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76% of Americans are living paycheck-to-paycheck

Posted by on Jun. 25, 2013 at 9:23 AM
  • 113 Replies

76% of Americans are living paycheck-to-paycheck

@CNNMoney June 24, 2013: 2:53 PM ET

american saving

Consumers feel better about their finances, but savings rates remain stagnant.

NEW YORK (CNNMoney)

Roughly three-quarters of Americans are living paycheck-to-paycheck, with little to no emergency savings, according to a survey released by Bankrate.com Monday.

Fewer than one in four Americans have enough money in their savings account to cover at least six months of expenses, enough to help cushion the blow of a job loss, medical emergency or some other unexpected event, according to the survey of 1,000 adults. Meanwhile, 50% of those surveyed have less than a three-month cushion and 27% had no savings at all.

"It's disappointing," said Greg McBride, Bankrate.com's senior financial analyst. "Nothing helps you sleep better at night than knowing you have money tucked away for unplanned expenses."

Even more disappointing; The savings rates have barely changed over the past three years, even though a larger percentage of consumers report an increase in job security, a higher net worth and an overall better financial situation.

Related: Seniors in 48 states face serious income shortage

So why aren't Americans saving more?

How 401(k) fees eat away at your savings

Last week, online lender CashNetUSA said 22% of the 1,000 people it recently surveyed had less than $100 in savings to cover an emergency, while 46% had less than $800. After paying debts and taking care of housing, car and child care-related expenses, the respondents said there just isn't enough money left over for saving more.

Related: Ben Bernanke's power over your money

"There really hasn't been much relief," said Megan Staton, director of marketing for CashNetUSA "The economy is stagnant, $100 is not enough to help you out in an emergency." To top of page


by on Jun. 25, 2013 at 9:23 AM
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Replies (1-10):
AJsMom81507
by Member on Jun. 25, 2013 at 9:42 AM
2 moms liked this

i thank god we arent in that percentile.  we have enough saved to live how we do for at least 4 years, should something happen today

momtoscott
by Platinum Member on Jun. 25, 2013 at 9:43 AM

Scary.   

IhartU
by Gold Member on Jun. 25, 2013 at 9:43 AM
3 moms liked this

We live paycheck to paycheck. Every time we have  a little extra, something happens like a medical emergency or the car breaks down or a major appliance blows up. We can't ever get ahead. It would be nice to have enough money to live comfortable and not have to worry...

mom2the.rescue
by Bronze Member on Jun. 25, 2013 at 9:46 AM

We're living paycheck to paycheck now.  2 yrs ago, we had enough in our savings to cushion the blow of job loss and unexpected expenses.  So we lost the job, had unexpected expenses, took a job with a major paycut, and plowed through the savings.  Now we have savings for a small emergency.  This sucks.

UpSheRises
by Platinum Member on Jun. 25, 2013 at 9:48 AM
1 mom liked this
We are kind of. We could probably hang tight for 2 months but after that we'd be "eating from thr lawn".

That's what we say...eat from the lawn...because if we couldnt afford food our lawn had so many wild edibles (aka weeds) we'd still have plenty to eat.
UpSheRises
by Platinum Member on Jun. 25, 2013 at 9:49 AM
4 moms liked this
Our cars have some kind of radar where they can tell we've got money in the bank.


Quoting IhartU:

We live paycheck to paycheck. Every time we have  a little extra, something happens like a medical emergency or the car breaks down or a major appliance blows up. We can't ever get ahead. It would be nice to have enough money to live comfortable and not have to worry...


UpSheRises
by Platinum Member on Jun. 25, 2013 at 9:50 AM
1 mom liked this
It is. Our entire economy is smoke and mirrors.


Quoting momtoscott:

Scary.   


Kate_Momof3
by Silver Member on Jun. 25, 2013 at 9:52 AM
1 mom liked this

 Wild edibles. Sorry, but that's really funny.

We have enough to get through about two months at the moment. We're making big changes within the next year to start spending less and making more. It's going to be different and difficult, but worth it in the end.

Quoting UpSheRises:

We are kind of. We could probably hang tight for 2 months but after that we'd be "eating from thr lawn".

That's what we say...eat from the lawn...because if we couldnt afford food our lawn had so many wild edibles (aka weeds) we'd still have plenty to eat.

 

rfurlongg
by on Jun. 25, 2013 at 9:55 AM
2 moms liked this
Wow, that is a very high percentage. I wonder how many in the 76% could have their spendings adjusted to lower spending and increasing savings and how many are living hand to mouth. It would be interesting to see the break down.
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punky3175
by on Jun. 25, 2013 at 9:58 AM
This is me except there's no 'us' - it's just me.

Quoting IhartU:

We live paycheck to paycheck. Every time we have  a little extra, something happens like a medical emergency or the car breaks down or a major appliance blows up. We can't ever get ahead. It would be nice to have enough money to live comfortable and not have to worry...

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