FACT: 77% of Americans are Now Living Paycheck-to-Paycheck
BOTTOM LINE: In a recent survey, 77% of people were living paycheck-to-paycheck. This is a sharp increase from 2009. In addition, this survey found:
Workers report they have made a variety of changes to their living and spending habits to help get by. When asked what tactics they have used since the start of the recession to make ends meet, workers said the following:
- Cut back on leisure activities – 54 percent
- Used coupons or shopped at discount stores – 48 percent
- Drove less to save on gas – 37 percent
- Cancelled cable and other subscriptions – 12 percent
- Used public transportation – 5 percent
From Kiplinger Magazine:
Nearly four of every five workers surveyed by the site say they are struggling to make ends meet – and the proportion of workers living paycheck to paycheck has only risen in the past year. In 2009, CareerBuilder found, 61 percent of people were going from one paycheck to another; now, 77 percent are.
A significant number of people are taking drastic steps to shore up their personal finances, as well. More than 20 percent of CareerBuilder’s 4,498 survey respondents admitted to dipping into retirement savings – even though money taken from a retirement account can be subject to both taxes and early-withdrawal penalties.
How to Maximize Your Income When You Live Paycheck-to-Paycheck (VIDEO)
Survey Methodology
This survey was conducted online within the U.S. by Harris Interactive(C) on behalf of CareerBuilder.com among 2,534 U.S. hiring managers and 4,498 U.S. workers (employed full-time; not self-employed; non government); ages 18 and over between May 18 and June 3, 2010 (percentages for some questions are based on a subset of U.S. employers and/or employees, based on their responses to certain questions). With a pure probability sample of 2,534 and 4,498 one could say with a 95 percent probability that the overall results have a sampling error of +/- 1.95 and +/-1.46 percentage points, respectively. Sampling error for data from sub-samples is higher and varies.
References Cited
Kiplinger News. “More Workers Live Paycheck to Paycheck, CareerBuilder Finds – Kiplinger.”Kiplinger – Personal Finance, Business, Investing, Retirement, and Financial Advice. 09 Sept. 2010. Web. 07 Oct. 2010. <http://www.kiplinger.com/news/article.php/more-workers-live-paycheck-to-paycheck-19937927.html>.
Murray, By Sara. “Middle Class Slams Brakes on Spending – WSJ.com.” Business News & Financial News – The Wall Street Journal – WSJ.com. 06 Oct. 210. Web. 07 Oct. 2010. <http://online.wsj.com/article/>.
“Living Paycheck To Paycheck.” Decline of the Empire. Web. 07 Oct. 2010. <http://www.declineoftheempire.com/2010/09/living-paycheck-to-paycheck.html>.
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