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As inflation heats up, 64% of Americans live paycheck to paycheck

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Workers are finding it harder to make ends meet as daily living becomes more costly.

Although wage growth is slowing, high by historical standardsIt isn’t growing with rising living costs. the fastest annual paceIn approximately four decades.

Mark Hamrick, senior economic analyst at Bankrate.com stated that “wages have increased by 5.1%” over the past 12 months. However, this is still below the inflation rate. Inflation is stealing consumers’ minds, according to Mark Hamrick, senior economic analyst at Bankrate.com.

If wages increase at a slower rate than inflation, then those paychecks are more secure. won’t go as farThe grocery store, and the gas pump — two areas of the budget that are getting particularly squeezed.

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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.

Anuj Naryar, LendingClub’s financial health officer said “We all see the cost of everything rising.” He said that households are being hit particularly hard by higher prices for groceries and gas.

“You have to eat; you must commute. These expenses are not discretionary.”

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.

Nayar explained that depending on your location, $100,000 could not take you far.

For example, in San Francisco, an individual with four children and a household income of less than $120,000 can be considered a family. low income. (Here is a list of all the available options. how much you need to earnYou can afford to live and work in one of the top cities in the nation.

Americans say that they should be earning roughly $122,000According to the Financial Security Index, it takes more than twice as long to feel financially safe in a given year. You can also request a report separately from Personal Capital, a financial service website.

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