Living Paycheck To Paycheck in America.
Financial stress increases tremendously when living paycheck to paycheck. We all know how it feels when you don’t have savings in case you have an emergency. After you pay the bills and necessities there isn’t enough left over to save and sometimes not enough to pay for all the necessities.
Here is a look at living paycheck to paycheck in America. Where is it happening? How often is it happening? The bigger question for us all is, how can we stop this trend?
There are certain states in the country where your paycheck just isn’t enough to make ends meet. The 10 states where you’re most likely to live payday to payday don’t necessarily have low median household incomes — in fact, a few states with some of the highest median incomes per paycheck in the nation made this list.
It’s their high costs for things such as housing, utilities or transportation that eat up paychecks, suggesting that the incomes, though high compared with other states, are actually still disproportionate to the costs of living…
Here are the top 5 worst states that GoBankingRates.com found in their study for living paycheck to paycheck.
The Sunshine State might not feel so warm to many residents, with a relatively low median household income of $46,140, translating into a median paycheck of only $1,775. Of that, $593 (33 percent) goes to housing. And while food costs are only $183 (10 percent) per paycheck, transportation is $330 (19 percent) and healthcare costs are $150 (8 percent). The result is only $376 left over. How is the average Floridian supposed to keep their golf game up with that?
The largest state in the union is a pretty expensive place to live, even with a decent median household income of $67,629 and no state income tax. But with food, housing and transportation taking nearly 62 percent of each paycheck, Alaskans can end up on thin ice come the end of each month. After utilities and healthcare costs are factored in, Alaskans only have 20 percent of their paycheck leftover. That’s cold.
3. New York
Many people might guess that the city that never sleeps would rank No. 1 on this list. Close. What got New Yorkers to the dubious honor of third are a relatively modest median household income ($54,310) combined with high per-paycheck housing (34 percent) and transportation (21 percent) costs. It all results in a mere $372 (18 percent) of each paycheck left over. Does that even buy dinner and a show anymore?
The Golden State is not so golden for a lot of its residents. Californians need to spend a lot of their paychecks on housing — $819 of a $2,326 paycheck, or 35 percent — and on transportation (25 percent). Maybe it’s true that no one walks in LA. With only $313 (roughly 13 percent of each paycheck) left over, not much is left for a day at Disneyland.
Paradise is pricey. Hawaii comes in as the No. 1 state where you’re most likely to live paycheck to paycheck — and for good reason. Despite having the third-highest median household income in the nation ($71,223), the cost of food, housing, transportation and utilities per paycheck are all highest in the Aloha State. That breakdown results in a paltry $186 of leftover income, or less than 7 percent of each paycheck — the only state in single digits. – via GOBankingRates
How Many Americans are Living Paycheck to Paycheck
If you live in one of the other 45 states that doesn’t mean you aren’t living paycheck to paycheck. So many Americans are in this situation that they are spread out all over the country.
Here is a look at just how many Americans are living paycheck to paycheck.
Nearly half of American households are just one paycheck away from financial disaster despite D.C. touting an economic recovery, a new survey indicates. To make matters worse, another survey found that many Americans’ finances have not recovered from the 2008 economic meltdown.
The most disturbing finding from the new data: A full 43 percent of US households would not be able pay their bills if they went one month without a paycheck, The Springleaf Financial Strength Survey found. They are living on the verge of poverty with no savings.
Other findings from Springleaf’s poll of 2,010 US consumers included:
26 percent admitted that they did not save money or rarely save money.
24 percent of those polled acknowledged they have less than $250 left in their bank account at the end of the pay period.
10 percent said they had less than $50 left by the time payday rolls around.
27 percent of respondents with graduate degrees admitted they would have to sell property or borrow money to pay bills if they missed one paycheck.
Nineteen percent said they would not be able to miss a paycheck without borrowing money or selling assets.
“We were surprised to see that nearly 20 percent of adults don’t have enough of a cushion to last two weeks without a paycheck,” said Springleaf Executive Vice President of Marketing and Analytics Dave Hogan. “What was especially surprising is that this is true across all education and salary levels.”
– via www.offthegridnews.com
How long could your family pay the bills and pay for necessities if you missed your paycheck?