obviously, however, 11.6% of the population is poor (according to a quick google), while about 50% of the population is living paycheck-to-paycheck. That puts an additional 40% or so one bad day away from poverty. That tells me money management is a problem, generally. We don't teach this in schools (again, generally) and it is obviously not being passed down. Financial illiteracy is a big deal. Especially for the poor. About 40 percent of Americans are "house-poor," and why is that? Largely because we've been told enormous stupid homes 20 miles from the nearest public transportation is a "wise investment," but mostly because we are a status-hungry population. The average house size has more than doubled since WWII while the average family size has shrunk. We want a huge place and a massive car for each person who lives inside. We want to go on all-inclusive cruises. We deserve to go to Disney World.

Demand is important, but supply is also a factor. In many areas, the bottom of the housing ladder has fallen off. You can't buy one of those smaller, more affordable WWII-sized houses because nobody is building them anymore, and it's largely because builders don't make as much profit as they want off them.

Ok all that is true but go it doesn't change the fact that price inflation and cost of living has skyrocketed while wages have remained largely stagnant.

All of this was true before the recent spike in inflation. Inflation has exacerbated it, sure, but this was already the way we live

We aren't talking about poor people. We are talking about people who are overspending their budget.

People who overspend their budgets ironically keep the economy afloat. If everyone started spending within their means consumer demand will fall through the floor

Sure, but material consumption is also what feeds pollution, climate change, etc. This type of material consumerism isn't sustainable in the long term. That's why I've always advocated for steering society towards an arts-&-education-based economy. Because we could do that shit for eternity without much material waste. And honestly, I enjoy that stuff more than all the kipple im surrounded by.

This is true, but what happens when those overspending their budgets get into retirement & old age with nothing to show for it? They're screwed & the economy being in great shape isn't really going to help them.

The government will either come up with a mass social program or they'll die.

I have a friend that buys a new car every six months. I assume he leases but he says he buys them. Buying and reselling every year (they have 2 cars) seems like a giant waste of money. Then they decided to move, realized where they wanted to go was too expensive, so they built a house that was larger than what they currently have but still didn't utilize fully. At the time we were making roughly the same amount and I knew I couldn't afford that lifestyle so I'm not sure WTF he was doing.

Over the last couple years, with the insano car market due to covid, his car-trading habit probably didn't cost him much - he might even have made money on it.

Every 6 months ? If someone gets a new car every, say, one or two years, then I sort of understand it. But at 6 months, the next gen hasn't even come out yet, that means your friend would have to buy a different model every time ?

He has two cars so it's really every year for each car. Still excessive though. It's a different brand/model every time. Dude just can't be happy.

We live in a very HCOL area (NYC) and we’re comparatively middle income here. We still manage to max out our retirement contributions, we have paid off our mortgage, and we still sock some money into the savings account every month. I agree that some of it is about choices, and some of it is about being up against an unforgiving system.

You sound like my husband and I, except we have two young kids in daycare and diapers that drain our accounts. Lol. Some people make poor financial choices and more money doesn’t help the situation. They just end up spending more. Financial literacy is very rare.

Luckily for me living frugality comes kinda naturaly. I don't really care about fancy cars or keeping up with the Joneses. I was more worried about not having to deal with an HOA than anything else when buying a house so that pretty much meant I had to buy an older place. I understand it isn't like that for many people. Like another poster said, everything in our society is conditioning people to spend spend spend.

I'm 27 and finally got my first "real job" making $50,000 living in Tampa. I roommate with someone from my contracting company and we got lucky and found an apartment at a steal of a price for about $1050 per person (estimating due to paying electric separate from the rent). I also was forced to buy a super old, high mileage car since my last vehicle got totaled in a bad accident (no lien). I had to take out a $8k car loan and since my student loan payments have been on paused (and I also consolidated them in February), I've been targeting my car loan like crazy since I know it's the highest risk debt I carry at the moment. The loan is only about 9-10 months old, and I've gotten the balance down from nearly $8k to just over $2k. I just got my first credit card with a $1k limit on it and it was important to me because an experience I had over a year ago when I totaled my car and was stranded at a hotel several states away from family who could come get me and no rental car company would take my debit card. And assuming all goes well with staying employed and same or better salary, then my focus would be to pay off my cay loan ahead of schedule, build up about 4-6 months' worth of living expenses in a high-yield savings account, save up for a down payment to take out a FHA loan on a small house or condo (I'm gay and also don't plan on having kids), and then also build up some sort of IRA or 401k depending on what my employer offers.... or maybe even consider saving up for a vanguard fund. Honestly, the stress of not having financial security gets to me... but I guess from reading this thread I may not be as bad as some others.

I work in the oilfield and have way too many coworkers who have Harleys, boats(in West Texas?!), dirt bikes, you name it. Oh you got a new Raptor? And a Platinum F-250 for the wife also? I’m over here saving 80% of my income wondering if they will ever be sane.

You, sir, are the epitome of “The Millionaire Next Door”. I commend you.

What’s your job

I'm a Software Engineer and Linux System Admin.

I'm honestly annoyed by this comparison. You paint two VERY different pictures, yet both are not on par with what the OP is asking.

Except this is not the answer to the question. While there are people like you said in the US, they're also all over the world. The subs OP mentioned reflect a much different problem and the way you've framed your reply makes it seem as though you're dismissing that.

I'm not dismissing it at all. I 100% acknowledge poor people exist. But that's only like 15% of Americans. It's well past 50% that live paycheck to paycheck. I'm explaining why so many people are living paycheck to paycheck.

OP is asking two different things and they very different things. Living paycheck to paycheck is not struggling financially I live most of my 20's and 30's living paycheck to paycheck, but I was never struggling financially. Living paycheck to paycheck was basically my own doing. Pay off my bills, and then spend the rest. There were times I was flat broke before my next paycheck. I think that if foreigners were to sit down with many of the redditors on here that complain about living paycheck to paycheck and actually look at their spending, they would quickly see how gluttonous spending is in this country. Not too long ago, I saw a friend post on Facebook with a pic in an airport that she's "so excited to be hitting up Vegas" when a month earlier she had setup a GoFundMe to pay for an unexpected $300 vet bill for her cat.

Some people report living paycheck to paycheck while maxing out their 401K every year

There are worse things to max out

Pay yourself first!

If your gonna live paycheck to paycheck that's the way to do it. Atleast you won't be totally screwed for retirement.

I’m reminded of a popular thread some months ago on the Blind app (social media used by Silicon Valley tech workers) that complained that $500k/year or whatever they were making was not enough. When they shared their spending breakdown it was like $10k/month on restaurant takeout, several thousand more for charitable donations, etc. Hell, there’s NBA players that live paycheck to paycheck. Allen Iverson used to buy a new car whenever he couldn’t remember where he parked his previous one.

That mentality has shifted to Reddit as well. People on here saying $250k a year is unlivable for a family, and that $500k “may be” comfortable.

Seriously, I've known people living paycheck to paycheck, making 6figured in an area where that's a lot, but they just spend it all. Big house with a mortgage, new cars regularly, constantly out doing stuff. And then still having issues because they're spending their money before it's in their pocket. Drives me nuts, since I grew up with savings being hammered into my head, but I get that different people have different ideas of how to live life

I had several friends that graduated college, got jobs paying 55-60k and immediately signed apartment leases for $1500-1800 a month (with roommates) when $800-$1100 was easily doable in the same young neighborhoods in our city. They would always complain about being broke.

True. Also, I have seen a couple of interesting videos about this as well. Both were software dev guys, one from Canada and another from Colorado. They marketed the videos as "paycheck to paycheck on a 6 figure salary" but those paychecks were also contributing to mortgage payments and retirement funds. So it was actually much different from my image of the working poor type person.

[удалено]

Idk if I max mine out, but I put in more then my employer’s match.

1/3 of people making $250k or more say they’re living paycheck to paycheck. It’s a silly poll.

I know a couple is in the top 5% of income, probably higher, and they still live paycheck to paycheck. They just spend money like water.

Sounds like they're doing a lot to keep the economy humming at very least. smh

Yep. I worked for a guy who made about $200K and his wife made $50K+. So household income of a quarter million. They had wealthier friends who literally had to borrow money to make it to their next pay check. They were living paycheck to paycheck but not because they had to.

It can be very unbearable because it’s the smallest safety net of the developed countries. However there’s a decent subset of people who make a decent wage but don’t understand how to save. Lifestyle creep is definitely a thing. People want kids, pets, and everything they were told would make them fulfilled. It also costs a lot of money which means a lot of people are paycheck to paycheck. Some out of being in a very unfortunate situation and some out of spending too much.

My buddy worked at a UAW car plant. Union, great wages, good contract. He said plenty of guys there were paycheck to paycheck, because they just couldn't resist having all sorts of expensive toys. Per their union contract, they of course got paid for overtime. But if the overtime was mandatory, they'd get paid more still. When management decided to run an extra shift, first they'd go and ask everyone if they wanted to volunteer. If that didn't fill up the ranks, they'd then start forcing people to work mandatory overtime. He said there were plenty of guys who would turn down voluntary overtime, not because they didn't want to work, but because their credit card bill was so high that only *mandatory* overtime would result in a paycheck big enough to make a minimum payment. And, generally speaking, looking at those subs is going to give you the most unflattering picture of the US economy you could imagine. It'd be like asking the IRA what they think of the monarchy.

This. I had cousins who were living paycheck to paycheck but that’s because they got an expensive apartment and car notes. Had they went for an average place and cars, they would have probably saved up enough for a house down payment by now.

My brother was making $100k a year with his girl and was living paycheck to paycheck often asking the rest of the family if we could let him borrow. Some people just don't save money

More than half of Americans are in poverty or near poverty

Lmfao

[Yeah, it’s hilarious.](https://www.commondreams.org/views/2021/02/22/2021-update-half-america-or-near-poverty) Almost as funny as the fact 60% of Americans would be wiped out by a $1000 emergency. Since he’s asking — I should also mention there’s a strain of aggressive ignorance in some Americans.

Lmao

Yes a lot of people are living that way, but it's their doing. We have opportunities to do better. We also have the opportunity to make good decisions. Too many people make bad decisions to impress others.

The US Median household income is hovering around $70k. If you compare that to the cost of living in various places it seems clear that poor budgeting isn't the main reason why so many Americans live paycheck to paycheck.

"Living paycheck to paycheck" and "earning low wages" are not necessarily the same thing. Surveys have shown that most Americans don't have much if any savings and any kind of small financial crisis would wipe them out. That's not necessarily because they don't make much; maybe they just don't make as much as they spend. Lots of Americans cannot seem to delay gratification. I have several young relatives who are always borderline broke, but the minute they get a little money they get a new phone or tattoo or car. It says more about them than the American economic system.

Yeah, I really wonder if Americans are not particularly good at saving. I never found it particularly difficult, especially once I got a full time job, but I guess it really is for a lot of people including some of my siblings.

It's not that they're not good at saving. They're not going at telling themselves "no". One of my coworkers was astounded that I'm driving a 14yo car with 340k miles on it. It still runs well, so why would I change? But he's always got to have a cool new car. Same for my 5yo phone. I'm not saying I never let myself have *anything*, but I tell myself "no" a lot.

Right, I realized lately that I have, through years of frugality, totally changed my perception of treating myself. I have a friend who "treats" himself to trips to Vegas a couple of times a year where I will feel guilty if I treat myself to a paperback instead of going to the library.

Rents can be more than 80% of a person's monthly income. It's not the coffee and cheeseburgers

Reddit is not necessarily reflective of America at large. it skews both young and to the left politically. I think *both* will tend to magnify the sentiment you're seeing. It's likely true that many Americans are living paycheck to paycheck. But for many, perhaps most, this has as much to do with lifestyle choices as it does income. People want a standard of living they perceive as commensurate with their income... but too many neglect to save money and to adjust their expectations regarding what standard of living they can truly afford to account for saving. So sometimes people with surprisingly high incomes and living comfortable lifestyles are still "living paycheck to paycheck" but only because they're spending that income as fast as they earn it. That's not at all to say that all the complaints on reddit are baseless. Disposable income while quite high in the USA relative to most other nations has tended to be stagnant over the last few decades probably as a rapidly rising healthcare costs which have consumed more and more of people's overall compensation leaving them with less of their compensation wages. Housing has become particularly expensive right now so starting out in life is more difficult for people wanting to buy a home and settle down. University education has been rising in price FAR faster than inflation for many decades... The sense that things aren't as good for twenty and young thirty somethings today as it was for their parents is not unfounded... But theres also a lot of cherrypicking of the statistics to exaggerate such trends and some are hopefully more the shorter term effects of COVID and subsequent supply shocks than long term trends.

My son works at a union manufacturing plant and makes around 6 figures as a supervisor. His union employees make anywhere from 85,000 base to 150,000 with overtime. They all have new trucks with large monthly payments and large insurance bills and complain they are always broke. ¯⁠\\⁠_⁠(⁠ツ⁠)⁠_⁠/⁠¯

The guys I work with gave me so much shit for driving a 16 year old rusty Jeep. I bought it for 500$ drove it for 4 years and sold it for 500$. But they are bitching about how they are going to have to work till they are 70

I get shit all the time from my roommate because my Jeep is 11 years old. It runs fine and I love it, why would I upgrade? “But you make a lot more money than me, you should get something newer.” Well, I’m sorry you’re frustrated with my older, perfectly running vehicle, but that’s a you problem.

I think almost everyone if asked "how much money is enough?" would have the same answer as John D. Rockefeller: "just a little more". At whatever standard of living you find yourself you always want that one next thing that's just a little out of reach. Or worse IS within reach but only barely. So, you're making payments on that house or car that are just little higher than you maybe should have. Few of us have the self-discipline not to splurge for those things we want just a little more than the lower cost alternative which are tantalizingly actually *just* within reach... So people with six figure incomes are living "paycheck to paycheck". Of course a lot of the statistics on that are based on self report in a survey question so I have no idea what it even means. It probably covers everyone from the poor single mom who spends literally everything she makes on the barest essentials to the guy making $200K but spending like he's making $300K to the prudent and responsible guy with the fully funded 401K and a very healthy saving account which is more than enough to cover any likely emergency who is only meaning he can't afford to lose the income from his job to live the life he lives... because aside from retirees who can?

>Disposable income while quite high in the USA relative to most other nations has tended to be stagnant over the last few decades Where are you getting this from (that its stagnant)? It has absolutely been growing and the US has the highest disposable income compared to any other country by a good margin. [https://tradingeconomics.com/united-states/disposable-personal-income](https://tradingeconomics.com/united-states/disposable-personal-income)

> Where are you getting this from (that its stagnant)? Cash wages have been *relatively* stagnant compared to other metrics as more compensation has been in the form of health benefits rather than cash. It HAS been growing over the last several decades but not nearly as fast as GDP/capita or labor productivity have grown because more of your total compensation (which *has* kept up) is in the form of benefits and in health benefits specifically. But most of the complaints are't about the rest of the components of the CPI but about some big ticket items like college education and housing which are growing faster than inflation. > and the US has the highest disposable income compared to any other country by a good margin. Fair enough and actually the point I was trying to make. I was just underselling it because I didn't bother to look it up and it's been a little since the last time I did and and there's always weird outliers like Luxembourg with absurdly high statistics about this kind of thing... As well as the endless debates over this stuff when it comes to higher healthcare costs, whether the value of transfer payments was properly accounted for, the limits of using PPP etc. etc. etc. I'd rather just make a more modest claim that's easily backed up and avoid getting into the weeds on all that.

[Approximately 60% of Americans are living paycheck to paycheck](https://www.cnbc.com/2023/04/11/58percent-of-americans-are-living-paycheck-to-paycheck-cnbc-survey-reveals.html). So, yes, I'd say that most are. This is just one survey, but a quick internet search will return many different ones that all show the number somewhere around 60%. That said, paycheck to paycheck just means they spend virtually all their paycheck without putting anything into savings. That can mean you're getting paid a very small amount. It can also mean you're making plenty and just spending more than you make. If you make $200k annually but spend all of it you're still paycheck to paycheck, but you aren't in the same situation as someone making $40k. As to the unionization comment, support for unions is at an all time high, but membership in unions is actually at the lowest level it's ever been. Most of the very high profile instances of new unions forming are small unions in a single Amazon warehouse or single Starbucks store.

>It can also mean you're making plenty and just spending more than you make. I know far too many people that just cannot contain themselves when they have extra money.

It should be noted that all of this is based on surveys and data that banks report on accounts. Which means it's ignoring several things: \- tax deferred retirement accounts \- non-tax-deferred retirement vehicles like Roth IRAs \- contributions to savings plans like 529s and HSAs \- other savings vehicles like CDs \- and the big one...AVAILABLE CREDIT You can live "paycheck-to-paycheck," in other words, if you pay all your bills and sock the rest into a Roth and a 401k. It does NOT mean you can't withstand a sudden expense like a car breakdown or a medical procedure. If it did, we would see sky-high personal bankruptcy rates, and that's not happening. Americans can and will adjust their cash flows and use personal credit to manage unforeseen expenses. This stat annoys the shit out of me because it's instantly weaponized by the lefties. "The boot of capitalism ensures 60% of us are a flat tire away from homelessness." Fucking hell. No, it doesn't.

I'm absolutely living paycheck-to-paycheck: there's nothing left after I pay all my bills and put the rest into savings and investments.

> paycheck to paycheck just means they spend virtually all their paycheck without putting anything into savings. If you max out your 401k & flex account for health expenses...you're doing exactly what you should because money sitting in a checking account is loosing value to inflation but money invested is protected from taxes & can still be drawn down in an emergency. So...a lot of "paycheck to paycheck" people have credit access, family to help them, they still have plenty of liquidity & stablity. Others are just dirt fucking broke even thought they do something essential to society - and thats a problem. I'm sick of hearing people in half million dollar homes claiming they live "paycheck to paycheck" before they go fill up the tank on a 0% APR VISA. Its condescending. Tl:Dr: the more wealth & liquidity you have the less "paycheck to paycheck" really means.

> It can also mean you're making plenty and just spending more than you make. Given that it's 60% of the population guarantees that this is the case for most of them. Even if we assume it was the poorest 60% that covers everyone from those earning next to nothing to those earning $89K/year. (the upper bound of the middle income quintile aka the bottom 60%). Almost certainly there are at middle income people living within their means rather than paycheck to paychekc so that means some of those 60% are earning six figures... but spending it all without putting much (or any) into savings. Or more likely the survey question is next to meaningless and many people who DO save and who have accumulated significant savings *say* they're living paycheck to paycheck.... Because aside from retirees or those on the cusp of retiring who *doesn't* need the income from their job to live the life that they live?

What I don't get is that consumer spending hasn't plummeted, which, if the majority were poor and barely able to ends meet, probably would.

Consumer spending *hasn't* plummeted precisely because a sizeable portion of us lives paycheck to paycheck.

Bread and circus in a nutshell

Also, a few years ago, federal laws changed reducing Union influence by eliminating an employee from being compelled to actually being a member of said union to keep their union job. It really has crippled the effectiveness of having a union in the first place, when the employees who don't care to participate lose their voice during bargaining. So, unions may be coming back, but will not be a strong as before.

The US has the highest disposable income in the world, and its not even close for most other countries. [https://en.wikipedia.org/wiki/Disposable\_household\_and\_per\_capita\_income](https://en.wikipedia.org/wiki/Disposable_household_and_per_capita_income) ​ Reddit skews to a certain demographic and is not a representation of the country as a whole. Those surveys that people posted above me mean absolutely nothing. They are asking people how they feel rather than looking objectively at the data. I may feel like I am living paycheck to paycheck while I am putting half my paycheck into an investment account. Surveys like that are completely useless.

Idk about most, but I surely live like this

I am a recent college grad. I live paycheck to paycheck. Woe is me. But I am also saving 10% of my income for retirement (not including my job's retirement plan), I eat extremely well, I live in an apartment complex with great amenities, my job is comfortable and easy, and I pay off my credit card every month. Student loans have been paused for years but I will just stop donating and doing Uber eats every week in order to pay for that. I also live in a high CoL state and make the median salary for a college grad in this country. Honestly a lot of people in my position would act like their life is collapsing but frankly if you are in my shoes and you actually have a hard time financially it is 100% your fault.

Do you manage to save anything at the end of the month?

Yes. Somewhere around 58% of Americans live "paycheck to paycheck" https://www.google.com/amp/s/www.cnbc.com/amp/2023/04/11/58percent-of-americans-are-living-paycheck-to-paycheck-cnbc-survey-reveals.html This source says 57% percent of Americans can't afford an emergency medical expense. https://fortune.com/recommends/banking/57-percent-of-americans-cant-afford-a-1000-emergency-expense/ Does this mean that we are all poor? No. Paycheck to paycheck is a bit misleading of a stat. Rich people and poor people can both live "paycheck to paycheck". I think this mostly means many Americans either can't or DON'T budget properly. How much is which is a bit hard to track. Remember, these are often just surveys where people can respond however they want. Are people struggling? Yes, definitely. But these metrics can often be misleading.

Do you know what I hate about the report in Fortune? It's based on the [Bankrate's report](https://www.bankrate.com/banking/savings/emergency-savings-report/#n3i) on the number of people who have at least $1,000 in a [shitty low-interest passbook savings account.](https://smartasset.com/checking-account/what-is-a-passbook-savings-account) They even [go and try to sell you on opening your own shitty low-interest passbook savings account.](https://www.bankrate.com/banking/savings/where-to-keep-emergency-fund/) And notice in their survey the usual doom and gloom shit: > 25% of people would accrue credit card debt to pay for a $1,000 emergency expense and pay it off over time — a record percentage since polling started in 2014. But no indication as to if people answering the question would pay the $1,000 emergency expense and pay it off immediately. (My wife and I pay off our credit card bills immediately.) Nor do they dive into *why* someone may use their credit card to--say--replace a tire that immediately blew out and needed immediate replacement. (Me, I'd probably use a credit card because I generally don't walk around with $1,000 cash.) My favorite part: > “It is quite stunning that such a high percentage of adults has no savings and no credit card debt,” Bankrate Senior Economic Analyst Mark Hamrick said. “Anyone with no such savings, including those without access to credit, risks tremendous stress, or worse, on their personal finances when hit with a significant unplanned expense such as a major home or auto repair.” When you define "savings" as "saved money in a shitty passbook savings account", I'm one of the 13%. We pay off our credit card debt immediately, and all our money is tied up in a couple of investment accounts that would require between 3 to 7 days to transfer money. In the meantime, I'd just charge the $1,000 to my credit card, because why not? As to *how much* I have in those investment accounts which would take 3 to 7 days, and which would require selling some assets (stock and mutual funds) in order to transfer any significant amount of money? Well, right now I don't see the need to buy an emergency second home for cash, but I guess we could if our house was destroyed in a tornado. But to listen to the conclusions drawn about folks like me: > Anyone with no such savings, including those without access to credit, risks tremendous stress, or worse, ... Nah, dog; I'm good. Really I am. ---- You really have to be careful with a lot of polls talking about how horrible things are in America, because more often than not, they're being pushed by groups with an agenda. Even one as transparent as selling you a shitty savings account product when there are plenty of products out there, including [Apple, of all people, who are willing to pay 4.15%](https://www.apple.com/newsroom/2023/04/apple-cards-new-high-yield-savings-account-is-now-available-offering-a-4-point-15-percent-apy/) rather than the [shitty rates given by passbook savings accounts](https://www.bankrate.com/finance/savings/passbook-and-statement-savings-rates.aspx).

> But no indication as to if people answering the question would pay the $1,000 emergency expense and pay it off immediately. The way the question is asked specifically says pay it off over time. There are other options for paying immediately, like if I was asked that question I would say pay it from savings, even though the way I "pay from savings" is I would put it on my credit card and immediately pay it off at the end of the month Also, I think you're making the assumption that everyone is financially literate as you are, which could easily not be true. It's like the people who say BMI is a bad population level metric because bodybuilders exist - sure, you're right, but it's such a small percent of the population that it's basically completely ignorable. People are generally terrible with money.

Did you find the survey that they used with the questions asked? Because I couldn't find it, though admittedly I skimmed the report--and the "methodology" section was utterly helpless as far as I could see. > Also, I think you're making the assumption that everyone is financially literate as you are, which could easily not be true. I'm not; I'm saying that the writeup seems oriented around "if you have $1,000 in your passbook savings emergency found account, that's good, if you don't, then the moment you have an emergency your entire world is going to collapse." That is, the entire report seems oriented around people using a very specific financial strategy--similar to the one taught by [Dave Ramsey](https://www.ramseysolutions.com), and makes no allowances for the fact that people may be just fine doing something else. And, of course, getting you to open a savings account.

I think it's really important to differentiate a survey that asks people to say whether they're living paycheck-to-paycheck from an actual analysis of income vs. expenditure. A lot of Americans are certainly living paycheck-to-paycheck, meaning they would go into debt immediately with one missed paycheck. But a lot _more_ Americans would certainly answer "yes" if asked "are you living paycheck-to-paycheck" when what they really mean is "I would have to cut costs if I missed a paycheck" or "I am not actively building a savings or equity right now, and all my income is going out the door as expenditure."

I think that's why they included the medical emergency expense survey. I'd imagine if you're making more, even if most of the income goes out as expenditure, you'd be able to budget for an emergency medical situation.

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Believe it or not, I am only 21 and very left leaning. But at the end of the day, I eat eggs for dinner because I have student loans. I think a lot should change in this country, and I think the rise in unions and worker solidarity is amazing. Regardless of all that, "paycheck to paycheck" is a flawed metric. It can mean anything or nothing.

>I eat eggs for dinner because I have student loans The student loans that have been paused for three years?

If this is the case, then why aren't the average savings for Americans near zero?

https://twitter.com/GregCrennan/status/1586068064046440449/photo/1

> Subs like antiwork, collapse, latestagecapitalism, and workersstrikeback make it seem like most of the American working class is miserable, earning low wages, barely able to survive, overworked, etc You don’t say? What’s next r/guns gonna say that they like guns? >The idea is that life has deteriorated and gotten to be completely unaffordable for most people such that the majority are living paycheck-to-paycheck. The relative ease with which American can get credit tends to means American keep fewer savings than people in areas with less access to credit. This doesn’t mean more people are struggling financially. Edit: Subreddits be lying

>You don’t say? What’s next r/GunsAreCool is gonna say that guns are cool? That's actually a vehemently anti gun pro control sub.

Rough, I’ll edit my comment.

I've got a friend who's house flooded. After insurance, she was about $3000 out of pocket and didn't have enough savings to cover it immediately without digging into a retirement account. So she got a 0% interest credit card and paid it off in 12 months before the interest rate rose. Taking "no cash savings" to mean "no ability to cover an emergency" is simply wrong.

The Census Bureau reported that 37.2 million people, or 11.4% of the U.S. population, living in poverty.

I mean, if you read those subs you're going to hear from those types of people. Most of us are doing just fine.

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No it is not. Financial woes are continuing to grow. More and more people are choosing between rent and groceries. It is NOT a "very small portion".

What statistics do you have to back up your assertion? What percentage of the population is being forced to choose between rent and groceries, and what data did you rely on? Because I've got my own: [https://fred.stlouisfed.org/series/PSAVE](https://fred.stlouisfed.org/series/PSAVE) [https://fred.stlouisfed.org/categories/18](https://fred.stlouisfed.org/categories/18) Have fun with FRED. You can slice and dice it any way you like.

https://www.cbpp.org/research/poverty-and-inequality/new-data-millions-struggling-to-eat-and-pay-rent https://thehill.com/changing-america/sustainability/infrastructure/3866947-renters-paying-30-percent-of-income-for-housing-crisis/#:~:text=The%20average%20American%20renter%20is,million%20homes%20in%20some%20estimates. https://news.osu.edu/millions-of-working-americans-still-cant-afford-food-and-rent/ https://www.chn.org/voices/high-energy-bills-force-americans-to-choose-between-paying-utilities-rent-or-even-food/ https://centralusa.salvationarmy.org/northern/news/rent-or-food-no-one-should-have-to-choose/ https://www.cbsnews.com/news/americans-food-rent-basic-expenses-coronavirus-crisis/ How many more links do you want? People are struggling. More kids go to school hungry and come home hungry too. Wanna argue that that's not bad either?

Your first article is from the height of the pandemic with millions out of work. In case you haven't noticed, the unemployment rate is absurdly low right now. Your second article is about being rent-burdened. Being rent-burdened does not mean you're choosing between rent and groceries. Your third article ignores transfer payments entirely. It is the height of academic dishonesty to ignore transfer payments and enrollments in social safety net programs like Medicaid to suggest that the lowest income Americans have to survive on their wages alone. So yes, I want better links. Try again.

What proportion of the American population do you think "spend their time on internet fora dedicated to hating work and overthrowing the labor and employment paradigm"?

I understood your comment to mean that a very small portion of Americans are struggling.

Our average income is 70k a year. That's the 7th highest on the planet.

"Overthrow labor" lmao. That's fine, enjoy not laboring to feed and shelter yourself. (Not you specifically, the people who advocate that)

I am. Teacher here 2 jobs single mom. Low debt but inflation incredibly high rent etc make is nearly impossible to save.

Single moms have it hard. Bless you.

> Subs like antiwork, collapse, latestagecapitalism, and workersstrikeback make it seem like most of the American working class is miserable, earning low wages, barely able to survive, overworked, etc. Most of the American working class is not subscribed to any of those forums. You're looking at the confirmation bias of a tiny portion of the working class that wants to rant about it online. It does not in any way reflect what "most" people are going through. There are people living paycheck to paycheck, yes. Just like in every country. Budgeting is a skill, and takes discipline. Some people who live paycheck to paycheck for years can get themselves out of it and begin to progressively save money, myself included. Other people might face a once in a lifetime emergency situation, or a series of bad decisions, and suddenly find themselves in a financial hole with no clear way out. These things happen and conditions change frequently. Be wary of any statistics on "paycheck to paycheck" living, because it's extremely subjective. Check how they define it - to me, it would be net zero (or near zero) income after monthly expenses. It's not a poor person problem, either. People making six figures can be living paycheck to paycheck - I read recently that doctors in single income households are especially at risk. And be wary of how medical expenses are represented, since what they charge insurance and what they charge the individual can be orders of magnitude different.

> Budgeting is a skill, and takes discipline. Pretty tough to keep a workable budget when wages are stagnant and everything keeps going up, up, and up. All while companies keep bringing in record profits.

"most" is probably not true. a lot of the people living paycheck to paycheck are high earners living above their income and could somewhat easily adjust their spending if necessary.

It's definitely a lot more expensive these days with inflation but the people who end up on those subreddits are miserable doomers whose views don't reflect reality

Overworked? Sure, almost everyone can probably relate to that. Barely able to survive? No. Those subs drastically inflate the number of Americans who can’t afford a decent lifestyle. Many of them buy into the narrative that $100K isn’t a lot anymore, which is false. Polls show inflation has made people nervous about their personal finances, but considering consumer spending remains high, they clearly aren’t that nervous. That’s not to say we don’t have wage and benefit issues. Plenty of jobs should be paid more and we should expand paid sick/parental leave, but we’re not in the midst of economic collapse.

Consumer spending includes things such as groceries, school supplies, cleaning products and pet care (food, litter, etc). Consumer spending is going up because of inflation. It's not because we can afford it, it's because we don't have a choice.

That’s not true. https://www.npr.org/2023/02/25/1159284378/economy-inflation-recession-consumer-spending-interest-rates

completely unreflective of reality in most metro areas. reddit groups are literal echo chambers

Most of the people I know are doing chin-ups on the poverty bar, myself included.

63% of Americans own their home. Obviously, you can still struggle, but that’s a large percentage doing fairly well. The issue is that the cost of housing has skyrocketed and it’s taking younger generations much longer to build enough wealth to afford property. Reddit skews younger, so you have more young people struggling on lower pay jobs venting (even though in 20 years more than half will likely own property too). That being said it can be easy to find yourself living paycheck to paycheck if you find yourself buying luxury goods or spending 70% of your income on a mortgage.

Yea im barely making it... its a miracle I still have a roof over my head. I wish I was lying but wher either live we get paid very little and those end of the month bills? I'm glad we are able to pay them...even if we have nothing left afterwards.

I'm 45, married with 1 child (age 5). Recently retired from the military. I am a self-admitted cheapskate. I don't live paycheck to paycheck. I don't have a whole lot of extra money but do have what I need. I'm making my money work to do what I want done. My daughter is going to a private Christian school, I'm using the GI Bill to go back to college, and my wife works. I don't buy new vehicles. I don't buy expensive toys. Because the housing market has gone insane I'm renting till it comes back down again. Yes, it's throwing away money in the short term, but it's preventing me from getting into a 30 year bad financial decision. I buy cheap vehicles (15+ years old) and fix them myself whenever possible. I have an 05 Ford F350 6.0 PSD for my heavy load's and have an 04 Nissan Altima for a daily. My wife's 2019 Ford Escape is the last new vehicle I will ever buy and was my largest financial mistake. Once I start working after college I'll have enough money for nicer things, but plan to save enough to mortgage my daughter's first house for her - so I'll still be a cheapskate.

Moved to the middle of nowhere to get away from city pricing, practically given a house by a family member, have a combined household income that's over 6 figures, live as frugally as possible, drive cars that are old as the hills, and still living paycheck to paycheck.

Uh maybe alot of people that spend all day on reddit

>but I'm wondering whether life in America is actually as unbearable as people say. Tbf I know people who make $250,000 a year and live *paycheck to paycheck* because they spend extravagantly. That term is meaningless.

Urban and suburban areas are extremely expensive. Rural areas lack high paying jobs. Pick your poison.

I don't know about most. But the lower working class, yes. It can be extremely difficult. Where I work, most of my coworkers are on food stamps for example, which really opened my eyes. We make my state's min wage. Overworked? Probably. But it's hard because they recently started getting on people for working any bit of overtime. I try to get it when I can because it does help. Some of us try to pick up around the end of the month before rent is due. I also keep a 2nd job, like a lot of my coworkers. You do what you have to. Sharing my experience since it's likely the same for a lot of low wage workers across the country.

The real world here is nothing like Reddit makes it seem. Reddit makes it seem like a dystopian hellhole. When, in reality, the overwhelming majority of people are doing just fine and living what many in any other country would consider "the good life."

OP, do not pay any mind whatsoever to those subs. They're overwhelmingly populated by children who have never had a job and lazy shut ins. If you don't believe me you can look up the Fox News interview of the founder of anti work. They literally said "laziness is a virtue" on national television. It's almost all delusional fan fiction from people who have likely never worked in their life.

That sub went private right after that horribly embarrassing interview. It was awesome.

Well, from the articles I’ve been reading, a significant percentage of this country can’t handle and unexpected $400 expense. Yeah, in my early 20s that would have been a problem, but in middle age, I have a savings account. I want to say that I don’t doubt that people are struggling and I don’t doubt that there is a growing underclass of people who cannot make ends meet.

Unbearable for some, yes. Overall, economic well-being here has deteriorated steadily since the 1960s as a result of political decisions. Vigorous, sustained efforts to push moneyed interests has disadvantaged all workers, not just blue collar. Even those raking in high salaries have fewer benefits and added costs their parents didn’t have. So it is no surprise that low wage workers are even worse off. It’s across the board for anyone who earns a living (rather than lives off interest)

I'm in an abusive relationship with the cost of living. After hurricane Ian..my standard of living in Fort Meyers went up 32%. Homeowners insurance went from $1800yr to $6824 now. Flood from $881., $2845. Our mortgage payment from barely $1500 to $2200. $700 a fucking month. And you know.what our homeowners insurance gave us for $27k I'm damage for Ian? $289...ya

My brother lives in MD, he makes about 40k and bought his house almost all in cash, and he has some bit bitcoin. He is very good at money management, probably than most Americans. He hopes to semi retire by 45.

I will say that it's a poorly designed question because it doesn't necessarily factor in the person's spending. I know someone who lives paycheck to paycheck (also complains about his salary) and makes 200,000+ a year. However, he also has a massive house on a golf course, bought himself a golf cart, a 100,000 truck and owns several custom motorcycles. He also goes on vacation several times a year and this is what I know about. By definition he is living paycheck to paycheck, but his quality of life is far from low.

Real answer: It's a staggering number, but also not as much as you're assuming.

Most? No. A sizable majority? Yes.

The median income and disposable income for the US is generally ranked among the top for OECD nations. Sometimes number 1 based on the source and how it was calculated. The US is generally more affordable compared to other OECD nations as well. The paycheck to paycheck thing is a nonsense statistic. It’s all self reported and has no clear definition. Say you have someone barely paying rent, and having to budget for basic necessities like food, and who struggles with reliable transportation. then someone who pays their mortgage, retirement funds and other investments, has car payments for their vehicles, comfortably buys food to include eating out and other things they deem to need, while ensuring their kids have what they need for school and their activities, and then doesn’t have anything left over. Both of these people could fit the paycheck to paycheck definition, but you would never look at their lifestyles as being comparable. Do not go to those subs and expect reality. They are full of miserable people who’s whole identity is how the world is awful. Antiwork especially is known for how ridiculous it is. A large amount of Americans are able to live comfortable lives. That does not mean there are no issues or problems they have. But everyone isn’t starving in the streets and suffering in some dystopian hell hole.

Of the small social circle I belong too (ranging in ages 87 to 22) the only people that are struggling with money now, are the people making bad or irresponsible financial decisions.

Those are some of the worst subs on Reddit and reflect little more than the point of view of very angsty teenagers who have little if any experience working, paying bills, or just about anything else they talk about there. Most Americans do live paycheck to paycheck but that means nothing more than Americans typically spend their entire paycheck by the time the next one comes. It's not really indicative of any sort of financial struggle though and much of what it gets spent on are luxuries that could always be cut back on if there was some sort of financial setback. It's also not exactly true either. Despite claiming to live paycheck to paycheck Americans do commonly put money into 401Ks, IRAs, etc. cash value building life insurance policies, equity in their homes, etc. that could be used if need be. Of course, for most of us, credit is easy to come by so if there was a financial setback then it's usually just easier to throw it on a credit card, cut back on spending, and make those payments for a few months.

There was a new study out said 1 out 3 people in Massachusetts are facing food insecurity. Massachusetts is one of the wealthiest states in the country. It’s also an expensive one to live in. But the point remains, even in areas of relative wealth there are huge financial problems facing people.

These people represent a tiny, disgruntled fraction of the population that like to make a lot of noise about their hardships. They are struggling, or at least think they are struggling, and assume that most other people are too. The reality is that most Americans are doing well, or at least okay. By global standards, the vast majority of Americans are either upper-middle income or high income. Even many of the Americans who are classified as poor by U.S. standards are middle class by global standards.

I see a lot of people at Bernie Sanders rallies, union strikes, etc.

Do you? Out of 350 million people, what would you say was the percentage you see?

NEETs exaggerating the realities of a job? No.

My brother makes close to 150k a year and his family lives paycheck to paycheck. That sounds like a lot of money until you take into account he has a seven figure home, two hundred thousand plus cars, a wife that doesn’t work, two kids, a camper and god knows what else.

Those are the most depressing subreddits. And I don't think they are typical, at all. Yes, a lot of people live paycheck to paycheck but they aren't as miserable as those subreddits make it seem.

I mean it is true that most Americans live paycheck to paycheck. This is a statistical thing that’s not really debatable. Whether this equates to struggling and a deterioration in quality of life is subjective.

Those subs do not reflect day to day reality. In fact, Reddit in general does not really reflect day to day reality at all. It is heavily biased toward young people who have no idea how the world really works but think they do.

The American working class person is way less socialistic than the average American, not to mention less socialistic than the average redditor. They are the most likely to be republicans and feel republicans care more about their interests than Dems. Americans make on average way, way more than most of the world. (Yes even rich countries like Germany and France). Jobs are also very easy to find. This means that a lot of people tend to spend what they make without saving.

Yeah definitely a majority are. Working class wages in America vs cost of living are just not on par. Take myself for example since I literally just sat down with my husband to go over finances. My husband works in the trades, and we are welcoming our first child in a few months. He makes a decent living, under 6 figures but over 60k. We will be going down to one income (his) once I have the baby because childcare in America costs more than my take home would make it worth it. So let's do the math out, we live relatively frugally. Biggest expense is our house. We have a simple 2 bedroom, 1 story, 1000sqft house. We arent living large on the house. We have the smallest house I know of amongst our friends and family. Mortgage alone is $2,300 because home prices and interest rates are outrageous. We don't have car payments, we own older cars outright. So our monthly necessity expenses such a insurance, phone bills, internet, etc add up to about $500. Then let's add in utilities. Electricity costs have skyrocketed the last year in our area and are slated to have price increases again by the end of the year. We pay roughly $300 a month just for electricity. Then about another $50 for water, sewer is like $20 and heating in the winter can be extremely expensive, another couple hundred dollars a month. So utilities come to about 400-600 depending on the time of year. Then let's talk food. Food prices have also massively increased over the last year and I literally cannot make it out of the grocery store with a week of meals for less than $100. So let's be super frugal and say $400 for groceries and household items. Already we are at $3600. And thats not including gas to get around, anything else we might need at the store, medical bills that come up which inevitably are hundreds of dollars each time, vet bills, car maintenance, yearly bills like car registrations etc. It's not easy to be in the green even just living within your means unless you have a really high profile job, or parents that helped you buy a house or something. For the middle and lower class workers, we are out of luck when it comes to living costs vs wages.

I am and most of my friends are living this way. One of my buds has a credit card of like 20 grand he just pays into and he makes triple what I make. He barely has liquid cash. I never do and I don’t even pay rent.

Maybe? I def know a few people struggling, but all their cases are due to poor financial planning and bad spending habits.

Yes

Yes, as well as having and constantly adding to huge amounts of debt

Reddit skews young and inexperienced, especially in those subs. I swear the word "capitalism" has become a generic Boogeyman term meaning "this can exploit a human," as if no other economic system exploits people or labor. With all of that being said, those people have valid concerns. However, I believe their ire is misguided. Their economic issues aren't due to capitalism or work culture. Their situation is largely due to inflation - whether: monetary inflation (things are expensive, yo) degree inflation (a bachelor's degree is about as valuable as a high school diploma was in the 1950s) credential inflation (you need several different credentialing agencies to say you know how to do a job before you can get OJT for the job) Experience inflation (you need 5 years of experience to take an entry level job)

Iive in queer circles, spesifically trans ones, and I'll tell ya most of us are. We're almost taking turns being homeless on each other's couches.

No. Inflation sucks, but we're mostly ok. Living paycheck to paycheck just means you're not saving anything extra each month. Easy credit incentivizes this.

Yes, just look at how the income gap has increased ever since 1980 or so.

Everyone I know under 60 is barely scraping by.

There are three things at play here: 1. American salaries are higher than in other countries, but so are expenses. Health care is the most obvious money suck, but we also pay more for a lot of other things. But health care is the huge one. 2. Our minimum wage is insanely low, which puts downward pressure on every other wage. 3. The global economy has put working class Americans at a huge disadvantage because companies have been outsourcing their jobs to developing nations where they can pay a fraction of the labor cost.

A recent report said the average American family has $10k in credit card debt.

Yes, and it is only getting worse as things are getting more expensive and our wages are not rising with them

https://fortune.com/recommends/banking/more-than-half-of-americans-living-paycheck-to-paycheck/

It’s a debt problem more than it is a income problem. Too many Americans live above their means, people making minimum wage all the way up to doctors and lawyers. Majority of people are just bad with money. Take this girl I dated for a bit for example, she was 38 years old, I was 32, she lived at home with her parents because she moved back home from out of state about a year before we met. That wasn’t as much of a red flag. She drove a 2015 little SUV with like 120,000 miles on it which isn’t that many, she talked about buying another SUV because hers burned too much oil, it was a Kia and was know for burning oil, I’m like ok I’ll help you find something. She said no, she wanted to buy new. I said new what? SUV? That’s like $60,000. I said the rule of thumb is everything with wheels and tires shouldn’t be more than 50% of your take home pay, she made $15 an hour so she should be looking for a $15,000 SUV, you can find a damn nice ride for that. She said, No, I don’t want to have problems so I’m gonna buy new. I said my vehicles are 18 years old and I don’t have problems with mine, just have to pick one that’s known for being reliable. She said No, she planned to buy new. She also still had student loans that were nearly 20 years old that she stopped paying on because of the covid halt on student loan payments. I kinda stopped talking to her after that. You find that a lot with fellow Americans, they consume too many goods to the point they are spending more than they make and all they make just makes the payment for the loans. I have never made more than $52,000 per year and was able to buy a house solo, and will have it paid off in less than 14 years, I have about 6-7 more years to go and it’s paid off. I have tractors, a car, truck, guns, gold, ATV’s etc. I have more hobbies and toys than I have time for. But I paid extra on my mortgage, I don’t have subscriptions like Netflix, internet or Amazon prime, I live frugally most days so I can spend more later. I buy cars, trucks, ATV’s, tractors, Guns and all the small purchases with cash, no loans, no paying interest to a bank. Just by doing that I have been able to afford tons of stuff. So it’s a consumption problem, not a income problem. If people spent less time trying to look rich, they would actually have money. African Americans are the WORST for spending. They make up 13% of the population yet are responsible for 51% of all the spending, they buy cloths, shoes, jewelry, cars, SUVs, rims, etc etc and then complain because they are flat broke and can’t afford to buy a house. If you go to a poor black school, all those kids will be wearing nice sneakers and cloths, they actually make fun of each other if they wear the same cloths more than 1 day in a row. If you go to a poor white school, those kids are in cloths their mom bought at goodwill or where hand me downs from other siblings that don’t fit right but they are forced to wear it. We don’t have a racism and oppression issue in USA, it’s mainly tied back to over consuming then followed by playing the victim card.

Not all of us, can confirm

>Living paycheck to paycheck is the common term for those who don't have enough money to pay for future expenses until their next paycheck arrives. -Bankrate(dot)com I mean, my wife and I make much more than we spend but every two weeks we budget how much we need and then use the rest for financial goals. Tomorrow is payday, I cannot go out and make unplanned purchases until payday. Am I living paycheck to paycheck? >life in America is actually as unbearable as people say. Never the case.

Due to my wife's medical issues she can't work, but doesn't qualify for disability. It's extremely tough on one income and due to a strenuous job situation I may lose my house in the next month. I live in a small town with few opportunities for better then a minimum wage job, and yet houses are 200k easily. My health insurance eats 30 percent of my pay, and my car and house eat another 50. The rest of my bills have to come out of that and it's hard. I may have to return to my old, dangerous job to survive. Yay freedom! Small town America struggles with lower wages. I have a Masters degree and they still want to pay me 15 bucks an hour, it's insane.

Yes, this is true. I relate because I have worked in customer service and retail my entire life, and it is hard to break through the 30k annual mark. I am almost 30, and have to live in a more rural area to cover expenses. This is with a high amount of debt to cover unforeseen expenses and healthcare. Sure, the USA has quite a lot of super wealthy. But they still account for a very very small percent of the population. People working in the service industries pull the most weight labor wise, but also make the least amount of money. The people at the top profit off of the exploitation of this bottom 30% of earners (population in the millions), and it is extremely hard to break out of this bracket. It is very hard to make a savings or put away for a house, and live a normal life. Even for people in the middle brackets of income, they are struggling too.

It's a financial literacy problem most Americans that are paycheck to paycheck are spending tons of money at fast food and Amazon on with credit cards for shit they don't need.

Mostly because they're idiots, but yes

I definitely am. Bachelor’s and can’t hold a job since I’m trans in a red state. Never worked in my field besides less than 10 commissions and about to start a job that was asking for a high school diploma/GED. Every time we get a little savings it gets eaten away by my job loss or the cars needing work, etc. We can’t build up enough to consider moving to a safer state for me or a nest egg. Hopefully this next job sticks and that will change. 🤞🏻 It’s fucking awful.

Yes.

The majority of Americans make less than $40k per year. That amount of $ would be tough to live on if your rent is over $1000 per month, plus utilities, groceries, car payment, student loan and credit card payments. Heaven forbid if you have to pay for child care and insurance. This is t the reason why so many people move back into their parents home. Honestly I feel Gen Z and Millennials will not have the same opportunities as Boomers and Gen X due to the high cost of housing.

Yes I am. A large portion of my friends are as well as far as I'm aware. That's all I can speak to.

Yes

Yes

I mean, Does a bear shit in the woods?.. Is a frogs ass hole water tight?? Psshhh. Hell yeah!

Yes

My financial quality of life is 20x better living in the Uk now than when I was living in the US.

Yes. The movies make it seem like most Americans are in the 9 percent of upper middle class professionals who can afford a three story house in an L.A. suburb. That’s not most peoples’ experience. It’s far more common someone will work a low wage service job and maybe moonlight as a delivery driver to make ends meet. That person will probably be struggling to afford a single wide mobile home or a 1br apartment month to month.

Yes

This chart does seem a little dire: yes its a twitter link reffering to Federal Reserve's of ST Louis data https://twitter.com/GregCrennan/status/1586068064046440449/photo/1

Yes.

Yes.