Making $250,000 a year and STILL living paycheck-to-paycheck?
That’s the circumstance for many responding to a new poll from Pymnts.com and LendingClub Corp.
It was Bloomberg that outlined the stunning results, and charged that even those Americans making some $20,000-plus per month were being hit by “inflation” under Joe Biden’s economic policies.
“Some 36% of households taking in nearly four times the median U.S. salary devote nearly all of their income to household expenses, according to a survey by industry publication Pymnts.com and LendingClub Corp,” the report said.
“It’s particularly true among millennials, who are now in their mid-20s to early 40s: More than half of top earners in that generation report having little left at the end of the month.”
In fact, the results said 63% of millennials making $100,000 to $150,000 were using their income for basic expenses, 56.8% of those making $150,000 to $200,000, 49.8% of those making $200,000 to $250,000 and 55.4% of those making above $250,000.
For boomers, the figures for those four categories were 36%, 22%, 20% and 21.8%.
Only those among the top 5% of earners in American are in the $250,000-plus category.
Bloomberg continued, “Living paycheck-to-paycheck doesn’t necessarily mean hardship, and LendingClub makes the distinction between those can pay their bills easily and those who can’t. Only a fraction of high earners — roughly one in ten — reported issues covering all their household expenses in April, according to the survey.”
And it explained where all that money could be going.
“Housing expenses, which typically take up large chunks of the budgets of wealthier people, have skyrocketed during the pandemic. For example in Orange County, California, a top-tier home cost $1.7 million in April, up from $1.2 million in February 2020, based on Zillow Group Inc. data. A mortgage on that house, assuming a 20% down payment, would cost about $100,000 per year. That’s 40% of a $250,000 annual pre-tax income.”
The report explains among all consumers, 61.3% were living paycheck-to-paycheck as of April, up nine percentage points from a year ago.
Further, the report documented, “One in nine respondents said that they wouldn’t be able to cover a $400 emergency expense by any means, including credit cards, borrowing from family or friends or by selling an asset.”
The survey was done April 6-13 and interviewed some 4,000 American consumers.
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