63% of Americans are living paycheck to paycheck — including nearly half of six-figure earners

[MH.Yang]

I used to earn around 85,000 a year, I went paycheck to paycheck, my wife earns around 120,000 a year, she went paycheck to paycheck. That's just how people spend their earning.

If you ask most Western people, they will tell you they don't put money in bank, they will rather spend it on holiday and buying luxury item and so on, their concept of money is to enjoy life. It's rather pointless to put the money in a bank and store digitally and gain minimal interest. I would much rather it got turn into things I can enjoy.

On the other hand, I have a family trust oversee 5 factories in China, US and Vietnam. So money for me is not really an issue. That probably also contribute to the spending habit.


4K is not really any money if you are talking about dumping it into your hobby. A friend of mine spend that much on a collectible toy locomotive. And I spend that much on my coin and uniform collection (I collect military uniform and once spend around 20k for an authentic Civil War confederate uniform.) I mean, if you like something, you don't see the money side of value, you see the "value" side of value...


My sister had a 2 seater leather sofa that set her back around 2000 USD. She has the option to go with the Lazyboy as well, but she didn't go for it, that lazyboy would have cost her another 800.

But man, I would have to say, that beat the crap out of my IKEA sofa.....lol I can sleep on that leather sofa all day...

That is why the net worth of American households is significantly lower than that of Chinese households.

American Families Only Half as Rich as Those in Chinese Cities

www.yicaiglobal.com

 

[SecularNationalist]

Most prices over there are not justified. Here in pakistan you can find the same thing times times cheaper.
The most effed-up thing in the US is their healthcare system super expensive.
The one's who love to immigrate to US can only enjoy a luxurious life if they spend that dollars in their home countries with a big purchasing power or else it's just a working like a robot lifestyle , huge taxes with little savings if you live in the US.

 

[大汉奸柳传志]

living paycheck to paycheck = financially illiterate

should have enough money in bank account for at least 3 years of essentials like food, rent, utilities etc

 

[Hamartia Antidote]

from a few months ago...I think we have to figure out what they really mean by paycheck-to-paycheck.

I doubt anybody making $250,000 is really struggling...if they have some crazy mortgage/rent they can always sell/move.

A Third Of Americans Earning $250,000/Year Are Living Paycheck To Paycheck | Essence

A new study reveals that high-earners are being adversely affected by inflation.

www.essence.com

A Third Of Americans Earning $250,000/Year Are Living Paycheck To Paycheck​

 

[beijingwalker]

 

[Hamartia Antidote]

That is why the net worth of American households is significantly lower than that of Chinese households.

American Families Only Half as Rich as Those in Chinese Cities

www.yicaiglobal.com

American Families Only Half as Rich as Those in Chinese Cities

LOL! You are comparing just your city people to our entire country.

 

[VCheng]

from a few months ago...I think we have to figure out what they really mean by paycheck-to-paycheck.

I doubt anybody making $250,000 is really struggling...if they have some crazy mortgage/rent they can always sell/move.

A Third Of Americans Earning $250,000/Year Are Living Paycheck To Paycheck | Essence

A new study reveals that high-earners are being adversely affected by inflation.

www.essence.com

A Third Of Americans Earning $250,000/Year Are Living Paycheck To Paycheck​

People who are secure in their optimism for the future are the ones to maximize their spending now, knowing that the future will be better. Those who are afraid of the future save a lot today, accepting their lower standards of living as the price to pay for their feeling secure against a future likely to be worse.

 

[jhungary]

That is why the net worth of American households is significantly lower than that of Chinese households.

American Families Only Half as Rich as Those in Chinese Cities

www.yicaiglobal.com

That reference is misleading.

Most people living inside US Cities are poor, the middle class in the US mostly live in Suburb. And You are comparing City to City. and then you use the median value on it. That's cherry picking. It's like you are comparing Beverley Hill district (Subdivision in LA) to South Central (Inner City, LA), both of them in Los Angeles but the difference is heaven and earth.

Also, it's pointless to compare the median value

 

[nahtanbob]

Throw the US dollar and replace with another one. Case closed.

Tell me what to do if I need to invest $100 billion equivalent of Chinese currency

 

[MultaniGuy]

63% of Americans are living paycheck to paycheck — including nearly half of six-figure earners​

PUBLISHED MON, OCT 24 202210:29 AM EDT
Jessica Dickler@JDICKLER

KEY POINTS

• With persistent inflation eroding wage gains, the number of Americans living paycheck to paycheck is near a historic high, according to a recent report.
• Almost half of those earning more than $100,000 say they are just getting by.

As rising prices continue to outpace wage gains, families are finding less cushion in their monthly budget.

As of September, 63% of Americans were living paycheck to paycheck, according to a recent LendingClub report — near the 64% historic high hit in March. A year ago, the number of adults who felt strained was closer to 57%.

“Consumers are not able to keep up with the pace that inflation is increasing,” said Anuj Nayar, LendingClub’s financial health officer.

“Being employed is no longer enough for the everyday American,” Nayar said. “Wage growth has been inadequate, leaving more consumers than ever with little to nothing left over after managing monthly expenses.”

Inflation has steadily caused real wages to decline.

The consumer price index, which measures the average change in prices for consumer goods and services, was up 8.2% year over year in the latest reading, still hovering near the highest levels since the early 1980s.

Real average hourly earnings fell 0.1% for the month and are down 3% from a year ago, according to the Bureau of Labor Statistics.

A separate report by Salary Finance found that two-thirds of working adults said they are worse off financially than they were a year ago.

Even high-income earners are stretched too thin, LendingClub said. Of those earning more than six figures, 49% reported living paycheck to paycheck, a jump from the previous year’s 38%.

As a result, many Americans have dipped into their cash reserves or gone into debt.

At this rate, financial distress could reach an all-time high by the end of 2022, according to Nayar.

“With inflationary pressures not expected to subside anytime soon, living paycheck to paycheck has become the norm,” he said.

For its part, the Federal Reserve hiked its target federal funds rate by 0.75 percentage points for the third time in a row to calm runaway inflation.

The central bank has indicated even more increases are coming until inflation shows clear signs of a pullback.

63% of Americans are living paycheck to paycheck — including nearly half of six-figure earners

With persistent inflation eating away at wage gains, more Americans are struggling financially. The share living paycheck to paycheck is near a historic high.

www.cnbc.com

Somebody should lobby for China in the Organization of Islamic Countries or (OIC).

 

[Beast]

Tell me what to do if I need to invest $100 billion equivalent of Chinese currency

Do you know China is the world factory.. If one day, China declared they will not accept US dollar to buy Chinese commodities. Do you think suddenly there will be zero demand for Chinese goods?

China account for world 70% electronics and finished goods. If you think Rome can be build in a day by re allocated to India or Vietnam in a single day. Go ahead. Can the globe wait for a year without these commodities? Do you know why much inflation you will suffer if without made in China?

This day will come sooner or later. US dollar now walking a tightrope.

 

[beijingwalker]

Printing money is a slow poison, it will kill US eventually and totally, it appears to be US greatest strength, but indeed is US greatest weakness.

 

[VCheng]

This day will come sooner or later. US dollar now walking a tightrope.

ROFL. That day has come three times a week over the last decade on PDF, without fail.



Still has not happened, in real life.

 

[SQ8]

People who are secure in their optimism for the future are the ones to maximize their spending now, knowing that the future will be better. Those who are afraid of the future save a lot today, accepting their lower standards of living as the price to pay for their feeling secure against a future likely to be worse.

More importantly - would die a miser in your 60s worrying about your future having not lived your life at all or die paycheck to paycheck in your 30s knowing you experienced and seen a lot in life compared to that miser?

 

[VCheng]

More importantly - would die a miser in your 60s worrying about your future having not lived your life at all or die paycheck to paycheck in your 30s knowing you experienced and seen a lot in life compared to that miser?

Well, some people are so concerned with dying that they forget how to live, as the old saying goes. It is all a matter of personal priorities, so I will not judge anyone who thinks one way or the other. But for commiebots to come up with such stories time and again just to prove that somehow these data mean economic stress is not exactly true.