Living Paycheck to Paycheck On $100k
CNBC reported a few days ago that in the U.S.:
“Some 21 percent of those with salaries of $100,000 or more say they are living paycheck to paycheck, according to a recent survey conducted by CareerBuilder.com.”
Amazing isn’t it? I still remember when I broke the S$100k p.a. for the first time. I was super ecstatic. I know, it’s in Singapore dollars, so it’s less than US$100k, but hey, S$100k is a lot of money in Singapore as well! My savings actually jumped quite significantly when it happened. No doubt that the rising prices add to the pressure and reduce the general savings rate, but one will be in red if she has nothing to save in the first place!
“The amount of money Americans save has been declining for decades. Most recently, the personal savings rate was 1.2 percent of after-tax income, according to the Bureau of Economic Analysis. A couple years ago, the rate was actually negative, meaning consumers were dipping into savings to cover expenses.”
Time to tighten the belt!