If you find it hard to get ahead financially, you are not alone. As the items on your budget increase it becomes challenging to end up ahead each month. Struggling to pay the necessary bills each month is commonly called living paycheck to paycheck.
Lending Tree conducted a survey questioning 1421 adults between the ages of 25-34 who had taken some college courses or attained at least a bachelor’s degree, and asked them “Do you live paycheck to paycheck?”.
High Earning Does Not Equal Great Saving
Surprisingly, the group earning $100k-$150k struggled the most with 44% saying "Yes, I live paycheck to paycheck." So earning more does not make one better at saving. Get the results of other earning brackets here.
Men vs. Women
Another interesting find is that more women (44%) are challenged with paycheck to paycheck living over men (30%). One theory to explain this significant gap comes from the overall disparity in pay between males and females is quite high.
Does Location Hurt or Help?
The survey did a regional breakdown of the U.S. into quarters. There was not a big difference from region to region: 36%, 37%, 38% and the southeast came in at the highest 39% of respondents live paycheck to paycheck.
How to Improve
Set goals and priorities. It is important to establish an emergency fund for unexpected medical bills, home and auto repairs. Work with a financial professional to create a plan for your financial future, a.k.a. retirement.
I know it is not a fun activity but you need to write out a budget and fully understand all of your living expenses. It is vital to know where your money is going!
To master money-matters for a life, I believe we all must strengthen and connect our personal money mindset with financial know-how. I invite you to join in the conversation to finally "get it right" with money! Connect with Happily Ever Wealthy a new platform for honest, open conversations about money & relationships in our lives.