Poll: One-Third of Americans Making $250K ‘Live Paycheck-to-Paycheck’

[mystery-ak]

Poll: One-Third of Americans Making $250K ‘Live Paycheck-to-Paycheck’

Katherine Hamilton 1 Jun 2022

More than 33 percent of Americans who earn $250,000 a year report living paycheck to paycheck, “underscoring how inflation is taking a bigger bite out of Americans’ budgets at all ends of the pay spectrum,” Bloomberg reported on Wednesday.

Industry publication Pymnts.com and LendingClub Corp. conducted a survey from April 6-13 with about 4,000 US consumers, finding that roughly 36 percent of households bringing in $250,000-plus annually spend most of their income on household expenses.

“It’s particularly true among millennials, who are now in their mid-20s to early 40s: More than half of top earners in that generation report having little left at the end of the month,” according to the report.

The survey revealed that 55.4 percent of Millennials who earn $250,000-plus a year reported living paycheck to paycheck compared to 21.8 percent of Boomer generation respondents in the same earnings category.

The survey did distinguish high earners who can pay their bills with relative ease compared to those who struggled to cover household expenses in April, which is roughly one in ten. The report noted:

Housing expenses, which typically take up large chunks of the budgets of wealthier people, have skyrocketed during the pandemic. For example in Orange County, California, a top-tier home cost $1.7 million in April, up from $1.2 million in February 2020, based on Zillow Group Inc. data. A mortgage on that house, assuming a 20 percent down payment, would cost about $100,000 per year. That’s 40 percent of a $250,000 annual pre-tax income.

Approximately 61 percent of consumers overall reported living paycheck to paycheck in April, which is a nine percentage-point increase from last year. The results come as U.S. food inflation continues to soar past a 41-year high and gas prices surpass $5 in many parts of the country.

The survey found that many higher income households are using credit cards to “finance their lifestyles,” but they are also able to completely pay off the balance.

“US consumer borrowing soared in March by the most on record as credit-card balances ballooned and non-revolving credit jumped, highlighting the combined impact of solid spending and rising prices,” the report states.

https://www.breitbart.com/politics/2022/06/01/poll-one-third-of-americans-making-250k-live-paycheck-to-paycheck/

[Free Vulcan]

I see they have Gen X down to about 8 years...

[libertybele]

I see they have Gen X down to about 8 years...

I would love to have $250k a year to live on.

[Free Vulcan]

I would love to have $250k a year to live on.

While I realize that they tax the crap out of you, taking half would mean $10K a month take home. Even $5K a month for debt payments, insurance, and utilities would leave the other half free and clear.

City living is expensive, but geez Louise.

[libertybele]

While I realize that they tax the crap out of you, taking half would mean 10K a month take home. Even $5K a month for debt payments, insurance, and utilities would leave the other half free and clear.

City living is expensive, but geez Louise.

Exactly.

[GtHawk]

If you are making 250K a year and are living paycheck to paycheck maybe you need to curb some spending, stop going out to eat so much, cut back on entertainment, quit leasing or buying cars to impress others. In short, live within your means.

[IsailedawayfromFR]

Millennials lack good economic judgement.

They earn a lot but are bigger spenders than their parents.

Building wealth is more of control of spending than it is earning high income.

The downward path for them during the recession will cause a lot of pain to these pleasure-seekers.

[roamer_1]

I am SO VERY HAPPY I got off that train and went back to country living. The pressure of it alone about blew me to pieces. Never again. Money don't buy happiness nor peace - Especially on payments. Poor fools. But there ain't no telling em.

[Smokin Joe]

I would love to have $250k a year to live on.

Me, too. I could stash 100K a year in investments (after taxes) and still live well.

[The_Reader_David]

I suspect the paycheck-to-paycheck high earners are concentrated in LA, NYC and the Bay Area, all of which have both high taxes and obscenely high housing costs.  A lot of them are probably also servicing private education loans, which haven't been paused for the pandemic (or political points) like the Federal ones.  That probably also accounts for the generational difference:  Millennial high earners are concentrated in places where pay has to be high because cost of living is high and businesses couldn't attract workers without large pay packets, while Boomer high earners are spread more evenly across the country.

[Kamaji]

I suspect the paycheck-to-paycheck high earners are concentrated in LA, NYC and the Bay Area, all of which have both high taxes and obscenely high housing costs.  A lot of them are probably also servicing private education loans, which haven't been paused for the pandemic (or political points) like the Federal ones.  That probably also accounts for the generational difference:  Millennial high earners are concentrated in places where pay has to be high because cost of living is high and businesses couldn't attract workers without large pay packets, while Boomer high earners are spread more evenly across the country.

I suspect you're absolutely correct.

[IsailedawayfromFR]

I suspect the paycheck-to-paycheck high earners are concentrated in LA, NYC and the Bay Area, all of which have both high taxes and obscenely high housing costs.  A lot of them are probably also servicing private education loans, which haven't been paused for the pandemic (or political points) like the Federal ones.  That probably also accounts for the generational difference:  Millennial high earners are concentrated in places where pay has to be high because cost of living is high and businesses couldn't attract workers without large pay packets, while Boomer high earners are spread more evenly across the country.

Oh, if you really want to have top pay, just get a job with the VA.  You also get all the govt benefits you want.

https://www.federalpay.org/employees/top-100

And Biden wants to give all federal workers a big fat pay raise.

President’s Budget Proposes 4.6% 2023 Federal Pay Raise
https://www.fedsmith.com/2022/03/28/2023-federal-pay-raise/

[catfish1957]

Any bozo who can't make it on $250K a year really needs to give me a call.

[Smokin Joe]

Any bozo who can't make it on $250K a year really needs to give me a call.

Yep!

[cato potatoe]

Millennials lack good economic judgement.

They earn a lot but are bigger spenders than their parents.

Building wealth is more of control of spending than it is earning high income.

The downward path for them during the recession will cause a lot of pain to these pleasure-seekers.

Their parents never explained wealth versus income, or they lack the common sense to make the distinction.  An upper middle class income does not make luxury items affordable.

[Fishrrman]

"One-Third of Americans Making $250K ‘Live Paycheck-to-Paycheck’"