High salary: Why 60 percent of Americans still live paycheck to paycheck

Thekabarnews.com—Payroll provider ADP and LendingClub conducted nationwide studies revealing that over 60 percent of individuals in the US rely on their paychecks. Not only are people with low salaries becoming financially susceptible, but the research reveals that more and more people are becoming economically vulnerable.

Many people think it is hard to get by when you don’t have a lot of money. However, data show that many people who make six figures also have difficulties paying their bills before their next payday. Experts claim that the trend suggests that families of all income levels are having a challenging time.

The rising cost of housing is one of the key concerns that makes people worry about money. Many people in big cities spend a lot of their monthly income on their rent or mortgage. Inflation has caused prices to go higher. This figure covers things we use every day, including bills and groceries. Payments on education loans and credit card debt make matters a lot worse.

Experts believe that those who make more money often have to pay more for things that don’t change. In particular, families that make a lot of money might not be able to pay for items like auto loans, daycare, and hefty mortgages. You don’t need to make more money to be better off.

Experts suggest that you can still have some money even if you can simply pay your bills. But usually, it means you can’t pay on time due to lack of funds.

The results reveal that the U.S. economy has a greater problem. Having a job doesn’t ensure you can handle money problems. If people lack the funds to cover unexpected medical expenses, make urgent repairs, or pay their bills, their homes can quickly become unsafe.

Economists suggest that people should establish better budgets, borrow less money, and see their incomes go up faster than prices. This would benefit the economy. But restrictions about how much debt people can have and how much homes cost could also be highly important.

Research indicates that numerous Americans are experiencing financial difficulties while earning substantial incomes. This is because the economy is still not stable.