Almost 50% of All High-Income Earners Live Paycheck to Paycheck, New Report Says
While low-income consumers struggle the most to make ends meet, even high-income consumers are feeling the effects of inflation. As of February 2023, 62% of U.S. consumers live paycheck to paycheck, a new report found.
A new analysis released through a PYMNTS and LendingClub collaboration looked at how U.S. consumers are turning to alternative sources of income to supplement what they receive from their regular job. The report, “New Reality Check: The Paycheck-to-Paycheck Report,” found that 48% of high-income earners, or those making over $100,000 per year, lived paycheck to paycheck in February 2023. This is up from 47% the same time last year.
The number of middle-income consumers — those making between $50,000 and $100,000 annually — living paycheck to paycheck remained at 62%. Low-income consumers — those making under $50,000 — made some progress over the last year, with 75% reporting living paycheck-to-paycheck in 2023 compared to 79% in 2022.
PYMNTS noted that these shifts reflect financial shifts in the economy, “further highlighting that struggling consumers have adapted to recent economic changes.” For example, 60% of consumers reported being employed, but almost half had a side job or other source of supplemental income.
“While consumers have adjusted to inflationary pressures by budgeting and spending less, many have turned to supplemental income with a side job or alternative income sources to improve their financial standing,” Anuj Nayar, financial health officer at LendingClub, said in a company press release.
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The data suggests that turning to supplemental income will continue to gain momentum. Fifty-one percent of those who have not received supplemental income in the last three months are at least somewhat likely to find another income source within the next 12 months.