7 in 10 Americans live paycheck to paycheck

A shocking new poll has found that 7 out of 10 Americans live pay check.

Here’s what you need to know.

More Americans are living paycheck to paycheck

A recent OnePoll survey found that it is becoming increasingly difficult for Americans to save money, with 7 in 10 Americans saying they live paycheck to paycheck. at present. This is particularly troubling as we enter the third year of the Covid-19 pandemic at a time when the economy is expected to rebound. While this poll is representative of what most Americans are going through, it doesn’t speak well of a recovering economy.

What financial security means to Americans

According to the survey, respondents said these two things symbolize financial security:

  • home ownership (58% of men said so)
  • no credit card debt (59% of women said)

However, while these may represent good financial habits, none constitute financial security. Some Americans choose to rent. Owning a home, by itself, does not give you financial security. Mortgage payments can be expensive and there is always the possibility of default. Owning a home can bring stability, but unless your mortgage is fully paid off, most Americans make monthly payments as they accumulate equity. Likewise, having no credit card debt is a smart financial decision that can save you substantial interest charges. However, the absence of credit card debt simply means that you have eliminated a financial liability. It is very different from financial security.

Personal Finances: Other Key Findings

The poll also revealed startling data about the current financial situation of Americans:

  • 79% of Americans earning over $150,000 think a savings account is “very” important.
  • Only 54% of Americans with an income of $60,000 to $89,999 think a savings account is “very” important.
  • Americans say $686 a month of disposable income makes them financially comfortable.
  • The average American starts thinking about retirement at age 40.
  • 76% of Millennials have spent a significant portion of their savings on a large healthcare bill. 57% have made a down payment or spent money on their mortgage, draining their savings.

Student loans not mentioned

Surprisingly, respondents did not mention student loans as depleting their financial savings or otherwise creating barriers to financial security. In the wake of the Covid-19 pandemic, President Joe Biden canceled $15 billion in student loans for borrowers and extended student loan relief three times. However, he refrained from enacting large-scale student loan forgiveness. (If Biden cancels student loans, that will happen next). Instead, Biden called on Congress to cancel $10,000 in student loans for borrowers. That said, Congress hasn’t passed any legislation to cancel student loans. With temporary student loan relief ending soon and many Americans living paycheck to paycheck, student borrowers will need to take control of their financial futures. Here are three ways to successfully repay your student loan and start saving money:

Student Loans: Related Reading

Here’s who won’t get student loan forgiveness

Will student loan repayments be postponed until 2023?

Are you eligible for $5 billion in student loan forgiveness?

If Biden cancels student loans, it will happen next

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