64% of Americans Living Paycheck to Paycheck in 2022
By Inflation has continued to take its toll on American households, with a new report from LendingClub showing that 64% of Americans were living paycheck to paycheck by the end of 2022. This number is up from 61% a year prior and is near the historic high first seen in March 2020.[0]
The research conducted by Pymnts.com and LendingClub Corp. revealed that 166 million individuals, or 64% of Americans, are living paycheck to paycheck. 66 percent of middle-income consumers with an annual income of $50,000 to 100,000 are still living paycheck to paycheck, which is the same figure as the previous year. But among low-income individuals — those earning less than $50,000 annually — the number jumps to 78 percent.[1]
Even those of us who are earning salaries of $100,000 or higher per year still experience difficulties sticking to a budget each month.[2] In fact, this demographic is struggling even more today: 51% of consumers who earn $100,000 or more per year say they live paycheck-to-paycheck, 9.3 million more than this time last year, according to data from LendingClub and PYMNTS.[3]
The U.S. Bureau of Labor Statistics reported that the Consumer Price Index (CPI) for all items rose 6.5 percent for the 12 months ending in December.[4] While that is down from a peak of 9.1 percent recorded over the summer, it is still about three times higher than the pre-pandemic average.[5]
To make ends meet, 27% of Americans said they've had to take money out of savings and more than half, or 54%, said they used that money to pay for everyday expenses, such as groceries and rent, the recent Country Financial Security Index found.[6]
The decline in stock prices and property values will have a “negative wealth effect,” exacerbating these dynamics, according to Lydia Boussour, senior economist at EY Parthenon.[7]
Less than half of survey respondents anticipate that their incomes will be able to keep up with inflation, meaning that 2023 may bring more financial strain.[8] Other signs also suggest a certain degree of financial strain.[8] According to the most recent University of Michigan survey, consumer sentiment has increased from the year's low points, yet still remains substantially lower than before the pandemic started.[9]
0. “64% of Americans Living Paycheck to Paycheck in 2022” Watcher Guru, 10 Feb. 2023, https://watcher.guru/news/64-of-americans-living-paycheck-to-paycheck-in-2022
1. “More people living paycheck to paycheck” Thomasville Times, 15 Feb. 2023, https://www.thethomasvilletimes.com/articles/more-people-living-paycheck-to-paycheck
2. “Across All Income Levels, More Americans Are Living Paycheck…” MENAFN.COM, 10 Feb. 2023, https://menafn.com/1105556709/Across-All-Income-Levels-More-Americans-Are-Living-Paycheck-To-Paycheck
3. “How High Earners Can Finally Stop Living Paycheck-to-Paycheck” HerMoney, 14 Feb. 2023, https://hermoney.com/earn/stop-living-paycheck-to-paycheck-2
4. “High Inflation Drives More Employees to Live Paycheck to Paycheck” SHRM, 8 Feb. 2023, https://www.shrm.org/resourcesandtools/hr-topics/compensation/pages/high-inflation-drives-more-employees-to-live-paycheck-to-paycheck.aspx
5. “Savings getting tapped by Americans to make ends meet due to inflation” Fox Business, 16 Feb. 2023, https://www.foxbusiness.com/economy/savings-getting-tapped-americans-ends-meet-inflation
6. “Amid persistent inflation, 54% of Americans are using savings to pay for everyday expenses” CNBC, 16 Feb. 2023, https://www.cnbc.com/2023/02/16/54percent-of-americans-are-dipping-into-savings-to-pay-for-everyday-expenses.html
7. “Six figure earners also living paycheck-to-paycheck – Nashville PRIDE, Inc.” pridepublishinggroup.com, 9 Feb. 2023, https://pridepublishinggroup.com/2023/02/09/six-figure-earners-also-living-paycheck-to-paycheck/
8. “Even on $100k plus, more Americans are living paycheck-to-paycheck” The Spokesman Review, 12 Feb. 2023, https://www.spokesman.com/stories/2023/feb/12/even-on-100k-plus-more-americans-are-living-payche
9. “Anxious for payday: Even high-income earning Americans live paycheck to paycheck” Augusta Free Press, 8 Feb. 2023, https://augustafreepress.com/news/anxious-for-payday-even-high-income-earning-americans-live-paycheck-to-paycheck/
