Money, money, money, isn’t even funny in a rich man’s world. It appears as if even the most wealthy of the nation struggle to attain financial stability these days.
The majority of Americans (66.2%) feel like they’re living paycheck to paycheck, according to a MarketWatch Guide survey of 2,000 people. And almost half (48.6%) of adults consider themselves as “broke.”
It appears that a six-figure salary isn’t even enough to stave off feelings of discomfort. What used to be a signal of financial success is no longer making the bank, as 48% of those earning $100,000 or more a year say they’re living paycheck to paycheck. More than a third (36%) of those making $200,000 or more report the same perceived monetary straits.
As inflation brewed over the last couple of years, even those who make a fair amount started to squirm. The high cost of living followed by subpar income were the major issues, according to respondents to the 2022 Federal Reserve study about economic well-being. Since then, the high cost of living has ebbed a bit as wages have finally surpassed the pace of inflation, according to the Economic Policy Institutes’ analysis of Bureau of Labor Statistics data. Even so, Americans are still finding themselves feeling crunched after a period where wealth-building proved difficult.
A separate study from PYMNTS of more than 4,200 consumers found that 62% of total consumers and 36% of those making more than $200,000 feel like they’re living paycheck to paycheck. Both numbers have increased since the study was performed a year prior, the authors note—pointing to the rising cost of living as a factor.
Of course, these higher-income households are in less of a crunch as more financially vulnerable Americans. Living paycheck to paycheck holds a different meaning for richer individuals that often have higher expenses due to the lifestyle that larger salaries can afford.
“Although rising housing and food costs impact these consumers, other factors, such as nonessential spending, paying expenses for others and recent events that cut into their savings, may particularly inform their financial lifestyles,” PYMNTS says of these high earners, noting they also spend more on education as a financial burden.
Last summer, even actor Sydney Sweeney spoke out how she’s unable to afford to take a six-month break, or subside without a consistent paycheck. “If I just acted, I wouldn’t be able to afford my life in L.A. I take deals because I have to,” she said, speaking of the paltry residuals that the streaming world offers.
Likely hindered by the persistent pay gap, women are more likely than men to live paycheck to paycheck (72% and 60%, respectively), according to MarketWatch. And millennials, a generation burdened by student loans and ill-timed recessions, are most likely to experience this financial strain, followed by Gen Xers.
Many millennials making six figures are still making up for lost time. “I recognize that I’m extremely privileged, but I still feel mounting pressure when it comes to our finances,” Kelly, a millennial earning six figures, told Fortune’s Alicia Adamczyk. “Are we getting by? Yes. But we’re not getting ahead, and we’re missing major milestones along the way.”
FAQs
Thirty-three percent of workers earning between $50,000 and $79,999 annually say they're living paycheck to paycheck, compared to 36 percent of workers earning between $80,000 and $99,999 and 24 percent of workers earning $100,000 or more. Other Bankrate data supports these survey findings.
What percent of people who make $200,000 live paycheck to paycheck? ›
48% of people earning $100,000 or more annually and 36% earning $200,000 or more reported living paycheck to paycheck. Inflation, high cost of living and a lack of income are the most commonly cited reasons for financial struggles.
Is more than a third of Americans earning at least $250000 annually say they are living paycheck to paycheck? ›
In fact the typical family making >$250,000 has 3 months of income saved in cash, also near a record high. And yes, that threshold is inflation-adjusted. JUST IN: More than a third of Americans earning at least $250,000 annually say they are living paycheck to paycheck, per Bloomberg.
What percentage of Americans make over $100000 a year? ›
Over 34% of American households make over $100k a year.
In 2022, 34.4% of American households earned more than $100,000. This was a slight increase from the 33.8% recorded in 2021. Meanwhile, the most recent data (2020) shows the average annual income brought in by American households is $67,521.
Is 100k the new middle class? ›
Making $100,000 now is the equivalent of making $30,000 back then: middle class and not particularly comfortable. But this didn't happen overnight in 2021 or 2007.
What salary is considered rich for a single person? ›
Based on that figure, an annual income of $500,000 or more would make you rich. The Economic Policy Institute uses a different baseline to determine who constitutes the top 1% and the top 5%. For 2021, you're in the top 1% if you earn $819,324 or more each year. The top 5% of income earners make $335,891 per year.
How rare is 200k salary? ›
A $200,000 household income is more than most people earn across the U.S. In fact, just 12% of U.S. households earn $200,000 or more annually, according to Census Bureau data.
Can you live comfortably on 200k a year? ›
Since an annual salary of $200,000 is well above the national average salary, it's quite likely that you will be able to live comfortably on that salary.
What percentage of US citizens make over $200 000 a year? ›
Percentage distribution of household income in the United States in 2022
| Annual household income in U.S. dollars | Percentage of U.S. households |
|---|
| 75,000 to 99,999 | 12.3% |
| 100,000 to 149,999 | 16.4% |
| 150,000 to 199,999 | 9.2% |
| 200,000 and over | 11.9% |
5 more rowsJul 5, 2024
A living wage is a socially acceptable level of income that provides adequate coverage for basic necessities such as food, shelter, child services, and healthcare. The living wage standard allows for no more than 30% of income to be spent on rent or a mortgage and is sufficiently higher than the poverty level.
Key Findings. On average, an individual needs $96,500 for sustainable comfort in a major U.S. city. This includes being able to pay off debt and invest for the future.
Is 230k a good salary? ›
To feel comfortable or financially secure, Americans need a salary of roughly $233,000 a year on average, Bankrate found. That's over three times the median U.S. household income of about $71,000 a year, according to Census Bureau data.
How common is a 6 figure salary? ›
What Percent of America Makes Six Figures? When you remove demographics such as infants, students, and stay-at-home spouses and focus only on full-time workers, around 18% of all earners in the US make at least six figures. Conversely, the median American household income in 2023 was approximately $44,225.
What is considered middle class? ›
As of 2022 (the most recent Census data), the average median household income in the U.S. was $73,914, meaning the national range for the middle class is roughly $49,271 to $147,828. Across the nation's largest cities, the range is between $51,558 and $154,590, according to SmartAsset.
How much is 100k a year hourly? ›
$100,000 a year is how much an hour? If you make $100,000 a year, your hourly salary would be $48.08.
How many households make $200 K? ›
In 2022, about 14.88 million households in the United States had an income of 200,000 U.S. dollars or more a year.
Do 78% of Americans live paycheck to paycheck? ›
78% of Americans are living paycheck to paycheck. Basically, that means almost 8 out of 10 people probably can't afford the home they're living in and the car they're driving. They might not even have the cash to cover the next emergency that pops up. Your income is your most important wealth-building tool.
What percentage of individuals make over 150k? ›
What percentage of Americans make over $150,000 per year? Research from Statista indicates that 21.1% of workers in the U.S. make over $150,000 per year.
