In the world of the rich, money, money, money is no laughing matter, and these days, even the wealthiest people in the country seem to be struggling to achieve financial stability.
According to MarketWatch Guide, the majority of Americans (66.2%) feel they run out of money before payday. investigation Of the 2,000 adults, almost half (48.6%) consider themselves to be “money-poor.”
Apparently even a six-figure salary isn’t enough to stave off the discomfort: What was once a sign of financial success is now no longer money in the bank, with 48% of people making more than $100,000 a year saying they run out of money before payday, and more than a third (36%) of those making more than $200,000 reporting similar financial hardships.
As inflation has risen over the past few years, even those with decent incomes have struggled: Higher living costs and subsequent low incomes were the main issues, according to respondents to a 2022 Federal Reserve survey. study As for financial well-being, since then, the rising cost of living has eased somewhat as wages have finally outpaced inflation, he said. Economic Policy Institute After a tough time building wealth, Americans still seem to be feeling the pinch, according to an analysis of data from the Bureau of Labor Statistics.
another study A PYMNTS survey of more than 4,200 consumers found that 62% of consumers overall and 36% of those making more than $200,000 a year feel like they’re running out of money before payday. Both figures have increased since the survey was conducted a year ago, and the authors point to rising costs of living as a factor.
Of course, these high-income families aren’t in as much trouble as weaker Americans. Running out of money before payday means something different for the wealthy, whose expenses are often driven by the lifestyles that come with a high salary.
“While rising housing and food costs are impacting these consumers, other factors, such as non-essential spending, paying for others’ expenses, and recent events that have eroded savings, may be impacting their financial lifestyles in particular,” PYMNTS said of these high-income earners, noting that they also shoulder a lot of the financial burden of education.
Even actress Sydney Sweeney spoke out last summer, saying she couldn’t afford to take six months off or settle down without a steady paycheck. “If I was just an actress, I wouldn’t be able to make the life I want in LA. I sign because I have to,” she said, referring to the meager residual income the streaming world offers.
Perhaps due to persistent wage disparities, women are more likely than men to run out of money before payday (72% vs. 60%, respectively). According to MarketWatchAnd millennials, burdened by student loan debt and an untimely recession, are the most likely to experience this financial burden, followed by Gen Xers.
Many millennials who make six figures are trying to make up for lost time. “I know I’m very blessed, but when it comes to our finances, the pressure just keeps increasing,” said Kelly, a millennial who makes six figures. Fortune Alicia Adamczyk. “Am I managing to get by? Yes, but I’m not making progress and I’m missing major milestones along the way.”
