70% Of Millennials Are Living Paycheck-To-Paycheck
You’re not alone if you’re living paycheck to paycheck. In The New Reality Check: The Paycheck-to-Paycheck Report, researchers say the trend has been on a “sharp rise” since May 2021. While this is the case for more than half of Americans, the younger generations, specifically millennials, are feeling it the most. According to the report, 70% of millennials live paycheck -to-paycheck. As for the other generations:
- Gen Z – 65%
- Gen X – 60%
- Baby Boomers and seniors – 54%
It’s not just those in the lower-income brackets either.
- 42% of people making more than $100,000 a year report they also living week-to-week.
- For those with an annual income between $55,000 to $100,000, nearly 66% say they live paycheck-to-paycheck.
- Close to 77% who make less than $50,000 annually said the same thing.
So, what does living paycheck-to-paycheck actually mean? Does it mean barely being able to pay the bills or something else? It depends on who you ask. According to researchers, 39% of consumers who say they’re living paycheck-to-paycheck are able to pay their bills. However, 22% say they struggle to do so every month.
While Millenials are struggling, we do have tips for single women,
According to our previous article, we spoke with a financial expert Tiffany that has 10 core components to get your financial life in order. They include budgeting savings, paying off debt, earning good credit, investing, and estate planning.
These are the tips from our financial expert, this will help you:
- Make a name for your “later lady” and plan for her – Tiffany explains research has found that people don’t save for retirement because they don’t see themselves as getting older. To fix that, she advises giving your older self a name – hers is Wanda – that way we can think about that “later lady” when making money choices and do what’s best for our future self.
- Split and save your money – She advises women to “save like a squirrel” by splitting their paycheck before it hits our checking account. And the way to do that is by having your HR or payroll department split your direct deposit, with some into a savings account and the rest into your checking account.
- Be strategic after taxes – If you get a refund, Tiffany recommends taking care of your health and safety first, which includes food, having a safe place to live, and an emergency fund with at least three months’ worth of expenses.
- Know when to DIY and when to hire financial help – Her rule of thumb is to only hire a financial advisor if you have over $250-thousand in assets to invest, otherwise the fees are too high to make it worth it. The exception? Hiring a fee-only certified financial planner to review major financial decisions.
