Despite rising wages, 61% of Americans are still living paycheck to paycheck
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Re: Despite rising wages, 61% of Americans are still living paycheck to paycheck
#2The cost of housing combined with manufacturing outsourcing has basically crippled the American working/middle class since the early 2000s. Then add inflation.
When Ivy League business school grads are having to save until their 40s to buy homes, what does that imply for the rest of the country?
Re: Despite rising wages, 61% of Americans are still living paycheck to paycheck
#3guess who will suffer most from global warming
Re: Despite rising wages, 61% of Americans are still living paycheck to paycheck
#4No post body was provided.
Re: Despite rising wages, 61% of Americans are still living paycheck to paycheck
#5> Even among those earning six figures, 42% said they were living paycheck to paycheck, the survey of more than 3,000 adults found.
I know there are areas with extremely HCOL, inflation, housing crisis... However, sometimes I do wonder though what some people's budgets are like that they are literally unable to save any money (paycheck to paycheck) making >$100k. Do we know what part lack of financial literacy or simply "living above one's means" play here in the grand scheme of things?
Re: Despite rising wages, 61% of Americans are still living paycheck to paycheck
#6The cost of housing combined with manufacturing outsourcing has basically crippled the American working/middle class since the early 2000s. Then add inflation. When Ivy League business school grads are having to save until their 40s to buy homes, what does that imply for the rest of the country?
> cost of housing combined with manufacturing outsourcing
I think these are two separate issues.
> business school grads saving into their 40s to buy homes
For example, on this -- surely, if anything, manufacturing outsourcing has only made business school grads get paid more?
If you're not already familiar, take a look at Baumol's cost disease [0] for more on the phenomena at play here.
Re: Despite rising wages, 61% of Americans are still living paycheck to paycheck
#7The cost of housing combined with manufacturing outsourcing has basically crippled the American working/middle class since the early 2000s. Then add inflation. When Ivy League business school grads are having to save until their 40s to buy homes, what does that imply for the rest of the country?
The system is working exactly as designed. The politicians are enriching their wealthy donors.
Re: Despite rising wages, 61% of Americans are still living paycheck to paycheck
#8The cost of housing combined with manufacturing outsourcing has basically crippled the American working/middle class since the early 2000s. Then add inflation. When Ivy League business school grads are having to save until their 40s to buy homes, what does that imply for the rest of the country?
"Ivy League business school grads"
Is it possible they have to wait due to larger than average student loans (although many do come from wealth), or that the high paying jobs they seek are in HCOL areas?
Re: Despite rising wages, 61% of Americans are still living paycheck to paycheck
#9These kinds of articles tell maybe half the story.
In my early 20s, I was earning $120K a year while living in rural Texas. I had an expensive apartment (3 bedroom), a leased Lexus IS, and spent lavishly. I also got a second car (a Honda Fit) for grocery store runs. If this sounds absurd, yeah I know.
2 years of this and I had some 401K savings but no after tax investments. I wasn’t even maxing out the company match. Just before each pay day, I might have had $800 in my checking account on a good day.
My case might be extreme (I don’t know), but it was certainly poor financial decisions.
Re: Despite rising wages, 61% of Americans are still living paycheck to paycheck
#10> Even among those earning six figures, 42% said they were living paycheck to paycheck, the survey of more than 3,000 adults found. I know there are areas with extremely HCOL, inflation, housing crisis... However, sometimes I do wonder though what some people's budgets are like that they are literally unable to save any money (paycheck to paycheck) making >$100k. Do we know what part lack of financial literacy or sim…
Not saying it's the main reason, but if you have to pay for your own health insurance, and you have a family, that can eat up a whole lot of even a low-six-figures household income. Then there's the cost if you actually need to use any healthcare....
Actually, even if your insurance is employer provided but you still have to pay a significant percentage of the premium, that can be a problem. $12+k/yr on top of what the employer's paying isn't uncommon. Most employers aren't as generous as FAANG and such.
Doubt that's the case for most, but it's one way for that to happen.
(I'd expect that poor spending choices are the main reason.)
[EDIT] Oh, childcare. It can easily be the case that your household income is $120,000 but $25,000 of it goes to childcare—but your household income would be $80,000 without the childcare, so you're still coming out ahead.