61% off Americans Living Paycheck to Paycheck
Posted on August 4, 2022
A new study from LendingClub and Pymnts.com has found that more Americans are living paycheck to paycheck. The study found 61% of Americans are currently living this way. This is an increase of 6% since June 2021 and it includes many families earning $100,000 or more. The study also found that families are saving less money.
Anuj Nayar, LendingClub's Financial Health Officer, says in a statement, "What a difference a year makes. Last summer we were all worried about how quickly the economy would recover. Now, as inflation continues its upwards swing, consumers are finding it more difficult to manage spending and are eating into their savings as financial pressures mount."
Here are some findings from the study:
- In June 2022, 61% of Americans were living paycheck to paycheck, up from a low of 52% in April 2021 and 55% in June 2021.
- Average savings dropped $517 from $11,724 in May 2022 to $10,757 in June 2022.
- The biggest rise in paycheck-to-paycheck consumers was in consumers earning between $100,000 and $150,000, up 11 percentage points from May 2022 to 52% in June 2022.
- The average consumer stores 11% of their savings in either stocks or bonds, yet half of all stockholders reported that their portfolios recently lost value in the last three months.
- An estimated 33.5 million - or 13% - of U.S. consumers spent more than they earned in the past six months.
- 36% of consumers annually earning $200,000 or more lived paycheck to paycheck in June.
The full report can be found on pymnts.com.