This is from an interesting survey you can review in total at the link below. I picked out only one section to make a point about our perception of people handling money. Note the words “Once essentials are paid, there’s no money left over for savings.” The key word is essentials.
While that may be true for the lowest income group, it is not true for anything close to the majority of the country. It’s not the essentials that get most people in trouble, it’s the discretionary spending AND the inability to understand the difference between essential and non-necessities.
No. 3: 78% of adults live paycheck to paycheck
According to a 2017 CareerBuilder survey, the majority of the country is living paycheck to paycheck. Living paycheck to paycheck means you are spending most or all of your monthly income on expenses. Once essentials are paid, there’s no money left over for savings.
Americans stuck in a hand-to-mouth cycle often feel limited by their financial situation. If savings run out, what’s their Plan B? For many Americans, there isn’t one.
We’re seeing this play out across the nation. Given the current economic downturn due to the pandemic, the number of Americans struggling to make ends meet is likely exacerbated. Jobless claims now total 33.5 million Americans. At a time like this, the stark statistic hits close to home.