More Americans are Living Paycheck to Paycheck Despite Increased Budgeting
FORT LAUDERDALE, Fla., Aug 27, 2024 /Noticias Newswire/ – Debt.com's 2024 budgeting survey, which polled 1,000 Americans, paints a complex financial picture. Although a growing number of people are adopting budgeting practices and recognizing the benefits of avoiding debt, the percentage of individuals managing with just enough each month has increased by 10% over the last two years.
In 2022 and 2023, 50% of respondents reported living paycheck to paycheck; this year, that figure has risen to 60%. At the same time, 90% of those surveyed now say they budget, up from 70% when the survey was first conducted seven years ago.
"Debt.com's latest survey shows that while budgeting is becoming more widespread and helpful, it hasn’t entirely protected Americans from financial difficulties,"
One bright spot is the percentage of people who say budgeting has helped them get out of or stay out of debt, increased to 89% this year from 73% in 2018. Millennials lead the way, with 92% reporting that budgeting has kept them out of debt, followed by 90% of Gen X, 86% of Baby Boomers, and 83% of Gen Z.
The survey also highlights the reasons people began budgeting:
- 38% - Increasing wealth and savings
- 21% - Tackling debt
- 17% - Inflation and cost of living
- 15% - Saving for retirement
- 6% - Job loss
- 2% - Divorce or loss of a spouse
“The rising number of people living paycheck to paycheck indicates that economic factors may be driving the need for individuals to fine-tune their budgeting strategies,”
Of those who say they budget, 39% say their whole household works to stay on budget. The survey also shows that, overall men (94%) are budgeting more than women (87%). The top reason women cited for not budgeting was that they "don't have much income," while men primarily said it's "too time-consuming."
SOURCE Debt.com
About: Debt.com is a consumer website where people can find help with credit card debt, student loan debt, tax debt, credit repair, bankruptcy, and more. Debt.com works with vetted and certified providers that give the best advice and solutions for consumers "when life happens."