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"At the start of 2022, 64% of the U.S. population was living paycheck to paycheck"

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MC Fresh Breath

MC Fresh Breath 4074

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"At the start of 2022, 64% of the U.S. population was living paycheck to paycheck, up from 61% in December and just shy of the high of 65% in 2020, according to a LendingClub report."

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As daily life gets more expensive, workers are having a harder time making ends meet.

While wage growth is high by historical standards, it isn’t keeping up with the increased cost of living, which is growing at the fastest annual pace in about four decades.

“Wages are up 5.1% over the past year, which is trailing the pace of inflation,” said Bankrate.com senior economic analyst Mark Hamrick. “Indeed, surging prices are stealing the show on the minds of consumers.”

When wages rise at a slower pace than inflation, those paychecks won’t go as far at the grocery store and at the gas pump — two areas of the budget that are getting particularly squeezed.

At the start of 2022, 64% of the U.S. population was living paycheck to paycheck, up from 61% in December and just shy of the high of 65% in 2020, according to a LendingClub report.

“We are all seeing the cost of everything shooting up,” said Anuj Nayar, LendingClub’s financial health officer. However, paying more for gas and groceries is hitting households particularly hard, he said.

“You’ve got to eat, you’ve got to commute; these are not discretionary expenses.”

Even among those earning six figures, 48% said they are now living paycheck to paycheck, up from 42% in December, the survey of more than 2,600 adults found.

“Depending on here you live, $100,000 may not get you that far,” Nayar said.

In San Francisco, for example, a family of four with a household of under $120,000 is considered low income. (Here’s a breakdown of how much you need to earn to afford to live in the country’s most popular cities.)

Americans now say they need to be making roughly $122,000 a year, more than double the current national average salary, to feel financially secure, according to a separate report from financial services website Personal Capital.

 

https://www.cnbc.com/2022/03/08/as-prices-rise-64-percent-of-americans-live-paycheck-to-paycheck.html

 

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DigglerontheHoof

DigglerontheHoof 21065

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1 minute ago, TwiceHorn said:

Probably a goodly portion of those make more than 10k a month.

From the "it's probably bullshit anecdotal file".  Have a buddy from UT who's is a CPA and also has a law degree from UT.  He has a colleague who is a tax attorney and supposedly has quite a few clients in the River Oaks area.  His TA friend swears a solid percentage of RO folks are paycheck to paycheck.  

That's all I got, but you might be more right than you know. 

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Red Five

Red Five 40665

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6 minutes ago, TwiceHorn said:

Probably a goodly portion of those make more than 10k a month.

"Even among those earning six figures, 48% said they are now living paycheck to paycheck"

Feel like we need a new definition of "paycheck to paycheck" then. 

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Biff Tannen

Biff Tannen 45497

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1 minute ago, Red Five said:

"Even among those earning six figures, 48% said they are now living paycheck to paycheck"

Feel like we need a new definition of "paycheck to paycheck" then. 

This.  Does this mean that these people's expenses are so high that if they miss a paycheck they'll default?

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aggie08

aggie08 21434

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1 minute ago, Red Five said:

"Even among those earning six figures, 48% said they are now living paycheck to paycheck"

Feel like we need a new definition of "paycheck to paycheck" then. 

Agreed. "I choose to live beyond my means" isn't true paycheck to paycheck living.

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TwiceHorn

TwiceHorn 31283

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44 minutes ago, DigglerontheHoof said:

From the "it's probably bullshit anecdotal file".  Have a buddy from UT who's is a CPA and also has a law degree from UT.  He has a colleague who is a tax attorney and supposedly has quite a few clients in the River Oaks area.  His TA friend swears a solid percentage of RO folks are paycheck to paycheck.  

That's all I got, but you might be more right than you know. 

My first mentor as a lawdog, who was an all-around solid guy in every aspect of his life advised me that a whole shitpile of lawyers spend every penny they can get their hands on and then some.  And advised that, if nothing else, can make you a slave to your job and kill your family and ultimately you.  Very sage advice, based on very true ideas.

He was a patent attorney and thus sort of inherently more conservative than many lawdogs, but there was a large Houston firm primarily of patent litigators that kept people working insane hours by encouraging extravagant lifestyles in various subtle ways.  And his best friend from undergrad was Ronnie Krist.  So he was familiar with lawdogs in all their various incarnations.  Of course, Ronnie made so much fucking money he couldn't spend it all if he wanted, but I think he tried (Krist was a lower-profile Jamail for the youngsters).

Edited by TwiceHorn
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TwiceHorn

TwiceHorn 31283

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29 minutes ago, Biff Tannen said:

This.  Does this mean that these people's expenses are so high that if they miss a paycheck they'll default?

Pretty fucking close.  Of course the question is "default" on what?  A mortgage, utilities?  Probably not.  Country club dues?  The vacation home, a $1500 car payment?  Very possibly.

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Guest

Guest

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Haven't these sorts of surveys been debunked yet? How many "75% of people don't have $400 for an emergency" articles have there been? And then COVID hit, which arguably could not have been a bigger shock, and people were able to get through it with better balance sheets than before the pandemic. 

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YChang

YChang 3431

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39 minutes ago, FirstTimeCaller said:

And then COVID hit, which arguably could not have been a bigger shock, and people were able to get through it with better balance sheets than before the pandemic. 

You really believe that's true for a majority of American citizens? Maybe it's not as high as the 75% without $400 for emergencies but I don't think it's as rosy as you think either. Think of the people evicted from homes the past 2 years..

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StassneyHorn

StassneyHorn 6540

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1 hour ago, FirstTimeCaller said:

Haven't these sorts of surveys been debunked yet? How many "75% of people don't have $400 for an emergency" articles have there been? And then COVID hit, which arguably could not have been a bigger shock, and people were able to get through it with better balance sheets than before the pandemic. 

There were 3 stimulus checks piled on top of $300 checks for people who had unprotected sex.

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Aqua Buddha

Aqua Buddha 14521

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I'm in consumer retail and can tell that the OP is fairly accurate.  You can see signifiant spikes around the 1st and the 15th of the month.  Most consumers are out of money by the last few days of the month.

"Six figures" always sounds good but in a lot of markets, that makes you very middle class.

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Aqua Buddha

Aqua Buddha 14521

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5 minutes ago, Aqua Buddha said:

I'm in consumer retail and can tell that the OP is fairly accurate.  You can see signifiant spikes around the 1st and the 15th of the month.  Most consumers are out of money by the last few days of the month.

"Six figures" always sounds good but in a lot of markets, that makes you very middle class.

By "most markets," you might think I'm talking about the coastal but I'm also talking about Dallas, Houston, Atlanta, etc.  If you got two people making $115K and two kids even in those markets, they're middle class and stretching to make ends meet.

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Immaculate Vibes

Immaculate Vibes 114

Posted
Posted
3 hours ago, FirstTimeCaller said:

Haven't these sorts of surveys been debunked yet? How many "75% of people don't have $400 for an emergency" articles have there been? And then COVID hit, which arguably could not have been a bigger shock, and people were able to get through it with better balance sheets than before the pandemic. 

Where did you get this idea?

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Immaculate Vibes

Immaculate Vibes 114

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The biggest problem we are about to face is with energy prices so high a recession is in the cards while the fed is still at 0% interest.  What do we/they do when things turn bad? There’s not really an economics thread so I’m not sure where to discuss this, but how is that addressed? There is a dearth of posters here that think much on this level. @washparkhorn @bernorange  

 

Do we pass a bill for essentially UBI and Fed monetizes the debt? We have no wiggle room.

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Voldemort86

Voldemort86 2259

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Republicans in congress are comfortable assholes with outdated view points. They will never agree to UBI. Most republicans believe too much in America and capitalism. They think the system works amazing and that if you’re poor, it’s your fault and you made bad choices to be poor.

the reality has been the same since outsourcing started in America, there simply aren’t enough good jobs for everyone. It seems like overnight people started living longer, people who got to retiring age didn’t retire, good jobs got outsourced overseas, and employers have like 500 applicants for 1 decent job opening.

Edited by Voldemort86
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mchookem

mchookem 16222

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32 minutes ago, Voldemort86 said:

Republicans in congress are comfortable assholes with outdated view points. They will never agree to UBI. Most republicans believe too much in America and capitalism. They think the system works amazing and that if you’re poor, it’s your fault and you made bad choices to be poor.

the reality has been the same since outsourcing started in America, there simply aren’t enough good jobs for everyone. It seems like overnight people started living longer, people who got to retiring age didn’t retire, good jobs got outsourced overseas, and employers have like 500 applicants for 1 decent job opening.

seems like we've seen the opposite over the past year...i mean retail and service industry can't get applicants, and run-of-the-mill state jobs that used to get 30-40 apps are lucky to get 10. unemployment is way down and yet there are still restaurants not open on any given day bc they don't have enough staff!

i mean it's seriously weird. who knows what's going on. the post-mortem 20 years from now will be fascinating 🤔

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TexArcher

TexArcher 37519

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5 hours ago, DigglerontheHoof said:

From the "it's probably bullshit anecdotal file".  Have a buddy from UT who's is a CPA and also has a law degree from UT.  He has a colleague who is a tax attorney and supposedly has quite a few clients in the River Oaks area.  His TA friend swears a solid percentage of RO folks are paycheck to paycheck.  

That's all I got, but you might be more right than you know. 

I'm a financial advisor and I can tell you that I've met quite a few couples who net $15k a month and spend $16k a month, etc.

Boggles the mind, but yeah, it's not uncommon at all.

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Zeus

Zeus 5950

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Other countries make like $200/month on average

Some people live on like $40/month in total shitholes

Americans are marketed to infinity and consumerism is king, it's totally normal to live beyond your means and have a car you can't afford, house you can't afford, ect and live paycheck to paycheck. Doesn't mean Americans are poor. We are the fattest county on the planet lol nobody is starving. Drug addicted homeless people are given money and paraphernalia to shoot up and smoke crack all day if they want. 

If the solution is the WEF great reset where they shut off the internet in a "cyber pandemic" the middle class in America is gonna get obliterated. Enjoy it while you can

 

Communist-block.jpg

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StruggleBus

StruggleBus 3922

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Posted (edited)
59 minutes ago, Immaculate Vibes said:

The biggest problem we are about to face is with energy prices so high a recession is in the cards while the fed is still at 0% interest.  What do we/they do when things turn bad? There’s not really an economics thread so I’m not sure where to discuss this, but how is that addressed? There is a dearth of posters here that think much on this level. @washparkhorn @bernorange  

 

Do we pass a bill for essentially UBI and Fed monetizes the debt? We have no wiggle room.

nm

Edited by StruggleBus
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Biff Tannen

Biff Tannen 45497

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21 minutes ago, Zeus said:

Other countries make like $200/month on average

Some people live on like $40/month in total shitholes

Americans are marketed to infinity and consumerism is king, it's totally normal to live beyond your means and have a car you can't afford, house you can't afford, ect and live paycheck to paycheck. Doesn't mean Americans are poor. We are the fattest county on the planet lol nobody is starving. Drug addicted homeless people are given money and paraphernalia to shoot up and smoke crack all day if they want. 

If the solution is the WEF great reset where they shut off the internet in a "cyber pandemic" the middle class in America is gonna get obliterated. Enjoy it while you can

 

Communist-block.jpg

I've never been more sure that you're a Russian troll.  Fuck off.

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Hmbre97

Hmbre97 6297

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Other countries make like $200/month on average
Some people live on like $40/month in total shitholes
Americans are marketed to infinity and consumerism is king, it's totally normal to live beyond your means and have a car you can't afford, house you can't afford, ect and live paycheck to paycheck. Doesn't mean Americans are poor. We are the fattest county on the planet lol nobody is starving. Drug addicted homeless people are given money and paraphernalia to shoot up and smoke crack all day if they want. 
If the solution is the WEF great reset where they shut off the internet in a "cyber pandemic" the middle class in America is gonna get obliterated. Enjoy it while you can
 
Communist-block.thumb.jpg.5d113fb025c1f84182c3d653781049bf.jpg
Goddamn you are a special kind of stupid
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Hmbre97

Hmbre97 6297

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seems like we've seen the opposite over the past year...i mean retail and service industry can't get applicants, and run-of-the-mill state jobs that used to get 30-40 apps are lucky to get 10. unemployment is way down and yet there are still restaurants not open on any given day bc they don't have enough staff!
i mean it's seriously weird. who knows what's going on. the post-mortem 20 years from now will be fascinating
He said decent job. Retail and food service don't pay shit unless you're upper management which aren't the jobs they're having trouble filling.
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Voldemort86

Voldemort86 2259

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42 minutes ago, mchookem said:

seems like we've seen the opposite over the past year...i mean retail and service industry can't get applicants, and run-of-the-mill state jobs that used to get 30-40 apps are lucky to get 10. unemployment is way down and yet there are still restaurants not open on any given day bc they don't have enough staff!

i mean it's seriously weird. who knows what's going on. the post-mortem 20 years from now will be fascinating 🤔

It proves that unemployment benefits weren’t the problem. Republicans overlooked how much that money helped businesses because people receiving the unemployment usually spent it. I’d rather see people who need help get it, then give tax cuts to wealthy folks who stash their loot in banks in the Cayman Islands.

you’re right. I was referring to 2000-2020 where it seemed like employers had a huge upper hand in the job market. The pandemic has kind of evened it out a bit with some people dying and lots of people retiring early or simply retiring at retiring age when they probably should have retired anyway.

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Bullneck

Bullneck 18987

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1 hour ago, Immaculate Vibes said:

The biggest problem we are about to face is with energy prices so high a recession is in the cards while the fed is still at 0% interest.  What do we/they do when things turn bad? There’s not really an economics thread so I’m not sure where to discuss this, but how is that addressed? There is a dearth of posters here that think much on this level. @washparkhorn @bernorange  

 

Do we pass a bill for essentially UBI and Fed monetizes the debt? We have no wiggle room.

OK, troll.  "Energy prices are so high."  If you cut my gas consumption (or price of fuel) in half it might make $100 a month difference.  

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fattyflattie

fattyflattie 4636

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26 minutes ago, Bullneck said:

OK, troll.  "Energy prices are so high."  If you cut my gas consumption (or price of fuel) in half it might make $100 a month difference.  

Eh. I’m on 1/4 on tank #2 this week at 4.69 #2.  Irritating, but I’d wager there’s lots of people that can’t afford ~250/week/vehicle in fuel. 

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Voldemort86

Voldemort86 2259

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Posted (edited)
16 minutes ago, fattyflattie said:

Eh. I’m on 1/4 on tank #2 this week at 4.69 #2.  Irritating, but I’d wager there’s lots of people that can’t afford ~250/week/vehicle in fuel. 

It sucks but most people will have to cut back on other expenses.

Edited by Voldemort86
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bernorange

bernorange 8348

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Rising gas prices raise the price of almost everything else.  All parts of the chain have to bear rising costs for transportation from raw materials to processing/manufacturing to packaging to retail/warehouse.  It's not just the differential of your periodic personal travel expense that is at issue.

@Immaculate Vibes - I'm not sure what else the Fed can do besides brrrt in support of more government stimulus and there isn't much sentiment for that right now.  Last I heard, Fed was intent on shutting down brrrt slowly while possibly raising rates.  They could change course if they think it's merited.

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elfenix

elfenix 34171

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2 hours ago, fattyflattie said:

Eh. I’m on 1/4 on tank #2 this week at 4.69 #2.  Irritating, but I’d wager there’s lots of people that can’t afford ~250/week/vehicle in fuel. 

who the fuck is spending $1000 a month in gas for a single vehicle?  that's 227 gallons of premium per month at the current texas average price, even in an F150 raptor that's 3600+ miles in a month

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StassneyHorn

StassneyHorn 6540

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High oil prices are great for Texas, and you’re a “bean in my chili” scalawag if you think differently. High oil prices thank GAWD for the Texas economy.

15 gallons a week at maybe $1.50 difference is $22.50. What were you doing the entire pandemic when the rest of the world was learning new tech skills for free? Playing with your gummy belly button? 23 dollars made you a beggar? Most of this country has eliminated their work commute, but you’re over here Cosplaying bang bus and driving 100 miles a day?

Edited by StassneyHorn
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Zeus

Zeus 5950

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Posted
1 hour ago, Bookman said:

If people can't afford gas maybe we should provide some type of low-cost transportation that is available to the public.

You can ride the city bus I'll keep living 2 mins away from my office.

Also what about people who have to drive around to job sites or wherever for work? You want them to spend most of their day waiting around at bus stops with homeless people?

It's just not realistic in most of Texas. People live in the burbs.

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Zeus

Zeus 5950

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Posted
3 hours ago, StassneyHorn said:

High oil prices are great for Texas, and you’re a “bean in my chili” scalawag if you think differently. High oil prices thank GAWD for the Texas economy.

15 gallons a week at maybe $1.50 difference is $22.50. What were you doing the entire pandemic when the rest of the world was learning new tech skills for free? Playing with your gummy belly button? 23 dollars made you a beggar? Most of this country has eliminated their work commute, but you’re over here Cosplaying bang bus and driving 100 miles a day?

It's just another hidden tax on the working class, inflation. It's not just going to be gasoline bub, everything gets to where it needs to be using the same gas. The cost of living just went up (again) while the working class wages aren't catching up fast enough.

They kept saying inflation was under control last year, it was supposed to be 2-4% or something? It was like 7%. It's going to get worse this year.

You or I being professionals may not get hurt that much, but the majority of the working class has a much tighter budget. 

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DigglerontheHoof

DigglerontheHoof 21065

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17 minutes ago, Zeus said:

You can ride the city bus I'll keep living 2 mins away from my office.

Also what about people who have to drive around to job sites or wherever for work? You want them to spend most of their day waiting around at bus stops with homeless people?

It's just not realistic in most of Texas. People live in the burbs.

Be competent enough to fill out and submit an expense report?

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