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Why Do 6-Figure Wage Earning Americans Live Paycheck To Paycheck?

Economy And Jobs,Wages,Wealth Inequality,Poverty

From the Center
Analysis

Low-income Americans are no longer the only ones living paycheck to paycheck. High-income earners have a hard time balancing the family books, too.

According to a recent LendingClub report, as of August, 45% of Americans who make six figures are living paycheck to paycheck, up from 38% a year ago.

That's a shocking finding for two reasons. One, America is among the world's most affluent economies. Thus, one would expect people to afford to save money rather than barely getting by with what they earn. And two, living paycheck to paycheck should be confined to low-earnings Americans, as the money they earn is barely enough to cover living expenses, but not to high-earners.

The apparent reason behind this is rising inflation, which runs at a 40-year high, squeezing family budgets across almost every income bracket. "Living paycheck to paycheck implies barely having enough to carry money to the next month," Lyle Solomon, principal attorney at Oak View Law Group and a personal finance expert and advisor, said in an email to International Business Times. "No doubt, the current economic scenario has made this situation even more stressful."

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