60% of millennials earning over $100,000 say they're living paycheck to paycheck

Discussion in 'The Locker Room' started by Turk, Jun 20, 2021.

  1. Turk

    Turk Young, Gifted, and Black

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    High-earning millennials are feeling broke.

    Sixty percent of millennials raking in over $100,000 a year say they're living paycheck to paycheck, according to a new survey by PYMNTS and lending company LendingClub which analyzed economic data and census-balanced surveys of over 28,000 Americans.

    It found that the more than half (54%) Americans are living paycheck to paycheck. And nearly 40% of high-earners — those making more than $100,000 annually — say they live that way.

    That means high-earning millennials aren't the only ones feeling stretched thin, but they feel that way more than their six-figure making peers. Living on constrained budgets may therefore have less to do with income and more to do with expenses, the report says.

    That's partly due to lifestyle choices. Many of these millennials are likely HENRYs — short for high earner, not rich yet. The acronym that was invented back in 2003, but has come to characterize a certain group of 30-something six-figure earners who struggle to balance their spending and savings habits.

    HENRYs typically fall victim to lifestyle creep, when one increases their standard of living to match a rise in discretionary income. They prefer a comfortable and often expensive lifestyle that leaves them living paycheck to paycheck.

    Read more: Here's why so many millennials making 6-figure salaries still feel broke

    A $100,000 salary isn't what it was
    The economy is also a huge factor behind six-figure-earning millennials feel so broke.

    As the report reads, "Living paycheck to paycheck sometimes carries connotations of barely scraping by and of poverty. The reality of a paycheck-to-paycheck lifestyle in the United States today is much more complex, and the current economic environment has made it even more complicated."

    It cited the example of a college-educated 35-year-old earning more than $100,000 while juggling a mortgage, student-loan debt, and a child, which could leave them with little savings for big purchases or unexpected emergencies.

    The generation is facing an affordability crisis. Income increases simply have not kept up with an exponential increase in living costs, and the pandemic hasn't helped matters by throwing job loss and pay cuts into the mix.

    The cost of education has also more than doubled since the 1970s, leaving many millennials racked with student debt. Priya Malani, the founder of Stash Wealth, a financial firm that works with HENRYs, previously told Insider that 40% of her clients had student loans — they owe $80,000 on average.

    As a byproduct of this increased cost in living, the middle class has been shrinking. Pew Research Center defines the US middle class as people earning two-thirds to twice the median household income, earning about $48,500 to $145,500 in 2018, per most recent data available.

    That means a six-figure salary is no longer what it used to be. In today's economy, $100,000 is considered middle class in the US.

    60% of millennials earning over $100,000 say they're living paycheck to paycheck
     
  2. Gator Reloaded

    Gator Reloaded They/Them Supporter

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    It isnt about what you make. It's about how you spend it.:yeshrug:
     
    Last edited: Jun 20, 2021
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  3. LiIZaneFan1978

    LiIZaneFan1978 2PAC BACK

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    Does this mean 120% of millennials earning $50,000 are living paycheck to paycheck???
     
  4. num123

    num123 Meet you at the jazz corner of the world Supporter

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    That is on them. I make a decent amount over that and what i make in a month lasts me 2.5 months. No one is saying to live like you are broke, but you should be living comfortably at worst making that type of money, especially by yourself.
     
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  5. Silver Surfer

    Silver Surfer Superstar

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    They have high rent and 700 car notes
     
    Last edited: Jun 20, 2021
  6. He who run fades

    He who run fades since 1968

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    Idk how man, last year I made closed to 89k and I still have money left over in my savings.
     
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  7. African Peasant

    African Peasant Superstar

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    How is ti possible?
    Very high student debt and very high mortgage? But still.
     
  8. Taadow

    Taadow The StarchBishop™️

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    Yep.
     
  9. Silver Surfer

    Silver Surfer Superstar

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    Good edit...
     
  10. ™BlackPearl The Empress™

    ™BlackPearl The Empress™ Long Live the Empire Supporter

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    Budgeting is everything
     
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  11. psgchisolm

    psgchisolm Pro

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    How many of them live in a HCOL area and drop most of their money on rent/mortgages?
     
  12. BigDaddyP

    BigDaddyP Superstar

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    I can believe this, and it’s not even due to money mismanagement. Most of the jobs that pay young people that much money are in high cost coastal cities like nyc and Sf, plus these jobs usually aren’t had without acquiring a ton of college debt. I came out of school making six figures but didn’t feel comfortable until about 3-4 years into my career. I wasn’t exactly living pay to check and had savings, but I wasn’t comfortable with making any long term purchases.
     
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  13. Taadow

    Taadow The StarchBishop™️

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    Budgeting is most of it...young’uns at some point find that you can’t do everything;
    somethings have to be left out of the budget.
     
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  14. The Realist Perspective

    The Realist Perspective Superstar

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    It's all their fault. Lifestyle creep is a big thing. Especially with everyone competing to be the biggest celebrity on social media.
     
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  15. At30wecashout

    At30wecashout Veteran Supporter

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    This is exactly what came to mind. You typically won’t make six figures in a lower cost of living area so the nature of recurring expenses are flat out higher as a result. It’s kind of like the problem of trying to live close enough to your office to maintain a career position but staying in proximity cost way more upfront.
     
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