As the cost of living rises and inflation is at an all-time high, many American households have been pushed to the brink. According to a recent study from Salary Finance, 1 in 5 workers cannot make it from paycheck to paycheck.
As the cost of living continues to rise, many Americans are finding themselves struggling to make ends meet. According to Salary Finance, approximately 20 percent of employees run out of money before their next paycheck. This is up five percent from the previous year.
Salary Finance surveyed more than 3,000 working American adults in February 2022. Of those surveyed, approximately 25 percent of them said that they are finding it harder to pay for necessary expenses in between paychecks. Over 30 percent of them said that, because of this, they are not able to save any money once necessary expenses are paid. Essentially, they are spending all of what they earn, if not more.
Salary Finance’s data showed that lower income workers spent a significantly larger portion of their budget on food, utilities, and transportation costs. Individuals earning $50,000 or less annually have a smaller margin between how much money they earn per paycheck and how much they spend.
With the cost-of-living spiking due to inflation, these smaller income households are feeling the squeeze more than ever. What this means for future bankruptcy filings remains to be seen, but with prices for even the most basic of living expenses at an all-time high, this group of consumers will continue to struggle.
If you have questions on this topic or are in financial crisis and considering filing for bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.
SOURCE: 1 in 5 Workers Runs Out of Money Before Payday, Survey Finds.