It isn’t a surprise to hear that the poor are having to live paycheck-to-paycheck, where income and expenses are necessarily equal with no room for savings or emergencies. Despite the recovery from the Great Recession, it turns out that one-third of Americans are in the same situation, and that two-thirds of that one-third are middle class or richer.
“About 25% of those making over $100,000 a year still live paycheck to paycheck.” – the Guardian
For some, it is poor financial literacy. For others it may be high student loan debt, medical bills, or living in a place with high income but even higher living expenses. And, of course, for some it is a belief that maintaining the stuff and the image is necessary for a career that will eventually pay for all the stuff and the image. There simplest resolution has always been to increase income while decreasing expenses and investing the rest; but increasing income is difficult when wages stagnate, decreasing expenses is difficult when the mandated basics are increasing, and investing the rest is difficult if there is no excess and if interest rates are low. But next year will be better, right?
(Click on the photo for the link.)