Even households earning over $150,000 a year are living paycheck to paycheck, Bank of America says

https://fortune.com/2024/10/28/paycheck-to-paycheck-money-six-figures-bank-of-america-rich-stress/

by fortune

12 comments
  1. Owing to ballooning basic expenses and, in many cases, the cost of maintaining an expensive home, one in five households earning at least $150,000 a year are currently living paycheck to paycheck, the bank wrote in an October note, based on spending data and account information among U.S.-based customers. (Paycheck to paycheck, by BofA’s definition, means spending over 95% of income on necessities like food, electric bills, childcare, and rent.)

  2. Lifestyle creep, people sign up for what they can afford, then inflation takes a large chunk and they’re back to squeaking by. Most if not all of these studies are just asking people what their situation is so they could be contributing a healthy amount to retirement accounts or spending on vacations and still be considered living paycheck to paycheck.

  3. I’m so tired of this functionally useless metric. You get fund managers in expensive cities complaining that after their nanny, two mortgages, and maxing out their retirement accounts, they’ve got nothing left over! Won’t someone think of these poor folks who allocate every dollar they receive?

    But wait! Bank of America has all these great financial tools to offer you struggling six-figure earners, why don’t you open a new account with us?

    That second paragraph right there is exactly why we keep seeing this story every year. They’re just another way to sell you something.

  4. And this explains the entire election right here. People who should be more than comfortable aren’t. They did everything right, everything they were supposed to, and are falling behind.

  5. The idea that there’s people who can afford to miss a few paychecks without experiencing any kind of a set back sounds like a fantasy.

  6. How much of this demographic is just young yuppies who are bad at managing their money? How much of this demo is young yuppies with rich parents, so their only obligation is covering rent and bills? I don’t believe these statistics, they are only shared because it’s an easy thing to debate about, it’s rage bait for economics nerds

  7. Only the ones who over consume, nobody at 150K needs to live paycheck to paycheck but lifestyle creep. . .

Comments are closed.