Millennials are often the targets of jokes made by older generations for our work ethics, career choices, etc. But in reality, most of us are just trying to afford extortionate rent prices while also enjoying the occasional avocado toast since we’ll never be able to afford a house anyways.
Life is often tough for millennials, particularly with regard to finances. The cost of living has continued to climb, while the average salary has mostly stayed the same.
Given that kind of climate we’re living in, it comes as no surprise that a recent survey found that 70% of millennials are living paycheck to paycheck, with only an average of around $3,000 saved up for emergencies.
Given how expensive life can be these days, money doesn’t quite stretch as far as it used to. A six-figure salary is no longer what it used to be. In fact, earning $100,000 is now considered to be middle class – which is a range between the incomes of $48,500 to $145,500.
This survey, put out by PYMNTS, found that 53% of people who make between $50,000 and $100,000 are living paycheck to paycheck, with about 60% of millennials earning over $100,000 also living paycheck to paycheck.
It isn’t only millennials who are struggling. Apparently, the survey picked up that 40% of all high earners are living paycheck to paycheck. But the reason that millennials seem to be the ones most affected is because of different factors. As the survey found, on average, millennials owe about $80,000 in student loans alone – not factoring in rent or mortgage payments, bills, or supporting a child/children.
Additionally, there are also some millennials who are finding it hard to save for the future because they’ve been accustomed to a luxury lifestyle. These particular millennials have been dubbed HENRYs or High Earners Not Rich Yet. This is because as their paychecks increase, so does their cost of living, which doesn’t leave much room for saving.
The survey stated, “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.”
What do you think? Are you a millennial struggling paycheck to paycheck? Are you surprised that millennials are making six figures? Do you think the cost of living has gotten way too expensive? Let us know!