PebHmong Discussion Forum
General Category => General Discussion => Topic started by: theking on May 04, 2023, 11:07:38 PM
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..you live, your money management skills and your lifestyle:
I make $100K a year; how come life is still so hard? A six-figure salary may not be enough for the American dream anymore
The old benchmark $100,000 salary that put baby boomers into the category of “rich” is coming up short, according to a recent survey by PYMNTS.
As of March, about 60% of all U.S. consumers are living paycheck-to-paycheck. The survey found that even high-income Americans aren't immune to budget crunches, with 48% of those making over $100,000 also living the paycheck-to-paycheck lifestyle as of February.
As for the younger generations, the survey found that 73% of millennials are still living for their paychecks. And Gen Z isn't far behind, with their share rising to 66% in the latest PYMNTS report. How did they end up there? While millennials said supporting dependent family members and paying down debt were the main reasons they're living paycheck to paycheck, while one-third of Gen Z blamed non-essential spending.
Here’s why the American dream feels more like a reverie for younger generations — and what you can do to claw back some of your buying power without having to negotiate for a raise.
Unlike their parents
Both Gen Z and millennials grew up with baby boomer parents who most likely had it all going for them: the car, the family, the house and the salary that allowed them to live a stable and affordable lifestyle.
In 1980, American families had a median income at $75,672 in today’s currency, according to the U.S. Census Bureau. Three decades on, that average has actually dropped to about $70,784 as of 2021.
That means, not only are millennials and Gen Z paid less than their parents (on a constant currency basis), but due to sky-high inflation, their salaries no longer stretch as far.