Stock Groups

1 in 5 American workers runs out of money before payday, survey finds


Soaring gas prices and high grocery costs are putting a strain on households all over the country.

Over three quarters of all Americans are employed inflationA report from Salary Finance.

Wage growth is a concern high by historical standardsIt isn’t keeping pace with rising living costs, which are increasing at an alarming rate. the fastest annual pace in about four decades.

If wages grow at a faster pace than inflation, then paychecks are less secure won’t stretch as far.

Salary Finance discovered that workers are now running out of money more quickly.

The survey, which included over 3,000 workers, found that 20% of them are now regularly in a money crunch, up from 15% the previous year.

Accordingly, around 25% of respondents said that it is harder to pay for necessary expenses while one third are unable build. savingsThese are issues which can be particularly troublesome for workers with low to moderate incomes.

Learn more about Personal Finance
Who felt the biggest pinch from rising gas prices
Why high gas prices fall harder on lower earners
More Americans are living paycheck to paycheck

People with low incomes can get help. bigger share of their budgets to transportation costs and other staples, like food and energy, relative to wealthier households, data show.

Additionally, those with $50,000 annual income or less already enjoy this. thinner marginsKayla Bruun from Morning Consult, an economic analyst, says that the difference between what people spend and how much they bring home is significant.

Bruun stated that while everyone is affected by recent price rises, households with lower incomes are most vulnerable because they don’t have a buffer to finance them.

Subscribe to CNBC on YouTube.