<body><div><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=4M2o3u_0wQ6NXr600" alt="https://img.particlenews.com/image.php?url=4M2o3u_0wQ6NXr600" width="1024" height="664" ><p>Many Americans, regardless of income level, are living paycheck to paycheck. According to a Bank of America Institute study, 26% of U.S. households use 95% of their net pay to cover essential expenses, i.e., housing, utilities, insurance, and groceries. About 30% of families only have 10% of their pay left after the monthly bills are paid.</p><p>The survey revealed a 10% increase compared to households living paycheck to paycheck five years ago. Despite what the study figures show, about half of Americans feel like they are just scraping by. According to a senior economist at the Bank of America Institute, David Tinsley, rising prices have clearly been an influence. </p><p>“For some households, the rises in their incomes will have largely kept up with inflation, shielding them,” said Tinsley, per FOX Business. “But, for some people already living close to paycheck-to-paycheck, this may be less the case, meaning more get caught in the net.”</p><h2>Living Paycheck to Paycheck by Group</h2><p>American households with an annual income of less than $50,000 were the most affected, as 35% of them are living paycheck to paycheck. Even incomes above $150,000 did not shield families, with around 20% still feeling the squeeze every month.</p><p>While it seems as if higher-income households would have more disposable money, the study authors speculated that may not be the case. More income likely leads to higher mortgage payments and increased insurance, utilities, and property tax costs. Tinsley noted that often people in higher income brackets expect raises and promotions to eventually ease the financial pressure.</p><p>The Bank of America study found age did not directly influence whether someone was living paycheck to paycheck. In fact, the percentage of households spending the majority of their income to make ends meet increased among nearly all generations, from Gen Z to Baby Boomers. The only exception was people born before 1946.</p><p>“Rising prices has impacted all incomes and generations, so it’s not surprising we see some rise in the share of people living paycheck to paycheck across these cohorts too,” Tinsley said.</p><p>Families living paycheck to paycheck are often unprepared for sudden expenses or rising costs, keeping them in a seemingly unending cycle. With less income left over at the end of the month, many households struggle to pay credit card bills or save money, which leaves them scrambling to borrow more money to pay for emergencies or other unexpected bills.</p></div></body>

Mountain View, CA

NewsBreak

Percentage of Americans Living Paycheck to Paycheck Is Increasing

Many Americans, regardless of income level, are living paycheck to paycheck. According to a Bank of America Institute study, 26% of U.S. households use 95% of their net pay to cover essential expenses, i.e., housing, utilities, insurance, and groceries. About 30% of families only have 10% of their pay left after the monthly bills are paid.