Among those with salaries and other income totaling $75,000 to $100,000, 23% are just scraping by, up from 19% in 2019. For those earning $101,000 to $150,000, 22% are spending nearly all their money on basics, up from 18%.
One in five households earning at least $150,000 a year are currently living paycheck to paycheck, Bank of America finds. It's no surprise that everything is more expensive these days. (Tickets to the World Series are the most expensive of all time.)
Thirty-three percent of workers earning between $50,000 and $79,999 annually say they're living paycheck to paycheck, compared to 36 percent of workers earning between $80,000 and $99,999 and 24 percent of workers earning $100,000 or more.
A separate study from PYMNTS of more than 4,200 consumers found that 62% of total consumers and 36% of those making more than $200,000 feel like they're living paycheck to paycheck.
Yes, it is. In fact, that level of income significantly surpasses what a typical American worker earns in a year. But it's worth noting that your local cost of living and financial obligations can impact how far the money goes.
Living paycheck to paycheck isn't necessarily bad
“If you are putting that savings away, if you have emergency funds in place, if your debt is not out of control, then even if you are living from paycheck to paycheck, you are probably doing pretty well,” said Ayoola, the finance expert at NerdWallet.
According to the US Census, about 16% of American households make between $100,000 and $149,999, 9% of households make between $150,000 and $199,999, and another 12% earn $200,000 or more.
Necessities are 'swallowing up' income
Around 35% of households earning less than $50,000 per year are living paycheck to paycheck, up from 32% in 2019. Higher-income households also report struggling, with around 20% of households with more than $150,000 living paycheck to paycheck, the research found.
Higher expenses seem to be a bigger reason households are strapped for cash each month, the report finds. About 20% of households earning more than $150,000 a year spend over 95% of their income on necessities, according to Bank of America's analysis.
California's living wage is $19.41, or $40,371 a year for an individual. A family of four requires $27.42, or $101,378 a year.
Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year.
According to a 2023 report from LendingClub, over 60% of people are just scraping by without any savings or wiggle room in their budgets. What's even more surprising is that it's not just lower-income folks. Over half of Americans making six figures are still living paycheck to paycheck, too.
One common question is whether or not millionaires keep money in checking accounts. Studies show that in recent years, millionaires are keeping a significant portion of their wealth in cash. According to CNBC's Millionaire Survey , that portion was about 24% in 2023.
Most Americans are not saving enough for retirement. According to the survey, only 14% of Americans have $100,000 or more saved in their retirement accounts. In fact, about 78% of Americans have $50,000 or less saved for retirement.
Those will become part of your budget. The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.
The $1,000 per month rule is a guideline to estimate retirement savings based on your desired monthly income. For every $240,000 you set aside, you can receive $1,000 a month if you withdraw 5% each year. This simple rule is a good starting point, but you should consider factors like inflation for long-term planning.
One estimate found that the median U.S. household income is $77,397. 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.
A gross annual income of $150,000 per year equates to a $576.92 daily salary. This calculation assumes you're working 40 hours per week and eight hours per day. SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.'s service.
Of all U.S. adults surveyed, 18% said the largest emergency expense they could handle right now using only savings was under $100. What's even scarier? Only 14% said they could handle an expense of $100 to $499 and only 10% said they could handle an expense of $500 to $999.
A record-high 67% of consumers are living paycheck to paycheck, according to a November 2024 survey conducted by Pymnts. Even the largest living adult generation in the U.S., millennials, is not exempt from financial struggles.
One half, 49.98%, of all income in the US was earned by households with an income over $100,000, the top twenty percent. Over one quarter, 28.5%, of all income was earned by the top 8%, those households earning more than $150,000 a year.