Are You Living Paycheck to Paycheck?

Most Americans, it seems, are stretched financially right now. It doesn’t help that housing has exploded in price to such a degree, that many Americans are now spending over half of their income simply to have a roof over their heads. It is not surprising, then, that more and more people believe they need to live paycheck to paycheck.

Careerbuilder.com just did a survey to find out how common the practice really is. It turns out, nearly half of Americans are living for the next deposit.

Four out of 10 U.S. workers often or always live from paycheck to paycheck, according to a survey released Monday.

Women are more likely to live paycheck to paycheck, at 47 percent, than men, at 36 percent, according to the survey conducted for CareerBuilder.com, an online job site based in Chicago.

Overall, 41 percent of workers say they often or always live paycheck to paycheck, it said.

Think it’s just the middle class? Think again. Those SUVs and evenings eating out are expensive. Even the upper middle class (anyone earning over $100,000 a year) are living for the next paycheck.

The new survey said 19 percent of workers who earn $100,000 or more annually often or always live paycheck to paycheck.

It found 58 percent of respondents report they set a budget each month. But one in five say they typically spend more than their budget, most often blowing it by eating out.

The survey also said one in five do not set aside any money for savings each month. Of those who do, 14 percent save $500 or more a month, 28 percent save $100 or less and 16 percent save less than $50.

How about those who never save a dime? Common.

It said 26 percent of women do not set aside any savings, compared with 17 percent of men.

I saw a stat recently that said that 40% of Americans do not even have $500 in savings.

Yes, we’re stretched very, very thin. Saving for a rainy day? Again, not many can with housing, gasoline, health care and college costs all rising at far faster rates of inflation.

Question is, when will it simply become too much for the average Amerian? I have a feeling we’ll find some of the answer in housing prices (as they come down) and in health care (as more states at least offer it for their poorest citizens.)

It’s hard out there right now (and extremely tight.) If you are saving anything, you are ahead of the game.