Everyone knows that the average Joe is struggling….rent, food, gas, health prices are sky high and rising as we languish in a bit of self-pity….what about the wealthy? Do they have the same worries and problems as us humans?
If you’ve found it impossible to save money as living costs have surged over the last few years, you’re far from alone. According to a Bank of America Institute analysis, around a quarter of American households live “paycheck to paycheck,” which the institute defines as households “where necessity spending is more than 95% of their household income, leaving them relatively little left over for ‘nice to have’ discretionary spending or saving.”
- Lower-income households were most likely to live paycheck to paycheck—35% of households with an income below $50,000 fell into the category, up from 32% in 2019. But pressures didn’t disappear with fatter paychecks. Some 20% of households with incomes higher than $150,000 also spend almost all their income on necessities like housing costs and groceries, according to the analysis, which used Bank of America customer data. “One reason is that higher-income households may have bought larger, more expensive, homes and consequently have bigger mortgages,” the institute said. “And often along with bigger homes come bigger insurance costs, property taxes, and utility bills.”
- “Many of these spending pressures are likely unavoidable, as they relate to family and housing costs,” David Tinsley, a senior economist at the institute, tells CBS MoneyWatch. “The share of households that are living paycheck to paycheck has been rising slightly over the last few years, which is not terribly surprising, because prices have risen for a lot of essential goods—groceries are more expensive, the cost of car insurance is up, and child care is up, too,” Tinsley says.
- Tinsley notes that living paycheck to paycheck is stressful and it’s a hard situation to get out of. “For most people, they can’t do much about where they live and how much they pay for their home, if they have kids at a school in a particular neighborhood,” he says. “A lot of these costs are sticky, and there isn’t much to do about it.”
Please forgive me if I do not feel too bad for them.
We have an election very soon now….and nothing will change as far as your expenses as a matter of fact the necessities will most likely keep rising.
I just do not see we have the same definition of wealthy.
So if you have Spam tonight know that Bezos is probably having Filet and all is right with the nation.
I Read, I Write, You Know
“lego ergo scribo”
Oh I don’t know, Chuq— I do not struggle…. I have money whenever it is needed….I have discretionary cash to buy nice things …. I do not feel spending pressures —I do keep an eye on balances of course….I just had a Kansas City steak for lunch– with mushrooms …and onions ….I am not super wealthy — (Everybody has their own idea of who is rich and who is not…I consider myself to be so but one would never know it looking at me ….I can say that my standard of living is somewhat above the “Spam” crows, although I love Spam and just the other day I had fried Spam with pineapple sandwiches on toast (An old Depression dish) — I have no complaints…I have noticed the rising prices and I have complained about them from time to time when they piss me off— but it is always about principle and never from necessity or desperation ….I guess I have just learned to live within my means or something…I am very disciplined in that way….although I do splurge occasionally– like when I bought the 8 ounce bottle of my favorite designer cologne for $500 dollars….so I don’t really know where I stand but I know that for the time being I am comfortable.
correction: somewhat above the spam CROWD
Then hopefully you never have to struggle. chuq
A number of things contribute to the problem. Decrease of power and influence of labor unions. Global competition and loss of manufacturing jobs in the US. Changes from climate change may be causing good shortages and higher food offices. Reduction in oil production makes prices higher. Climate change may be creating supply shortages and transportation problems. Excess government spending, fiscal and monetary policy has increased inflation.
Oil production is up to the companies that determine the price not the government….War is the only excessive spending….do away with that and we would be much better off chuq
Richer people tend to live beyond their means. Holiday homes, boats, private jet travel, expensive vacations, huge monthly payments on luxury cars, and so on. They could live comfortably without all that, but feel the need to advertise their status for the world to see. I have zero sympathy for anyone that lives beyond their means for such reasons.
Best wishes, Pete.
I agree…..and I do not think their definition of ‘wealthy’ and mine are the same. chuq