Survey: 64% of Americans Now Living Paycheck to Paycheck

[threeonesix]

Mobile apps save you more money than you might imagine. Too many people don't use them. That $5.14 McDouble and small fry could have been a McDouble and LARGE fry for $3.24 using the mobile app, for example. At least where I live. Our prices are middle of the road, not as high as the west coast but higher than the southeast.

 

[jazz4cash]

Looking for how ‘paycheck to paycheck’ is defined for this survey. Didn’t find an answer. I think it’s kind of a phony term. We’ve ALWAYS lived ‘paycheck to paycheck’ because all extra funds went to savings. Actually the savings was before spending. Here’s what the article says about that:

“Paycheck-to-paycheck consumers fall into two categories: those who are and those who are not struggling to pay their bills.

The share of consumers living paycheck to paycheck but not struggling to pay their bills has seen the largest increase since October 2021, especially among higher-income consumers.”

That sounds more like good news! Did they simply ask “Are you living paycheck to paycheck?”, followed by “Are you struggling to pay bills?”.

 

[Music Lover]

What's often overlooked in these types of surveys is that some of the people living from cheque to cheque don't really care. People that like to save and LBYM would lose sleep living like that but we're not them and they're not us.

I know people living cheque to cheque and not a single one of them has missed a meal or been homeless. They always manage to get by one way or the other and for some that's enough. They have different standards and different expectations.

 

[disneysteve]

Mobile apps save you more money than you might imagine.

Very true. Rewards programs, too, which are often app-based. I've often heard people who would really benefit tell me, "I don't have time to deal with the rewards programs." Fine. I'll take my free meal while you pay cash for yours.


Domino's Pizza gives you a free pizza after you buy 6.
The Slice app gives you a free pizza after you make 8 orders of at least $15.
Lots of other examples. The apps and reward programs also run specials all the time only available to members. There's a Mediterranean place nearby that we like that will do BOGO entrees or randomly send out $5 off offers.

 

[disneysteve]

What's often overlooked in these types of surveys is that some of the people living from cheque to cheque don't really care. People that like to save and LBYM would lose sleep living like that but we're not them and they're not us.

I know people living cheque to cheque and not a single one of them has missed a meal or been homeless. They always manage to get by one way or the other and for some that's enough. They have different standards and different expectations.

True, it works... until it doesn't. What happens when one of them gets sick or injured and can't work for a while? And what about retirement? Their plan may be to work until 65 and then collect SS, but we all know that many people are forced out before that for medical reasons or age discrimination. If you've spent your whole career living beyond your means and not saving for the future, what happens when the future arrives?

 

[Music Lover]

True, it works... until it doesn't. What happens when one of them gets sick or injured and can't work for a while? And what about retirement? Their plan may be to work until 65 and then collect SS, but we all know that many people are forced out before that for medical reasons or age discrimination. If you've spent your whole career living beyond your means and not saving for the future, what happens when the future arrives?

I don't know what will happen, but I'm pretty sure most of them will get by one way or the other.

Some of the people I know living cheque to cheque own paid off houses. They never saved a single penny but they also never missed a mortgage payment. They'll retire with both collecting CPP (I'm in Canada) and OAS, sell their house, move to an apartment and use the proceeds from the house sale to top up their monthly payments. Some of them also have a company pension. They might have less per month than they're used to but they'll adapt.

 

[acronymous]

I don't know what will happen, but I'm pretty sure most of them will get by one way or the other.

There's always money in the banana stand

<arrested_development_joke/>

 

[Calico]

There's always money in the banana stand

<arrested_development_joke/>

 

[Amethyst]

Mr. A. and I tried totting up our savings over our careers from never buying lunch, unless it was to celebrate with a group. The large time span made accuracy elusive, but we figured it equated (at least) to a serious upgrade in the home we were able to buy.

Certain employees were fond of complaining about the price, quantity, and quality of food from the employee cafeteria, yet bought their lunch there every day. I asked one of them about it; he said it was all about the "convenience."

It's hard to see how packing your own PBJ, fruit, cookies and drink is less "convenient" than standing in a cafeteria line, but that's just how some people think. Even some very smart people. They also liked the variety. I, on the other hand, could eat the same sandwich every day for decades.

The folks I work with order out for lunch pretty much every day. I know they've got to be spending a bare minimum of $10/day. I have no idea how they manage it seeing as I earn in the neighborhood of 8 times as much as they do and I pack a PB&J sandwich for my lunch.

 

[Amethyst]

I don't have anything against leasing a car. But it would have killed me to think of reducing the amount of the monthly mortgage payment I could afford, by the cost of leasing a much more expensive car than I needed.

.


People base their decision on whether or not they can "afford" the monthly payment, not if they can actually afford the vehicle.


.

 

[palomalou]

Not necessary to budget

When I pick my jaw up off the floor, I will ask who might want to know what we spent for food in November 1993, or for electricity in December 1994? Because we can tell you. We do budget, but our budget is based on what we have had to spend. Keeping up with every penny is a fantastic hedge against impulse spending.

 

[SevenUp]

Might be click bait, if the actual situation is similar to that surveyed a few years ago: Is it True that 40% of Americans Can't Handle a $400 Emergency Expense?

 

[Major Tom]

I, on the other hand, could eat the same sandwich every day for decades.

It's good to see someone else say this. I thought I was one of the few people who can eat pretty much the same things most days without getting bored. I have carried that habit into retirement.

 

[Music Lover]

When I pick my jaw up off the floor, I will ask who might want to know what we spent for food in November 1993, or for electricity in December 1994? Because we can tell you. We do budget, but our budget is based on what we have had to spend. Keeping up with every penny is a fantastic hedge against impulse spending.

I'm pretty sure my utility expenses 28 years ago were a larger portion of my monthly income than they are today. But I don't know for sure.

My pension is modest but it's enough. I don't worry about impulse purchases because we have enough and we don't go crazy. But we're retired with who knows how many years left. If we want something we'll just buy it. I have no interest at all in tracking my spending.

 

[karen1972]

To me people living paycheck to paycheck often make due because its a sliding scale in their lifestyle. Lots of people I know are bank poor but junk rich.
Many of them go out and buy the 4 wheeler, fishing boat, trailer, new compound bow, etc when they have money so it never sits in the bank and when they need money.. well they always seem to have something they can sell to make ends meet.

Go to any auction, garage sale, etc and see just how much "stuff" some people really have, this country was built on consumerism and that tends to be true across economic scales, rural/urban, etc.

The big issue this year is that all the people who got that child tax credit throughout last year aren't getting those big tax returns this month and they will feel the pain as that is the money they always used to pay off the overspend at Christmas

 

[Mulligan]

Lots of them. Statistically, the higher the price of the car, the more likely it is to be leased, not owned. About 1/3 of all new car transactions are leases. About 68% of all leases are for luxury vehicles.


People base their decision on whether or not they can "afford" the monthly payment, not if they can actually afford the vehicle.


This also is seen in the fact that the average car loan, new or used, is now 72 months. So even most people buying their cars are overextending themselves to get what they want, not what they can really afford.

I suspect you are correct. I am one of the few oddballs that took the 72% months free a couple months ago because it was a throw in. I will take a free interest loan. I have fought inflation a few ways and got lucky, traded in a car and received 3k more than I paid new for it 3 years ago. So my car payment is lower, plus I shopped around and found car insurance $100 cheaper every six months than my trade in was.
And today I got Direct Tv to lower my bill $55 a month for a year, just for asking… again, ha.
So these savings more than make up for the increased gas and feed bill I spend on anyways.

 

[Amethyst]

It was certainly true of school and work. At home, I want some variety.

It's good to see someone else say this. I thought I was one of the few people who can eat pretty much the same things most days without getting bored. I have carried that habit into retirement.

 

[athena53]

The consumer credit stats tell part of the story.

Lots of people spending money they do not have on 'wants' instead of 'needs'. Many live in a minimum monthly payment world. That minimum monthly payment tends to grow over time.

Worse still....the increase in consumer credit in the age group that is approaching retirement.

I agree- monthly payments are a trap. The big ones- mortgage, car payments, car LEASE payments (shudder), boat payments- can't be cut back easily when things go bad. Large credit card balances are the road to hell- you can end up paying 4 figures in interest alone in a year. And I remember that when I was married to my Ex and he'd maxed out all his credit cards (to him, unused credit was money he could spend) and stopped making payments, he got more credit card offers in the mail than I did- with bigger limits.

Sometimes I feel guilty because all this crazy spending on wants is paying for my credit card rewards and driving up the price of some of my stocks.

 

[FindingForward]

And this statistic...This one is probably the most surprising to me:

Quote: Research shows that among consumers who earn more than $100,000, 23% who live paycheck-to-paycheck and are struggling to pay their bills say they would not be able to pay a $400 emergency expense.

Not surprising to me at all. Was at a free food aid/support station during height of covid 2020, for those in need who can't afford food. It was a drive up to ensure safe distancing. The line for free food snaked at least a mile out of the park...and you never saw so many Lexus, BMW Audi, high end SUVs and 50K+ pickups. I felt like the poor relation - and I was the one helping to hand out food. I'm sure their monthly debt was a nightmare once they lost their job.

 

[FindingForward]

What's often overlooked in these types of surveys is that some of the people living from cheque to cheque don't really care. People that like to save and LBYM would lose sleep living like that but we're not them and they're not us.

I know people living cheque to cheque and not a single one of them has missed a meal or been homeless. They always manage to get by one way or the other and for some that's enough. They have different standards and different expectations.

lol...the ones I know "get by" by hitting up the savers in the family for money

 

[street]

Reading the statistics and survey it doesn't seem it could be possible. I seem to believe when I see these numbers and percentages that people are doing better than what the numbers show.

Not saying it isn't true just my view on what I think that people aren't that bad off.

 

[drcha]

Unfortunately, they now have all these "buy now, pay later" plans for everything you want to buy. It normalizes being in consumer debt. I could imagine someone getting into so many of these individual little plans that they cannot even track what they owe. Who knows what the missed-payment fees would be.

People just seem to think they deserve everything.

 

[GenXguy]

Reading the statistics and survey it doesn't seem it could be possible. I seem to believe when I see these numbers and percentages that people are doing better than what the numbers show.

Not saying it isn't true just my view on what I think that people aren't that bad off.

I don't know. I'm still working and make about $100K wages income, no debt, paid off home, in what is considered a lower cost of living area (except for taxes), and I feel like I'm poor because the costs are going up so much - far more than the 7.5% figure that gets thrown around. I even cut down my retirement withholding to $27K this year to increase my paycheck. Most people earn less than me and waste more money.

 

[Gumby]

...
People just seem to think they deserve everything.

If we got what we really deserve, we'd all be burning in Hell right now.

 

[Amethyst]

Oh, dear! Surely some of us could get off with a little time in Purgatory?

I haven't had nearly enough fun to qualify for Hell!

If we got what we really deserve, we'd all be burning in Hell right now.