The good news is the U.S. economy added more than 300,000 jobs last month and many U.S. workers are now earninghigher wages.
The not-so-great news is many Americans continue to struggle to pay their bills — including even those earning six figures each year.
According to PYMNTS Intelligence’s latest edition of its “Paycheck-to-Paycheck Report: Why One-Third of High Earners Live Paycheck to Paycheck,” six in 10 consumers struggle to get by. And high wages alone don’t necessarily offer relief. Nearly half of consumers earning north of $100,000 annually say they are living 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.
PYMNTS Intelligence has tracked paycheck-to-paycheck data for nearly four years. The latest findings show that, overall, the percentage of consumers identifying as living paycheck to paycheck has increased 2 percentage points over last year’s findings.
According to the most recent data, roughly three-quarters of low-income consumers (those earning less than $50,000 per year) — and about two-thirds of middle-income consumers (earning between $50,000 and $100,000 annually) now live paycheck to paycheck. The share of high-income respondents (earning more than $100,000 each year) also increased to 48%. As mentioned, more than one-third of those who earn $200,000 or more annually said they, too, are just getting by.
Consumers across income brackets say housing costs (29%), grocery and household expenses (20%) and regular and personal outlays (21%) absorb the lion’s share of their monthly earnings.
And even though the costs of items such as housing and food continue to climb, those outlays alone do now account for the financial difficulties many American consumers now feel.
As the chart above shows, both low-income earners and those making more than $200,000 annually said insufficient earnings are the main reason they survive from one paycheck to the next. Forty percent of those earning less than $50,000 annually say low wages are to blame. And while one-quarter of middle income earners and 16% of high-income earners say the same, around one in five consumers earning more than $200,000 blame insufficient incomes for their just-getting-by economic status.
Large amounts of debt are another leading culprit, especially for high-income earners (28%) and middle income earners (26%). Nearly 23% of those earning more than $200,000 each year said covering the expenses family members run is another leading contributor to their plights, which is something they have in common with 18% of those one bracket down.
And while medical bills are cited as a leading reason for crushing U.S. debt, our survey found among paycheck-to-paycheck consumers — across all incomes — it accounted for only a small percentage of their financial woes.
As welcome as the news is that more workers are employed and many of them are now earning higher wages, no more than 5% of consumers of any wage bracket indicated unstable employment was a top reason for them living paycheck to paycheck. And, as the report found, many consumers — especially high earners — are making poor choices that contribute to shaky financial standings.
Yet, there is no denying that if the cost of essentials such as housing and groceries continue to rise every month, the financial plight many Americans face will likely continue for the foreseeable future.
FAQs
Paycheck-to-Paycheck Economy Moves to Higher-Income Brackets
Why are high earners living paycheck to paycheck? ›
One possible explanation is that they may have less incentive to save than the average consumer as they are more confident about their job prospects and are less likely to switch jobs. As inflationary pressures have subsided from their July 2022 peak, high-income consumers have rapidly increased discretionary spending.
Are 65% of Americans living paycheck to paycheck? ›
A majority, 65%, say they live paycheck to paycheck, according to CNBC and SurveyMonkey's recent Your Money International Financial Security Survey, which polled 498 U.S. adults. That's a slight increase from last year's results, which found that 58% of Americans considered themselves to be living paycheck to paycheck.
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.
What qualifies as living paycheck to paycheck? ›
For the purposes of this survey, living paycheck to paycheck describes a financial scenario in which an individual or family's income barely covers essential living expenses like housing, utilities, groceries and transportation. One missed paycheck would put someone living paycheck to paycheck in a difficult spot.
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.
What paycheck is considered rich? ›
How much do I have to earn in California to be considered rich? New study breaks it down. How rich is rich in California? As of 2022, the top 5% of earners in the state made $613,602 a year on average, according to a recent analysis from personal finance site GoBankingRates.
How many Americans make over 100k? ›
Only 18% of individual Americans make more than $100,000 a year, according to 2023 data from careers website Zippia. About 34% of U.S. households earn more than $100,000 a year, according to Zippia.
Do millennials live paycheck to paycheck? ›
Millennials are the generation most likely to live paycheck to paycheck, with 73% doing so this year and last, but a growing share of Generation Z are struggling financially.
How many Americans can afford a $1000 emergency? ›
Less than half of Americans (44%) say they can afford to pay a $1,000 emergency expense from their savings, according to a new Bankrate survey. This is up slightly from 43% in 2023, and at the same level as 2022.
As of May 2023, more than 1 in 5 Americans have no emergency savings. Nearly one in three (30 percent) people in 2023 had some emergency savings, but not enough to cover three months of expenses. This is up from 27 percent of people in 2022. Note: Not all percentages total 100 due to rounding.
How common is 100k salary? ›
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 long can I live off 100k? ›
“With a nest egg of $100,000, that would only cover two years of expenses without considering any additional income sources like Social Security,” Ross explained. “So, while it's not impossible, it would likely require a very frugal lifestyle and additional income streams to be comfortable.”
How many rich people live paycheck to paycheck? ›
According to a recent PYMNTS report, as of November 2022, 76 percent of U.S. adults who make less than $50,000 are living paycheck to paycheck, compared to 65.9 percent of those making $50,000 to $100,000 and 47.1 percent making more than $100,000.
Is the average American struggling financially? ›
Findings published by the National True Cost of Living Coalition show that 65% of Americans whose incomes are 200% above the national poverty line – which is about $62,300 for a family of four, often considered middle class – said they are struggling financially.
Is living paycheck to paycheck poor? ›
Persons living paycheck to paycheck are often referred to as the working poor, but that may not accurately describe the full scope of this phenomenon because it cuts across multiple income levels.
What percentage of Americans make over $150,000 per year? ›
Income Brackets in the United States
| Income Bracket* | Percentage of Americans |
|---|
| $75,000-$99,999 | 12.3% |
| $100,000-$149,999 | 16.4% |
| $150,000-$199,999 | 9.2% |
| Over $200,000 | 11.9% |
5 more rowsApr 12, 2024
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%
Do high earners move to avoid taxes? ›
In fact, the millionaire migration that does occur has so little to do with tax differences that Young and his co-researchers estimate that if all states had the same tax rate — so there were no tax incentives to move — there would only be approximately 2.2 percent or about 250 fewer millionaire migrations between ...
How does the 50/20/30 rule distribute your income? ›
The idea is to divide your income into three categories, spending 50% on needs, 30% on wants, and 20% on savings. Learn more about the 50/30/20 budget rule and if it's right for you.
