[BlutoSays]

36% Of Americans Making $250,000 Are Living Paycheck To Paycheck

Over a third of Americans who make at least $250,000 per year say they're living paycheck to paycheck, which Bloomberg suggests underscores how inflation is 'taking a bigger bite out of Americans' budgets at all ends of the pay spectrum.'



Another interpretation is that Americans makig at least $250,000 - placing them in the top 5% of earners in the country - have horrendous financial literacy.

According to a survey by Pymnts.com and LendingClub, some 36% of households who make at least $250k - nearly 4x the median US salary - devote almost all their income to household expenses. Higher-income households are also more likely to put expenses on credit cards, though they're also more likely to be able to pay off their balance in full.

The most squeezed people in the high-income category are millennials - those in their mid-20s to early 40s. Over half of top earners in that generation report having very little left at the end of each month.



That said, LendingClub is quick to note that paycheck-to-paycheck doesn't necessarily mean hardship - in fact, only 10% of high earners reported issues covering all their household expenses in April - but it does mean they would have to radically adjust their lifestyle in the event their income suddenly goes away.

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% down payment, would cost about $100,000 per year. That’s 40% of a $250,000 annual pre-tax income.

Top earners, even those struggling to pay the bills, are of course much better off than the rest of the nation, which is facing soaring prices for everything from food to gas and electricity. -Bloomberg

Aside from high-earners, 61.3% of all consumers surveyed reported living paycheck-to-paycheck, up 9% from a year earlier, as US consumer borrowing has soared. In March, credit-card balances spiked by the most on record, and non-revolving credit jumped as well.



Meanwhile, 25% of Americans are delaying retirement due to inflation, a new survey by BMO has found.

Putting off retirement plans is mostly due to disrupted savings from increased prices, the survey found. Thirty-six percent of survey respondents have reduced their savings and 21% are putting away less for retirement in order to keep up with growing costs, according to the survey. -CNBC

"We haven’t seen this level of inflation in a very long time, and it’s very daunting," said Paul Dilda, head of consumer strategy at BMO Harris Bank, who added that many people who are either retired or are nearing retirement didn't factor in surging expenses.

Inflation has affected younger Americans the most - with over 60% of those between 18 and 34 years of age reporting that they had to pull back on their savings contributions in order to offset the rising costs.

What are people doing to combat inflation? Americans are dining out less, being more careful at the store, driving less, and canceling or spending less on vacations.



"We’re seeing a lot of people taking those actions so that they can continue to enjoy the life they want and at the same time be able to save or manage their budget accordingly," according to Dilda.

When is this country going to start teaching financial literacy?




https://www.zerohedge.com/political/36- ... k-paycheck

https://www.bloomberg.com/news/articles ... f=ZMFHsM5Z

[pugsville]

36% Of Americans Making $250,000 Are Living Paycheck To Paycheck

Over a third of Americans who make at least $250,000 per year say they're living paycheck to paycheck, which Bloomberg suggests underscores how inflation is 'taking a bigger bite out of Americans' budgets at all ends of the pay spectrum.'



Another interpretation is that Americans makig at least $250,000 - placing them in the top 5% of earners in the country - have horrendous financial literacy.

According to a survey by Pymnts.com and LendingClub, some 36% of households who make at least $250k - nearly 4x the median US salary - devote almost all their income to household expenses. Higher-income households are also more likely to put expenses on credit cards, though they're also more likely to be able to pay off their balance in full.

The most squeezed people in the high-income category are millennials - those in their mid-20s to early 40s. Over half of top earners in that generation report having very little left at the end of each month.



That said, LendingClub is quick to note that paycheck-to-paycheck doesn't necessarily mean hardship - in fact, only 10% of high earners reported issues covering all their household expenses in April - but it does mean they would have to radically adjust their lifestyle in the event their income suddenly goes away.

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% down payment, would cost about $100,000 per year. That’s 40% of a $250,000 annual pre-tax income.

Top earners, even those struggling to pay the bills, are of course much better off than the rest of the nation, which is facing soaring prices for everything from food to gas and electricity. -Bloomberg

Aside from high-earners, 61.3% of all consumers surveyed reported living paycheck-to-paycheck, up 9% from a year earlier, as US consumer borrowing has soared. In March, credit-card balances spiked by the most on record, and non-revolving credit jumped as well.



Meanwhile, 25% of Americans are delaying retirement due to inflation, a new survey by BMO has found.

Putting off retirement plans is mostly due to disrupted savings from increased prices, the survey found. Thirty-six percent of survey respondents have reduced their savings and 21% are putting away less for retirement in order to keep up with growing costs, according to the survey. -CNBC

"We haven’t seen this level of inflation in a very long time, and it’s very daunting," said Paul Dilda, head of consumer strategy at BMO Harris Bank, who added that many people who are either retired or are nearing retirement didn't factor in surging expenses.

Inflation has affected younger Americans the most - with over 60% of those between 18 and 34 years of age reporting that they had to pull back on their savings contributions in order to offset the rising costs.

What are people doing to combat inflation? Americans are dining out less, being more careful at the store, driving less, and canceling or spending less on vacations.



"We’re seeing a lot of people taking those actions so that they can continue to enjoy the life they want and at the same time be able to save or manage their budget accordingly," according to Dilda.

When is this country going to start teaching financial literacy?




https://www.zerohedge.com/political/36- ... k-paycheck

https://www.bloomberg.com/news/articles ... f=ZMFHsM5Z

Because vast sums and resources are spend brainwashing people to consume.

Well there is consonant bombardment of society with propaganda encouraging to spend, borrow and consume things they do not need,

There is entire highly funded industry, with vast resources that gets it's tentacles into the children as soon as they can.

It is in the corporate interests of big companies, banks, and the 1% that everyone consumes and spends to the very limit iof not beyond of what they can.

This is the very essence of capitalism, consumption for consumption sake.

Capitalism at work. What;s your problem Bluto? You don't like Capitalism?

[Potemkin]

I once heard it said that most people live about 5% beyond their means, no matter what their income. That sounds plausible to me. No matter what we have, it never seems like quite enough…. Lol.

[Rancid]

I once heard it said that most people live about 5% beyond their means, no matter what their income. That sounds plausible to me. No matter what we have, it never seems like quite enough…. Lol.

This, many people are just unable to practice forbearance. I think forbearance is the right word to use here? Right?

Blaming inflation is basically the excuse to avoid having to confront our inadequacies.

Bluto is also too dense to understand this, as everything in his world MUST be framed as Republicans Vs Democrats.

[Patrickov]

This, many people are just unable to practice forbearance. I think forbearance is the right word to use here? Right?

Blaming inflation is basically the excuse to avoid having to confront our inadequacies.

Bluto is also too dense to understand this, as everything in his world MUST be framed as Republicans Vs Democrats.

Hmmm... I have two thoughts.

1. @BlutoSays is probably well off enough that inflation only makes him having an easy target to attack Democrats and do no real harm to him; and
2. If I were him I would blame Democrats advocating liberal lifestyles to the Americans so that most of them do not have forbearance.

(Sorry Bluto, I should have told you in private first so that you can claim the credit of this brilliant idea)

[JohnRawls]

The title is confusing. Irrelevant where you live on earth, having 250k doesn't put you in a classical category of living from paycheck to paycheck or basically not eating enough lets say.

Taking loans and others stuff that you are struggling to cover and living from paycheck to paycheck because of it doesn't go under the classical definition of those words.

In this sense Musk also lives from paycheck to paycheck because all of his money is in stocks and so on.

[BlutoSays]

Because vast sums and resources are spend brainwashing people to consume.

Well there is consonant bombardment of society with propaganda encouraging to spend, borrow and consume things they do not need,

There is entire highly funded industry, with vast resources that gets it's tentacles into the children as soon as they can.

It is in the corporate interests of big companies, banks, and the 1% that everyone consumes and spends to the very limit iof not beyond of what they can.

This is the very essence of capitalism, consumption for consumption sake.

Capitalism at work. What;s your problem Bluto? You don't like Capitalism?

No, no, no, no and also no.

Stop blaming others for your piss-poor life decisions.

There are genuinely poor people because of circumstances and there are those who perservere and make smart decisions in their personal lives and become financially stable on their own.

There are also others like you that have a penchant for blaming everything on other people. I feel like I'm talking to a perpetual teenager.

Tentacles into children? Good grief. Many grow up squared away and independent and others don't. YOU personally push dependency and constant victimhood.

I get that you hate capitalism, but it's given us a much higher standard of living than any of the other ism's can.

[pugsville]

No, no, no, no and also no.

Stop blaming others for your piss-poor life decisions.

There are genuinely poor people because of circumstances and there are those who perservere and make smart decisions in their personal lives and become financially stable on their own.

There are also others like you that have a penchant for blaming everything on other people. I feel like I'm talking to a perpetual teenager.

Tentacles into children? Good grief. Many grow up squared away and independent and others don't. YOU personally push dependency and constant victimhood.

I get that you hate capitalism, but it's given us a much higher standard of living than any of the other ism's can.

Nowhere have I blamed anyone for my life decisions,


It seems disingenuous spending vast sums to encourage mindless consumption and then just complain about it. Surley it has an effect,


Or the entire Advertising industry is a con then? A unwarranted ineffective tax on the economy? lowering everyone;s standard of living,

[Saeko]

36% Of Americans Making $250,000 Are Living Paycheck To Paycheck

Over a third of Americans who make at least $250,000 per year say they're living paycheck to paycheck, which Bloomberg suggests underscores how inflation is 'taking a bigger bite out of Americans' budgets at all ends of the pay spectrum.'

I am building a giant pyramid, plucking out my eyes, and then rolling them from the apex.

This is just the latest installment in a 6000 year history of rich people pretending to be poor.

[Puffer Fish]

36% Of Americans Making $250,000 Are Living Paycheck To Paycheck

I don't think they're lying.

The more money you earn, the higher your expenses and people often just take a new living standard for granted.

First of all, you have to realize that many of these people live in the very highest cost of living areas. They buy an "average" house, but the mortgage payments on that "average" house in that area are very expensive. We are talking about places where an "average" looking middle class house can start at $1 million.

I know of two people with high incomes. One of them is a black guy who earns around $200,000. He is also a big spender and doesn't manage money well. It's amazing how easy it is to spend money. Nothing even that extravagant, he is just constantly spending money, on clothes, and eating out, a new car every 3 or 4 years. He has credit card debt, if you can believe that.
I know of another semi wealthy person. He said the health insurance costs for his family were $15,000 a year. He had a rather big spacious three level house but decided to upgrade to a small mansion. However, after living in this mansion for a few years he realised what a money pit it was. It costs a lot to keep up a mansion, and all the contractors and assistants were trying to price gouge him, assuming that he must be rich. It frustrated him so much he eventually decided to just sell it and downgrade. It takes more money than most people think to truly live the life of a "rich" person.

Many people with high incomes are experts at being able to spend money fast. That's just normal for them. Their lifestyle has become adapted to it. It is hard for them to change. Just like you would probably have to relearn everything and it would be very stressful if your income was cut down by half.

[Godstud]

This is not strange.

My friend was working in the oilfield and made $250k a year. His monthly expenses were about $7k.

I was working in the oilfield, at the time, too, making around $150k/year, but my monthly expenses were about $1.5k/month.

I was not paying for a Minivan, a Ford F350 truck, a new house, furnishings, credit card debt, etc. I was staying in a nice little 1 bedroom apartment and didn't even have a TV.

Yes, I can see some people working from paycheck to paycheck, but it's a CHOICE.

[Igor Antunov]

Isn't the US federal tax rate on $250k up to 32%?

That leaves 170k. Then blow about 50% of that on rent or mortgage repayments, the single biggest expense in the west. You're left with 85k annually. Then blow +30% of THAT on somewhat high end living expense in an urban center or decent suburb. You're left with 56k at most. Then blow some of that on children's education, healthcare payments, car repayments or upkeep, property taxes, etc. At this point you're leveraged to shit, and probably operating at an annual loss if something out of the ordinary happens, accruing debt.

My friend was working in the oilfield and made $250k a year. His monthly expenses were about $7k.

I was working in the oilfield, at the time, too, making around $150k/year, but my monthly expenses were about $1.5k/month.

I was not paying for a Minivan, a Ford F350 truck, a new house, furnishings, credit card debt, etc. I was staying in a nice little 1 bedroom apartment and didn't even have a TV.

This is not a long term family-friendly arrangement. This sounds temporary. I can wander off and make $30k in next three months right now, over 3k a week, possibly more. It would be 80-100 hour work weeks (including travel/flights) and I would be bouncing from hotel to hotel. It is hell and not sustainable. This is not the typical everyman experience.

I think allowing women unrestricted into the workplace ruined everything. You simultaneously doubled the workforce, disincentivized the nuclear family, promoted service based industry (away from sustainable manufacturing-thereby most industry moved abroad) and lowered wages dramatically relative to inflation. Now an educated couple can't even earn enough to sustain a household with 1 child.

Either things go back to how they were or we transition into some kind of UBI oriented socialist system (that would be repeating many of the mistakes of the 20th century but hey maybe it works with today's technology).

[Godstud]

@Igor Antunov Considering that the average income in the USA is $31,133, Living on "leftover" $85,000 is superb!


I've had a family, and I could have thrived on even 25% of that income, and Canada has higher income tax than in the USA.

[Igor Antunov]

Sure you can. But 90% of people are NPC's that can't. So we have to tailor our society around them.

[Godstud]

But 90% of people are NPC's that can't. So we have to tailor our society around them. FFS, you really don't have anything to say that makes a lick of sense, do you?

Most people WANT things, and credit is how many manage to get things. That debt is a particular problem in society shows how bad things are getting.

Home? Mortgage.
Car? Lease or finance.
Furnishings? Finance.

This isn't anything fucking NEW!!!

Hmmm. Found a better source. Average wage is over $60k, so $85k after taxes is still a lot.


Note: Just because people have less disposable income, doesn't mean they don't have more in assets.

[Puffer Fish]

@Igor Antunov Considering that the average income in the USA is $31,133, Living on "leftover" $85,000 is superb!

There are a lot of places in the U.S. where someone could barely "survive" on $31,000. (I mean live any sort of decent lifestyle approaching middle class) Let alone try to raise a family on.
I'm talking about regions where an average small bargain apartment costs $1800 to $2000 a month.

Isn't the US federal tax rate on $250k up to 32%?

Let's remember that there are several taxes. New York has an additional state income tax of between 4% to almost 9%, while California has an additional tax of between 4% and up to 9.3% for those in the income bracket between $61,215 to $312,686. Not to mention a sales tax of between 7.25% to 10.75%.

The federal tax rate for someone earning $250,000 is 35%. And there is also a 7.65% tax on top of that for Social Security and Medicare.

If you're earning 250,000, it's possible you might only actually take home 136,000 after taxes.

[Godstud]

There are a lot of places in the U.S. where someone could barely "survive" on $31,000. (I mean live any sort of decent lifestyle approaching middle class) Let alone try to raise a family on.
I'm talking about regions where an average small bargain apartment costs $1800 to $2000 a month.

Even a region where rents are that high, $85,000 - $24,000 is still a decent amount to live on.

I lived in Vancouver, which is an expensive place to live, and only made about $40k a year(very average). I did ok, and could afford a decent rental, a car, and could go out.

USA has some of the LOWEST tax rates. Federal income tax for $250,000 in the USA is 24%, not 32%. 32% is for incomes greater than #340,000. https://www.troweprice.com/personal-inv ... dules.html

So $250,000 -$60,000 in taxes leaves you with $190,000. That's nothing to sneeze at.

[Puffer Fish]

I lived in Vancouver, which is an expensive place to live, and only made about $40k a year(very average). I did ok, and could afford a decent rental, a car, and could go out.

I think it would be very difficult to live in Vancouver on $40k today.

You would definitely not really be saving up any money to be able to buy a house there.

And more than half your after-tax income would probably be spent on rent.

Sure, maybe as a single person you could manage to eek by. You probably wouldn't manage to be able to save up very much money though, in that situation.

[Godstud]

This was 10 years ago, so... I also didn't live in downtown Vancouver, where rent prices were 2-3x of what I was paying.

Oh hell no! You need at least $80k a year to be able to afford a house in Vancouver... and that was some time ago! It's likely $90k/yr, now.

Now, were you to give me $250,000 a year....

Math time:
If you make $250,000 a year living in the region of British Columbia, Canada, you will be taxed $96,197. That means that your net pay will be $153,803 per year, or $12,817 per month. Your average tax rate is 38.5% and your marginal tax rate is 51.6%.

Note: Canadians have higher taxes, but we make up for it in not having to buy health insurance. It balances out nicely, actually. We end up paying about the same as Americans, or sometimes, less.

[Puffer Fish]

Note: Canadians have higher taxes, but we make up for it in not having to buy health insurance. It balances out nicely, actually. We end up paying about the same as Americans, or sometimes, less.

You don't have huge masses of poor people who would overwhelm your health system... yet.

Keep in mind in the United States there are no waiting lists for surgical procedures. If you want a heart operation, they can do it next week if you want.

American doctors will not hesitate to spend any amount of money on you (unless you are in an HMO plan).
Probably Veterans Affairs Healthcare is the closest thing in the U.S. that exists to Canadian healthcare, but it has had many scandals and a bit of a dubious reputation.