Despite rising wages, 61% of Americans are still living paycheck to paycheck, report finds At the end of 2021, 61% of the U.S. population was living paycheck to paycheck, down slightly from a high of 65% in 2020, according to a recent LendingClub report. Even among those earning six figures, 42% said they were living paycheck to paycheck, the survey of more than 3,000 adults found.
I bet it is more than 80% of American people. Most of us need our checks too since we do not keep much cash in our banks. And I believe 80% of Americans only control about 15% of total US wealth....
This is because no one knows anything about money...schools don't teach it and most parents are poor also with no understanding of anything but being a wage slave. It was always a sore topic in my house because there was never enough of it to go around. we need education reform in a bad way. Finances are one of the greatest challenges of adulthood (along with relationships)...we leave HS with zero understanding of finance. Would be nice to replace geometry with asset allocation...or perhaps a class on the various trading markets, accounting (lots more accounting), entrepreneurship and risk, improving ones value to the marketplace, etc...
Most people know what it takes to build wealth, it is not rocket science. Problem is it does require natural talents that most people lack. Apparently the two best predictors of success in countries like the US are 1. Strong work ethic. 2. High intelligence. If you have both your odds of success are very high. Being high in just one of those traits (and being just average in the other) also improves your odds. Problem is most people are both dumb and lazy
Add capital to the list. In the US it might be easier to take out a loan or find investors but over here there are many intelligent people denied of starting out or lacking the ability to gain capital besides their regular job. Starting out requires enough capital to make it to the break even day.
It is not that so simple. Education is not the main issue. You do not need parent of high school to each you that you need to earn $100 to buy a pair of sneakers. And if you save $50 a week, you'll get $200 by end of the month. And we all know that a restaurant waiter or waitress can easily make $100 to $200 per night. That is $20,000 to $40,000 per year. That is only a part time job that does not require much skill. Sure that is not rich. But most people can get by easily. So a $50,000 is not unrealistic at all for most of people. The problem is more on the spending. Look at those people on paychecks. They spend equal or more than what they make. So they never have any savings. Government provides no incentives for people to save. All the tax reforms have failed....
Its poor money management. I stress one rule to people I know constantly: live below your income. This is a bit more difficult for a single income paying rent etc. You have to push to find and climb entry level jobs that pay above average. They are out there. All this to say, if you truly want to climb out of your level it is possible, but you have to put in the work. I have very little sympathy for people who complain about not being able to. Ive probably had more difficult circumstances than the vast majority of people which I have touched on before. The fact is people want the reward without wanting to put in the sacrifice or effort it takes to achieve it. Show me an individual with a strong work ethic and good money management and I'll put my money on him to succeed with only a GED over a lazy entitled individual with a useless college degree.
Do you have any stats that show that. Most articles that I have ever read stated that the number one predictor of someone's success (in income terms) is how wealthy their parents were. For example this article states that smart poor kids will end up doing worse than not-so-smart rich kids: https://www.ctpublic.org/education/...ility-the-biggest-predictor-of-future-success