According to Bank of America, one in five households earning over $150,000 annually is living paycheck to paycheck. These households are spending over 95% of their income on essential expenses like food, utilities, childcare, and rent.
This financial strain is not limited to lower-income households. Higher-income earners are facing similar pressures, driven by expenses such as larger mortgages, property taxes, and childcare. Despite inflation cooling, these daily costs continue to eat up a significant portion of their income.
The report also highlights generational differences, noting that baby boomers and Gen Xers are more affected by paycheck-to-paycheck living.
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