A recent study commissioned by job resource company CareerBuilder found that 78 percent of Americans are living paycheck to paycheck, a three-point increase from last year’s study.
The same survey also found that 71 percent of U.S. workers are in-debt, up from 68 percent in 2016.
Notably, researchers found that having an above average salary doesn’t mean one is exempt from indebtedness. Nearly 1 in 10 workers making $100,000 or more have virtually no personal savings, while 59 percent in that tax bracket find themselves in-debt.
When it comes to budgeting, most of Americans do not stick to a disciplined financial plan, as less than 32 percent of American employees have a monthly budget. Similarly, only 56 percent of workers save $100 or more each month.
However, most financial experts advise to keep an emergency savings fund that would be able to support the household for up to six months.
Even when money is tight, the most common items Americans will not give up include: internet service, mobile devices, transportation, pets, cable, dining, traveling, education, buying gifts and alcohol. These purchases often contribute to the lack of savings and indebtedness.
This problem is even more extreme for low wage workers. More than half of employees making a minimum wage have to work more than one job to make ends meet.
81 percent of Americans in the workforce have had a minimum wage job at one point in their career. 71 percent of those workers testified that they were unable to make ends meet.
In an effort to help remedy the financial burden workers face, 83 percent of employers who hire workers at minimum wage say they will be giving their employees a pay raise. While there has been no legislation to raise the national minimum wage, Democrats have state their intention to raise the federal rate in a policy agenda released in July entitled, A Better Deal.
CareerBuilder’s findings are based on a survey conducted by Harris Poll, which interviewed 2,369 human resource managers and 3,462 full-time adult employees between May 24 and June 16.
[CareerBuilder] [CNBC] [Photo courtesy Paste]