36% of high earners are living paycheck to paycheck - CNBC

The findings are similar to a recent LendingClub survey that found 36% of people earning at least $250,000 a year live paycheck to paycheck. SkipNavigationMarketsBusinessInvestingTechPoliticsCNBCTVWatchlistInvestingClubPROMenuKeyPointsThirty-sixpercentofU.S.employeeswithsalariesof$100,000ormorearelivingpaychecktopaycheck,doublethesharein2019,accordingtoWillisTowersWatson.Thehighestearnersaretheonlyincomegroupthatreportedanincreaseoverthattime.InthisarticleWTWFollowyourfavoritestocksCREATEFREEACCOUNTSouth_agency|E+|GettyImagesMorethanathirdofhigh-earningAmericanworkersfeelstrappedforcash—asharethathasrisendramaticallyinrecentyears.Thirty-sixpercentofU.S.employeeswithsalariesof$100,000ormorearelivingpaychecktopaycheck—twiceasmanywhosaidtheywerein2019,accordingtoasurveyconductedbyWillisTowersWatson,aconsultingfirm.That'smorethanthe34%ofworkerswhoearn$50,000to$100,000ayearwhoarelivingpaychecktopaycheck,thoughlowerthanthe52%ofpaycheck-to-paycheckworkerswithincomesoflessthan$50,000,accordingtothesurvey.However,thehighearnersaretheonlygroupthatsawanincreaseintheirpaycheck-to-paycheckranksinthelastthreeyears.MorefromPersonalFinance:HowyoungadultscanstartbuildingcreditInflationforcestoughspendingchoicesonsomeolderAmericansCosttofinanceanewcarhitsarecord$656permonth"Employeesathigherpaylevelsaren'timmunetolivingpaychecktopaycheck,"saidMarkSmrecek,thefinancialwellbeingmarketleaderforNorthAmericaatWillisTowersWatson.WillisTowersWatsonpolled9,658full-timeemployeesfromlargeandmidsizeprivateemployersinDecemberandJanuary2022,beforethemostrecentinflationreadings.ThefindingsaresimilartoarecentLendingClubsurveythatfound36%ofpeopleearningatleast$250,000ayearlivepaychecktopaycheck.watchnowVIDEO1:0201:02Herearethefirst3thingsyoushoulddowithyourpaycheckOne-MinuteMoneyHacksInflationmaypushmoretolivepaychecktopaycheckQuicklyrisingcostsforfood,transportationandotherareasofhouseholdbudgetsmayputfurtherstressonfamilies'abilitytosavemoney,Smreceksaid.TheConsumerPriceIndexwasup8.6%inMayfromayearearlier,thehighestinflationreadinginabout40years.TheFederalReserveraiseditsbenchmarkinterestrateby0.75percentagepointsonWednesday—thelargestincreasesince1994—aspartofanongoingefforttoreininconsumercosts."Thesenumbersarelikelytoincreaseifweseetheseinflationresultscontinue,"Smreceksaidofpeoplelivingpaychecktopaycheck.Housingexpenses,debtpresentbudgetchallengesThedriversoffinancialstressdifferdependingonincome.Thehighestearnerscitedhousingexpensesasthemostacutechallenge,whereaslowearnersweremorelikelytoreportdifficultieswithdebt,forexample,Smreceksaid.Whilethesurveydoesn'tbreakdownspecifichousingexpenses,employershaveanecdotallypointedtoincreasedcostsforrentsandmortgagesasworkersrelocatedresidencesduringthepandemic,Smrecekadded.Higher-incomeemployeesaremorelikelythanlowerearnerstohavejobsthatallowthemtoworkremotely.SomefinancialplannersrecommendAmericanswhoarestrappedforcashtryadoptinga50-20-30ruletobringtheirspendingintoline.Thisinvolvesallocating50%ofafter-taxincometoessentialexpenses,30%todiscretionaryexpenses,andtheremaining20%tosavings,investmentanddebtreduction.TVWATCHLIVEWATCHINTHEAPPUPNEXT|ETListenTVWATCHLIVEWATCHINTHEAPPUPNEXT|ETListen